CHICAGO, Feb. 24, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Nvidia Corp. (Nasdaq: NVDA) as the Bull
of the Day and Strayer Education (Nasdaq: STRA) as the Bear
of the Day. In addition, Zacks Equity Research provides analysis
JA Solar Holdings Co. Ltd. (Nasdaq: JASO), China
Sunergy Co. Ltd. (Nasdaq: CSUN) and Canadian Solar Inc.
(Nasdaq: CSIQ).
(Logo:
http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
Nvidia Corp. (Nasdaq: NVDA) is a worldwide leader in
visual computing technologies. The company reported decent
fourth-quarter numbers, but is optimistic about its long-term
growth with the gradual recovery in demand for graphic chips.
Moreover, the company rolled out the first quad-core mobile
processor. The company also received $1.5
billion in a licensing agreement with Intel Corp. that spans
for six years.
The stock has traded in a trailing twelve month P/E of 36.3x,
and going forward we expect it to trade around this multiple. We
upgrade NVDA to Outperform and set a price target of $28.00, representing a P/E of 27.1x our 2012 EPS
estimate.
Bear of the Day:
Although Strayer Education (Nasdaq: STRA) posted
better-than-expected fourth-quarter 2010 results, enrollments
continue to fall. We observe that the growth in enrollments has
decelerated sequentially.
After increasing 11% in the third quarter of 2010, the rate of
growth in campus-based students dropped to 4% in the fourth
quarter. Moreover, the rate growth in online students falls to 10%,
following an 18% increase in the previous quarter. The company also
informed that new student enrollment dropped 20% during the
quarter.
The current potential risk looming over the education sector is
the regulation proposed by the Department of Education creating an
uncertainty over student enrollment trends. Currently, we maintain
our Underperform recommendation on the stock.
Latest Posts on the Zacks Analyst Blog:
Strong Showing from JA Solar
JA Solar Holdings Co. Ltd. (Nasdaq: JASO) announced
adjusted earnings per American Depositary Share (EPADS) of
54 cents in its fourth quarter, which
beat the Zacks Consensus Estimate of 47
cents. Results also comfortably beat the year-ago adjusted
earnings per ADS of 14 cents.
Outlook
JA Solar expects its cell and module shipments to exceed 2.2GW
in fiscal 2011, representing an increase of approximately 50%
versus fiscal 2010. Module shipments are expected to be in the
range of 500MW–600MW.
Our Take
JA Solar is one of the most cost-efficient solar producers in
the world, with a geographically diverse customer base as well as
silicon wafer supply agreements in place to feed its production.
Positive factors include ongoing expansion programs, improving
operating efficiencies, rising margins and higher conversion
efficiency.
JA Solar is steadily expanding its customer base worldwide, with
strong growth in several geographic end markets including, U.S.,
Canada, Italy, Japan,
Australia, China and India. The company had already signed supply
agreements with multiple customers to meet 2011 product demand that
exceeds 2 GW, and has received prepayments associated with these
supply agreements, further improving its future order
visibility.
We currently have a long-term Neutral recommendation on the JA
Solar stock. In the near-term however apprehensions over the tepid
module demand in Europe, rising
competition, wafer dependency, the financial stability of its
customers and the oversupply of solar cells in the market will
restrain the valuation of the company.
Thus for the short-term in line with its peers like China
Sunergy Co. Ltd. (Nasdaq: CSUN) and Canadian Solar Inc.
(Nasdaq: CSIQ); we assign a Zacks #4 Rank, (Sell rating) on the
stock.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
stocks that are likely to outperform (Bull) or underperform (Bear)
the markets over the next 3-6 months.
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Updated throughout every trading day, the Analyst Blog provides
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