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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:
Financial results for the past thirteen quarters at Strayer Education (Nasdaq: STRA | Quote | Chart | News | PowerRating) have been above expectations, and management's guidance for 2009 portends continued double-digit EPS growth.
The company benefits from positive pricing through annual 5% tuition increases with the 2009 tuition increase having been announced concurrent with the third quarter earnings report.
Despite the stock's valuation being in the upper-half of the historical range, the stock is rated a Buy.
Bear of the Day:
We believe shares of Red Robin Gourmet Burgers (Nasdaq: RRGB | Quote | Chart | News | PowerRating) will continue to underperform both the larger market and the restaurant industry.
Red Robin's traffic began declining long before the onset of rising gas prices in October 2007, which began choking business in the casual dining sector -- a victim of poor site selection in new markets. In spite of their poor performance, the company has retained and even added to these sites as it repurchased 45 franchises since 2005.
Moreover, 2009 consensus EPS estimates are 10% higher than ours, and we think our estimate may prove aggressive if the economic slowdown is deeper or more protracted than we currently anticipate.
Latest Posts on the Zacks Analyst Blog:
Good News for Forest Labs
Forest Laboratories, Inc. (NYSE: FRX | Quote | Chart | News | PowerRating) announced positive results recently from two global multi-center phase III studies which were conducted to evaluate the efficacy, safety and tolerability of ceftaroline for the treatment of community-acquired bacterial pneumonia (CABP).
The top-line data in each of the studies (FOCUS I and II) showed that ceftaroline met the primary endpoint of non-inferiority and achieved high clinical cure rates compared with ceftriaxone (84.3% vs. 77.7%). Additionally, ceftaroline was well tolerated with an adverse event profile similar to ceftriaxone. Earlier, Forest had reported positive phase III results on ceftaroline for the treatment of complicated skin and skin structure infections (cSSSI).
Ceftaroline is a novel, bactericidal, injectable, broad-spectrum cephalosporin which is being developed for the treatment of cSSSI and CABP. The anti-infective market, which is currently dominated by antibiotics, represents a significant commercial opportunity for the company.
Commonly prescribed anti-infective treatments include products like Vancocin from ViroPharma (Nasdaq: VPHM | Quote | Chart | News | PowerRating) and Zyvox from Pfizer (NYSE: PFE | Quote | Chart | News | PowerRating) among others. Improved clinical cure rates and a good side effect profile should help ceftaroline gain share once approved and launched. We estimate peak sales could be in the range of $250 - $300 million.
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.
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.
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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 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.
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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.
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