For Immediate Release
Chicago, IL – March 11, 2010 – Zacks Equity Research highlights TRW Automotive Holdings (TRW) as the Bull of the Day and Novatel Wireless (NVTL) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Google Inc. (GOOG), Microsoft Corp (MSFT) and Dell Inc. (DELL).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
TRW Automotive Holdings (TRW) is well positioned to take advantage of an industry rebound, given its advanced technology portfolio, leading diversification and improved cost structure.
The company’s innovative product portfolio is capable of generating top- and bottom-line growth. It has been successful in its restructuring and cost containment actions to mitigate the impact of the industry-wide downturn, as reflected in the better-than-expected fourth-quarter results.
As such, we are maintaining our long-term Outperform recommendation for the stock with a target price of $32.
We are downgrading Novatel Wireless (NVTL) to Underperform following its fourth quarter 2009 financial results, which were significantly below Zacks Consensus Estimates.
Novatel is facing intensifying competition for its core embedded solutions for wireless data access. Although Novatel has developed a niche for its MiFi mobile intelligent hot spot, we foresee increased competition as large firms like Qualcomm, ZTE and Huawei Technologies are on the verge of introducing their own version of intelligent mobile hot spots.
The company’s outlook was tepid. We do not find any immediate growth catalysts for Novatel and believe the company will incur losses for full-year 2010.
Latest Posts on the Zacks Analyst Blog:
Google Steps Closer to the Cloud
Mountain View, California-based Google Inc. (GOOG), which is slated to introduce its cloud-based Chrome operating system later this year, took another step towards achieving this goal. The company has announced an online marketplace where software developers will be able to offer their products.
The software to be sold at the store will be closely tied to Google’s own cloud computing services, essentially enhancing Google’s current lineup and encouraging consumers to adopt the Google system.
Developers will be able to offer their products at a $100 fee, they will be able to fix their own prices and collect the proceeds after leaving Google a margin of 20% on sales.
Google stated that around 50 companies had already agreed to sell via the app store and we expect the number to increase going forward.
However, the cloud computing system does have its own hurdles, as businesses are usually concerned about security and access. Although Google has been spending billions to improve the reliability of its services, only time will tell how successful it will be.
Archrival Microsoft Corp (MSFT) dominates the operating systems market and has declared that it is spending heavily on the development of cloud-based services. The company has also followed Google in offering a free version of its extremely popular Office Application.
But this latest announcement seems to indicate that Microsoft will be behind Google when it comes to cloud-based services. Microsoft’s advantage lies in its operating system and the new Windows 7 offering, which large enterprises are likely to prefer.
Dell: Downward Estimate Revisions
Earnings estimates for the computing major Dell Inc. (DELL) have taken a nosedive despite the company’s reporting decent fourth quarter 2010 numbers.
Dell reported fourth quarter 2010 EPS of 28 cents, which exceeded the Zacks Consensus Estimate of 27 cents. However, EPS was down 3.0% from the year-ago quarter. The full-year 2010 earnings of $1.05 also declined, dropping 27.0% from the year-ago quarter.
Revenue for the fourth quarter was $14.9 billion, up 11.0% from $13.4 billion reported in the year-ago quarter and up 16.0% from $12.9 billion reported in the previous quarter.
The strength may be attributed to improvement in revenues across all business segments. The commercial business was particularly strong, fueled by growth in Enterprise Technology and an increase in product shipments. The company reported its first consolidated results after the Perot acquisition, which was closed during the fourth quarter.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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