Zacks Bull and Bear of the Day Highlights: Xilinx, U.S. Cellular, Consolidated Graphics and SGX Pharmaceuticals.

CHICAGO -- Zacks Equity Research highlights Xilinx, Inc. (Nasdaq:XLNX) as the Bull of the Day and U.S. Cellular (AMEX:USM) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Consolidated Graphics (NYSE:CGX) and SGX Pharmaceuticals, Inc. (Nasdaq:SGXP). 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 Xilinx, Inc. (Nasdaq:XLNX). In Q1, revenue was $481 million, up 2% sequentially and below our estimate. Revenue was negatively affected by slower orders in Japan and weakness in the Storage & Servers business. Gross margin declined due to an unfavorable shift in product mix and a warranty reserve. Nevertheless, we see signs of accelerating demand in the Communications business. Also, we believe the current stock price offers an attractive entry point for investors. We continue to rate Xilinx a Buy and have set our price target to $30.

Bear of the Day:

Our Bear of the Day recommendation is for U.S. Cellular (AMEX:USM). Financial reporting delays at have intensified the risk and uncertainty associated with the relatively high valuation. Over the near-term, we do not believe U.S. Cellular would be a part of consolidation activities, outside of TDS full ownership. But the stock has moved up in anticipation of a buyout offer from parent TDS. However, given that TDS already controls most of the shares outstanding, it is unlikely that it will have to pay a large premium for the remaining shares of USM. Recently, the company released its fourth quarter 2005 results, which were disappointing. We maintain our Sell recommendation based on the current valuation level, timing uncertainty of audited financial information, and our expectations that share demand may be in a near-term decline until complete financials are presented.

Analyst Blog:

Consolidated Graphics (NYSE:CGX) reported first quarter EPS of $0.92, well ahead of our expectations of $0.69, on the back of strong growth in its strategic sales initiatives, cost containment, and earnings accretion from acquisitions. Sales from national account customers and cross-selling initiatives were up strongly by 70% and 47%, respectively.

Over the last four quarters, the company's strong earnings growth has exceeded our profit expectations. For FY07, operating margins should expand 20 basis points on account of overhead cost control and continued growth in its national accounts. We reiterate our Buy recommendation on shares of CGX, with a target price of $71.00.

SGX Pharmaceuticals, Inc. (Nasdaq:SGXP) is a clinical stage biotechnology company focused on the discovery, development, and commercialization of cancer therapeutics. We are optimistic about its lead drug candidate Troxatyl for acute myelogenous leukemia (AML) and its potential expansion to other cancer indications. We are also positive about its FSAT platform technology in various drug discovery programs. However, we would like to see more advanced clinical data from Troxatyl and the validation of the company's FAST technology before we can recommend the shares. For now, we rate the stocks a Hold with target price of $5.50.

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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