CHICAGO - (Business Wire) 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:
Chevron Corp. (NYSE: CVX),
Linktone Ltd. (Nasdaq: LTON),
DRDGOLD Ltd. (Nasdaq: DROOY),
Salesforce.com, Inc. (NYSE: CRM) and
UTStarcom, Inc. (Nasdaq: UTSI).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Friday’s Analyst Blog:
Chevron at a Great Value
We are upgrading Chevron Corp. (NYSE: CVX) shares to Buy from Hold following the stock’s recent commodity-price related weakness. We think that the risk-reward trade-off is very favorable at current levels.
While a weak oil price environment may weigh on the stock over the coming weeks, we believe that Chevron’s strong pipeline -- which is projected to add more than 1 MMBOE/d by 2011 -- and impressive recent exploration successes have significantly improved its long-term upstream growth prospects.
Linktone Unprofitable Thru '09
Linktone Ltd. (Nasdaq: LTON) is a provider of wireless interactive entertainment services for mobile telephone users and advertising services to enterprises in China.
The Chinese wireless value-added services market has seen increasingly intense competition and the policy/regulatory changes have a material impact on Linktone’s business. However, the company’s revenue has increased sequentially for three consecutive quarters, which may indicate that the worst time for Linktone has passed. Advertising service business may become another revenue source for the company.
DRDGOLD with Certain Challenges
In the fourth quarter, unhedged gold-producing company DRDGOLD Ltd.’s (Nasdaq: DROOY) headline earnings from continuing operations were $2.52 per share, compared to a loss from continuing operations of $0.25 per share in the year ago quarter when measured in constant currencies. Total revenue was $65 million, up 30% from $50 million recorded in the previous year’s corresponding quarter when measured in constant currencies. Gold production from continuing operations for the quarter was 1% higher at 71,211 oz.
With minimal debt on its balance sheet, DRDGOLD is well positioned to undertake expansion activities. However, there are some challenges facing the company with respect to its aging assets, environmental laws, currency risks and power shortages. Thus, we rate the stock a Hold with a six-month target price of $6.
Salesforce.com Trending Strong
Salesforce.com, Inc. (NYSE: CRM) is the market leader in the on-demand Customer Relationship Management (CRM) space and continues to see substantial subscriber and customer growth.
While the company reported strong second half results and raised full-year revenue guidance, dilution from the InStranet acquisition will result in lower than expected second half EPS. Although this will penalize the stock, we believe InStranet makes strategic sense, and over the long-term EPS growth will accelerate. We therefore reiterate our Buy rating on Salesforce.com's shares.
UTStarcom Keeping Grounded
UTStarcom, Inc. (Nasdaq: UTSI), a provider of IP-based telecom equipments, announced encouraging second quarter 2008 financial results, above our estimates.
This was primarily due to growing acceptance for the company’s IPTV solutions and personal communications devices (PCD). We believe market demand for the company’s IPTV and optical transport solutions remains firm as opportunities appear respectable at several carriers in Asia and Latin America. Recent divestiture of the PCD and mobile solutions businesses will foster adequate focus on the company’s core IP-based business, while simultaneously improving overall margins.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677
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=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
