CHICAGO, July 29, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Fastenal Co. (Nasdaq: FAST) as the Bull
of the Day and Morgan Stanley (NYSE: MS) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis The
Medicines Company (Nasdaq: MDCO), Biogen Idec Inc.
(Nasdaq: BIIB) and Pfizer (NYSE: PFE).
(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:
Fastenal Co. (Nasdaq: FAST) is one of the leading
distributors of industrial and construction supplies and fasteners.
It has a diversified customer base that helps it retain its market
position even during the toughest times. Moreover, the hub and
spoke model employed to improve the level of customer services will
also increase customer satisfaction and benefit its business going
forward.
In addition, Fastenal is focused on expanding its product
portfolio. Furthermore, the company's collaborative efforts to work
with state governments will strengthen its position in the local
market.
Earnings in the most recent quarter marginally exceeded the
Zacks Consensus Estimate by $0.01 per
share. Given these conditions, we have upgraded our recommendation
on shares of Fastenal to Outperform from Neutral and set a target
price of $41.
Bear of the Day:
We are downgrading our recommendation on Morgan Stanley
(NYSE: MS) to Underperform on its weak second quarter results,
lower possibility of capital deployment and the expected adverse
impact of regulatory restrictions. The MUFG preferred stock
conversion resulted in a substantial loss during the quarter,
though it enhanced the company's capital cushion.
Moreover, higher interest and non-interest expenses were among
the negatives in the earnings report. There are also concerns
related to the company's financials being marred by new regulatory
restrictions and intense pricing competition.
Our six-month target price of $20.00 equates to about 17.7x our earnings
estimate for 2011. Combined with the $0.20 per share annual dividend, this price
target implies an expected negative total return of 10.8% over that
period, which is consistent with our Underperform
recommendation.
Latest Posts on the Zacks Analyst Blog:
Medicines Co. Profits Down
The Medicines Company (Nasdaq: MDCO) reported
second-quarter earnings of 18 cents
per share, including the impact of stock-based compensation
expense. Second-quarter earnings were well below the year-ago
earnings of 31 cents. The Zacks
Consensus Estimate for the second quarter of 2011 was 20 cents.
Despite an increase in revenues, higher expenses led to the
decline in earnings. Revenues, up 8.6% at $119.6 million, were just above the Zacks
Consensus Estimate of $118
million.
The Quarter in Detail
Angiomax US sales increased 7% to $112
million during the second quarter. Ex-US sales increased 27%
to $7.3 million.
The National Institute for Health and Clinical Excellence (NICE)
in the UK recently announced that Angiox (ex-US trade name of
Angiomax) is economically dominant (less costly and more effective
than currently available therapies) for heart attack patients. This
should help increase Angiox' share in the UK market.
Moreover, Angiox ("Angiomax" trade name in Europe) has a Class I recommendation from the
European Society of Cardiology for heart attack patients undergoing
percutaneous coronary intervention (PCI).
Angiomax, acquired from Biogen Idec Inc. (Nasdaq: BIIB),
is the lead product at The Medicines Company. Acquired in 1996,
Angiomax is used as an anticoagulant in patients undergoing
coronary angioplasty.
Meanwhile, Cleviprex (clevidipine) is the only other
FDA-approved drug at The Medicines Company. The company had
initiated a voluntary recall of Cleviprex in December 2009 due to the presence of visible
particulate matter in some vials.
The Medicines Company has resumed shipping Cleviprex to select
customers. The first phase involves shipment to 100 leading
hospitals with the full re-launch scheduled to take place in the
second half of 2011.
Going forward, The Medicines Company intends to focus on neuro
critical care and surgical procedures in the cardiac area where
blood pressure control is very critical. The company has also been
working on a new formulation of Cleviprex and expects a regulatory
update on the same in the third quarter of 2011.
R&D spend increased 28.9% to $26.5
million mainly due to ongoing phase III studies with two
candidates -- Cangrelor and oritavancin. SG&A expenses
increased 5.1% to $41.4 million.
Backs Guidance
The Medicines Company maintained its guidance for 2011. The
company expects revenues to grow 6-9% in 2011.
Pipeline Update
The Medicines Company also provided an update on its pipeline
candidates. The company continued enrolling patients for its phase
III studies with Cangrelor and oritavancin. Results from the BRIDGE
study being conducted with Cangrelor should be available by year
end.
Oritavancin is in a phase III program, SOLO, for the treatment
of acute bacterial skin and skin structure infections (ABSSI).
Results will be out in 2012. Positive results would allow The
Medicines Company to file for US approval in 2012.
Meanwhile, The Medicines Company is hoping to gain approval for
its ready-to-use formulation of Argatroban in the third quarter of
2011.
The Medicines Company's early-stage candidates include MDCO-216
and MDCO-2010. The company acquired worldwide rights to MDCO-216
from Pfizer (NYSE: PFE).
MDCO-216 is a naturally occurring variant of a protein that
could be used to reverse the development of arterial plaque
development and reduce the risk of heart problems in patients with
acute coronary syndrome (ACS).
If developed successfully, MDCO-216 should fit well within The
Medicines Company's product portfolio. Phase I studies with the
candidate are scheduled to commence later this year.
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.