Health & Fitness
Health and Fitness
Health and Fitness
Mon, January 26, 2009
Sun, January 25, 2009
Fri, January 23, 2009 Zacks Bull and Bear of the Day Highlights: Abbott Labs, Hubbell, Wipro, Citigroup and Infosys
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Abbott Laboratories (NYSE: ABT) as the Bull of the Day and Hubbell (NYSE: HUB.B) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wipro Ltd. (NYSE: [ WIT ]), Citigroup (NYSE: [ C ]) and Infosys Technology (Nasdaq: [ INFY ]).
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 ]:
Abbott Laboratories (NYSE: ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.
Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business. We believe ABT possesses a low risk profile and will continue to trade at an industry premium.
Accordingly, we reiterate our Buy recommendation with a price target of $65.
[ Bear of the Day ]:
Hubbell (NYSE: HUB.B) reported third quarter 2008 results that exceeded both top and bottom line expectations. The good storm season was the primary driver of growth in the last quarter, although pricing actions and acquisitions also contributed.
The company is benefiting from restructuring actions, with management continuing to attribute some of the margin expansion to production efficiencies and improved cost management. The share price dropped sharply in September, but has stabilized since.
We tend to think that there could be further downside, given the recessionary macro economic trends and the positive correlation between Hubbell's growth and the growth of the national GDP.
Additionally, both residential and nonresidential construction activity appears to be slowing and could worsen in 2009. Consequently, we are reiterating our Sell recommendation.
Latest Posts on the Zacks [ Analyst Blog ]:
Wipro's Guidance Hurts Stock
Wipro Ltd.'s (NYSE: [ WIT ]) Q3 results met expectations with nearly 9% quarter-over-quarter increase in profits, but lower Q4 expectations are impacting the shares negatively in trading today. The company now expects revenues from IT services in Q4 to be around $1.05 billion, which is approx. 5 percent less sequentially in dollar terms.
The revenue guidance includes Citi Technology Services Ltd., Citigroup's (NYSE: [ C ]) in-house IT services provider in India, which Wipro acquired in December, 2008 for $127 million with an expected 2008 revenues of about $80 million.
The current global downturn is clearly impacting the Indian IT Services providers, clouding visibility beyond the current quarter. Wipro had a compounded annual growth rate (CAGR) of 25% over the last five years, exhibiting stability, profitability, and growth from its inception and through down markets for IT services. However, the current slowdown is expected to impact growth significantly over the coming quarters, and CY2009 may mark the low point for the company.
Similarly, Infosys Technology (Nasdaq: [ INFY ]) had also announced a decent Q3 but provided a revised Q4 outlook significantly lower than previously expected.
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.
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