CHICAGO, March 10, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Pixelworks, Inc. (Nasdaq:PXLW-Free Report), Apple Inc. (Nasdaq:AAPL-Free Report), Google (Nasdaq:GOOG-Free Report), China Mobile (NYSE:CHL-Free Report) and Duke Energy Corp. (NYSE:DUK-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Pixelworks Soars on Apple Relationship
Shares of Pixelworks, Inc. (Nasdaq:PXLW-Free Report) soared 87.5% ($4.20) to $9.00 on Mar 6, 2014, after it announced that Apple Inc. (Nasdaq:AAPL-Free Report) accounted for more than 10.0% of its revenues in 2013. Pixelworks earned revenues of $48.1 million in 2013.
Pixelworks' solutions are used for processing high-end digital video applications. Its technology solves judder and motion blur problem and also reduces halo effects on any screen. Pixelworks' solutions help in converting low resolution content to high resolution display and also deliver high-quality mobile video on networked screens.
Although it is not exactly clear what Pixelworks is supplying to Apple, the revelation has started a strong rumor-mill about the iPhone makers' next innovative device. It is a well-known fact that Apple is developing wearable devices, which, according to its Chief Executive Officer (CEO) Tim Cook, is an interesting market.
In an interview at All Things D's D11 Conference, CEO Cook had specified that Apple TV continues to hold great importance for the company. The growing relationship with Pixelworks suggests that Apple could use its technology in overhauling the long awaited iTV. Apple can also use it in building high-resolution screens for mobile and wearable devices.
Nonetheless, we believe this is an important relationship for both Pixelworks and Apple. The association will not only drive Pixelworks' top line but also improve its competitive position. We also believe that Pixelworks can be a prospective acquisition candidate for Apple.
Apple has a habit of grabbing small companies and start-ups, whose technology boosts and extends its eco-system. In this regard, Pixelworks is a perfect fit as it will boost Apple's footprint in the smart television market, where Samsung has a predominant presence.
Apple continues to lose market share against Google's (Nasdaq:GOOG-Free Report) Android operating system and handset maker, Samsung. Tim Cook also admitted that iPhone sales in North America were stalled in the first quarter, which is a major concern.
Although the distribution partnership with China Mobile (NYSE:CHL-Free Report) and partnerships with 50 new carriers are positive for overall sales, sluggish North American business will negatively impact gross margins. Moreover, lack of a new innovative product continues to remain an overhang on the stock.
Currently, Pixelworks has a Zacks Rank #4 (Sell). We believe the revelation of the Apple relationship will significantly improve analyst estimates for Pixelworks in the near term, which should boost its Zacks Rank.
Apple has a Zacks Rank #3 (Hold).
Duke Buys Aussie Solar Projects
Duke Energy Renewables, a business division of the largest U.S. utility, Duke Energy Corp. (NYSE:DUK-Free Report), entered into an agreement with an Australian renewable energy firm Infigen Energy under which it acquired two California solar projects from the latter. The financial terms of the transaction were not disclosed.
Located near Bakersfield in Kern County, the two projects – Pumpjack and Wildwood – are due to begin construction in 2014. The solar energy generated from the two projects will be sold through 20-year power purchase agreements to Southern California Edison.
The acquisition will more than double Duke Energy's solar power capacity in California. Once online, the company's total solar capacity in the U.S. will climb to 185 megawatt (MW) from 23 utility scale facilities.
The currently favorable renewable climate in the U.S., particularly on the back of favorable legislation, is prompting diversified utilities like Duke Energy to expand their clean energy asset basket. The company is strategically streamlining its portfolio to strengthen its renewable capacity.
Last year, Duke Energy Renewables built the 21 MW Highlander Solar Power Project in Twentynine Palms. It also took over the 4.5 MW Sunset Reservoir project in San Francisco. Again, in 2011, INDU – a joint venture of Duke Energy Renewables and Integrys Energy – built eight 1 MW rooftop solar projects in southern California.
We believe Duke Energy's green energy expansion efforts will yield lucrative returns in the coming years given the aggressive pro-environment stance in the U.S.
Recently, Duke Energy reported better-than-expected fourth quarter 2013 earnings, which also improved from the year-ago number by 42.9%. The strong performance mainly reflects lower costs from synergies from the 2012 merger with Progress Energy, along with recovered infrastructure modernization costs through revised customer rates. The company also benefited from the adoption of nuclear outage cost levelization in the Carolinas.
Duke Energy's acquisition of fellow North Carolina based utility, Progress Energy Inc., spread the new entity's stable U.S. electricity and gas operations to over 7.1 million electric customers in Carolinas, Florida, Indiana, Kentucky and Ohio.
Recently, Duke Energy announced its plan to divest its stake in 13 power plants in the nation's Midwest after Ohio regulators denied its request to raise rates. The plants together have a capacity of 6,600 MW.
Duke Energy presently carries a Zacks Rank #3 (Hold).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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