Zacks Analyst Blog Highlights: EOG Resources, Inc., Altria Group, Inc., Kraft Foods Inc., Philip Morris International Inc. and Waddell & Reed.

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Here are highlights from Thursday's Analyst Blog:

EOG a Core Large-Cap E&P

We continue to see EOG Resources, Inc. (NYSE: EOG | Quote | Chart | News | PowerRating) shares as a core holding in the large-cap exploration and production (E&P) space for the company's demonstrated ability to achieve consistent production growth, primarily through organic means.

EOG's strong positions in Texas Barnett Shale and North Dakota's Bakken plays provide it with a multi-year inventory of development drilling opportunities. EOG has a very strong organic production-growth profile, with volumes expected to increase by approximately 15% in 2008. We are keeping our recommendation, price objective and estimates unchanged at this stage.

Altria Spin-Offs a Success

Altria Group, Inc. (NYSE: MO | Quote | Chart | News | PowerRating) generates significant cash flow and the stock has a high dividend yield. However, the company is engaged in numerous tobacco liability suits. Several large punitive damage awards have been upheld by appellate courts, especially the $50 million judgment paid out in the Boeken case after the U.S. Supreme Court refused to hear it. The Hold rating is maintained.

Longer-term, the spin-offs of Kraft (NYSE: KFT | Quote | Chart | News | PowerRating) and Philip Morris International (NYSE: PM | Quote | Chart | News | PowerRating) should unlock shareholder value. The U.S. tobacco industry is one of the largest and most profitable markets in the world. With a stable of strong brands, an efficient distribution network, and a strong field sales force, Altria Group has the ability to leverage the company's resources across an array of tobacco products.

Benchmark Electronics Stays Flat

We maintain our Hold recommendation on the shares of Benchmark Electronics, Inc. (NYSE: BHE). The company reported a disappointing second quarter as its computing segment fades faster than expected. Citing a faster wind-down of mature projects, the company offered disappointing guidance for the third quarter as well.

We believe that BHE will struggle for the next few quarters, but we remain positive on its non-traditional markets where we expect growth of high margin products. We believe Benchmark is better positioned than its peers in non-traditional markets such as Medical and Test & Instrumentation, helping them buck the trend of slowing growth in outsourcing of electronics manufacturing.

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