CHICAGO, Sept. 22, 2011 /PRNewswire/ -- Zacks Equity
Research highlights ONEOK Partners LP (NYSE: OKS) as the
Bull of the Day and Amerisafe, Inc. (Nasdaq: AMSF) as the
Bear of the Day. In addition, Zacks Equity Research provides
analysis Tyco International Ltd. (NYSE: TYC), General
Electric Co. (NYSE: GE) and United Technologies Corp.
(NYSE: UTX).
(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:
Second-quarter results for ONEOK Partners LP (NYSE: OKS)
surpassed Zacks Consensus Estimates and beat year-over-year
comparisons. OKS' distinct competitive advantages include its scale
and financial strength, its broad array of services, supply
diversity, excellent market connectivity and low operating
costs.
Despite completing a 2-for-1 stock split, we see the partnership
as having good potential to maintain a solid balance sheet and
investment-grade ratings, while also growing its earnings. Plus,
the partnership's growing quarterly distributions (current 5.5%
annual yield), driven by the growth of its existing businesses and
strategic acquisitions, make it an attractive investment.
We upgrade our recommendation on ONEOK Partners to Outperform.
Units of ONEOK Partners are presently trading at 18.1x trailing
12-month EPU, compared to the 31.4x average for the peer group. The
trailing 12-month EV/EBITDA multiple is below the industry average.
Our target price of $51.00 is based
on a P/E multiple of 20.3.
Bear of the Day:
Amerisafe, Inc.'s (Nasdaq: AMSF) second-quarter earnings
lagged the Zacks Consensus Estimate substantially, due to high
underwriting loss and reduced investment income coupled with higher
expenses, which significantly deteriorated the combined ratio,
operating cash flow and ROE.
The top-line growth was only cushioned by higher premiums
written and earned as other revenue sources failed to showcase
growth. Though the pricing environment has witnessed some
improvement, the company is expected to face uncertainty for the
next few quarters as the market weakness continues to hurt
payrolls.
Our six-month target price of $18.00 per share equates to about 14.6x our
earnings estimate for 2011. With no dividend supplement, this
target price implies a total expected negative return of 7.8% over
that period, which is consistent with our Underperform
recommendation.
Latest Posts on the Zacks Analyst Blog:
Tyco to Split Three Ways
Tyco International Ltd. (NYSE: TYC) announced its plans
to break out into three separate companies. The plan has received
the unanimous approval of Tyco's Board of Directors. The trio to be
formed out of Tyco include the ADT North America residential
security business, low control products and services business and
commercial fire and security business. Each company will have an
independent existence and will be publicly traded.
Tyco believes the restructuring will enable each stand-alone
unit to re-focus more fully on its core business and provide
improved services to its customers. The three companies will enjoy
leading positions in the markets served by them, thus creating
significant value for shareholders.
The transaction is expected to be completed in approximately 12
months, subject to certain conditions including shareholder
consent. The company estimates a one-time transaction cost of
approximately $700 million,
consisting of debt refinancing, separation and restructuring costs.
As per the plan put forward, the ADT North America residential
business is to be incorporated in the
United States, while the flow control business will be
incorporated outside the U.S. The commercial fire and security
business will continue to be incorporated in Switzerland.
If carried through, this will be the second split for Tyco. On
June 29, 2007, Tyco completed the spin-offs of Covidien and
Tyco Electronics, formerly its Healthcare and Electronics
businesses, respectively, into separate, public companies, in the
form of a distribution to Tyco shareholders. Effective
March 17, 2009, the company discontinued its existence as a
Bermuda corporation and remains
till date a Swiss-domiciled entity. Major competitors of Tyco
are General Electric Co. (NYSE: GE) and United Technologies
Corp. (NYSE: UTX).
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.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides
analysis from Zacks Equity Research about the latest news and
events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and
qualitative analysis to help investors know what stocks to buy and
which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150
publicly traded stocks. Our analysts are organized by industry
which gives them keen insights to developments that affect company
profits and stock performance. Recommendations and target prices
are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=7158.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard
Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results.
Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow
of Profitable ideas GUARANTEED to be worth your time! Register for
your free subscription to Profit from the Pros at
http://at.zacks.com/?id=4582.
Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.