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Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day:
SINA Corp. (Nasdaq: SINA | Quote | Chart | News | PowerRating) is a leading provider of online media and value-added information services to the global Chinese community. The company posted a year-over-year increase in revenue, but results were below our estimates. SINA provided encouraging Q2 guidance.
However, economic growth in the country has continued to slow during to the global downturn. The company is also facing severe competition in its mobile business, though China's Internet penetration has surpassed the world average, which is expected to have a positive impact on the company's business.
We believe the SINA's business will continue on the strength of solid fundamentals and it will emerge as a strong company when the recession ends. We maintain our Buy rating on the stock but increase our six-month price target to $38.00.
Bear of the Day:
Given the reduced visibility in the global economy, which progressively deteriorated during the quarter, Koninklijke Philips Electronics N.V. (NYSE: PHG | Quote | Chart | News | PowerRating) has decided to restructure businesses in all three sectors, which led to additional charges in the Q1FY09. This has caused us to reduce overall revenue growth rate to negative 7.73% in Euro terms, for 2009 compared to negative 2.2% recorded for 2008.
The revenue growth rate in terms of dollars is projected at negative 17% for FY09 compared to 3.78% for FY08. The company is working to improve its cost structure and its EBITA margins have declined in 1Q09 due to restructuring charges booked.
Based on these results, we are maintaining our Sell rating on PHG with a price target of $17.00 or 24.9x 25.1x our 2009 EPADS estimate of $0.68.
Latest Posts on the Zacks Analyst Blog:
Beige Book: Recession Moderating
Counter-balancing this was the expectation that there will not be "a substantial increase in economic activity" throughout the remainder of the year. Again, this is inline what with the trends I'm drawing from the economic and earnings estimate revision data. Conditions are improving, but we are nowhere near to getting out the woods.
On the positive side, signs of improvement were noted in import and export activity, discount retail and lower-priced homes. Though this might sound like good news for Masco (NYSE: MAS | Quote | Chart | News | PowerRating) or Dryships (Nasdaq: DRYS), it's important to note that we're still far from a recovery in housing or transportation.
On the negative side, credit remained tight. Several districts blamed the lack of lending activity for depressing auto sales, which is problematic for Ford (NYSE: F | Quote | Chart | News | PowerRating) and other car makers.
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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