For Immediate Release
Chicago, IL – February 8, 2010 – Zacks Equity Research highlights CPFL Energia S.A. (CPL) as the Bull of the Day and Newell Rubbermaid (NWL) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Costco Wholesale Corporation (COST), BJ’s Wholesale Club Inc. (BJ) 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:
We are maintaining our Outperform rating on CPFL Energia S.A. (CPL). The company posted in-line results for the third quarter of 2009, despite non-recurring items.
The company’s outlook for the short-to-medium term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though the company is still contending with a difficult business environment around the world.
Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive mainly considering the non-cyclical nature of the company.
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:
Costco Sales Climb in January
Costco Wholesale Corporation (COST), one of the leading U.S. warehouse club operators, recently reported better-than-expected sales for the four-week period ended Jan 31, 2010.
Costco’s comparable-store sales for January rose 8%, reflecting a comparable sales growth of 4% at its U.S. locations and 25% at its international divisions. Year-to-date, total comparable-store sales grew 6%, with U.S. sales up 3% and international sales up 18%. The results were favorably impacted by rising gasoline prices and a weaker U.S. dollar.
Excluding the effects of gasoline prices and a softer dollar, Costco’s comparable-store sales for January rose 2%, with U.S. comparable sales remaining flat, while international comparable sales were up 9%. Year-to-date, total comparable-store sales grew 3%, with U.S. sales up 2% and international sales up 8%.
Total net sales for January surged 10% to $5.62 billion from $5.09 billion reported in the same month last year. Year-to-date sales increased 8% to $32.45 billion from $30.02 billion reported in the same period last year.
Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the United Kingdom, 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia.
Costco faces stiff competition from BJ’s Wholesale Club Inc. (BJ) and Sam’s Club, a division of Wal-Mart Stores Inc. (WMT).
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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