For Immediate Release
Chicago, IL – January 25, 2010 – Zacks Equity Research highlights Parker Hannifin (PH) as the Bull of the Day and JPMorgan Chase (JPM) the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Electric Company (GE), United Technologies Corporation (UTX) and Siemens AG (SI).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
We are upgrading the recommendation on Parker Hannifin (PH) to Outperform with a $67 target price. We are encouraged that order trends have improved sequentially for the prior two consecutive quarters, indicating that the worst is behind the company.
Reflecting the benefits of restructuring actions and improving market conditions, it has increased its earnings guidance for fiscal 2010 to the range of $2.40 to $2.80 per share, representing a 44% increase from the midpoint of the previous estimate.
Cash on the balance sheet stands at $234 million with no commercial paper outstanding. Inventory has been reduced by $336 million since last year and days sales outstanding have improved over the prior year.
We are downgrading our rating on JPMorgan Chase (JPM) shares to Underperform.
Fourth quarter earnings were well ahead of the Zacks Consensus Estimate, aided by better-than-expected results at its Investment Bank segment. However, persistent high levels of consumer credit costs and increased provisions for credit losses were among the major negatives.
While we anticipate continued synergies from the company’s diversification and strong capital position, we believe increasing provisions and a pressured credit quality will drag down future earnings.
Latest Posts on the Zacks Analyst Blog:
GE Exceeds Estimates
General Electric Company (GE) reported fourth quarter 2009 earnings per share from continuing operations of 28 cents, exceeding the Zacks Consensus Estimate of 26 cents. Revenues were $41.4 billion for the quarter and $157 billion for the year.
Fourth-quarter earnings from continuing operations attributable to GE were $3.0 billion, down 22% from $3.9 billion in the fourth quarter of 2008. EPS from continuing operations was $0.28, down 22% from the fourth quarter of last year. Segment profit declined 16% compared with the fourth quarter of 2008, as 9% growth at Energy Infrastructure and 278% growth at Consumer & Industrial were more than offset by declines of 67% at Capital Finance, 30% at NBC Universal and 16% at Technology Infrastructure.
GE is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, medical imaging and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. Major competitors are United Technologies Corporation (UTX) and Siemens AG (SI).
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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