Zacks Bull and Bear of the Day Highlights: United Dominion Realty Trust, Altria Group, Trident Microsystems and NEC Corporation.CHICAGO -- Zacks Equity Research highlights United Dominion Realty Trust (NYSE NYSE See: New York Stock Exchange :UDR UDR n abbr (BRIT) (= Ulster Defence Regiment) → fuerza de seguridad de Irlanda del Norte UDR (Brit) n abbr (= Ulster Defence Regiment) → ) as the Bull of the Day and Altria Group “Philip Morris” redirects here. For the racecar driver, see Philip Morris (autoracer). Altria Group, Inc. (NYSE: MO) (previously named Philip Morris Companies Inc. (NYSE:MO) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Trident Microsystems Trident Microsystems is a supplier of display-processors for flat panel displays (plasma, LCD, etc.). At one time, Trident was also a supplier of PC graphics chipsets and sound controllers. (Nasdaq:TRID TRID Training Requirement Identification Display TRID Transaction Identifier TRID Trident Display ) and NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Corporation (Nasdaq:NIPNY). 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 United Dominion Realty Trust (NYSE:UDR). UDR again reported a strong quarter, as the company was able to increase occupancy, while reporting significant increases in revenue, net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , and income per occupied home. The company exceeded consensus estimates, and UDR could realize 10% earnings growth in 2006. With the for sale housing market cooling, UDR should be able to push rents while maintaining high occupancy throughout 2006. The company is one of the lowest valued apartment REITs, and UDR represents good value in an environment with improving multi family fundamentals. Bear of the Day: Our Bear of the Day recommendation is for Altria Group (NYSE:MO), the leading domestic tobacco company. The company generates significant cash flow and has a high dividend yield. However, the company is engaged in numerous tobacco liability suits. Of immediate concern is the trend of excessive punitive damage awards being upheld by appellate courts, especially the $50 million judgment paid out in the Boeken case after the U.S. Supreme Court refused to hear. This decision will entice lawyers to file more cases against tobacco companies. Also, potential negative litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. is expected in Canada. Finally, weak volumes in Germany and a price war in Spain remain concerns. Analyst Blog: Trident Microsystems, Inc. (Nasdaq:TRID) is well-positioned in the integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for (IC) market for digital media applications such as digital television. The company has benefited from its relationships with tier 1 OEMs as revenue from the LCD TV A flat panel TV that uses LCD technology or a rear-projection TV that is based on LCD microdisplay panels. See flat panel TV, rear-projection TV and LCD. market continues to ramp rapidly. Although the stock has fallen over the past few months on concerns over LCD television demand, we believe that the market will grow substantially over the next few years, and that TRID is better positioned than its competitors. We therefore reiterate our Buy rating, with a lower target price of $25.00. NEC Corporation's (Nasdaq:NIPNY) fiscal 2006 profitability has been hurt by low sales growth and higher product development costs. While mobile handset sales remain lackluster, the Electron Devices segment is struggling from a softer semiconductor market. Moreover, profitability of the IT Solutions unit is suffering from falling prices of computer platforms and personal computers. The company is expected to benefit from increased telecom spending on broadband services and growing mobile infrastructure sales, but in the near-term it will not be enough to offset weakness in its other business segments. We reiterate our Hold rating. 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