Zacks Bull and Bear of the Day Highlights: Select Comfort, Alnylam Pharmaceuticals, Burlington Northern Santa Fe Corporation and Kimco Realty.CHICAGO -- Zacks Equity Research highlights Select Comfort (Nasdaq:SCSS SCSS Senior Citizen Savings Scheme (India) SCSS Star Cruises Ship Simulator SCSS Submarine Communications Support System SCSS Swiss Cottage Secondary School SCSS Service Center Support System SCSS Story Classic Surveillance System ) as the Bull of the Day and Alnylam Pharmaceuticals Alnylam Pharmaceuticals Inc. (NYSE: ALNY), a biopharmaceutical company, engages in the development and commercialization of therapeutic products based on RNA interference (RNAi) in the United States. (Nasdaq:ALNY) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Burlington Northern Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Corporation (NYSE NYSE See: New York Stock Exchange :BNI BNI Business Network International BNI Business Networking International BNI Bank Negara Indonesia BNI Bechtel National, Inc. BNI British Nursing Index BNI Barrow Neurological Institute (Phoenix, AZ) ) and Kimco Realty (NYSE:KIM). 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 Select Comfort (Nasdaq:SCSS). Select Comfort's solid second quarter results demonstrate the strength of its business and bode well for future growth. We view any pullback in the shares as a buying opportunity. Select Comfort is targeting annual sales growth of 15%-20% and earnings growth of 20%-25% over the long term. We expect the company to come in at the high end of those targets in full-year 2006. Our target price is unchanged at $30, which is 24 times our fiscal 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. We remain positive on Select Comfort s significant long-term growth potential, high near-term visibility, and attractive valuation. Bear of the Day: Our Bear of the Day recommendation is for Alnylam Pharmaceuticals (Nasdaq:ALNY), a biopharmaceutical company developing novel therapeutics based on RNA interference RNA interference n. A process in which the introduction of double-stranded RNA into a cell inhibits the expression of genes. , or RNAi technology. The company possesses a deep, but very early-stage therapeutic pipeline. Therapeutic candidates developed using RNAi may offer some advantages over more traditional small molecule or protein-based drugs. But it's too early to judge the value of this technology. Clinical stage work is necessary to validate this technology. Alnylam's shares have gained 94% in the past 12 months, and are overvalued Overvalued A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a at current level compared to its peers. Therefore, we rate the shares Sell with a target price $9.50. Analyst Blog: We are continuing our Hold on Burlington Northern Santa Fe Corporation (NYSE:BNI), but reducing our target price to $70 from $80 due to recent market weakness in the transportation sector. BNI reported second quarter EPS of $1.23, beating consensus of $1.22 and our estimate of $1.15, due to better-than-expected revenue growth. We are raising our EPS estimates to $5.00 from $4.88 for 2006 and to $5.65 from $5.50 for 2007. Revenue growth should continue solid for 2006, reflecting fuel surcharges, strong rate increases, and volume growth. However, higher fuel costs and reduced fuel hedging Fuel hedging is the practice, often employed by airline companies, of making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price. See also
Kimco Realty (NYSE:KIM) had another strong quarter, and slightly exceeded our FFO FFO See: Funds from operations estimate by $0.01 per share. We have recently raised our 2006 earnings estimates by $0.05 per share in response to better than anticipated operations. Kimco's portfolio occupancy remains high at nearly 95%, and the company continues to see large rent bumps on new leases. We are also encouraged by strong performances in the company's other lines of business, including its merchant building division and mortgage-financing arm. KIM was recently added to the S&P 500 Index, and the company raised it common share dividend by 9%. 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. |
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