Science & Technology
Science and Technology
Science and Technology
Mon, September 27, 2010
Sun, September 26, 2010
Fri, September 24, 2010
Thu, September 23, 2010
Siemens, Wilmington Trust, General Mills, Hewlett-Packard and Oracle
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights: Siemens (NYSE: [ SI ]) as the Bull of the Day and Wilmington Trust (NYSE: [ WL ]) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Mills (NYSE: [ GIS ]), Hewlett-Packard Company (NYSE: [ HPQ ]) and Oracle Corporation (Nasdaq: [ ORCL ]).
Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].
Here is a synopsis of all five stocks:
[ Bull of the Day ]:
We are upgrading our Neutral recommendation on Siemens (NYSE: [ SI ]) to Outperform with a $121 target price. Revenue and orders both increased year-over-year in the third quarter of 2010.
Revenue also increased sequentially for the second quarter in a row. The order backlog for all sectors hit 89 billion at the end of the third quarter. The company's pension plan continues to be in an underfunded status.
Our long-term Outperform recommendation on the stock indicates that it will outperform the broader U.S. equity market over the next six to twelve months. Our target price is $121.00 or 12.97X 2011 EPS, which is well within the historical range.
[ Bear of the Day ]:
We are downgrading our long-term recommendation on Wilmington Trust (NYSE: [ WL ]) to Underperform based on deteriorating credit quality and its exposure to risky construction loans.
Wilmington's second quarter 2010 loss was substantially higher than the Zacks Consensus Estimate. Results were hurt primarily by higher loan loss provisions, increased non-interest expense and weakness in the commercial construction portfolio. However, strong growth in Corporate Client Services segment, improvement in core deposits and growing assets under management were among the positives.
But Wilmington has been severely marred by the ongoing volatility in the economy, which has reduced client activity and increased the credit and other cost of operations.
Latest Posts on the Zacks [ Analyst Blog ]:
General Mills Outpaces Estimates
General Mills (NYSE: [ GIS ]) reported strong results for the first quarter of fiscal 2011. For the quarter, adjusted earnings increased 12.9% to 70 cents a share, compared with 62 cents in the year-ago period.
The quarterly EPS surpassed the Zacks Consensus Estimate of 63 cents by 11.1%. Profits were mainly driven by strong cereal and snack sales growth.
Management reiterated its fiscal 2011 earnings in the range of $2.46 - $2.48 a share. Excluding mark-to-market effects and the tax charge related to health care legislation, the fiscal 2011 earnings guidance reflects an annual growth of 7% a" 8%.
HP-Oracle Lawsuit Settled
The lawsuit between the two tech majors Hewlett-Packard Company (NYSE: [ HPQ ]) and Oracle Corporation (Nasdaq: [ ORCL ]), relating to Mark Hurda™s appointment with the latter, is settled. The former chief of HP has been relieved from his duties, after a claim for sexual harassment was brought against him by a former marketing contractor.
The lawsuit was settled after Hurd agreed to give up $14.0 million in stock from HP, only after which he was cleared for employment elsewhere. After his extradition from Hewlett-Packard last month, Hurd was offered the position of co-president in Oracle by his friend Lawrence J. Ellison. Oraclea™s chief attacked HP for its false charge. This instigated HP to initiate a lawsuit against Hurd, as he had violated the confidentiality agreement with his former employer.
Under Hurda™s capable mentorship, HP has made some important acquisitions and rationalized its workforce by 40,000. These steps ultimately helped the company to transform itself from a basic computer and printer maker to a well diversified technology giant with a huge product portfolio of hardware and business solutions.
Ellison is of the opinion that Hewlett-Packard moved its allegation against Hurd, although the internal investigation conducted by the company did not reveal adequate evidence of wrongdoing. We believe this creates an environment of uncertainty, which may negatively affect the reputation of this world class organization.
The price that Hurd was required to pay in settlement of the lawsuit is very low compared to what he is receiving from his current employer, Oracle. The company has offered Hurd $950,000 salary and an expected cash bonus of $10.0 million during the next year. This apart, Hurd is also eligible for 10 million stock options to start with.
Oracle might give Hurd another 25 million stock options during the next five years. These stocks could turn out to be million dollar investments, over the next couple of years. Clearly, Hurd has not lost much as his career with Oracle is equally if not more rewarding than before. HP on the other hand, will surely feel Hurda™s absence in the years to come.
Get the full analysis of all these stocks by going to [ http://at.zacks.com/?id=2649 ].
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=7158 ].
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=4582 ].
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.
