CHICAGO, Aug. 11, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Wyndham Worldwide's (NYSE: WYN) as the
Bull of the Day and Archer Daniels Midland (NYSE: ADM) as
the Bear of the Day. In addition, Zacks Equity Research provides
analysis Sunoco Inc. (NYSE: SUN), Sunoco Logistics
Partners L.P. (NYSE: SXL) and SunCoke Energy Inc (NYSE:
SXC).
(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:
Wyndham Worldwide's (NYSE: WYN) second quarter 2011
earnings were ahead of the Zacks Consensus Estimate, primarily due
to strong operational performance at each of its three businesses,
sound expense management and continued share repurchases. Going
forward, we expect Wyndham to benefit from its repositioning to a
more fee-for-service-based business, and its strategic focus on
Vacation Exchange.
Wyndham is also experiencing a recovery in its lodging business
with a surge in leisure demands. Wyndham remains committed to
enhancing shareholder value and expanding through acquisitions,
given the robust free cash-flow generation by the company.
Moreover, the company is strengthening its presence
internationally, particularly in Europe and Asian markets like China and India. The company also raised its outlook for
2011. Hence, we maintain an Outperform rating on the stock.
Bear of the Day:
We recently downgraded our recommendation on Archer Daniels
Midland (NYSE: ADM) to Underperform following a lower-than-
expected fourth-quarter 2011 results. ADM's quarterly earnings of
$0.58 per share missed the Zacks
Consensus Estimate of $0.84 and
dropped almost 16% from the prior-year quarter, primarily due to a
higher income tax rate.
Although, ADM is expanding its global footprint into key
agriculture regions through acquisitions and joint ventures, the
resourcing of commodities and stringent external finance may pose a
threat to its operating performance. Moreover, intense competition
and adverse currency fluctuations may undermine the company's
long-term initiatives and dampen the financials of the company.
Our long-term Underperform recommendation on the stock indicates
that it would perform below the broader market. Our target price of
$25.00, 7.8x 2012 EPS, reflects this
view.
Latest Posts on the Zacks Analyst Blog:
Sunoco Plans $500M Share
Buyback
Oil refiner and marketer Sunoco Inc. (NYSE: SUN)
announced plans to buy back up to $500
million of its common stock, joining many others who are
returning cash to shareholders.
Sunoco – the general partner and 34% stakeholder in crude oil
pipelines/terminals operator Sunoco Logistics Partners L.P.
(NYSE: SXL) – says the value of its stock is significantly
undervalued in view of the recent market downturn. As a result, the
company's board has approved a share repurchase program pursuant to
an existing authorization.
According to Sunoco, the buyback plan highlights the downstream
operator's commitment to create value for shareholders, while still
allowing the flexibility to continue pursuing growth in its retail
and logistics businesses.
As at the end of the second quarter, Sunoco had about 121.6
million shares outstanding. A share repurchase at the company would
lead to lower number of outstanding shares, escalating its earnings
per share ratio, even if profits remain the same.
Sunoco reported last week that its second quarter earnings per
share (excluding special items) of 40
cents missed the Zacks Consensus Estimate of 49 cents and deteriorated 69.5% from the
prior-year adjusted earnings of $1.31. Quarterly revenue came in at $12.02 billion compared with $9.59 billion in the prior-year quarter and was
37.4% above our projection.
Philadelphia,
Pennsylvania-based Sunoco is a leading independent refiner
and marketer of petroleum products. The company is also a major
chemicals manufacturer and has interests in logistics and
cokemaking facilities.
Its operations include two refineries having a combined capacity
of 505,000 barrels per day. Sunoco's retail marketing operations
include more than 4,900 retail sites in 24 states, primarily in the
East Coast and Midwest regions of the country.
Sunoco – which has an 81% ownership interest in metallurgical
coke manufacturing firm SunCoke Energy Inc (NYSE: SXC) –
currently retain a Zacks #3 Rank, which translates into a
short-term Hold rating.
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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