For Immediate Release
Chicago, IL – January 11, 2010 – Zacks Equity Research highlights RadioShack Corp. (RSH) as the Bull of the Day and Jacobs Engineering Group Inc. (JEC) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Best Buy (BBY), Sears (SHLD) and Goldman Sachs Group Inc. (GS).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
We upgrade our recommendation for RadioShack Corp. (RSH) to Outperform based on our assessment that the company is likely to improve its earnings in the future reporting quarters as a result of significant boom in the wireless industry.
The company is generating healthy revenue growth from stronger sales for its Sprint Nextel postpaid wireless business, netbooks and prepaid wireless handsets and airtime. The addition of T-Mobile as a postpaid wireless carrier also contributed to revenue.
RadioShack’s decision to introduce iPhone 3G in all of its stores in 2010 will also boost its top-line. In addition, RadioShack began selling mobile phones in kiosks at about 100 Target stores.
Jacobs Engineering Group Inc. (JEC) is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients. The company’s ongoing acquisition strategy will help it to strengthen its position in future.
However, the very cyclical nature of its business, as well as its heavy dependence on third parties, is discouraging. The company also faces immense risks as it operates in a highly-competitive environment.
Thus, we maintain our Underperform rating on the stock. Our 6-month target price is $38.00 per share.
Latest Posts on the Zacks Analyst Blog:
Market Overreacts to BLS Numbers
Companies almost never revise their earnings after they are released (I did say ‘almost’). But the Bureau of Labor Statistics (BLS) almost always revises its monthly payroll numbers. Many times, the final revision is completely different from the initial release number.
Even in this report, we saw that the initially released November job loss number of 11,000 was revised to a positive gain of 4,000 jobs. Incidentally, the revised November gain was the first positive job growth since December 2007. Given this, today’s report is unlikely to be the final word December 2009 employment numbers. It is very likely that the final revision could be completely different from this number, as we saw in the case of November.
We don’t need to dig deep to see clear evidence of favorable trends in this report as well as elsewhere in the economy. Of particular significance in today’s report is the positive trend in the creation of temporary jobs, which is a solid leading indicator for the labor market. A total of 47,000 temporary jobs were created in December, which takes the number of such jobs created since July to more than 160,000. A small number, no doubt, relative to the size of the labor market, but clear evidence of movement in the right direction.
Other recent reports on the health of the economy have been in the neutral to positive category. While I would put the non-manufacturing ISM report in the neutral category, the manufacturing ISM and retail sales numbers were clearly positive. Many retailers, such as Best Buy (BBY) and Sears (SHLD), have been reporting solid results and raising outlooks.
Goldman Sued by Pension Fund
On Thursday, Goldman Sachs Group Inc. (GS) was sued by the Central Laborers’ Pension Fund in Illinois, who had bought some Goldman stock in Jan, 2009. As an active investor the pension fund charged Goldman of distributing $22 billion to its employees as bonus payments for fiscal year 2009.
According to the pension fund, the excess bonus payments that amount to nearly 50% of the net revenue of the company are feared to be detrimental for Goldman investors. Such high payouts, especially in the current sluggish economic scenario, are being condemned by the plaintiffs. The charge also states that Goldman had kept aside $17 billion by Sept 2009 for bonus payments, expecting to further this to about $22 billion for 2009.
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.
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.
About Zacks Equity Research
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 analyst 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.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
