For Immediate Release
Chicago, IL – November 27, 2009 – Zacks Equity Research highlights Agilent Technologies (A) as the Bull of the Day and The Medicines Company (MDCO) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alcoa (AA), U.S. Steel (X) and Freeport McMoRan (FCX).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Agilent Technologies (A) is a broad-based OEM of test and measurement equipment. October quarter results beat the Zacks Consensus Estimates on both the top and bottom lines.
Agilent generates very stable gross margins, and recent restructuring actions should also improve operating margins. The company’s leadership position, history of innovation, acquisition strategy and position in China are other positive factors. Although the EM segment has been severely hit by the recession, there was a marked improvement in the last quarter.
Although the debt load is considerable and liquidity appears to be limited, we are optimistic about the turnaround in its business. Consequently, we are upgrading Agilent shares to Outperform.
The Medicines Company’s (MDCO) third-quarter loss per share of 6 cents missed the Zacks Consensus Estimate of a loss of 5 cents. Although Angiomax continues to contribute significantly to revenues, we are concerned about the product losing exclusivity in the U.S. in September 2010.
The entry of generics would be devastating for the company. Therefore, the onus is on management to acquire and develop the next generation of products to drive the top-line. One of those products was expected to be Cangrelor. However, the failure of the phase III CHAMPION program was a significant setback.
Meanwhile, the Cleviprex sales ramp has also been slow. We recommend avoiding the name until we gain more visibility on the Angiomax patent situation, the Cleviprex ramp and the future of Cangrelor and Oritavancin.
Latest Posts on the Zacks Analyst Blog:
Durable Goods Orders Drop
One area that has seen solid increases in durable goods orders for each of the last three months is primary metals, which are sort of at the base of the food chain, and might be signaling better times ahead. In the short term it is good news for firms like Alcoa (AA), U.S. Steel (X) and Freeport McMoRan (FCX). This month they rose by 3.6%, following increases of 2.6% and 1.2% in September and August, respectively.
That area, though, has an especially large amount of ground to make up, as even with the increases in durable goods orders for each of the last three months, orders are still down 39.6% on a year-to-date basis. Three months in a row of solid gains makes it look like the rebound is a trend, and not a short-term aberration, though.
On the other hand, Computer orders, which had held up reasonably well on a year-to-date basis — down “just” 15.1% year to date — have started to turn south, dropping in two of the last three months. In October they dropped by 7.2%, following a 0.3% increase last month and a 3.1% decline in August. Thus, the high tech rebound might be less robust than many have been hoping for.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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