For Immediate Release
Chicago, IL –August 17, 2010 – Zacks Equity Research highlights: Fomento Economico Mexicano (FMX) as the Bull of the Day and PetMed Express, Inc. (PETS) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chevron Corp. (CVX), Royal Dutch Shell Plc (RDS.A) and NCR Corp. (NCR).
Here is a synopsis of all five stocks:
Fomento Economico Mexicano (FMX) is the largest Coca-Cola bottler in Latin America and commands a strong portfolio of well-established brands. The company's earnings from continuing operations jumped 29.7% y-o-y in the second quarter of 2010 driven by higher sales and robust gross margin growth.
Moreover, the recent divestiture of brewery operations offers FEMSA greater financial and strategic flexibility to pursue opportunities in its core businesses. Furthermore, the company is taking initiatives to diversify its product portfolio and rapidly expand its convenience store chain, which augurs well for future operating performance.
Accordingly, we upgrade our long-term recommendation on FEMSA to Outperform from Neutral as we anticipate it to perform well above the broader market.
PetMed Express, Inc. (PETS) reported first-quarter fiscal 2011 EPS of $0.32, way below the Zacks Consensus Estimate of $0.38 and the year-ago quarter's $0.36. The company witnessed a decline in revenues due to a lack of television remnant space availability at affordable rates.
Moreover, both gross and operating margins declined during the quarter driven by increase in higher product costs and higher advertising cost to acquire a new customer.
Economic uncertainty is taking a toll on the company, forcing consumers to switch to cheaper alternatives. We do no expect the situation to improve significantly in the near future. On account of these factors we have lowered our estimates and downgraded the stock to Underperform.
Latest Posts on the Zacks Analyst Blog:
Chevron Strikes Again In Australia
Integrated oil and gas giant Chevron Corp. (CVX) once again made a successful discovery of natural gas through the Acme-1 exploration well in the hydrocarbon-rich area of the Carnarvon Basin. This happens to be Chevron;s ninth and largest offshore discovery in Western Australia in the last 12 months.
The Acme-1 well was drilled to a depth of 15,469 feet of water and encountered gas deposits of approximately 896 feet. The find is located in the WA-205-P permit area in the offshore region of Western Australia. Chevron Australia has a 67% operated interest in the prospect, with the other partner being Royal Dutch Shell Plc (RDS.A).
This discovery followed the company's find of natural gas in the Exmouth Plateau area of the Carnarvon Basin last week. Chevron drilled the Brederode-1 exploration well (in the WA-364-P permit area) to a depth of 9,022 feet and found approximately 49 feet of net gas pay. A subsidiary of Chevron and Royal Dutch Shell PLC (RDS.A) holds a 50:50 operating interest in this project.
NCR Corp. Signs Barclays Deal
Technology and solutions provider NCR Corp. (NCR) announced that it would be offering management and maintenance services for Barclays Bank plc’s automated teller machines (ATMs). Financial details of this two-year deal were not disclosed.
As per the terms of the deal, NCR Corp. will extend its services to Barclays’ 550 remote and host-operated ATMs situated in the U.K. NCR Corp.’s managed services will include monitoring of the ATM network, managing the availability of cash, maintenance of software and help desk services.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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CHEVRON CORP (CVX): Free Stock Analysis Report
FOMENTO ECO-ADR (FMX): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis Report
PETMED EXPRESS (PETS): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report
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