For Immediate Release

Chicago, IL – April 20, 2010 – Zacks Equity Research highlights Broadcom (BRCM) as the Bull of the Day and Synopsys (SNPS) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

The basic underlying theme to watch at Broadcom (BRCM) continues to be the progress with the launch of new, more highly integrated products at more advanced progress geometries. Order patterns have normalized after a dismal 2009 which saw inventory corrections by most OEMs.

The second half of 2009 witnessed a bit of recovery and we expect demand will improve significantly in 2010. Broadcom recently initiated a quarterly dividend of 8 cents per share, which translates to a dividend yield of 0.9%.

In view of the expected strong recovery in the semiconductor industry and Broadcom’s market leadership position, we upgrade our rating to Outperform from Neutral.

Bear of the Day:

Synopsys (SNPS) delivered mediocre first quarter results, with below-par operating performance. The 2010 guidance does not reflect any substantial growth. Although Synopsys is gaining traction from new products, acquisitions and new EDA partnerships, we believe these will take time to produce results.

We believe Synopsys time-based license model has good visibility and has a decent cash position. On the other hand, the semiconductor industry has yet to stabilize and generate demand.

Synopsys is facing customer concentration risk. The industry-wide weakness is impacting its core business. We therefore maintain our underperform rating to the stock.

Latest Posts on the Zacks Analyst Blog:

Leading (Index) Higher

The economic recovery is poised to not only continue but accelerate, according to the Conference Board’s Index of Leading Economic Indicators. The index is a compendium of ten factors that in the past have had a good history of predicting the direction of the overall economy over the next three to six months. These include things like stock prices, the yield curve (the difference between the yield on the 10-year T-note and Fed Funds), the growth of the money supply (M@) adjusted for inflation, the length of the manufacturing workweek, building permits, and consumer sentiment.

The index rose 1.4% in March, well above the 1.1% consensus expectations. It is also a significant acceleration from both February (up 0.4%) and January (up 0.6%). Both the February and January numbers were revised higher as well, from 0.1% and 0.4%, respectively.

Seven of the 10 indicators rose and three fell. The biggest positive contributors to the index in March were the yield curve, which reached its steepest level ever, and the manufacturing workweek. I would point out that the increase in long-term rates was driven by an increase in real interest rates — not by an increase in inflation expectations — as there was not a big jump in the difference between the regular 10-year T-note and the 10-year TIPS (inflation indexed treasuries) yields.

The steep yield curve has been a godsend to the banks (well, maybe God was not as responsible for it as the Federal Reserve, but the latter often confuses itself with the former) and is a big reason that even Citigroup (C) was able to report a profit in the first quarter. I still have major questions about the quality of the earnings at it and other major banks such as Bank of America (BAC) and Wells Fargo (WFC), but those relate more to the accuracy of their balance sheets, not from the huge net interest margins they are earning due to the steep yield curve. These earnings, combined with very low dividend payouts have allowed the banks to replenish their capital and to become solvent once again.

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.

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