For Immediate Release
Chicago, IL – December 10, 2009 – Zacks Equity Research highlights Priceline.com (PCLN) as the Bull of the Day and Greatbatch (GB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald’s Corporation (MCD), Burger King Holdings Inc. (BKC) and Yum! Brands Inc.(YUM).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Priceline.com (PCLN) is one of the leading online travel companies in the world. The company’s third quarter results beat consensus estimates on both the top and bottom lines.
Management expects strong double-digit bookings growth in both domestic and international businesses in the fourth quarter. The company grew strongly in 2008 and the growth rate has continued through the first three quarters of 2009 despite recessionary pressures.
The current momentum in the business, international growth opportunities, good execution, prudent marketing strategy and strong financial position are positives. Occupancy, tax-related litigation and declining ADRs are things to watch. We are initiating coverage of PCLN shares with an Outperform rating.
The flurry of acquisition activities in the past few years have expanded Greatbatch’s (GB) customer base, particularly in orthopedics, and moved its product portfolio into higher growth segments. However, the company reported disappointing third quarter fiscal 2009 results.
Earnings per share were 32 cents, considerably lower than the Zacks Consensus Estimate of 38 cents and the year-ago earnings of 43 cents. The company also witnessed erosion in its top-line.
In light of its disappointing performance, we downgrade the stock to Underperform with a target price of $17.
Latest Posts on the Zacks Analyst Blog:
McDonald’s Sales Barely Rise
McDonald’s Corporation’s (MCD) comparable sales for November 2009 showed sluggish growth of 0.7% as against a rise of 7.7% in the same month last year, exposing its sensitivity to rising unemployment, the economic downturn and the discount war among fast-food chains to lure consumers.
The company faces stiff competition from Burger King Holdings Inc. (BKC) and Yum! Brands Inc.(YUM).
System-wide sales at McDonald’s worldwide restaurants climbed 10.1% in November. However, in constant currencies, the rate of increase in system-wide sales dipped to 2.3%.
In the United States, comparable sales dropped for the second straight month. Comps dipped to 0.6% in November (versus a 4.5% increase last year for the comparable month) after falling 0.1% in October. However, the month’s result fared better than the overall quick-service restaurant industry. Value-menu items and premium menu options continued to support the month’s results.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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