For Immediate Release
Chicago, IL – January 21, 2010 – Zacks Equity Research highlights Teva Pharmaceuticals (TEVA) as the Bull of the Day and GameStop Corp. (GME) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Qualcomm Inc. (QCOM), Broadcom Corp. (BRCM) and Texas Instruments Inc. (TXN).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Teva Pharmaceuticals (TEVA) reported earnings of $0.89 in the third quarter of 2009, up 16% from the year-ago period and a cent above the Zacks Consensus Estimate. Net sales increased 25% to $3.55 billion.
We are impressed with Teva’s strong performance in the first nine months of 2009. We expect Teva to continue posting strong revenues and earnings going forward thanks to new product launches, both generic and branded. We are also pleased to see Teva’s progress with its branded and biogenerics pipeline. Biogenerics should help drive growth in the long-term.
Meanwhile, the acquisition of Barr should help Teva strengthen its position in the U.S. and expand its presence in Europe. We are maintaining our Outperform recommendation on Teva with a price target of $65.
The video game industry, of which GameStop Corp. (GME) is a part, had surged ahead for a number of years, but is now grappling with the recession. Heavy job losses and reduced access to credit markets have led to lower discretionary spending. This has resulted in lower demand for video game consoles and new software.
Moreover, the cut-throat competition from big-box companies is also weighing upon GameStop’s results. These unfavorable backdrops were evident from the company’s sluggish holiday sales season, which prompted management to lower its comparable-store sales and earnings guidance.
Thus, we maintain an Underperform rating on the stock until we see an upturn in the company’s growth trajectory.
Latest Posts on the Zacks Analyst Blog:
Qualcomm to Underperform
We downgrade our recommendation for Qualcomm Inc. (QCOM) to Underperform ahead of its first quarter fiscal 2010 financial results. According to our view, the ongoing global economic recession may generate earnings fluctuations in the near-term. The stock price has moved up more than 50% in the last one year and is currently trading at the high-end of its 52-week price range. With respect to several valuation metrics, the stock is also trading at a significantly higher multiple compared to the S&P 500 averages. Financial outlook given by the management for full fiscal 2010 also remains tepid. Furthermore, we believe that Qualcomm’s ongoing patent-related legal battles will adversely affect its financials.
Qualcomm expects to ship between 89 million – 92 million MSM chipsets during the first quarter of fiscal 2010 which is 0.6% below its mid-point compared to the previous quarter. Qualcomm also projected that its first quarter fiscal 2010 revenue will be within the range of $2.55 billion – $2.75 billion. This is also 1.5% below its mid-point compared to the previous quarter. Qualcomm has focused predominantly on CDMA wireless technology, while much of Europe and other parts of the world use GSM networks and other competing wireless protocols. There can be no assurance that CDMA can maintain its growth projection in the market.
Management has already declared that aggressive competition in the mobile phone chipset market will hurt Qualcomm’s profit during fiscal 2010 coupled with a slowdown in handset upgrade by consumers throughout the world. Competition is likely to occur from formidable U.S. rivals like Broadcom Corp. (BRCM) and Texas Instruments Inc. (TXN) as well as from low-cost competitors like Mediatek of Taiwan and VIA Technologies of China.
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
