Bear of the Day: Perceptron (PRCP) – Bear of the Day

Zacks

The new Zacks Style Scores make it easy to uncover trading ideas to fit your particular investing style. All you need to do is look for Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks that have a style score of “A” or “B” in the style of your choice. Whether you’re investing for growth, value or momentum we’ve got you covered.

You also know which stocks to avoid. Already you’ve found the proven power of the Zacks Rank so you know to stay away from the Zacks Rank #5 (Strong Sell) stocks. Until their earnings picture turns around there are better opportunities to be had elsewhere. You can also incorporate the style scores here in order to find stocks you should avoid because they have style scores of “F.” In the case of today’s Bear of the Day, I’ve found a Zacks Rank #5 (Strong Sell) that has style scores of “F” across the board.

A part of the electric measuring instrument industry, Perceptron, Inc (PRCP) designs, manufactures and markets information based process measurement and guidance solutions which help customers improve performance. Perceptron's product offerings are designed to improve quality,increase productivity and decrease costs in the automotive and forest products workplace. Perceptron's design philosophy is to create systems which incorporate sophisticated proprietary software and hardware to minimize the need for customer application engineering.

Analysts have painted a grim picture of the current year for Perceptron. They have dropped their current year earnings estimates down from 26 cents to 2 cents. Last quarter’s earnings came in at a 17 cents per share loss versus expectations of an 18 per share loss, beating by a penny.

The revisions helped to derail a rally that took shares from $9 in December 2014 to over $14 in April. The bearish sentiment came in and devastated the stock. By late April, the CCI had turned from 200 to below -200 and the stocked dipped below the 21 day moving average. The stock hasn’t been able to turn around and get back on the bullish side of the average since then. Now it’s locked firmly in a bearish trend and closed out trading on Friday down at $11.02.

Investors looking to invest in stocks within the same industry have two other viable options. You can look at Zacks Rank #1 (Strong Buy) Orbotech (ORBK) as well as Zacks Rank #2 (Buy) stock Cascade Micro (CSCD).

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PERCEPTRON INC (PRCP): Free Stock Analysis Report

ORBOTECH LTD (ORBK): Free Stock Analysis Report

CASCADE MICRO (CSCD): Free Stock Analysis Report

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