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CHICAGO--(BUSINESS WIRE)--Zacks
Equity Research highlights Petroleum Development (Nasdaq: PETD) as the
Bull of the Day and Ford Motor Company (NYSE: F) as the Bear of the Day.
In addition, Zacks Equity Research provides analysis on Myriad Genetics, Inc.
(Nasdaq: MYGN), Foster Wheeler (Nasdaq: FWLT) and General Growth
(NYSE: GGP).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day: Petroleum Development (Nasdaq: PETD)
We are maintaining our Buy recommendation on Petroleum Development shares
following the company’s strong second-quarter results.
The company’s story remains strong as the low risk
drilling in its three Colorado operating areas, along with accretive
acquisitions, will provide the fuel for double digit production growth through
2010.
Record commodity prices have allowed PETD to increase its developmental
drilling activities by 50 net wells in 2008. Other near term value may be found
from exploratory drilling on the company’s Barnett and
Marcellus shale acreage, two areas with a substantial amount of natural gas in
place.
Bear of the Day: Ford Motor Company (NYSE: F)
Ford’s market share is likely to fall continuously
due to its inclination to push pickup truck sales. The company is facing
overcapacity, which leads to weak pricing. Moreover, costs are higher due to
product launches and higher incentives. The company dropped its plans to become
profitable by 2009 due to a difficult operating environment including an
uncompetitive cost structure. These lead us to rate the stock a Sell and set a
six-month target price of $4.00.
Latest Posts on the Zacks Analyst Blog:
Myriad Genetics, Inc. (Nasdaq: MYGN)
The recent discontinuation of Myriad Genetics’
lead candidate Flurizan, a treatment for Alzheimer's disease, concerns us
about the company's growth strategy. The failure to achieve statistical
significance for either of the primary endpoints in the phase III trial of
Flurizan led to the discontinuation of the development program for the drug in
June.
The company has engaged an investment bank to revisit its growth strategy,
but we do not know what the next step would be at this point. We do not think
separation of the predictive medicine and the therapeutic program will create
much value for the shareholders. We are concerned about the post-Flurizan
uncertainty for the company in the next a few quarters and downgrade the shares
from Buy to Hold.
Foster Wheeler (Nasdaq: FWLT)
Given the uncertainties that have crept into worldwide financial
expectations, we have maintained our Hold opinion on Foster Wheeler, Ltd. Our
six-month target price is based on current market conditions, which are erratic
and have been known to change quickly and violently.
For the longer term, FWLT is actively developing oxy-combustion technology
for both circulating fluidized-bed boiler technology (CFB) and pulverized coal
(PC) boilers, as oxy-combustion is one part of a practical solution for
capturing and storing the majority of the CO2 from coal power plants.
Investment in new oil and gas, refining and petrochemicals/chemicals
facilities, and modernization, expansion and upgrading of existing facilities in
these sectors is expected to continue to be robust throughout the remainder of
fiscal year 2008.
General Growth (NYSE: GGP)
General Growth Properties is the second largest shopping center owner,
manager, and developer in the US. Currently, the company owns and manages a
portfolio of more than 200 regional shopping malls in 44 states.
Despite weakening consumer spending patterns, operations held up relatively
well in the 2nd quarter. The company reported solid increases in SS NOI [same-store net operating income] and
overall portfolio occupancy. Shares of GGP have fallen over 40% in the past
three months. There has been some speculation that GGP will not be able to
refinance all of its near term debt.
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: 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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