For Immediate Release
Chicago, IL – November 30, 2009 – Zacks Equity Research highlights Hubbell (HUB.B) as the Bull of the Day and Lindsay Corporation (LNN) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Credit Suisse (CS), J.P. Morgan (JPM) and Toyota Motor (TM).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Hubbell’s (HUB.B) third quarter earnings beat the Zacks Consensus by a wide margin, although revenue was more or less in-line. Government initiatives, the company’s market position, the product line-up and acquisition strategy indicate a strong comeback once the economy is more conducive.
We agree that near-term growth could be impacted by the non-residential slowdown, conservatism and transmission focus of utilities and general weakness in the industrial market. However, the signs of a recovery in 2010 are encouraging.
Consequently, we are upgrading HUB.B shares to Outperform.
Lindsay Corporation (LNN) is a leading manufacturer of self-propelled agricultural irrigation systems. The company stands to benefit in the long-term from the demand for increased food production driven by worldwide population growth, and the growing need for biofuels.
However, lower expected farm income and uncertainty surrounding reauthorization of the federal highway bill are adversely impacting the company’s incoming order rate. The near-term revenue visibility remains low for Lindsay.
The company does not expect substantial recovery in its end markets in fiscal 2010. We are downgrading the rating on the stock from Neutral to Underperform.
Latest Posts on the Zacks Analyst Blog:
Dubai-ous Loans…
The main investment vehicle of Dubai banking, Dubai World, has asked that its payments on $59 billion it owes be suspended until May, signaling to the financial world that Dubai investment is severely strapped for cash. Dubai is the one emirate that does not have any oil of its own, but it had expanded at a breakneck pace in an attempt to become the main financial hub of the Persian Gulf region.
This Dubai banking news has given the world markets a severe case of indigestion as we in the States digested our turkey and stuffing. The initial reaction, interestingly enough, was a further sell off of the dollar, but it has since turned around. World stock markets sold off dramatically after this Dubai investment news, with most of the major markets falling by more than three percent.
Emerging markets are also down, but surprisingly by less than the developed markets, more like a little bit more than 2% on average. Commodities have also been hit hard, including gold which is down by $31.90, or 2.69%. Oil is being hit even harder, down by more than 5.0% and below its $75 support level.
Normally, Black Friday has been an up day for the market. That is not going to happen this year. The big question is if this Dubai investment news is the first of a series of sovereign defaults, or is a one-off affair.
In the overall scheme of things, $60 billion is not a huge amount, but it is not pocket change either. It is not clear where all the bodies are buried with respect to this Dubai banking loan, although it is thought that European banks like Credit Suisse (CS) have a bigger exposure to Dubai banking and Dubai investment than do U.S. banks like J.P. Morgan (JPM).
Toyota Cuts Bonus Payments
Toyota Motor (TM) has decided to cut winter bonus payments for its managers and union workers in Japan in order to keep the company afloat by managing its largest-ever recall in the U.S. and meeting its annual forecasts. The company announced that it will slash bonus payments for 8,700 managers in Japan by 20% and for union workers by 18% on a year-over-year basis.
Managers are entitled to twice-a-year performance linked bonus payments in addition to their monthly salaries. However, Toyota sought a reduction in bonus payments in order to manage its recently implemented largest-ever recall of 3.8 million vehicles in the U.S, which would entail huge cost.
Toyota assured that it will address problems with sudden acceleration in some of its U.S. models by replacing the gas pedals on the recalled vehicles. The recall involved popular vehicles such as the Toyota Camry (2007–10 model year) – the top-selling passenger car in the U.S., and the Toyota Prius (2004–09) – the best-selling gas-electric hybrid, apart from Toyota Avalon (2005–10), Toyota Tacoma (2005–10), Toyota Tundra (2007–10) and Lexus (2007–10 ES350 and 2006–10 IS250/350).
Toyota returned to profitability in the second quarter of fiscal 2010 after reporting losses since the third quarter of fiscal 2009. The company posted a profit of ¥21.8 billion ($232 million) or ¥6.96 (7 cents) per share. This was attributed to government incentive programs across the world – such as “Cash for Clunkers” in the U.S – that helped the company recoup its market share.
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
