For Immediate Release
Chicago, IL – August 27, 2009 – Zacks Equity Research highlights Medtronic (MDT) as the Bull of the Day and KeyCorp (KEY) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Boeing (BA), Textron (TXT) and Ford (F).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676
Here is a synopsis of all five stocks:
Medtronic’s (MDT) long-term story is intact – product approvals and launches will drive healthy top-line growth. This was witnessed in the first quarter when the company reported sales growth in all its operating segments.
Higher demand for pacemakers and ICDs has rejuvenated growth in the CRDM segment. This will bolster the company’s strong position in the cardiac market against its closest rivals, Boston Scientific Corporation and St. Jude Medical.
First quarter earnings of 79 cents per share were higher than the Zacks Consensus Estimate of 78 cents and 72 cents, a year ago. We rate this stock Outperform with a target price of $43.
KeyCorp’s (KEY) second-quarter net loss came in at 69 cents per share, substantially worse than the Zacks Consensus Estimate. The downside primarily resulted from preferred dividend payment and a significant increase in the provision for loan losses.
Credit quality worsened significantly during the quarter. However, we are impressed by the company’s steps to reduce its exposure to the commercial real estate (CRE) home builders business.
Though the company will benefited by exiting the risky and unprofitable businesses, we expect elevated provision requirements and a weak net interest to put significant pressure on its profitability. As such, the shares carry an Underperform recommendation from us.
Latest Posts on the Zacks Analyst Blog:
A Durable Recovery?
Apparently Boeing (BA) had a good month, as orders for transportation equipment jumped 18.4% — more than reversing a 12.0% slide last month. It’s mostly Boeing, and perhaps some of the private jet firms like Textron (TXT). Non-defense aircraft orders soared 107.2%. It is a very volatile area, though — last month they were down 30.0% and in May they were up 60.4%.
Auto firms like Ford (F) are also in that category, and the now-expired (and wildly successful) “Cash for Clunkers” program cleared out dealer lots. Motor vehicle orders were up just 0.9% in July following declines of 0.2% and 8.4% in June and May, respectively. and led them to restock. The program really only got underway at the end of July, so we will probably see a big increase in that area in August.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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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