Zacks Bull and Bear of the Day Highlights: Abbott Labs, Huntington Bancshares, AK Steel and Humana.

CHICAGO -- Zacks Equity Research highlights Abbott Laboratories (NYSE: ABT) as the Bull of the Day and Huntington Bancshares (Nasdaq: HBAN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AK Steel (NYSE: AKS) and Humana (NYSE: HUM). Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for Abbott Laboratories (NYSE: ABT). Abbott Labs discovers, develops, manufactures and sells a diversified line of healthcare products. We expect a sizable pick-up in earnings growth rate over the next few years driven by strong sales of its lead product Humira, a rapidly growing vascular business, and on several new drug applications recently filed with the FDA. Based on our model, the company is expected to deliver double-digit growth through the end of 2010. 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:

Our Bear of the Day recommendation is for Huntington Bancshares (Nasdaq: HBAN). Before the market open on January 17, 2008, HBAN reported its 4Q07 results, which were consistent with the recent announcement. 4Q07 reported results came in at a loss of $0.65 per share. Digestion of the Sky Financial merger has weighed on the share price in the current quarter, with the potential for negative implications over the next several quarters, as the Franklin relationship, that was inherited with this acquisition, mostly contributed to this loss. Weaknesses in the housing and credit environment continue and are expected to overhang the market in 2008. In addition, the potential for a dividend cut places a critical underpinning for the share price at risk. Therefore, we are lowering our target price to $10.00 per share and changing our recommendation to Sell from a Hold.

Analyst Blog:

We expect that AK Steel's (NYSE: AKS) cost reduction efforts and renegotiated higher-priced contracts will prevent excessive margin deterioration in light of higher commodity costs. The company has greater product diversification compared to its peers, and is focusing on those markets and products which lead to greatest long-term potential for success. We believe the company will gain from new projects, higher selling prices and increased shipment volumes. Hence, we reiterate the Buy rating and raise our six-month target price to $50.00.

Humana (NYSE: HUM) is one of the largest publicly traded health benefit companies in the U.S. and Puerto Rico. HUM will report 4Q07 financial results on February 4, 2008. We forecast revenue and EPS of $6,159M and $1.31 respectively compared with consensus estimates of $6,240M and $1.32. Our Hold recommendation remains intact at current levels. We have valued HUM on a forward price/earnings (P/E) basis, as well as a comparison to similar firms in the managed care sector. Our $76 price target represents a P/E multiple of 13.8 x FY08 EPS of $5.50.

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.

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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.

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