Zacks Bull and Bear of the Day Highlights: Tractor Supply Co.,Amerisafe Inc., Energy Transfer Partners L.P., Chesapeake Energy Corp. and EnCana Corp. - Press Releases
For Immediate Release
Chicago, IL – April 14, 2010 – Zacks Equity Research highlights Tractor Supply Co. (TSCO) as the Bull of the Day and Amerisafe Inc. (AMSF) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Energy Transfer Partners L.P. (ETP), Chesapeake Energy Corp. (CHK) and EnCana Corp. (ECA).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
We are changing our long-term recommendation for Tractor Supply Co. (TSCO) to Outperform as we anticipate it to perform well above the broader market. Tractor Supply is the largest operator of retail farm and ranch stores in the U.S. with a diverse portfolio of branded and private-label merchandise.
The company has reported record earnings with solid sales in core consumable categories, including animal and pet-related products. Tractor Supply's unique market position, rapid store expansion plan and prudent inventory management efforts augur well for future operating performance.
However, macroeconomic headwinds, intense competition and high initial expenses related to new store openings could limit the above-market performance of the company. That said, our target price of $75.00, 20.8X 2010 EPS, reflects our long-term Outperform recommendation.
Given the critical sustainability factor in the current sluggish economic recovery, we are downgrading Amerisafe Inc. (AMSF) to Underperform. The company's fourth quarter earnings were substantially lower than the Zacks Consensus Estimate.
The downside was primarily a result of a year-over-year decrease in the top line due to the soft insurance market conditions as a whole, as well as an increase in expenses. In addition, the combined ratio and operating ROE significantly deteriorated from the year-ago quarter.
Though the pricing environment is now improving somewhat, the company is expected to face an uncertainty for the next few quarters as the market weakness continues to hurt payrolls.
Latest Posts on the Zacks Analyst Blog:
ETP Tiger Pipeline Approved
Energy Transfer Partners L.P. (ETP) -- a natural gas and propane gas master limited partnership (MLP) -- announced that the Federal Energy Regulatory Commission (FERC) has permitted it to build and operate a 175-mile natural gas pipeline serving the Haynesville Shale and Bossier Sands producing region in Louisiana and East Texas.
Known as the Tiger Pipeline, the 42-inch diameter loop will connect Energy Transfer’s existing pipeline system near Carthage, Texas, extend through the Haynesville Shale, and end near Delhi, Louisiana, interconnecting to at least seven interstate pipelines at different locations in Louisiana. It is estimated that the project will cost roughly $1–1.2 billion.
Energy Transfer expects the Tiger Pipeline to begin service by the first half of 2011 with an initial capacity of 2 billion cubic feet per day (Bcf/d) that may be increased up to 2.4 Bcf/d by the second half of the year. The partnership has entered into long-term firm transportation pacts ranging from 10-15 years with natural gas players Chesapeake Energy Corp. (CHK) and EnCana Corp. (ECA), for 100% of the pipeline capacity.
The Tiger Pipeline is part of Energy Transfer’s efforts to build critical infrastructure that could provide takeaway capacity from the emerging Haynesville Shale natural gas play in Louisiana, connecting to its existing pipeline system near Carthage, Texas.
Dallas, Texas-based Energy Transfer Partners is a master limited partnership engaged primarily in two businesses: 1) the gathering, processing, storage and transportation of natural gas, and 2) and the distribution of propane.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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