Zacks Bull and Bear of the Day Highlights: Arrow Electronics, J.C. Penney, Garmin, Google and Apple - Press Releases

For Immediate Release

Chicago, IL – September 16, 2010 – Zacks Equity Research highlights: Arrow Electronics Inc. (ARW) as the Bull of the Day and J.C. Penney (JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Garmin (GRMN), Google (GOOG) and Apple (AAPL).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.

Here is a synopsis of all five stocks:

Bull of the Day: 

Arrow Electronics Inc. (ARW) reported solid results for the second quarter driven by strong growth across all geographies and products. Estimates have been on the rise in the past sixty days.

Although the company faced tough times between late 2008/early 2009, performance has been improving steadily since then. We expect overall demand and margins to improve as volumes ramp up.

Management's guidance was encouraging with both the top and bottom lines poised to grow in the second half of 2010. In view of improved performance in the coming quarters, we upgrade our recommendation to Outperform from Neutral.

Bear of the Day:

We believe that J.C. Penney (JCP) stock will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive. J. C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales.

We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance. Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results.

We have a long-term Underperform recommendation on the stock. Our target price of $19.00, 13.4X 2010 EPS, reflects this view.

Latest Posts on the Zacks Analyst Blog:

Garmin to Shutter Smartphone Biz?

Many people may not know that Garmin (GRMN), the maker of personal navigational devices, has also tried its luck with smartphones -- and has struggled to make a mark. Now, the company admits that sales of Nuvifone, the navigation-enabled smartphone, have been dismal, and it is examining options that may include shuttering the business altogether.

Garmin had once hoped Nuvifone would vault it into the league of iPhone and Android, but cut-throat competition and Google's (GOOG) announcement in October 2009 that it would offer free voice-based turn-by-turn navigation on smartphones threw water on Garmin's calculations. Meanwhile, as navigation-enabled smartphones and in-dash devices started to make their way into the ever-changing navigation segment, demand for PNDs (personal navigation devices) began to dwindle, hurting sales and shaving off profits. The trend continues. Garmin says it is not upbeat about the North American or European markets, but remains bullish about its prospects in the Asia-Pacific and Latin American markets.

Garmin, which competes with U.K.-based TomTom in the PND space, has seen much of its competition leave the market due to falling prices and shrinking profits. Although this has helped Garmin and TomTom maintain a price base -- selling prices average $135 currently for Garmin -- it remains to be seen what measures Garmin has in store to fend off competition from Apple's (AAPL) iPhones or Android-based smartphones. The company sold smartphones worth $27 million in the second quarter.

Garmin says growing sales of smartphones are lowering PND sales by an estimated 5 million to 10 million annually and cutting into its profits. The Kansas-based Garmin is of the view that sales volumes will drop 5% annually over the next couple of years. At one point, the company had estimated that it would sell smartphones worth $100 million to $200 million in 2010 but it has since trimmed that expectation to below $100 million.

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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APPLE INC (AAPL): Free Stock Analysis Report
 
ARROW ELECTRONI (ARW): Free Stock Analysis Report
 
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