For Immediate Release
Chicago, IL – November 17, 2010 – Zacks Equity Research highlights: Genomic Health (GHDX) as the Bull of the Day and Plum Creek Timber (PCL) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and PNC Financial Services Group Inc. (PNC).
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:
The third quarter of fiscal 2010 turned out to be the second consecutive profitable quarter for Genomic Health (GHDX) with an EPS of $0.12, surpassing the Zacks Consensus Estimate of breakeven earnings.
The company's lead product, the Oncotype DX breast cancer test, recorded annualized growth of 17%. Although the colon cancer test launched earlier this year has yet to make a significant contribution to the top line, the situation could improve gradually as the company tries to receive reimbursements.
We are also encouraged by the NCCN guidelines, which could lead to growing awareness among patients and further increase the acceptance of the test. Given these factors we have raised our estimates and upgrade the stock to Outperform.
Bear of the Day:
We are changing our long-term recommendation for Plum Creek Timber (PCL) from Neutral to Underperform as we anticipate it to perform well below the broader market.
In the last 30 days, fiscal earnings estimates have been lowered by nearly all analysts covering the stock, driven by the cyclical nature of the business, cut-throat competition, and strict environment policies. However, Plum Creek is the largest publicly-held timber REIT, with a diversified timber and land base that enables it to benefit from large economies of scale.
The stock, however, is trading at a premium to the peer group based on forward earnings estimates. Our target price of $34.00, 25.6X 2010 EPS, reflects our belief that PCL will perform well below the broader market.
Latest Posts on the Zacks Analyst Blog:
Foreclosure Renewal: A New Housing Mess?
Are the major banks looking at housing troubles and billions of dollars of losses yet again? That is what a new report from the Congressional Oversight Panel seems to warn.
According to the report, the chaos resulting from foreclosure paperwork flaws could result in massive losses for banks and a new quandary for the housing market.
Rampant paperwork lapses in evaluating the authenticity of information provided in the mortgage documents have embroiled major lenders including Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and PNC Financial Services Group Inc. (PNC) in a number of lawsuits by homeowners in the second half of September. As a result, these lenders temporarily suspended foreclosures.
According to the new report, financial firms that service a total of $6.4 trillion in mortgages are involved in the foreclosure mess. However, after the Obama administration cited that foreclosure suspension is not required in all 50 states, the affected lenders started resuming foreclosed properties sale.
Perhaps the continuation of the foreclosure suspension was required as the mess was not wiped out from the root. We think the recurrence of the paperwork flaws and the torrent of resulting lawsuits could make it difficult to find home buyers in the years to come. This could stretch out the U.S. housing crisis for several years.
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.
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 analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7159.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
BANK OF AMER CP (BAC): Free Stock Analysis Report
GENOMIC HEALTH (GHDX): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
PLUM CREEK TMBR (PCL): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
