Zacks Bull & Bear of the Day Highlights: Lincoln Electric, China Life Insurance, DirecTV, Electronic Arts & Wynn Resorts - Pr..
May 09 2012 - 4:30AM
Zacks
For Immediate Release
Chicago, IL – May 9, 2012 – Zacks
Equity Research highlights Lincoln Electric
Holdings (LECO) as the Bull of the Day and China
Life Insurance - ADR (LFC) as the Bear of the Day.
In addition, Zacks Equity Research provides analysis on
DirecTV (DTV), Electronic Arts
(EA) and Wynn Resorts (WYNN).
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:
Lincoln Electric
Holdings (LECO) reported fiscal 2012 first quarter
adjusted EPS of $0.76, versus $0.50 in the year-earlier quarter.
Total revenue increased 21% year over year to a record $727
million. Both outperformed the respective Zacks Consensus
Estimates.
Lincoln Electric continues to focus
on its growth strategies, which include acquisitions and new
product introductions. Allied with its aim of turning
cost-competitive, Lincoln Electric is implementing various
cost-control measures. We believe that the company will post strong
growth on the heels of an economic recovery and investments in the
emerging markets.
We reiterate our Outperform
recommendation with a target price of $58.00. Our long-term
Outperform recommendation on the stock indicates that it will
perform above the overall market. Our $58.00 target price, 18.0x
our 2012 EPS estimate, reflects this view.
Bear of the Day:
We are downgrading our
recommendation on China Life Insurance - ADR (LFC)
to Underperform from Neutral due to the lack of any significant
growth catalyst amid the prevailing interest rate, market and
currency risks. China Life's full-year 2011 earnings declined
steeply from the prior year, due to low premium income and
increased impairment losses.
Operating cash flow also declined
substantially due to increased claim expenses and adverse changes
in the fair values of securities. Despite a strong brand name,
significant competition on the domestic front limits earnings
growth. Though an extensive domestic distribution channel, strong
balance sheet and stable ratings augur strength, we expect limited
upside in the near term.
Our six-month target price of
$36.00 equates to 25.9x our earnings estimate for 2012. Combined
with the $0.81 per ADR annual dividend, this target price implies
an expected total return of a negative 8.7% over that period.
Latest Posts on the Zacks Analyst
Blog:
Can’t Cut Through the
Greece
The focus following the European
elections over the weekend was on France. But it seems like the
bigger elections-related story is Greece, where an unclear mandate
is leaving heightening concerns about its recently agreed bailout.
The markets appear to be willing to give the new socialist French
president the benefit of the doubt, but Greece seems again to be
moving to center stage for all the wrong reasons.
A non-partisan and technocratic government in Greece agreed to the
terms of a fresh bailout, which was to be implemented by a new
government elected through parliamentary elections last weekend.
But the election has failed to clear the air by giving a fractured
mandate.
With the mainstream parties unable to put together a viable
coalition, it is now up to the more extremist parties to try
forming the government. These parties were able to increase their
standing with the Greek electorate by opposing the new bailout and
the associated austerity measures.
Greece is ground zero of the Euro-zone debt crisis, and these
political developments appear on track to keep the country on the
spot. With a major part of the new parliament opposed to the harsh
new austerity measures that the interim technocratic government
agreed to as the price of a fresh bailout, the new elections have
raised rather answered any questions.
Not only is the status of that bailout in doubt now, but so is the
country’s position within the Euro-zone. In a best-case scenario,
the country goes back to the polls next month, hoping for a more
decisive mandate. Either way, Greece is again in the eye of the
storm.
It is fairly quiet on the home front, with nothing major on the
economic calendar. On the earnings front, DirecTV
(DTV) missed expectations of subscriber additions, but its top-line
was barely below consensus. And we got weaker-than-expected results
from Electronic Arts (EA) and Wynn
Resorts (WYNN) after the close on Monday.
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.
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DIRECTV (DTV): Free Stock Analysis Report
ELECTR ARTS INC (EA): Free Stock Analysis Report
LINCOLN ELECTRC (LECO): Free Stock Analysis Report
CHINA LIFE INS (LFC): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis Report
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