For Immediate Release
Chicago, IL – October 12, 2010 – Zacks Equity Research highlights: Family Dollar Stores (FDO) as the Bull of the Day and CRA International (CRAI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Energizer Holdings Inc. (ENR, Walgreen Co. (WAG) and Wal-Mart Stores Inc. (WMT).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.
Here is a synopsis of all five stocks:
The better-than-expected fourth-quarter 2010 results for Family Dollar Stores (FDO) and an optimistic outlook for fiscal 2011 compelled us to revisit our recommendation. We now expect Family Dollar to Outperform.
The company’s strategic initiatives to improve merchandising and store operations have helped grow the top and bottom lines. The point-of-sale technology and store realignment initiatives are also helping to drive traffic. There is a tremendous opportunity to increase gross margin by renewed effort on its store brand portfolio.
Management now expects growth of 8% to 10% in net sales and an increase of 13% to 20% in earnings per share in fiscal 2011. In spite of intense competition from other established players and erratic consumer spending patterns, we remain bullish on the stock.
CRA International’s (CRAI) third quarter earnings were in line with the Zacks Consensus Estimate, primarily owing to the uptick in utilization rate backed by successful restructuring actions.
Although the pipeline of both litigation and management consulting businesses litigation remains reasonably active, clients cautious about aggregate spending and a decline in organic revenue are expected to limit the company’s growth. Overall, near-term visibility remains unclear, given the current volatile market trends. Despite showing some improvement, litigation trends remain sluggish.
Going forward, we remain skeptical about the growth prospects of the company. Hence, we downgrade the stock from Neutral to Underperform.
Latest Posts on the Zacks Analyst Blog:
Energizer Wins American Safety Bid
Energizer Holdings Inc. (ENR, a leading manufacturer and marketer of batteries, lighting and personal care products announced that it has won the bid to acquire substantially all the assets and certain liabilities of American Safety Razor Co. for $301 million in cash in a competitive bidding process in the bankruptcy court proceedings.
However, the acquisition is still subject to regulatory approval.
Based in New Jersey, privately held, American Safety Razor Co., a primary competitor of Energizer had gone bankrupt and filed for Chapter 11 (bankruptcy) in July. The bankruptcy was a result of increased competition in its shaving products category.
American Safety Razor sells shaving razors to drug stores such as Walgreen Co. (WAG) under the store’s own brand. American Safety Razor is the fourth largest manufacturer and distributor of wet shave products and is a leading supplier of private-label razors and blades such as Matrix3, M5Magnum, Solara and Mystique.
The company was hard hit by the loss of an important customer Wal-Mart Stores Inc. (WMT) in 2009. American Safety had previously accepted to sell its assets to its first-lien lenders.
Energizer is the parent company of Schick Wilkinson Sword (“SWS”), the second largest manufacturer and marketer of men’s and women’s wet shave products in the world. SWS products are sold in over 140 countries, and its product portfolio includes Hydro, Quattro, Intuition, Xtreme 3 and Protector.
The acquisition of American Safety Razor wet shave business will provide an important strategic fit and opportunity for the Energizer Personal Care business, the company pointed out. Moreover, the addition of American Safety Razor to Energizer’s Schick Wilkinson Sword business will expand product portfolio, broaden customer base and help the company stand against tough competition in the category.
Acquisitions are an integral part of Energizer’s growth strategy. Energizer Holdings has generated top-line growth through strategic expansions (organic growth in the razor blade and battery businesses and a number of acquisitions in personal care).
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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CRA INTL INC (CRAI): Free Stock Analysis Report
ENERGIZER HLDGS (ENR): Free Stock Analysis Report
FAMILY DOLLAR (FDO): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
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