CHICAGO, July 11, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Altera Corp. (Nasdaq: ALTR) as the Bull
of the Day and PetMed Express (Nasdaq: PETS) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis
Medtronic (NYSE: MDT), Boston Scientific Corporation
(NYSE: BSX) and St Jude Medical (NYSE: STJ).
(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:
Altera Corp. (Nasdaq: ALTR)
continues to post solid growth, and we believe this growth will be
sustainable in the long run. As expected, Altera faced a minor
inventory adjustment and a temporary slowdown in the wireless
segment during the first quarter. However, results topped our
expectations.
Earnings estimates for 2011 increased by $0.09 after the first quarter report. The
industry-leading 40-nanometer product execution and the company's
ongoing efforts to improve operating efficiency remain the keys to
long-term revenue growth.
We believe the company gained market share in 2010 from rival
Xilinx Corporation. We find the stock attractive at current levels
and, therefore, upgrade our recommendation to Outperform from
Neutral.
Bear of the Day:
PetMed Express (Nasdaq: PETS) reported a disappointing
quarter with EPS of $0.19, missing
the Zacks Consensus Estimate of $0.22
and the year-ago quarter's $0.27.
While new order sales declined on fewer new customers, revenues
increased 1.2% to $50.9 million.
Both gross and operating margins declined due to higher product
and advertising costs. This is a big blow for the company as it
depends heavily on advertising to expand its customer base.
Moreover, economic uncertainty is taking a toll on the company,
forcing consumers to switch to cheaper alternatives.
We do not expect the situation to improve significantly in the
near future. We maintain our Underperform recommendation on the
stock.
Latest Posts on the Zacks Analyst Blog:
Medtronic Expands Surgical Business
Leading medical devices player Medtronic (NYSE: MDT) has
taken the inorganic route to strengthen its presence in advanced
surgical devices. The company recently decided to acquire two
companies – Salient Surgical Technologies for $525 million and Peak Surgical for $120 million. Both the transactions are subject
to several approvals.
Salient Surgical deals with haemostatic sealing of soft tissue
and bone in a variety of surgical procedures including orthopedic
surgery, spine, open abdominal and thoracic procedures. Following
this deal, Medtronic's Surgical Technologies portfolio would
include Aquamantys system with Transcollation technology. Salient
records annualized revenue of about $100
million. Medtronic already holds an ownership stake in
Salient, excluding which the transaction value would be
approximately $480 million.
Peak Surgical specializes in surgical instruments based on its
PlasmaBlade technology. The Peak PlasmaBlade consists of disposable
cutting devices with insulation technology that provides accuracy
of scalpel and bleeding control with minimal thermal tissue damage.
The technology is approved for several applications – Ear, Nose and
Throat (ENT), plastic reconstructive, orthopaedic and general
surgery.
Peak Surgical's annualized revenue is $20
million. After taking into account Medtronic's current stake
in Peak Surgical, the transaction value comes to approximately
$105 million.
During the last reported quarter, revenues from Surgical
Technologies segment increased 9% to $298
million (7% at CER) driven by strong performances across the
portfolio of ENT, power systems and navigation product lines, as
well as balanced growth across capital equipment, disposables and
service.
Medtronic has been looking at diversifying its portfolio over
the past few quarters as its core segments – Cardiac Rhythm Disease
Management (CRDM) and Spinal have been witnessing several
challenges and lower revenues. However, the two recent acquisitions
are unlikely to have any significant impact on the top line in near
future as Surgical Technologies account for 7% of total sales. The
company also faces tough competition from players such as Boston
Scientific Corporation (NYSE: BSX) and St Jude Medical
(NYSE: STJ).
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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