CHICAGO - (Business Wire) Zacks Equity Research highlights Intersil Corporation (Nasdaq: ISIL) as the Bull of the Day and Mack-Cali (NYSE: CLI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (NYSE: F), Paccar (Nasdaq: PCAR) and United Technologies (NYSE: UTX). Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day:
Intersil Corporation (Nasdaq: ISIL) is an OEM of analog and mixed signal semiconductor ICs. September quarter results beat consensus estimates on both the top and bottom lines. Forward guidance is for 3% revenue growth in the fourth quarter.
We expect an unfavorable mix of business through 2009, although management initiatives are likely to mitigate the impact. Management expressed confidence that the bottom is behind it, and judging from the increasing order rates and growing backlog, we are inclined to agree.
Since shares are still going rather cheap, we encourage investors to accumulate them. We are raising our rating from Neutral to Outperform.
Bear of the Day:
Mack-Cali (NYSE: CLI) is a vertically integrated office REIT with assets in some very competitive markets which are getting worse in conjunction with the overall U.S. economy.
Mack-Cali will have a difficult time holding occupancy and increasing rents due to the continued volatility in the office sector with increasing job cuts and decline in market fundamentals. In addition, we see no near-term growth catalyst for the company.
Our recommendation for Mack-Cali is Underperform as we anticipate it to perform well below the broader market. However, if Mack-Cali can weather the current storm, the share price may rise.
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Durable Goods: Pretty Good
The 1.1% increase in Transportation equipment is almost startling at its low absolute value -- it follows a decline of 9.1% in July and an increase of 17.8% in August. So far this year, total new orders for Transportation equipment are down 31.7%.
The Transportation sector is broken out into three parts. Orders for motor vehicles, both passenger cars from Ford (NYSE: F) and big 18-wheelers from Paccar (Nasdaq: PCAR) edged down a slight 0.1% in September, following back to back increases of 1.6% and 1.9% in August and July, respectively.
The pig is probably through the python by now, as far as the rebuilding of inventory related to what was drawn down by the Cash for Clunkers program. Year-to-date, motor vehicle orders are down 28.8%. The real volatility in transportation comes from the Non-Defense Aircraft segment. It fell 2.1% in September, virtually a non-event after the 44.2% decline in August and the 98.1% increase in July.
The year so far has been an absolute disaster for the order books of Boeing -- and by extension, its big suppliers like United Technologies (NYSE: UTX) -- with orders down 61.8% so far. The Defense Aircraft segment can also be volatile. It posted a 12.5% gain this month following declines of 12.0% and 20.6% in August and July respectively. On a year-to-date basis, they are the only area of durable goods orders that are up.
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.
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