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CHICAGO--(BUSINESS WIRE)--Zacks
Equity Research highlights McDonald’s Corp.
(NYSE: MCD) as the Bull of the Day and Mack-Cali Realty (NYSE: CLI)
as the Bear of the Day. In addition, Zacks Equity Research provides analysis
on j2 Global Communications, Inc. (Nasdaq: JCOM), Allied Irish Banks
(NYSE: AIB) and Agnico-Eagle Mines, Ltd. (NYSE: AEM).
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: McDonald’s Corp. (NYSE: MCD)
After doubling margins in its US operations, the company is turning its focus
to Europe and APMEA, where company-operated restaurant margins lag the US (by
110 350 basis points in 2Q08). Re-franchising continues to be another engine of
growth, bolstering ROA by an expected 100 basis points on a less
capital-intensive business and a steady growth in royalties. We think this stock
provides relative safety and moderate growth in a turbulent environment and
exposure to faster-growing international markets.
Bear of the Day: Mack-Cali Realty (NYSE: CLI)
We are maintaining our Sell recommendation due to macroeconomic factors.
Office occupancies in the company’s core markets have
increased at a rapid pace from last year. As such, CLI will have a difficult
time holding occupancy and increasing rents. We think suburban office landlords
will have a tough time over the next 12 months. National job growth numbers are
negative and corporations are not expanding. Office landlords could see
substantial cash flow declines as leases roll in 2008 and 2009.
Latest Posts on the Zacks Analyst Blog:
j2 Global Communications, Inc. (Nasdaq: JCOM)
j2 Global Communications, a global provider of outsourced, value-added
messaging and communications services, declared second quarter 2008 financial
results below our estimates.
However, the company significantly improved its subscriber usage revenue.
This is particularly important since credit-sensitive customers constitute a
vast majority of JCOM's sales. Exploration of new business opportunities for
both digital facsimile and voice services through recent acquisitions
facilitated the company to solidify its position within the industry.
Allied Irish Banks (NYSE: AIB)
We are reducing our recommendation to Hold from Buy on Allied Irish Banks. In
its first half report, AIB posted net earnings before nonrecurring items of 922
million, down 3% year over year, but above our estimate largely due to a lower
effective tax rate.
However, we are slashing our diluted EPADS estimates to reflect substantially
higher loan impairment provisions to $5.70 from $6.20 for 2008, in line with
revised AIB guidance calling for an 8%-10% decline in adjusted EPS (down from
low single-digit growth in EPS previously), and to $4.60 from $6.50 for 2009.
Agnico-Eagle Mines, Ltd. (NYSE: AEM)
Agnico-Eagle Mines reported second quarter EPS of $0.09, well below
our estimate of $0.20 and down 67.9% year-over-year, primarily due to lower
realized price for zinc and decline in zinc sales.
However, gold prices remain high and being an unhedged gold producer,
Agnico-Eagle is exposed to high year-over-year gold prices, which impacts it
favorably. We expect gold prices to remain at elevated levels amid strong demand
conditions. In addition, the company also has a healthy pipeline of long-term
projects to boost gold production.
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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