For Immediate Release
Chicago, IL – January 27, 2010 – Zacks Equity Research highlights Brown-Forman (BF.B) as the Bull of the Day and GameStop Corp. (GME) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Inc.(BHI), Schlumberger Ltd. (SLB) and Halliburton Company (HAL).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Brown-Forman (BF.B) is a well-established player in the premium alcoholic beverages industry and possesses a strong portfolio of globally recognized brands.
Brown-Forman is currently undertaking initiatives to reduce overheads and boost profitability, which augurs well for future operating performance. Furthermore, Brown-Forman has a consistent track record of returning cash to shareholders in the form regular dividend payments.
Our long-term recommendation on Brown-Forman is Outperform as we anticipate it to perform well above the broader market. However, intense competition from established as well as regional and local players in its markets may limit the above-market performance of the company.
The video game industry, of which GameStop Corp. (GME) is a part, had surged ahead for a number of years but is now grappling with the recession.
Heavy job losses and reduced access to credit markets have led to lower discretionary spending. This has resulted in lower demand for video game consoles and new software. Moreover, the cutthroat competition from big guns is also weighing upon GameStop’s results.
These unfavorable backdrops were evident from GameStop’s sluggish holiday shopping season, which prompted management to lower its comparable-store sales and earnings guidance. Thus, we maintain an Underperform rating on GME stock until we see an upturn in GameStop’s growth trajectory.
Latest Posts on the Zacks Analyst Blog:
Baker Hughes Tops Ests, Net Sinks
Baker Hughes Inc.(BHI), one of the largest oilfield service companies in the world, reported fourth-quarter 2009 earnings of 43 cents per share, compared to the Zacks Consensus Estimate of 34 cents and year-ago earnings of $1.49.
The substantial fall in earnings year-over-year was due to significantly lower activity levels, contraction in customer spending and price deterioration. Including one-time items, Baker Hughes’ earnings were 27 cents per share.
Similar to Baker Hughes, sector leaders Schlumberger Ltd. (SLB) and Halliburton Company (HAL) have both posted fourth-quarter profits that beat the Zacks Consensus Estimates.
Revenue from Baker Hughes’ oilfield operations was $2.43 billion, down nearly 24% year-over-year but up 9% sequentially. Pre-tax operating profits decreased nearly 66% year-over-year but increased more than 29% sequentially to $242 million. Pre-tax operating margin for the quarter was 10%, compared to 22% in the year-ago quarter and 8% in the previous quarter.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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