For Immediate Release
Chicago, IL – November 13, 2009 – Zacks Equity Research highlights Expedia Inc. (EXPE) as the Bull of the Day and Triumph Group, Inc. (TGI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target (TGT), TJ Maxx/Marshall’s (TJX) and Abercrombie & Fitch (ANF).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Bull of the Day:
Expedia Inc. (EXPE) is one of the leading online travel companies in the world. The company reported strong results in the last quarter, beating the Zacks Consensus Estimate. Promotional activity continues to have a positive impact on the conversion rate, and spending is expected to strengthen in the next few quarters.
We are also positive about international initiatives, which we think will be the key to future growth. Cost management, a favorable online advertising environment and solid financials are other encouraging factors.
By comparison, the possibility of increased occupancy taxes and low growth in Egencia (the smallest segment) seem less significant. However, the declining average daily rates could be something to watch. We are reiterating our Outperform rating on EXPE shares.
Bear of the Day:
We maintain our Underperform rating on Triumph Group, Inc. (TGI) based on the belief that there will be no significant recovery in the delivery of new commercial aircraft in the medium term. A weak commercial OEM market is likely to continue for the coming months.
Huge dependence on government spending as well as on Boeing, its largest customer, is also discouraging. Intense competition in the aerospace is likely to have an adverse impact on the company.
The company's strategy to grow through acquisition involves risks that could adversely affect the operating results, including difficulties in integrating its recently acquired business.
Latest Posts on the Zacks Analyst Blog:
Initial Jobless Claims Fall Again
With the average duration of unemployment at 26.9 weeks, and the median at 18.7 weeks (both all-time records by a very long shot versus other recessions) regular continuing claims is clearly a flawed measure. After regular claims run out, people are then covered under emergency extended claims, paid by the Federal government as part of the stimulus package. Those, too, were in danger of running out for many until they were finally extended earlier this week.
There are now 4.043 million people in the two major extended benefit programs, a decline of just over 5,000 this week (actually two weeks ago, the extended numbers are reported with a delay). That decline is just as likely from people simply running out of their extended benefits as from them getting new jobs. The data should be interesting to look at in a few weeks to see if the numbers shoot back up as the new extension kicks in.
I am encouraged by the steady decline in the initial jobs numbers. They show that we are getting closer to the day when businesses finally, on balance, start to hire people again. That will provide people with the income and confidence in the future that we need to get the economy humming again. It would be the start of a virtuous cycle, as that extra income feeds back into the econo0my creating yet more jobs, and more income.
Right now, we are more likely in "no man's land," where the back of the vicious cycle has been broken, but a virtuous one has not yet taken its place. The hope of this happening could help out the retailers just in time for Christmas. However, I would bet that the discounters like Target (TGT) and TJ Maxx/Marshall’s (TJX) do better than the higher end stores like Abercrombie & Fitch (ANF) this year.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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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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.
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