For Immediate Release
Chicago, IL – October 19, 2009 – Zacks Equity Research highlights Cytori Therapeutics (CYTX) as the Bull of the Day and Red Robin Gourmet Burgers Inc. (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (F), Eaton (ETN) and TRW Automotive (TRW).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676
Here is a synopsis of all five stocks:
We continue to be very positive on Cytori Therapeutics (CYTX) and believe the company’s Celution System, a better mousetrap for quickly and efficiently harvesting adult stem cells, will see sales ramp significantly over the next few years.
Sales of the system have been tracking with our expectations. Ultimately, the clinical data will determine the pace at which the ramp continues. So far, the clinical data has been exciting, and with several investigator-sponsored programs ongoing. Additional data expected over the next few years will have an immediate impact on the financial results.
Today’s price represents a very attractive entry point in our view. We are maintaining our Outperform rating and $8 target.
Red Robin Gourmet Burgers Inc. (RRGB) is vulnerable to economic headwinds, and we believe that the stock will continue to underperform the restaurant industry. Impeding the growth is its sagging same-store sales and declining traffic counts.
The company’s second-quarter 2009 same-store sales fell 11.5%. The chain expects guest counts to remain negative, and expects restaurant-level operating margins to decline by 50 to 80 basis points in fiscal year 2009.
In addition, more than 50% of total restaurants are located in areas, which have been hit hard by the housing downturn and economic slowdown. This may dampen the company’s growth potential.
Latest Posts on the Zacks Analyst Blog:
Capacity Utilization Improves
We are doing better at the base of production, with utilization of crude goods (sort of reflects more mine output than factory output) at 82.6%, up from 81.4% in Auguast and 80.3% in July. Semitfinsihed utilization rose to 67.3% from 67.0% in August and 66.3% in July. The utilization of factories making finished goods rose to 69.3% from 68.6% in August and 67.5% in July.
Much of the increase in output (and utilization) comes from the Auto industry, where production rose 7.4% in September after gains averageing 11.0% in August and July. The increase in output at firms like Ford (F) and its suppliers like Eaton (ETN) and TRW Automotive (TRW) was clearly tied to the Cash for Clunkers program. Now that the program is over, and the depleted inventories have been rebuilt, the big question is: can it continue? If it does in October and November, it will be a very good sign for the economy.
Overall, this is an encouraging report. We are headed in the right direction, but we still have a very long way to go.
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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