For Immediate Release
Chicago, IL – February 17, 2010 – Zacks Equity Research highlights Mattel (MAT) as the Bull of the Day and Newell Rubbermaid (NWL) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Hewlett-Packard Company (HPQ), Royal Dutch Shell Plc (RDS.A) and 3Com Corporation (COMS).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
We are upgrading our recommendation on Mattel (MAT) to Outperform from Neutral. Mattel’s fourth quarter earnings were well ahead of the Zacks Consensus Estimate. The better-than-expected results were primarily driven by strong sales of its Barbie dolls and Hot Wheels cars during the holidays.
Mattel has an industry-leading position, a strong balance sheet and continues to experience the benefits of its cost-containment initiatives. Its focus on top-line growth, margin expansion and cash conservation also augur well.
Considering the company’s product line up in 2010, we also expect an improvement in the top line in the upcoming quarters. However, the continuing economic stress will remain a headwind in the near term as the retail environment remains challenging.
Newell Rubbermaid’s (NWL) susceptibility to the global economic downturn is adversely affecting its top-line growth. The company recorded a 14% decline in net sales during 2009 amid a drastic squeeze in consumer disposable income and corporate spending.
Moreover, intense competition from other established manufacturers coupled with a debt-heavy balance sheet and exposure to adverse foreign currency translations severely undermine the company’s future growth prospects and profitability.
Consequently, our recommendation for Newell Rubbermaid is Underperform as we anticipate it to perform well below the broader market.
Latest Posts on the Zacks Analyst Blog:
H-P Wins Shell Deal Pre-Earnings
The world’s largest PC and printer manufacturer Hewlett-Packard Company (HPQ) is in the news for winning a mega deal with oil major Royal Dutch Shell Plc (RDS.A). As per this deal, the computing major will work with Shell on seismic sensors which will help in predicting the underground reservoirs of oil and gas companies.
This is one of the largest forays by H-P in the area of wireless computing, and this new system implemented by H-P is expected to improve the quality and accuracy of the seismic information collected by organizations to conduct such studies. We believe this opens up a new area of business for the company.
This apart, the new business is in line with the current expansion plan of its networking business. For the same reason, Hewlett-Packard disclosed its plans of taking over the networking major 3Com Corporation (COMS) in November 2009.
The company was waiting for the final approval from the European Union and received it as expected. H-P has big plans with its sensing network business, and is conceptualizing a process called “Central Nervous System for the Earth,” or CeNSE. As per this process, small, tough sensors will be attached to buildings or bridges, which will keep a tap on the structural weakness and intimate it in advance.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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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