Zacks Equity Research highlights Vimpelcom (NYSE: VIP) as the Bull of the Day and Sony Corporation (NYSE: SNE) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Durect Corporation (Nasdaq: DRRX), Southern Copper (NYSE: PCU) and PACCAR, Inc. (Nasdaq: PCAR) . Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day: Vimpelcom (NYSE: VIP)
Vimpelcom is the second largest cellular carrier in Russia. The company maintains approximately 30% market share in Russia (which is rapidly maturing) with expansion into regions of the Commonwealth of Independent States operating GSM-based wireless technology. Robust subscriber growth and recent acquisitions continue to drive revenue and earnings momentum.
Growth prospects in Eastern Europe for wireless services remain firm and support our forecast for strengthening financials. We continue to be intrigued by Vimpelcom’s success in maintaining its market share and increasing sales on a recurring basis. Its acquisition of Golden Telecom is also expected to facilitate telecom expansion outside its core consumer cellular offering. We reiterate our Buy rating based on financial metric estimates which we believe are attainable.
Bear of the Day: Sony Corporation (NYSE: SNE)
We believe Sony will continue to struggle as it faces increasing competition from innovative digital products and increasing competition from low-cost Asian manufacturers as the consumer market slows. Although Sony reported strong Q3 results, it has lowered expectations for Q4. We would be hesitant to own shares of a consumer focused company, and maintain a Sell recommendation on SNE shares, lowering our price target to $36.50.
Latest Posts on the Zacks Analyst Blog:
Durect Corporation (Nasdaq: DRRX)
Durect Corporation is engaged in the development and commercialization of pharmaceutical systems to treat various chronic diseases. It utilizes six proprietary drug delivery technologies to develop pharmaceutical systems that enhance treatment capabilities in the areas of chronic pain, cardiovascular diseases, and central nervous system disorders.
The company currently has four products in phase II / phase III development. We are optimistic about the developing pipeline, and are pleased to see that the company is on track to file an NDA for its first candidate, Remoxy. We also expect the company to enter into a partnership deal for Eladur shortly.
Southern Copper (NYSE: PCU)
We have a positive outlook on Southern Copper Corp’s profit picture based on the favorable global demand for copper and lower interest rates. We think the company is in a very good position to expand production amidst higher-grade ores at its mines.
Further, the company has undertaken various exploration projects, which will enhance the production capacity, once operational. This, in conjunction with high copper prices, provides a favorable backdrop for revenue. Based on these positive fundamental factors, we continue to reiterate our Buy rating.
The company is focusing on lowering costs. Management had previously mentioned the possibility of a partial integration of PCU with another mining company. This could result in both geographical and product diversification, which would reduce associated risks.
PACCAR, Inc. (Nasdaq: PCAR)
PACCAR is benefiting from rising prices and increasing market share, along with strong growth in Mexico and Australia. Currently, the stock is valued at 13.4x our 2008 earnings of $3.51. PACCAR is benefiting from rising prices and market share, along with strong growth in Mexico and Australia. In 2007, PACCAR repurchased 6.96 million of its common shares (split adjusted) by investing $360.5 million.
Over the past three years, PACCAR also invested $978 million to repurchase 27.4 million shares and paid over $1.7 billion in dividends to the shareholders for a total return of over $2.7 billion. Recently, the company paid an extra cash dividend of $1 per share.
The company achieved a compounded annual growth rate in earnings per share of 22.7% for the last ten years compared to the S&P 500's growth rate of 5.9%. The stock also outperformed the S&P 500 Index for the previous one-, three-, five-, and ten-year time periods.
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 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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contacts:
Mark Vickery
312-265-9380
Visit: www.zacks.com
