CHICAGO, May 18, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Franklin Resources Inc. (NYSE: BEN) as
the Bull of the Day and Excel Maritime (NYSE: EXM) the Bear
of the Day. In addition, Zacks Equity Research provides analysis on
Sprint Wal-Mart (NYSE: WMT), Hewlett-Packard
(NYSE: HPQ) and Home Depot (NYSE: HD).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
Franklin Resources Inc.'s (NYSE: BEN) second quarter 2011
earnings of $2.25 per share outpaced
the Zacks Consensus Estimate of $2.00
per share. Results reflected robust growth in revenue and higher
assets under management (AUM), partially offset by increased
operating expenses. Moreover, the results were ahead of earnings of
$1.55 per share in the prior-year
quarter and $2.23 per share in the
prior quarter.
Franklin's global footprint is an exceptionally favorable
strategic point, since its AUM is well diversified. This, coupled
with a strong balance sheet and completion of recent acquisitions,
is expected to cushion the company. However, regulatory
restrictions could negatively impact the company's AUM and increase
its costs.
Our six-month target price of $153.00 equates to about 17.4x our earnings
estimate for 2011. We view $1.00 per
share annual dividend as secure, implying an expected return of
about 20.6% over that period. This is consistent with our
Outperform recommendation on the shares.
Bear of the Day:
We downgrade our recommendation on Excel Maritime (NYSE:
EXM) to Underperform backed by the gloomy near-term prospects of
the drybulk shipping industry. This sector is facing serious
challenges, where the spot vessel rates collapsed even below the
rate during the recession. We believe the sole reason for this
dismal condition is the sheer increase of ships under operation
that resulted in intense price competition.
The spot rate has fallen to such a low level that even surging
commodity prices in the Asian markets failed to offset the loss of
the vessel owners. Furthermore, Excel Maritime took a severe hit on
its time charter equivalent rate in the last quarter. We believe
continuation of this pricing trend may significantly jeopardize the
company's future financials.
We do not find any near-term catalyst. Additionally, Excel
Maritime is highly leveraged with nearly $1.06 billion of net debt at the end of the first
quarter of 2011.
Additional content:
Latest Posts on the Zacks Analyst Blog:
Strength in Retail, HP Reports Early
With the earnings season winding down and the economic calendar
on the thin side, stocks have been getting concerned lately with
the macro picture. Questions about economic growth in the U.S.,
debt issues in Europe and
inflationary pressures in China
have been drowning out a number of positives in the last few
days.
We do have a fair number of earnings reports this morning from a
host of household names. We had results from Wal-Mart (NYSE:
WMT), Hewlett-Packard (NYSE: HPQ) and Home Depot
(NYSE: HD). Wal-Mart came out ahead, while the other two painted a
mixed picture. On the economic calendar, we had April Housing
Starts, which came in weaker than expected.
Hewlett-Packard was forced to release results this morning,
following the leaking of an internal memo in which the CEO was
warning his senior managers about tough times ahead. The computer
giant came ahead of expectations in its quarterly results, but
guided lower, citing weakness in consumer PC sales and issues in
the services business. They also mentioned the Japan disaster as one of the issues for the
soft guidance. The problems in the consumer PC market are well
known, but the issues in the services business may play into the
macro question of softening demand in corporate IT
spending.
Get the full analysis of all these 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.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides
analysis from Zacks Equity Research about the latest news and
events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and
qualitative analysis to help investors know what stocks to buy and
which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150
publicly traded stocks. Our analysts are organized by industry
which gives them keen insights to developments that affect company
profits and stock performance. Recommendations and target prices
are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=7158.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard
Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results.
Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. 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 at
http://at.zacks.com/?id=4582.
Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.