|
CHICAGO--(BUSINESS
WIRE)--Zacks.com announces the list of stocks featured in the Analyst Blog.
Every day the Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently featured in the blog
include: National Semiconductor Corp. (NYSE: NSM), Watsco, Inc.
(NYSE: WSO), Principal Financial Group (NYSE: PFG), Genta Incorp.
(Nasdaq: GNTA) and United Therapeutics Corp. (Nasdaq: UTHR).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Wednesday’s Analyst
Blog:
National Semi at a Nice Price
May quarter revenue for National Semiconductor Corp. (NYSE: NSM) was
in-line with consensus expectations, although the EPS exceeded. Both order rates
and backlog picked up in the last quarter and distributor inventory levels
remain low.
Forward revenue guidance is flat-to-up 3% Q1. New higher-margin products
continue to grow in the mix, and management has refocused R&D into areas
that should sustain these margins and even expand from current levels. Valuation
remains attractive in our opinion. Consequently, we are reiterating our Buy
rating on NSM shares.
Watsco Blowing Hot & Cold
Watsco, Inc. (NYSE: WSO) reported second quarter 2008 EPS of $0.94,
above our estimate of $0.88 and up 6.8% year-over-year, amid strong revenue
growth and higher gross profit as well as contributions from various profit
improvement activities implemented in early 2008.
WSO has the liquidity position and the de-levered balance sheet to continue
with its aggressive acquisition strategy. With high energy prices likely to
persist over the near future, we believe consumers will increase the purchase of
higher-efficiency air conditioning systems. We also believe the strength of the
replacement market can offset some of the rapid deterioration in the new home
market in 2008. We recommend investors to Hold WSO shares in their portfolio.
Principal Finc'l Fights Headwinds
Principal Financial Group’s (NYSE: PFG)
operating earnings of $0.97 per diluted share were slightly below our
expectations.
Losses in the spread and securitization business, reflecting volatile
conditions in the global credit markets, deteriorated operating earnings in the
US Asset accumulation segment and the Global asset management segment, but was
partially offset by improvements in the operating results of International Asset
Management and Accumulation segment and the Life and Health segment.
Genta Goes Into Survival Mode
We maintain a Hold rating on Genta Incorporated (Nasdaq: GNTA), a
biopharmaceutical company focused on developing and commercializing drugs for
the treatment of cancer.
Unfortunately, the company has entered into a survival mode due to the
shortage of cash. With the non-approval of Genasense for chronic lymphocytic
leukemia by FDA, the future of Genasense remains uncertain. In July 2007, the
EMEA indicated that approval of Genasense in melanoma will require the conduct
of another clinical study. Genta believes that the AGENDA trial will be able to
address the EMEA’s requirement adequately.
United Thera Expecting Too Much
Although the current business fundamentals at United Therapeutics
Corp. (Nasdaq: UTHR) are solid, we are seeing several potential hiccups
coming in the next year. With the stock up 65% over the past twelve months and
currently trading at 50x our 2008 EPS estimate, we believe investors are pricing
the stock for near-flawless execution.
Expectations are high, and any slip-up, even minor, may cause a sell-off in
the shares. As a result, we are initiating with a Sell rating and an $82 price
target.
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=2649.
|
(0 voto)
