Zacks Analyst Blog Highlights: Willis Group Holdings Ltd., Barrick Gold Corp., CSX Corp., Hess Corp. and Mylan, Inc.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: Willis Group Holdings Ltd. (NYSE NYSE See: New York Stock Exchange : WSH See Windows Script Host. ), Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. Corp. (NYSE: ABX ABX Antibiotics ABX Airborne Express ABX Abstracting ABX Albury, New South Wales, Australia - Albury (Airport Code) ABX Automatic Branch Exchange ABx Non-Antibiotics ABX Asset Backed Securities Index ABX Acoustic Bass Extension ), CSX CSX Chessie Seaboard Multiplier (railroad transportation company) CSX Cayman Islands Stock Exchange CSX Changsha, China (Airport Code) CSX Cardiac-Specific Homeobox CSX Seaboard Coastline Railroad Corp. (NYSE: CSX), Hess Corp. (NYSE: HES) and Mylan, Inc. (NYSE: MYL MYL Mind Your Language MYL Made You Laugh MYL Miss You Lots MYL Meet You Later MYL Miss You Loads ). Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579 Here are highlights from Wednesday's Analyst Blog: Willis Group Better in Long-Term Willis Group Holdings Limited's (NYSE: WSH) core earnings of $0.59 per share were almost in line with our expectations, based on revenue growth, cost saving initiatives and lower share count. Though the cost saving initiatives generated some tangible results in the quarter, gained momentum throughout the organization and is expected to deliver strong financial performance over the next several years, we suspect the implementation of such initiatives may curtail near-term results. Concerns also remain about the pending integration of HRH HRH abbr. Her (or His) Royal Highness HRH Her (or His) Royal Highness HRH abbr (= His (or Her) Royal Highness) → S.A.R. , which is expected to close by the end of 4Q08. Barrick Gold Production Lowering Barrick Gold Corp.'s (NYSE: ABX) profitability is increasing due to rising gold prices and synergies from the Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. acquisition. The 100% acquisition of the Cortez mine will boost gold production. Also, the company's financials are solid. The company reported a growth of 22% in revenues and earnings in the second quarter of 2008, a figure similar to the corresponding period of 2007. However, Barrick expects lower production for the full year 2008 on the back of rising energy and gold prices. This forces us to rate the shares a Hold with a target of $32. CSX Corp. Upgraded to a Buy We are raising our rating on CSX Corp. (NYSE: CSX) to Buy from Hold, due to its improved earnings outlook. CSX recently increased 2008 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. guidance to $3.65-$3.75 from $3.40-3.60. At the same time, CSX upped long-term growth estimates (through 2010) in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. to 15-20% from 13-15% and in EPS to 20-25% from 18-21%, partly reflecting improved efficiency, with the operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: estimated to drop to the high 60s from the prior target of the low 70s. We are increasing our EPS estimates from $3.55 to $3.70 for 2008, the midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. of CSX's revised $3.65-3.75 guidance and to $4.40 from $4.20 for 2009. Improved efficiency, strong yields and share buybacks should offset weakening volumes from a slowing economy and higher fuel costs. CSX reported second quarter EPS of $0.89, up 26% year-over-year. We believe the dividend is safe. Hess Corp. Stability Must Emerge Despite the recent commodity-price induced weakness that has helped improve valuation, we are keeping our Hold recommendation unchanged for Hess Corp. (NYSE: HES) shares at this stage. The near-term outlook for the stock in particular and the overall group in general remains unfavorable. We will revisit our outlook for the stock once early signs of stability emerge in the crude oil market, which we believe will be sooner than later. We continue to see upstream momentum at Hess on the back of the company's leverage to high crude oil prices and a large inventory of projects in Brazil, Australia Libya and Ghana. Mylan's Generic Expectations Mylan, Inc. (NYSE: MYL) is engaged in the development, manufacture, marketing, licensing, and distribution of generic, branded, and branded generic pharmaceutical products, as well as active pharmaceutical ingredients (APIs). With the acquisition of Merck Generics and Matrix Labs, Mylan is now the third-largest generic pharmaceutical company in the world. The company adjusted EPS guidance for 2008-2010 based on higher expenses and reduced opportunities from patent challenges. We maintain a Hold rating with a $12 price target. Want more 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"; the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649. 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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. |
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