Health & Fitness
Health and Fitness
Health and Fitness
Mon, July 19, 2010
Sun, July 18, 2010
Sat, July 17, 2010
Fri, July 16, 2010 Hospira, Monsanto, Google, Citigroup and Morgan Stanley
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights: Hospira (NYSE: [ HSP ]) as the Bull of the Day and Monsanto Company (NYSE: [ MON ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Google (Nasdaq: [ GOOG ]), Citigroup Inc. (NYSE: [ C ]) and Morgan Stanley (NYSE: [ MS ]).
"to continue to invest aggressively in our core areas of strategic focus."
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 ]:
We are upgrading Hospira (NYSE: [ HSP ]) shares to Outperform from Neutral based on certain positive catalysts including the recent acquisition of Javelin Pharmaceuticals. The acquisition helps Hospira access Dyloject, a post-operative pain management drug, currently under FDA review.
We believe Dyloject, upon successful commercialization, will boost the company's top line. Furthermore, the recent expansion of Hospira's supply agreement with Genzyme should bring in additional revenues for Hospira. Additionally, Hospira reported another strong quarter led by its SIP segment.
Hospira has been launching several new products to drive growth. Estimates are on the upswing as well, with 2010 and 2011 EPS estimates projecting year-over-year growth of 11.9% and 17.8%, respectively.
[ Bear of the Day ]:
Monsanto Company (NYSE: [ MON ]) is a leading global provider of agricultural products to farmers. The company's pipeline of agricultural biotechnology products stands unmatched in the industry.
However, an intense competitive environment and the company's huge dependence on a few large customers present risks to its top line. Monsanto also faces foreign currency risk since a significant portion of its income comes from outside the U.S.
We reiterate our Underperform recommendation on the stock based on weak results for three consecutive quarters. We believe this will continue based on the 2010 guidance provided by management, which is 43% lower than fiscal 2009.
Latest Posts on the Zacks [ Analyst Blog ]:
Google Misses but Cites Progress
As many analysts and investors had begun to speculate over the course of Google's (Nasdaq: [ GOOG ]) 2nd quarter 2010, the Internet giant missed estimates, posting EPS of $5.71 per share (Zacks accounts for stock-based compensation) on revenues of $6.82 billion in the quarter. The Zacks Consensus Estimate was $5.78 per share.
Google CEO Eric Schmidt was quick to point toward the company's 24% revenue growth year over year, and stated that the company plans "to continue to invest aggressively in our core areas of strategic focus." Leading up to the earnings announcement after the bell, GOOG shares crosses into positive territory and finished up 0.55% at $494.02. Immediately after the earnings miss, shares have dropped over 3.5%, giving back the total of its gains for the week.
The second quarter of 2010 was not Google's finest hour. Aside from the high-profile failure of its online Nexus One store in May -- which caused a significant number of analysts to pull back on EPS estimates for both the quarter and fiscal 2010 and brought the Zacks consensus from $5.81 to $5.73 and $24.94 to $24.48, respectively -- a strengthening U.S. dollar in the quarter has hit Google's significant overseas revenues. More than half of Googlea™s total revenue came from outside the U.S. Elsewhere, although Google's relationship with China seems to be on the mend, there are still plenty of questions and concerns in that ongoing story.
The company generated $2.1 billion in cash flows from operations, up from $1.6 billion in the year-earlier quarter. With capital expenditures of $476 million during the quarter, primarily on IT infrastructure investments, Google generated free cash flows of $1.6 billion. At the end of the quarter, the company had $30.1 billion in cash on hand.
Google shares currently have both a Zacks #3 Rank and a Neutral recommendation. Today's earnings miss was the first negative surprise in the past 5 quarters.
Earnings Preview: Citigroup
Citigroup Inc. (NYSE: [ C ]) is scheduled to report its second quarter 2010 results before the market opens on Friday, July 16. The Zacks Consensus Estimate for the second quarter is 5 cents per share.
Ahead of the earnings release, analysts have made downward estimate revisions. Though Citigroupa™s restructuring efforts are appreciable, the trading revenues of the company seem to be the current concern. The volatility and market declines are expected to have a dampening impact on Citigroupa™s trading revenues for the quarter.
There also remain concerns related to the impact of the upcoming financial reform bill. Investors would also be eager to know the loan loss provisions at Citigroup as, being one of the worlda™s largest banks, its results give an insight into the broader economy.
Additionally, in an effort to wind down its stake in Citigroup, the U.S. Treasury recently announced the sale of 1.1 billion shares in the company. The sale also marks the completion of its second trading plan to shed Citigroup shares, where Morgan Stanley (NYSE: [ MS ]) was the sales agent. Following the sale, the Treasury has around 5.1 billion shares or a 17.5% stake in Citigroup still left. The Treasury plans to wrap up the sale by this year end.
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.
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=7158 ].
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 at [ http://at.zacks.com/?id=4582 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
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.
