Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: OPNET Technologies Inc. (Nasdaq: OPNT), Stone Energy Corp. (NYSE: SGY), Agrium Inc. (NYSE: AGU), Trident Microsystems Inc. (Nasdaq: TRID) and Sony Corp. (NYSE: SNY).
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Here are highlights from Thursday’s Analyst Blog:
OPNET Appears Nicely Priced
We maintain our Buy recommendation on the shares of OPNET Technologies Inc. (Nasdaq: OPNT), a provider of management software for networks and applications.
Given that OPNET won’t likely be approaching normalized profitability margins until the later part of fiscal 2010, we believe a P/S metric is the best valuation for the stock. With a P/S multiple of 2.1x current year estimates and 1.8x FY 2010 estimates, OPNET has the one of the lowest valuations of its peer group.
Stone Energy a Buy, Target Down
Stone Energy’s (NYSE: SGY) third-quarter 2008 earnings were hurt by production slowdowns caused by hurricanes Gustav and Ike, which more than offset the contribution from higher oil and gas price realizations.
On average, Stone produced 129 MMcfe/d during the quarter, down from 203 MMcfe/d during the year-ago period. We are keeping our Buy recommendation unchanged at this stage following the successful completion of the Bois d’Arc acquisition and steadily increasing production that is expected to reach about 275 MMcfe/d by year-end.
Agrium a Play on Agri-Business
Agrium Inc. (NYSE: AGU) is growing through acquisition and organic expansion. The acquisition of United Agri-Products (UAP) is driving revenues and profits supported by an expanded product line in the major business segment.
Agrium announced record results for third quarter earnings, with net earnings for the third quarter of 2008 of $367-million ($2.31 diluted earnings per share) more than four times the previous third quarter record achieved in 2004 and more than seven times above the $51-million ($0.38 diluted earnings per share) in the third quarter of 2007.
Trident Micro Remains a Hold
Trident Microsystems Inc.'s (Nasdaq: TRID) Q1 2009 results were above our expectations. However, flat panel TV inventory continues to build. The expected surge in buying for the Olympics did not materialize. We do not expect a strong Xmas selling season at retail.
The company's top-line growth is further expected to be negatively affected by the change in production strategy by its top customers, Sony (NYSE: SNE) and Samsung, who have decided to move production in-house. This will impact Trident's 2009 revenue forecast significantly.
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