Zacks Bull and Bear of the Day Highlights: Southern Copper, Amylin Pharmaceuticals, Regis and Smith International.

CHICAGO -- Zacks Equity Research highlights Southern Copper (NYSE: PCU) as the Bull of the Day and Amylin Pharmaceuticals (Nasdaq: AMLN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Regis (NYSE: RGS) and Smith International (NYSE: SII). 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 Southern Copper (NYSE: PCU). We have a positive outlook on Southern Copper's profit picture based on the favorable global demand for copper. We think the company is well positioned to expand production amidst higher grade ores at its mines. Further, the company has undertaken various exploration projects, which will enhance the production capacity, once operational. This, in conjunction with high copper prices, provides a favorable backdrop for revenue. Based on these positive fundamental factors, we continue to reiterate the Buy rating with a six-month target price of $121.00.

Bear of the Day:

Our Bear of the Day recommendation is for Amylin Pharmaceuticals (Nasdaq: AMLN), which is engaged in the discovery, development and commercialization of potential drug candidates for the treatment of diabetes, obesity and cardiovascular diseases. The top-line is being driven by sales of two diabetes drugs, Byetta and Symlin. Sales of both drugs were lower than expected in the most recent quarter due to heavy sampling and increased competition. We think the competitive landscape is only getting worse for Amylin, and despite the fact that we are enthusiastic about the early-to-mid stage pipeline, we feel the name is overvalued. Amylin trades at 45x our 2010 EPS estimate of $0.95. This is a significant premium to the peer group. We would avoid the name. Our target is $36.

Analyst Blog:

We maintain our Hold rating on shares of Regis (NYSE: RGS). With RGS currently generating only modest growth, we do not believe that a significant upward move in the stock price is warranted at this time. Regis has an excellent platform and is unquestionably the dominant player in this space, and as such could post considerable improvements in operating results should fashion trends move in its favor. We believe that investors will have time to react to such a move, however, and therefore, we rate the shares a Hold. The company will report full fourth quarter financial results on August 22, and we will update our model and outlook at that time.

Smith International's (NYSE: SII) second-quarter 2007 results came in weaker than expected, reflecting seasonal drilling slowdown and weather-related project delays in Canada. Revenue increased 26% year over year and 3% sequentially on the back of strong results from international offshore markets. Lower Canadian activity resulted in the loss of high-margin product sales during the quarter. Excluding the Canadian operations, sequential revenue and earnings gains were 6% and 11%, respectively. Outside North America, revenue increased 9% sequentially and 33% year over year, driven by gains across all the segments.

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.

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