For Immediate Release
Chicago, IL – May 29, 2012 – Zacks
Equity Research highlights Apple Inc. (AAPL)
as the Bull of the Day and Vale S.A. - ADR
(VALE) as the Bear of the Day. In addition, Zacks Equity
Research provides analysis on General Motors
Company (GM), Ford Motor Co. (F) and
Toyota Motor Corp. (TM).
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:
Apple Inc. (AAPL)
reported an outstanding second quarter, with its earnings per share
comprehensively beating the Zacks Consensus Estimate by $2.27. We
think management guidance was conservative as usual and believe
Apple remains the biggest growth story based on its superior
product pipeline, apps, iCloud, Apple TV, loyal customer base and
international growth opportunities.
However, Apple's ability to spur
the popularity of its products in developing nations, where pricing
is often an important consideration, will largely influence the
company's future growth. Also, stiff competition from Samsung, HTC
and Google; saturation in its major markets and increasing legal
complexities remain concerns.
We maintain our Outperform rating
and set a price target of $685.00. This is based on 14.6X 2012 EPS;
currently, AAPL shares are trading at 13.9x 2012 earnings.
Bear of the Day:
We downgrade our recommendation on
Vale S.A. - ADR (VALE) from Neutral to
Underperform. We are concerned about the current global instability
and a slower-than-expected worldwide growth rate which has been
constantly raising concern for miners, including Vale. On the
operational side, resource nationalism, political uncertainty and
natural disasters continue to impede efficiency.
In addition, rising energy prices,
currency fluctuations and huge mining taxes may compress margins in
the coming quarters. Vale recorded an EPADS of $0.74 in first
quarter 2012, drastically down from $1.29 in the year-ago
quarter.
Vale ADR has a trailing 12-month
earnings multiple of 4.8x compared with 5.9x for the peer group and
13.7x for the S&P 500. We expect Vale ADR to trade at a P/E of
4.8x EPADR 2012, to arrive at the target price of $17.00.
Latest Posts on the Zacks Analyst
Blog:
GM to Boost
Headcount
General Motors
Company (GM) is reportedly enlarging its workforce in the
Detroit-Hamtramck assembly plant by adding 200 new workers. The
decision comes in the wake of rising demand prior to the beginning
of the production of 2013 Chevrolet Malibu.
Currently, the assembly plant
employs about 1,350 people. Around 1,200 employees work on hourly
basis and the remaining 150 are General Motors’ salaried employees.
The plant at present operates on a shift basis which entails
working for ten hours per day and four days per week.
The Detroit-Hamtramck factory
products include Chevrolet Volt, Opel Ampera and Chevrolet Malibu
(to be launched in 2013). The plant will also build the new 2014
Chevrolet Impala. The company has invested $336 million for
Chevrolet Volt and Opel Ampera, roughly $121 million for Chevrolet
Malibu and $69 million for Chevrolet Impala.
Like General Motors, Chrysler is
also providing job opportunities in Detroit. Its Jefferson North
Assembly Plantmainly produces Jeep Grand Cherokee. The company, in
order to increase the production, would add a third shift to the
assembly.
Chrysler announced in December 2011
that it will reopen the Conner Avenue Assembly Plant in Detroit for
the production of the next-generation SRT Viper. With this, the
company will be providing job opportunities for 1,250 workers, both
salaried and hourly workers.
Detroit, Michigan-based General
Motors Company is a leading global automotive company. The company
along with its strategic partners, produces, sells and services
cars, trucks and parts under four core brands –Chevrolet, Buick,
GMC and Cadillac. It also assembles passenger cars, crossover
vehicles, light trucks, sport utility vehicles, vans and other
vehicles. The company’s major competitors are Ford Motor
Co. (F) and Toyota Motor Corp. (TM).
General Motors currently retains a
Zacks #3 Rank, which translates into a short-term (1 to 3 months)
Hold rating. The company has growth opportunities from the emerging
markets. Sales will also be boosted by the rising demand in the
industry and diversified lineups.
However, high debt level and the
Euro zone crisis have weighed on General Motors. Taking these
factors into account, we currently have a long-term (more than 6
months) Neutral recommendation on the stock.
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
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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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APPLE INC (AAPL): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
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