For Immediate Release
Chicago, IL –September 15, 2010 – Zacks Equity Research highlights: Hain Celestial (HAIN) as the Bull of the Day and McDermott International (MDR) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sprint Nextel (S), Clearwire Corp. (CLWR) and Verizon Communications Inc. (VZ).
Here is a synopsis of all five stocks:
Bull of the Day:
Being a leader in natural food and personal care products categories with an extensive portfolio of well-known brands, Hain Celestial (HAIN) offers investors one of the strongest growth profiles in the industry. The stock is poised to surge once the economy rebounds and demand for healthier and natural food improves.
The recent economic turmoil has adversely affected consumers demand and led to destocking at major distributors and retailers, exerting pressure on sales and margins. However, the company's strategic investments and sustained effort, to contain costs, increase productivity and enhance cash flows and margins, has enabled it to weather the recent downturn.
We have a long-term Outperform recommendation on the stock. Our target price of $26.00, 20.5X 2011 EPS, reflects this view.
Bear of the Day:
We are downgrading McDermott International (MDR) shares to Underperform from Neutral due to the tentative commodity price scenario and the company's clouded post-split outlook.
Near-term bookings remain lumpy at McDermott, as the current uncertain environment has adversely affected the economics of building new oil and gas infrastructure. Additionally, the transfer of the power generation and government operations has left McDermott with a less diversified business, thereby heightening its risk profile.
Partially offsetting these negatives are the company's solid margins, clean execution skills and expectations of accelerated activity levels later this year.
Latest Posts on the Zacks Analyst Blog:
Sprint Inks Grid Net Deal
Sprint Nextel (S), the third-largest U.S. wireless carrier, has collaborated with smart grid software provider, Grid Net, to connect smart meters and smart grid routers using its 4G network.
Sprint is the first and only national wireless carrier to launch 4G network in the U.S. The company offers speedy data services to customers via 4G WiMax (a wireless broadband technology) network in collaboration with Clearwire Corp. (CLWR). WiMax provides an affordable and safe solution for the wireless connection of smart meters to the Smart Grid.
Grid Net currently has customers using WiMax in the Australian market. The deal with Sprint allows WiMax penetration in the U.S. market. It also makes Sprint the first national wireless carrier to embed WiMax connectivity into smart meters and routers and combine them on a 4G network.
The deployment of Sprint's 4G WiMax offers a major prospect in the wireless market and may boost the company's revenues. Currently, Sprint extends its 4G network in 49 cities with the Clearwire network. This reach keeps the company well ahead of its rivals such as Verizon Communications Inc. (VZ), which plans to launch 4G services in 25–30 markets in the fourth quarter of 2010.
Sprint is well positioned to leverage the growing wireless smartphone market in the U.S. with its rich portfolio of popular smartphone offerings and advanced devices in the pipeline.
However, we believe a lower margin-revenue mix, expenditures related to wide-scale 4G service deployments and weak wireless business may impact financials over the near term. Moreover, Sprint Nextel's prepaid business is expected to face further challenges from the aggressive rollout of competitive price plans in the balance of 2010.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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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.
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CLEARWIRE CORP (CLWR): Free Stock Analysis Report
HAIN CELESTIAL (HAIN): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
SPRINT NEXTEL (S): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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