Zacks Bull and Bear of the Day Highlights: Quinenco, Infineon Tech, Tesoro and UBS AG.CHICAGO -- Zacks Equity Research highlights Quinenco, S.A. (NYSE NYSE See: New York Stock Exchange : LQ) as the Bull of the Day and Infineon Tech (NYSE: IFX IFX - ["Type Reconstruction with First-Class Polymorphic Values", J. O'Toole et al, SIGPLAN Notices 24(7):207-217 (Jul 1989)]. ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesoro (NYSE: TSO (Time Sharing Option) Software that provides interactive communications for IBM's MVS operating system. It allows a user or programmer to launch an application from a terminal and interactively work with it. The TSO counterpart in VM is called CMS. ) and UBS AG UBS AG (NYSE: UBS; SWX: UBSN; TYO: 8657 ) is a diversified global financial services company, with its main headquarters in London and New York. It is the world's largest manager of private wealth assets,, "the world's biggest manager of other people's money"[1] (NYSE: UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System ). 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 Quinenco, S.A. (NYSE: LQ). We are raising our recommendation for Quinenco from Hold to Buy and also raising our 2006 and 2007 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. estimate. Our optimism is based on a continued positive economic environment in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , particularly in Chile and Brazil, and the company's better-than-expected first quarter results. The Argentine inflation rate and disappointing results for Quinenco's telecommunication business remain a concern, but do not change our positive view on the company's short-term outlook. Bear of the Day: Our Bear of the Day recommendation is for Infineon Tech (NYSE: IFX). Recently, Infineon reported solid results for its fiscal second quarter, with its memory division swinging to a quarterly profit, and its automotive division again posting solid gains. While these results are encouraging, we believe that shares of IFX have factored in all the good news and expectations may be higher than reality. We continue to expect the company to swing to a profit in the third quarter, but are concerned there may be some one-time factors that has and will help boost the profitability of the company in the near-term. The Euro/USD exchange rate has strengthened, and this may drag on Verb 1. drag on - last unnecessarily long drag out last, endure - persist for a specified period of time; "The bad weather lasted for three days" 2. the company's return to profitability. We continue to rate shares of IFX a Sell. Analyst Blog: We have downgraded Tesoro (NYSE: TSO) shares to Hold from Buy as the stock price has reached our earlier price objective. Following its strong recent run up, the stock has almost completely eliminated the discount at which it has historically traded relative its peer group, leaving little room for upside from current levels, in our view. The company's first-quarter results came in below our above-consensus estimates, reflecting weak margins, higher costs, and reduced throughput volumes. The company also indicated significant cost overruns of about 50% on its two coker projects, which we estimate will limit free cash flow growth in 2006 and 2007. We are reiterating our Buy on UBS AG (NYSE: UBS), and raising our six-month target price to $130 from $112. UBS reported that first quarter earnings increased 29% year over year to a record CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.2 billion as all business units reported higher earnings, with especially strong results in wealth and asset management on solid asset inflows and at the investment bank due to robust capital markets. We are raising our 2006 EPADS EPADS Earnings Per Average Diluted Share estimate to $8.27 from $8.05, and initiating our 2007 estimate at $8.87. We expect continued solid operating performances to offset some credit quality weakening. We believe UBS's $2.59 annual dividend, which provides a 2.1% yield, is safe. 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 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion