For Immediate Release
Chicago, IL – July 30, 2010 – Zacks Equity Research highlights: Tractor Supply Co. (TSCO) as the Bull of the Day and Genomic Health (GHDX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on ExxonMobil Corporation (XOM), ConocoPhillips (COP) and Chevron Corporation (CVX).
Here is a synopsis of all five stocks:
We maintain our long-term Outperform recommendation on Tractor Supply Co. (TSCO) as we anticipate it to perform well above the broader market. Tractor Supply is the largest operator of retail farm and ranch stores in the U.S., with a diverse portfolio of branded and private-label merchandise.
The company recently posted strong earnings in the second quarter of 2010 driven by higher sales, improved merchandise mix, prudent inventory management and effective expense control. Moreover, Tractor Supply’s unique market position, initiatives to boost margin and a debt-free balance sheet augur well for future operating performance.
Over the last five years, Tractor Supply’s shares have traded in a range of 12.0X to 33.7X trailing 12-month earnings. Our Outperform recommendation on the stock indicates that it should perform well above the market. Our target price of $82.00, 20.0X 2010 EPS, reflects this view.
Genomic Health (GHDX) first quarter 2010 loss of $0.07 per share missed the Zacks Consensus Estimate of a loss of $0.03. Although the company’s lead product, Oncotype DX breast cancer test, recorded a year-over-year growth of 20%, revenues declined sequentially.
The company is solely dependent on the breast cancer test currently. Moreover, we are concerned about the outcome of the FDA meeting on LDTs, the outcome of which might have a long-term impact on the company.
Other pipeline tests at Genomic have a long way to go before commercialization. Given these factors, we have downgraded the stock to Underperform. We have also lowered our estimates for the second quarter 2010 and fiscal 2011.
Latest Posts on the Zacks Analyst Blog:
ExxonMobil Net Nearly Doubles
The Big Daddy in the integrated oil space — ExxonMobil Corporation (XOM)— posted outstanding second-quarter earnings of $1.60 per share, compared with the Zacks Consensus Estimate of $1.46 and year-earlier earnings of 84 cents.
These positive comparisons were driven by higher oil price realizations, improved downstream margins and solid chemical contributions.
Total revenue in the quarter increased more than 24% year over year to $92.5 billion, compared with the Zacks Consensus Estimate of $100 billion. Importantly, the oil giant has returned $3 billion to shareholders as dividends and share buybacks.
A substantial improvement in oil prices have helped the integrateds. ConocoPhillips (COP) also posted impressive results yesterday. These have set the stage for Chevron Corporation (CVX), which is scheduled to report its second-quarter results tomorrow.
The Gulf of Mexico incident has had little impact on the company’s results as only a small portion of Exxon’s income is from the region.
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=7159.
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
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
GENOMIC HEALTH (GHDX): Free Stock Analysis Report
TRACTOR SUPPLY (TSCO): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
Zacks Investment Research
