Zacks Bull and Bear of the Day Highlights: ReneSola, Centennial Communications, Monster Worldwide, Sara Lee and Dow Chemical

Here is a synopsis of all five stocks:

Bull of the Day: ReneSola, Ltd. (NYSE: SOL)

Through its short history, ReneSola regularly adapted to changing market dynamics. The company is aggressively ramping up its polysilicon and solar wafer production capacities. Going forward, increased captive generation of polysilicon will improve its cost structure and enable wafer capacity expansions. Globally, rising solar wafer sales, along with escalating crude and long-term supply agreements, should collectively generate significant earnings growth.

Buoyed by these positive factors and impressive results, SOL increased its 2008 production output and sales guidance. Accordingly, with a predominantly bullish outlook and an attractive relative valuation, we initiate coverage of SOL with a BUY recommendation and a six-month target price of $24.25, representing 27.2% upside potential.

Bear of the Day: Centennial Communications (Nasdaq: CYCL)

Revenue performance has been lackluster, following slow subscriber growth and lower roaming traffic. We remain concerned with net debt of approximately $2.0 billion and limited cash liquidity, although the company redeemed approximately $20 million of debt over recent reporting periods.

Moreover, we are not encouraged by management's outlook for the remainder of 2008 and early fiscal 2009. We continue to await indications of improved operating profitability as changes in business strategy are taking longer to result in improved trends for earnings.

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Monster Worldwide (Nasdaq: MNST)

Monster Worldwide, Inc. is positioned to capitalize on the improving economic conditions across the world. In addition to being leveraged to an improving job market and the increasing dominance of online recruitment, Monster has been boosting revenue through acquisitions and investments.

Monster reported revenues of $370.4 million in Q1, up 12.6% y/y and 4.7% q/q, surpassing our estimate of $367 million. However, competition has intensified over the last few years in the online employment advertising market, which in our view has resulted in Monster losing share.

Sara Lee Corporation (NYSE: SLE)

The five-year Transformation Plan should benefit Sara Lee in the long term even though the project provided little earnings visibility over the first two years. The company is now in the third year of the plan and the brand-building process is proving to be successful.

With the growing popularity of healthier snacking, Sara Lee has developed new products to exploit the trend, including Hillshire Farms Entree Salads, flour-blend breakfast breads and whole grain white bread. The company's operating margin is beginning to expand and quarterly earnings comparisons are expected to be positive going forward. Hence, the Buy recommendation is maintained.

Dow Chemical (NYSE: DOW)

We rate Dow Chemical a Hold as high raw material cost forced the company to temporarily idle or reduce production at a number of its manufacturing plants. Further, DOW has a 67% exposure to the commodity chemical cycle. We expect earnings to remain under pressure. We set a target of $37.50, which is 10.9x our 2008 estimate.

However, the company's costs are low due to vertical integration and its financials are solid. Stronger demand in Europe, Asia Pacific, Latin America, India, Middle East and Africa has more than offset the continued economic slowdown in North America. Moreover, price gains have largely offset significant increases in feedstock and energy costs.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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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