CHICAGO, April 4, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Accuray Inc. (Nasdaq: ARAY) as the Bull
of the Day and Everest Re (NYSE: RE) the Bear of the Day. In
addition, Zacks Equity Research provides analysis on
McDonald's (NYSE: MCD), Abercrombie & Fitch
(NYSE: ANF) and Manpower Inc. (NYSE: MAN).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
View Full analysis of all these stocks
Here is a synopsis of all five stocks:
Bull of the Day:
We upgrade our recommendation on Accuray Inc. (Nasdaq:
ARAY) to Outperform following our assessment of its healthy
second-quarter fiscal 2011 results and increased visibility on the
stock. Earnings per share of $0.07
comfortably beat the Zacks Consensus Estimate of a loss of
$0.02.
The company swung to profit in the quarter as a decline in
operating expenses offset lower revenues. Accuray continues to
enjoy strong demand for its CyberKnife robotic radiosurgery as
reflected by increasing number of patients treated with the
system.
Moreover, the company is expected to benefit from the recent
recovery in hospital capital spending. We are also upbeat about the
compelling prospect in
radiation oncology rendered by the company's impending
acquisition of rival TomoTherapy.
Bear of the Day:
We are downgrading our recommendation on shares of Everest
Re (NYSE: RE) as we believe that its top-line growth will
remain somewhat restricted due to the expected decline in the
casualty line as a result of tough market conditions. Additionally,
the potential for future reserve additions remains a challenge.
Everest estimates its first quarter 2011 pre-tax losses to range
between $140 million and $210
million, owing to the deadly February
2011 New Zealand earthquake. The Australian floods will
likely cause a gross loss of another $45
million to Everest Re, which writes 7% of its Reinsurance
business in the Asia/Australia region.
While the company expects its property line to post growth, the
casualty line is expected to continue to decline due to the ongoing
tough market conditions. The extent of increased competition and
its effect on rates, terms and conditions varies widely by market
and coverage, but are most prevalent in the U.S. casualty insurance
and reinsurance markets.
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Jobs Report, In-Depth
Teens, regardless of gender, have had a very hard time of it in
this recession. Just go to a McDonald's (NYSE: MCD) and you
will see this for yourself. Normally the blemishes you see on the
cashier's face is acne, not wrinkles and age spots as is the case
now.
Things got even worse for teens in March. The teen unemployment
rate rose to 24.5% from 23.9% in February, but is down from 26.0% a
year ago. Things are not quite as bad is they sound (and yes, they
are a disaster, but the monthly changes were not quite as bad as a
0.6% increase would indicate). The participation rate rose to 34.1%
from 33.5% in February, but is still well below the 35.8% rate a
year ago.
The percentage of teens that actually have a job rose to 25.8%
from 25.5% in February, but this is down from 26.5% 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.
Manpower Steady at Neutral
Manpower Inc.'s (NYSE: MAN) comprehensive range of
services makes it a truly global staffing firm. The company
provides services for the entire employment and business cycle,
including permanent, temporary and contract recruitment, employee
assessment and selection, training, outplacement, outsourcing and
consulting.
The company's brand value and strong global network provide a
competitive advantage to the company and reinforce its dominant
position in the market. Manpower leverages a strong network of
about 4,000 offices spanning 82 countries and serving approximately
400,000 clients. The company benefits from growth prospects in
under-penetrated staffing markets.
Manpower posted better-than-expected fourth-quarter 2010 results
that topped the Zacks Consensus Estimate on the heels of
revenue growth across all geographies. Europe performed remarkably well. The
quarterly earnings of 66 cents per
share outpaced the Zacks Consensus Estimate of 61 cents and rose 40.4% from 47 cents in the prior-year quarter.
Manpower now expects first-quarter 2011 earnings in the range of
26 cents to 34 cents a share.
Get the full analysis of all these stocks
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