Zacks Bull and Bear of the Day Highlights: MWI Veterinary Supply, Tessera Technologies, Inc., Transocean, Chevron and Freeport-McMoRan - Press Releases
For Immediate Release
Chicago, IL – February 16, 2010 – Zacks Equity Research highlights MWI Veterinary Supply (MWIV) as the Bull of the Day and Tessera Technologies, Inc. (TSRA) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Transocean (RIG), Chevron (CVX) and Freeport-McMoRan (FCX).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
MWI Veterinary Supply’s (MWIV) first quarter of 2010 earnings per share came in at $0.63, well above the Zacks Consensus Estimate of $0.50 and the year-ago earnings of $0.48.
The company reported revenues of $236.1 million, an increase of 2% compared to the corresponding quarter of last year. Through its latest acquisition of UK-based Centaur Services, MWI is looking to expand its presence in the international market as well.
Although negative trends in the general economy could reduce consumer discretionary spending on animal health products, we are pleased with MWIV's robust growth over the past few years and the strong outlook. Given these factors, we upgrade the stock to Outperform.
Tessera Technologies, Inc. (TSRA) is a provider of back-end technology for semiconductor manufacturing. The company's technology enables miniaturization of electronic goods, which is a driver of IC sales in the market today.
Consequently, the host of patents, new technologies, customer wins, volume production at customers, ongoing strength in the DRAM market and the licensing model that supports attractive margins are positives. However, protection of intellectual property (IP) for a company this small is a challenge, as are the inherent pricing pressures in the DRAM market.
Our estimates reflect the poor performance we expect of Tessera, as the company is impacted by its own pricing policies. We continue to expect only slight sequential growth in each quarter of 2010, indicating another weak year. We are reiterating our Underperform recommendation on TSRA shares.
Latest Posts on the Zacks Analyst Blog:
Further Tightening from China
In sustaining a breakneck economic expansion over the last two decades that has moved tens of millions of poor Chinese into the ranks of a growing middle class, the Chinese authorities have charted their own course. In the process, they have made their country the third (or almost second) largest economy in the world behind the U.S. and Japan and a major driver of global growth.
China’s centrality to the global economy makes today’s announcement on bank reserves that much more important to the markets. This is particularly so given recent market jitters about Greece-related soverign risk issues, which only receded to the background after eliciting a response from the EU authorities. The U.S. Fed has also been choreographing its exit strategy by terminating its mortgage purchases in the coming weeks and incentivizing banks to keep excess reserves at the central bank through higher interest rates.
All this, with a backdrop of continued doubts about the sustainability of the U.S. recovery, has kept stocks range-bound despite solid fourth-quarter 2009 results. I don’t think today’s announcement from China will be helpful to the markets, either.
Particularly exposed will be commodities and basic materials, though any company with a China exposure (effectively everyone) will be under pressure. Look for oil, copper, coal and the other commodities to give back recent gains. As a result, oil-levered names like Transocean (RIG) and Chevron (CVX) and copper producer, Freeport-McMoRan (FCX) may be under pressure. I would expect to see weakness in emerging-markets-related equities as well.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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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