CHICAGO, March 7, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Caterpillar Inc. (NYSE: CAT) as the
Bull of the Day and Sara Lee Corp. (NYSE: SLE) as the Bear
of the Day. In addition, Zacks Equity Research provides analysis
Hologic (Nasdaq: HOLX), McDonalds (NYSE: MCD) and
Abercrombie & Fitch (NYSE: ANF).
(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:
Caterpillar Inc.'s (NYSE: CAT) strong brand name, pricing
power and global dealer network enable it to take advantage of the
growing need for infrastructure development worldwide.
Caterpillar's plans of opening new facilities and expanding
existing operations, particularly in the emerging markets, will
boost its long-term potential.
The Bucyrus acquisition will position Caterpillar as the #1
mining equipment manufacturer in the U.S. The company s fiscal 2010
adjusted EPS almost doubled to $4.15
and revenues jumped 31% to $42.6
billion, driven by an ever-increasing demand for mining and
construction equipment. The sales momentum was also maintained in
its January results, giving 2011 a good start.
We have thus upgraded our rating from Neutral to Outperform as
Caterpillar's estimates are undergoing positive revisions following
the earnings release with a target price of $122.
Bear of the Day:
Sara Lee Corp. (NYSE: SLE) a global manufacturer as well
as marketer of high-quality brand products and possesses a
formidable portfolio of well-established brands. However, as the
company uses different commodities and raw materials, cost-push
inflation remains a key risk factor.
Further, with the intense competition prevailing in the branded
food market, Sara Lee is constantly
under pressure to maintain its position. In addition, after the
resignation of Sara Lee's Chairman
and Chief Executive Officer Brenda
Barnes and the divestiture of its North American bakery
business, there are big questions going forward.
Sara Lee is considering a
sell-off itself to JBS, a Brazilian company. We currently downgrade
the shares of Sara Lee from Neutral
to Underperform.
Latest Posts on the Zacks Analyst Blog:
Hologic In for Some Major Publicity
Hologic (Nasdaq: HOLX), a leading player in meeting the
healthcare needs of women, has taken a step forward for promoting
several new and innovative breast health and medical imaging
products. It is participating in the 21st Annual National
Interdisciplinary Breast Center Conference (NCBC), Las Vegas, during 12th to 16th March 2011 with its Selenia Dimension's
next-generation 3D digital mammography system which has received
approval from the US Food and Drug Administration (FDA) in
February 2011.
Also the company will exhibit some new and improved technologies
in imaging like Affirm upright breast biopsy guidance system,
ImageChecker 3D Calc computer-aided detection and MultiCare
Platinum breast biopsy table. Moreover, with Hologic's acquisition
of Canada-based Sentinelle Medical
in August 2010, a leading provider of
magnetic resonance imaging (MRI) breast coils, tables and
visualization software, the company will be able to demonstrate a
range of MRI tools in NCBC.
Hologic operates through four segments – Breast Health,
Diagnostics, GYN (Gynecology) Surgical and Skeletal Health. The
breast health being the largest segment (contributing 45% of
Hologic's total revenue with a growth of 9% year over year during
the last reported quarter) provides a complete Mammography
suite.
Jobs Report in Depth, pt. 2
In the overall big picture, men have fared far worse than women
in this downturn. There are two possible reasons for that. The
first is that the industries that have been particularly hard hit
in this downturn tend to be far more male dominated than the
industries that have skated though this recession more or less
unscathed. The most glaring example of this would be the
construction industry versus the health care industry (more on the
industry breakdowns below).
The second explanation is that on average, women tend to still
be paid far less than men, and employers might be more prone to let
their relatively high priced male employees go first before their
cheaper female employees. The industry effect is probably the
bigger one, but the two are not mutually exclusive and both might
be playing a role. The more recent weaker performance for women
might also have to do with the industry mix. Women dominate
teaching, particularly at the elementary school level. As we have
seen in Wisconsin, teachers are on
the firing line right now.
Teens, regardless of gender, have had a very hard time of it in
this recession. Just go to a McDonalds (NYSE: MCD) and you
will see this for yourself. Normally the blemishes you see on the
cashier's face is acne, not wrinkles as is the case now. We saw a
bit of improvement in February as the teen unemployment rate fell
to 23.9% from 25.7% in January, and is down from 25.0% a year ago.
The improvement, both from last month and from a year ago, is
mostly an illusion.
The improvement is due to a falling participation rate, which
dropped to 33.5% from 34.6% in January, and 35.1% a year ago. The
percentage of teens that actually have a job was just 25.5%, down
from 25.7% in January and 26.3% a year ago. While, for the most
part, the earnings from teen jobs tend to go towards clothes from
Abercrombie & Fitch (NYSE: ANF) and other teen clothing
stores, for many it is a significant part of paying for college.
Also, when teens work they learn important job skills, such as the
importance of actually showing up and doing so on time. The
extremely low levels of teens working is not a good sign for the
future.
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 in mathematics 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/ZacksInvestmentResearch
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.
Contacts:
|
|
Mark Vickery
|
|
312-265-9380
|
|
Visit: www.zacks.com
|
|
|
SOURCE Zacks Investment Research, Inc.