For Immediate Release
Chicago, IL – February 2, 2010 – Zacks Equity Research highlights 3M Company (MMM) as the Bull of the Day and Progress Energy (PGN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on KLA-Tencor Corporation (KLAC), Applied Materials (AMAT) and Lam Research (LRCX).
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 3M Company (MMM) with a target price of $89. In the most recent quarter, selling prices were again positive, which boosted gross margin by 50 basis points.
Raw materials were down slightly versus Q4 of the prior year, adding approximately 30 basis points to its margin. Fourth-quarter gross margins also benefited from earlier cost reduction actions. The company invested $1.3 billion in R&D, up slightly as a percent of sales.
3M continued to support its larger key programs in this difficult economic climate. The company continues to drive growth through new products by managing the full spread of the market pyramid through new acquisitions and also by spreading internationally.
Progress Energy (PGN) is one of the nation’s larger pure-play electricity utilities. Given the disappointing outcome of the Florida rate case and lowered 2010 guidance, we expect the stock to remain under pressure in the near term.
Furthermore, weak economic conditions in Florida, which have slowed customer growth and reduced demand for electricity, remain worrisome issues. Thus, we expect 2010 to be a challenging year for Progress Energy.
However, we like the company for its increased generation capacity, market expansion, cost-cutting initiatives, debt reduction, high dividend yield and an improving balance sheet. At this time, however, we downgrade our recommendation to UNDERPERFORM with a target price of $36.00.
Latest Posts on the Zacks Analyst Blog:
KLAC Sees Stronger Semi Markets
KLA-Tencor Corporation’s (KLAC)second quarter earnings beat the Zacks Consensus by a penny. With the broad turnaround in the semiconductor capital equipment market underway, both Applied Materials (AMAT) and Lam Research (LRCX) are also expected to report strong results.
Revenue
Revenue of $440.3 million was up 28.5% sequentially and 11.0% year over year. The sequential strength was due to a larger section of customers increasing their capex investments, particularly in advanced technology. The technical complexity in manufacturing semiconductors and increasingly challenging yield issues are the drivers behind these investments. New products also helped growth in the last quarter.
Products generated 72% of total revenue, an increase of 37.4% sequentially and 15.3% year over year. Services revenue comprised the remaining 28%, up 10.6% sequentially and 1.5% year over year.
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
