CHICAGO, Nov 03, 2009 (BUSINESS WIRE) -- Zacks
Equity Research highlights Apple, Inc. (Nasdaq: AAPL)
as the Bull of the Day and Sohu.com (Nasdaq: SOHU)
the Bear of the Day. In addition, Zacks Equity Research provides
analysis on Loews Corporation (NYSE: L),
CNA Financial Corporation (NYSE: CNA)
and Diamond Offshore Drilling Inc. (NYSE: DO).
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:
Apple, Inc. (Nasdaq: AAPL)
has experienced tremendous growth, driven by the success of its iPhone
and increased Mac shipments. The company reported strong fiscal 2009
results with higher revenue (12.5% year over year) and earnings (17.4%
year over year) growth despite the recession. The results beat the Zacks
Consensus Estimate and the company's own guidance.
The company is currently benefiting from a positive mix shift to the
higher-margin iPhone/iPod business from its traditional MP3 players. The
Macintosh product continues to gain market share, with significant gains
in portables, music players and smart phones.
Year-to-date, Apple share prices have more than doubled. Apple's
valuation premium is justified, given the company's positive attributes
and leaves room for further upside from the current levels. We have
increased estimates for full-year 2010 and upgrade the stock to
Outperform. We set a six-month price target of $225.
Bear
of the Day:
While Sohu.com's (Nasdaq: SOHU)
third-quarter earnings beat the Zacks Consensus Estimate and were in
line with the company's own guidance, the outlook for the fourth quarter
was far below expectations. The company's operating expenses have been
steadily going up, which we fear could limit the growth in earnings.
Moreover, recent delays in game launches, weak ad spending -- which is
hurting the brand advertising revenue -- and intense competition pose a
threat. However, strength in its online games and portal business are
expected to be the strongest drivers for growth beyond 2010.
Currently, we see limited upside for Sohu's revenue and earnings growth
in the near term. We downgrade the stock to Underperform from our
previous Neutral rating and set a six-month price target of $45.00.
Latest Posts on the Zacks Analyst
Blog:
Loews Corp. Records Profit
Loews Corporation's (NYSE: L)
third quarter income from continuing operations came in at $1.08 per
share compared to a loss of 33 cents in the year-ago quarter. Results
primarily reflected a 26% year-over-year increase in revenues.
The improved results were driven by increased investment income and a
considerable reduction in investment losses at CNA Financial
Corporation (NYSE: CNA)
and strong results at Diamond Offshore Drilling Inc. (NYSE: DO).
Also, the results reflect a strong rebound in investment income,
primarily from improved limited partnership results.
CNA Financial Corporation's operating income increased to $304 million
from $76 million in the prior-year period. Diamond Offshore experienced
a strong quarter with $170 million of earnings, up 17% year-over-year.
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
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Continuous analyst coverage is provided for a universe of 1,150 publicly
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SOURCE: Zacks.com
Zacks.com
Mark Vickery
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Copyright Business Wire 2009
