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Zacks Analyst Blog Highlights: Hospira, Inc., Finisar Corp., McDonald's Corp., Cleveland-Cliffs, Inc. and Alpha Natural Resources, Inc.

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Hospira, Inc. (NYSE: HSP), Finisar Corp. (Nasdaq: FNSR), McDonalds Corp. (NYSE: MCD), Cleveland-Cliffs, Inc. (NYSE: CLF) and Alpha Natural Resources, Inc. (NYSE: ANR).

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Here are highlights from Wednesdays Analyst Blog:

Hospira Hold-Rated, Target Upped

Hospira (NYSE: HSP) reported Q2 EPS that were lower than our estimate by $0.04 on sales that were significantly below our forecast. We increased our FY08 sales and EPS estimates. Our price target is based on roughly 15x FY09 EPS estimate.

The company continues to progress with its manufacturing optimization initiative and expects to complete integrating the acquisition by the end of the year. The company must continue to successfully launch new products. The company continues to face increasing competition for sales of Vancomycin, its largest selling drug in the U.S. Our price target is $42.

Finisar Beats Expectations

Finisar Corp. (Nasdaq: FNSR) has gained a strong position in the short-distance, low-cost portion of the Ethernet market. FNSR's acquisition of Optium Corporation further compliments its product portfolio and should be accretive to its earnings in 2009.

Although some recent data points indicate that spending on network equipment may be slowing, FNSR has reported strong results and given good guidance. As such, we maintain our Hold rating with our $1.50 target price.

McDonald's Keeps On Cooking

McDonalds Corp. (NYSE: MCD) reported much stronger-than-expected August same-store sales numbers, lapping very strong comparables and surpassing our expectations. We continue to view the stock as a good defensive investment and expect steady mid-to-high-single digit earnings growth, fueled by margin expansion and a trade-down from casual dining in an economically weakening Europe, unit growth in AMPEA, the rollout of high-end coffees system-wide, and share buybacks.

We note that worse-than-expected headwinds from a strengthening dollar, rising beef prices and slowing Asian economies pose downside risks to our estimates. Nevertheless, we think this stock provides relative safety and moderate growth and yield in a turbulent environment and exposure to faster-growing international markets. Our rating remains Buy with a six-month target price of $68.

Cleveland-Cliffs Still Climbing

Rising prices and strong demand are pushing Cleveland-Cliffs, Inc.s (NYSE: CLF) performance. Robust industrial growth in China and India has triggered demand for steel, resulting in higher demand for iron ore. The companys portfolio of established and recent iron ore and metallurgical coal assets positions it to capitalize on global industry dynamics in 2008 and beyond.

Moreover, the merger with Alpha Natural Resources (NYSE: ANR) will help Cliffs to meet the increasing global demand for coal, consolidate the supplier base, and generate substantial free cash flow. We also believe the strong commodity price regime should significantly boost revenues for Cliffs. As a result, we rate the shares a Buy with a target of $85, which is 11.5x our 2008 estimate.

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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 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.

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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=4580.

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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.

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