For Immediate Release
Chicago, IL – March 8, 2010 – Zacks Equity Research highlights Priceline.com (PCLN) as the Bull of the Day and H&R Block (HRB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Petroleo Brasileiro S.A (PBR), Repsol YPF (REP) and Statoil ASA (STO).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Priceline.com (PCLN) is one of the leading online travel companies in the world. The company’s fourth quarter results beat the Zacks Consensus Estimates on both the top and bottom lines.
Management expects strong double-digit bookings growth in the first quarter, although international is expected to grow faster than domestic. The company saw double-digit growth in revenue, gross profit dollars and operating profit dollars during recession-hit 2009.
The current momentum in the business — international growth opportunities, good execution, prudent marketing strategy and strong financial position — are positives. Occupancy tax-related litigation and declining ADRs are areas to watch. We are reiterating our Outperform rating on PCLN shares.
We are downgrading our recommendation on H&R Block (HRB) to Underperform from Neutral. The company has recently announced that it would not be able to meet its previously announced fiscal 2010 guidance as it is preparing fewer tax returns than it had previously expected.
The tax filing market is shrinking due to the rise in unemployment. Also, there is a continued shift from assisted tax preparation to the digital space, where the company’s growth is not yet satisfactory.
Additionally, the increased price sensitivity of consumers and loss of market share remain other headwinds. However, the company’s leading position in the tax preparer market, its strategic initiatives to grow its business through gaining and retaining customers and its cost containment measures augur well for the longer term.
Latest Posts on the Zacks Analyst Blog:
Petrobras Buys Brazil Block Stake
Petroleo Brasileiro S.A (PBR) or Petrobras S.A. – the largest integrated energy firm in Brazil and one of the largest in Latin America – bought a 30% stake in an offshore oil block from Repsol YPF (REP) and Statoil ASA (STO), Brazil’s oil regulator said.
The offshore block, known as BM-C-33 block, is located in the Campos Basin off the Brazilian coast. Repsol and Statoil each hold a 50% interest in the block. The companies have each agreed to sell a 15% stake to Petrobras. Additionally, Petrobras also agreed to purchase a 20% stake in the BM-S-51 block from Repsol.
We continue to have a positive medium- to long-term outlook on Petrobras for its encouraging portfolio of investments, particularly in Brazil’s so-called “pre-salt reservoirs” that lie below the Espírito Santo, Santos and Campos basins in deep and ultra-deep water.
Petrobras is the operator in most of these exploration areas, with stakes ranging from 20% to 100%. Considering Brazil’s huge pre-salt oil reserves (estimated at 9.5 to 14 billion barrels of oil equivalent), widely thought to be the most important oil find in recent years, we believe Petrobras is poised to maintain an impressive production growth profile for years to come.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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