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Zacks Bull and Bear of the Day Highlights: Chemed, Whole Foods, VeriSign and Evergreen Solar.


CHICAGO -- Zacks Equity Research highlights Chemed Corporation (NYSE NYSE

See: New York Stock Exchange
: CHE) as the Bull of the Day and Whole Foods Market (Nasdaq: WFMI WFMI Whole Foods Market, Inc. ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on VeriSign (Nasdaq: VRSN VRSN Verisign, Inc. (stock abbreviation, AMEX)
VRSN Version Number (NEC) 
) and Evergreen Solar Evergreen Solar, Inc., founded in 1994,[1] develops, manufactures and markets solar power products enabled by its String Ribbon technology that provide environmentally clean electric power throughout the world.  (Nasdaq: ESLR ESLR Expected Schoolwide Learning Results
ESLR Equivalent Slr
). Full analysis of all four 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 Chemed Corporation (NYSE: CHE). CHE, through its two primary subsidiaries of Vitas and Roto-Rooter, is a major player in both the hospice and plumbing industries, respectively. The company reported better-than-expected net income of $17.6M, or normalized 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.  of $0.73 (reported EPS of $0.67), compared with $4.2M or EPS of $0.16 in 4Q05. The reported EPS included: earnings loss from the discontinued program in Phoenix, AZ of approximately $0.06 per share. The result was characterized by a solid increase in VITAS related earnings primarily driven by admissions growth of 7.4% y/y. We retain our Buy recommendation at current levels.

Bear of the Day:

Our Bear of the Day recommendation is for Whole Foods Market (Nasdaq: WFMI). Whole Foods first quarter sales and earnings per share fell short of our estimates. However, the company mitigated its lower-than-expected results by announcing that it was going to acquire natural foods grocer, Wild Oats, which we view as a positive move by WFMI. Still, we are lowering our EPS estimates for fiscal 2007 and 2008 in order to reflect the company's higher pre-opening expenses and lower investment income for the next several quarters. All told, we believe the stock should trade at a multiple that more appropriately reflects a grocer with declining earnings growth. Our target price is $30, or about 20 times our fiscal year 2008 EPS estimate.

Analyst Blog:

Because of the ongoing review of option grant practices, VeriSign (Nasdaq: VRSN) is providing only partial financial results for fourth quarter [Q4]. Overall revenue came to $413 million, up 3% sequentially. This was above our estimate of $412 million. The Q4 results were driven by the company's Naming business, as well as growth in the Security Services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the  and wireless billing businesses. This strength offset weakness at Jamba and VeriSign Japan. We maintain our Buy rating and target price of $30.

The growth potential for the solar industry as a whole - and Evergreen Solar (Nasdaq: ESLR) in particular - remains a compelling story. Burgeoning revenue and earnings growth make it one of the fastest growing alternative energy stocks. Positives include significant new multi-year sales contracts Sales Contract

Contract between a seller and buyer for the sale of goods, services, or both.
, capacity expansions at EverQ over the next few years, improving operating efficiencies, technological upgrades, and new silicon supply contracts. However, continuing earnings losses and stock-based compensation expenses partially moderate its upside potential Upside potential

The amount by which analysts or investors expect the price of a security may increase.


upside potential

The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar
 over the near-term. Accordingly, we maintain our BUY recommendation on ESLR with a six-month target price of $10.00. Price appreciation to our near-term valuation target represents annualized annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 total return potential of 37.1%.

Get the full analysis of all four 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 In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , 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 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=2677.

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 by going to http://at.zacks.com/?id=2650.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment Reinvestment

Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.

1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares.
 of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.

(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs Transaction Costs

Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it).
, and represents the gross returns before management fees.

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.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 23, 2007
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