Zacks Bull and Bear of the Day Highlights: Zimmer Holdings, Embratel Participacoes S.A., Net Servicos, Microsemi and Arena Pharmaceuticals.CHICAGO -- Zacks Equity Research highlights Zimmer Holdings Zimmer Holdings Inc. NYSE: ZMH is the world leader in orthopedic implants. It is headquartered in Warsaw, Indiana. United States. Its products include knee, hip, shoulder and spinal implants along with fracture/trauma and orthopaedic surgical products. (NYSE NYSE See: New York Stock Exchange :ZMH ZMH Zone Mail Hour (FIDOnet) ZMH 108 Mile Ranch (Canadian Airport code) ) as the Bull of the Day and Embratel Participacoes S.A. (NYSE:EMT See Efficient markets theory. ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Microsemi (Nasdaq:MSCC MSCC Motlow State Community College (Lynchburg, TN) MSCC Morgan Sports Car Club MSCC Manila Sports Car Club MSCC Mission Springs Community Church (Fremont, CA) MSCC Mazda Sports Car Club ) and Arena Pharmaceuticals, Inc. (Nasdaq:ARNA). 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 on Zimmer Holdings (NYSE:ZMH). Comparisons ease in the second half of the year and, combined with new product flow (including the Q106 launch of Trilogy ceramic/ceramic hip) and a replacement for OrthoPat, top-line growth in the second half of 2006 should be double-digit. At the group average 1.3x P/E/G on the company's expected average 18% growth outlook, our ZMH target is $79.00, or roughly 23x our 2006 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. Bear of the Day: Our Bear of the Day today is for Embratel Participacoes S.A. (NYSE:EMT). We remain positive on economic growth in Brazil, but we are concerned with Embratel's stagnating core business, increasing domestic competition, a price war in the international long distance business, increasing competition from Internet companies offering VoIP long distance calls, and disappointing fourth quarter of 2005 results. Additionally, the outlook for the business partnership with Net Servicos (Nasdaq:NETC NETC Naval Education & Training Command (formerly Chief of Naval Education and Training, CNET) NETC Naval Education & Training Center NETC New England Theatre Conference NETC Network Enterprise Technology Command ) is uncertain and the current political climate in Brazil is very difficult. Our target price is $10.00. Analyst Blog: Microsemi (Nasdaq:MSCC) is an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and of semiconductor analog and mixed signal ICs, with a substantial presence in the high reliability space. December quarter revenue and EPS results were above with consensus estimates. Bookings outpaced revenue for the thirteenth consecutive quarter. With strength in its served end markets and restructuring benefits kicking in, both the top and bottom lines are expected to improve through 2006. Forward guidance of 2-4% sequential sales growth looks achievable. However, the shares are trading at five-year highs and appear richly valued. Consequently, we are downgrading the shares to a Hold. Arena Pharmaceuticals, Inc. (Nasdaq:ARNA) is a biopharmaceutical company with its primary expertise in the area of G protein-coupled receptors G protein-coupled receptors (GPCRs), also known as seven transmembrane receptors, 7TM receptors, heptahelical receptors, and G protein linked receptors (GPLR (GPCRs). Arena Pharmaceuticals focuses its research and development on four key pharmaceutical areas: Metabolic, Cardiovascular, Central Nervous System, and Inflammatory disorders. The company has several interesting clinical compounds currently under development. We are pleased with the progress made so far on these development programs. We believe that positive clinical data has the potential to move the share price up to $22. As such we are maintaining our Buy recommendation on the shares. 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 underpeform (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. 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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. 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