Zacks Analyst Blog Highlights: SABESP, 51job and Aegon.CHICAGO -- 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: SABESP (NYSE NYSE See: New York Stock Exchange :SBS See Small Business Server. ), 51job (Nasdaq:JOBS) and Aegon (NYSE:AEG AEG Aeger (Latin: Sick) AEG Allgemeine Elektrizitäts-Gesellschaft (Common Electricity Company) AEG Aircraft Evaluation Group AEG Association of Engineering Geologists AEG Air Expeditionary Group ). See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673 Here are highlights from Friday's Analyst Blog: Expect SABESP Stability We are keeping our Buy recommendation on Companhia de Saneamento Basico do Estado de Sao Paulo, or SABESP (NYSE:SBS). We believe the company, which posted better-than-expected results for the first quarter, has a nice dividend yield, and trades at an attractive valuation. The positive short-term outlook for Brazilian domestic interest rates should drive the stock price higher. Additionally, the company has been reducing the amount of debt denominated in U.S. dollars. As a result, we expect more stable earnings and cash flow in the near future. Recently there was also some good news regarding the regulatory framework. Keeping a Buy on 51job Although 51job's (Nasdaq:JOBS) revenue growth rate fell to 18% in the second quarter of 2006 due to competition, its gross margin continues to improve due to economies of scale. 51job still has the highest brand recognition both in the online and offline recruiting market in China. Moreover, China's prosperous economy will continue to boost the recruiting market. Furthermore, its alliance with Recruit can help 51job explore further opportunities within the human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. industry and potentially new information services See Information Systems. businesses in China. Overall, we believe 51job is well positioned to leverage this market opportunity in China. Therefore, we are maintaining the Buy rating for the stock. Aegon Currently Undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. We are maintaining our Buy recommendation on Aegon (NYSE:AEG) after the company's first half results saw operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before rise by 67%. At its current multiple, the stock is trading at a significant discount to its peers. Our six-month target price is $20.00. Pensions continue to offer strong growth opportunities for Aegon. The company recently announced new agreements in Mexico and India, regions that have been identified as growth markets. In Mexico the company has acquired a 49% stake in Seguros Argos, a life insurance company specializing in the sale of life insurance to individuals through their employers for an undisclosed sum. Additionally, the company announced its intention to partner with Ranbaxy in India to provide life insurance and asset management products through its financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company Religare. See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645 About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. 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 Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=2674. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion