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:
Flowserve Corp. (NYSE: FLS),
BJ Services Co. (NYSE: BJS),
Castle Brands, Inc. (NYSE: ROX),
Canon, Inc. (NYSE: CAJ) and
Nippon Telegraph and Telephone Corp. (NYSE: NTT).
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:
Flowserve Bullishness Tempered
We reiterate a Hold rating on Flowserve Corp. (NYSE: FLS) and a $108 target price. In the second quarter, sales were up 24% year-over-year, while its backlog for new orders was also up 24%. These results demonstrate that the company continues to benefit from strong demand for products and services, which are used in infrastructure products around the globe.
Moreover, Flowserve’s cost-cutting efforts have enabled the company to accelerate its earnings growth. In the second quarter, earnings increased 92% over the second quarter of last year. Nevertheless, we think those bullish points should be tempered by global growth slowing down and FLS shares trading at a reasonable valuation.
BJ Services Feels Price Weakness
BJ Services Co.’s (NYSE: BJS) fiscal third-quarter 2008 earnings, though below the year-ago level, managed to beat estimates on the back of revenue improvement in all the segments.
Importantly, the company appeared to have achieved price and margin stabilization in its core U.S. pressure pumping operations. However, it remains to be seen whether the trend can be sustained given the ongoing weakness in natural gas prices and the supply-demand imbalance in the pressure pumping market. Being a relatively commodity-type supplier, BJS remains particularly exposed to these headwinds.
Castle Brands Under Siege
Castle Brands, Inc. (NYSE: ROX) is a small capitalization company in the premium spirits industry. The company has an established distribution network in the United States. Despite rapid sales growth garnered through strategic relationships, joint ventures and acquisitions, the company has consistently operated at a loss.
Since the company has consistently operated at a loss and with negative operating cash flow, the stock is best valued on a price-to-sales basis. Since going public in April 2006, the stock has traded between 0.04 and 3.03 times sales. The stock is currently selling at a P/S multiple of 0.12. The target price is $0.50 per share based on a price-to-sales ratio of 0.25.
Canon ADRs Down to Fair Value
Japan-based Canon, Inc. ADR (NYSE: CAJ) is one of the leading designers, manufacturers, and marketers of office equipment, cameras, and optical products in the world. The company has been kept at a Hold rating for years, and has recently traded down from the low-to-mid $50s to the low $40s.
Canon slightly raised its 2008 revenue in light of new product launches scheduled for second half of 2008. However, strong Yen appreciation has hurt first half results. We believe there is meaningful risk that the company will not achieve its targets. We therefore maintain a Hold rating on CAJ shares and lower our price target to $42.50.
NTT Staying Big in Japan
Nippon Telegraph and Telephone Corporation (NYSE: NTT) is one of the largest phone companies in the world, mostly serving Japan, with approximately 54 million fixed-line customers and 51 million wireless subscribers. Although the Japanese telecom market has been open to competitors over the past decade, NTT remains the technology and market leader.
NTT's strategy is to maintain the leadership position in the domestic telecom market and capture selected international opportunities to drive long-term growth. Relative to the closest competitor in Japan, NTT's brand and omnipresence enables the company to aggressively handle competitive threats.
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
