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Zacks Bull and Bear of the Day Highlights: Snap-on, DTS, Inc., Tessera Technologies, Colgate-Palmolive and Gentiva Health Services

CHICAGO, Sep 03, 2008 (BUSINESS WIRE) -- Zacks Equity Research highlights Snap-on, Inc. (NYSE: SNA) as the
Bull of the Day and DTS, Inc. (Nasdaq: DTSI) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis on Tessera
Technologies (Nasdaq: TSRA), Colgate-Palmolive Co. (NYSE: CL)
and Gentiva Health Services (Nasdaq: GTIV).

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: Snap-on, Inc. (NYSE: SNA)

Snap-on has reported upside earnings surprises for ten consecutive
quarters, which has caught the attention of earnings momentum investors.
The management has successfully delivered more predictable and
consistent financial performance through the implementation of the
Driven to Deliver and Rapid Continuous Improvement programs. With the
stock's pull-back to the low-$50s, its
valuation compels us to recommend a Buy rating.

Through a structured approach of supply chain and franchise improvement
initiatives, order-fill rates are improving and profitability is
increasing across all operating segments except the Tools Group. The
acquisition of ProQuest Business Solutions has added value for global
original equipment manufacturers (OEM) and enhanced the productivity and
profitability of their dealerships.

Bear of the Day: DTS, Inc. (Nasdaq: DTSI)

The company's fortunes depend on the rate at
which consumers adopt technologies, like DVDs and home theaters. Apart
from the current economic slowdown, which we anticipate will continue to
dampen earnings growth, we think the slowing demand for DVD players will
moderate revenue growth for DTS' DVD
components.

DTS also faces stiff competition from Dolby Laboratories, a challenge in
nearly all markets and product categories. Dolby's long-standing market
position and inclusion in various industry standards make it a strong
rival. We think the valuation multiple expansion is unjustified, given
the risks posed by a worse-than-expected consumer-led economic slowdown,
and rate the stock a Sell.

Latest Posts on the Zacks Analyst Blog:

Tessera Technologies (Nasdaq: TSRA)

Tessera Technologies, Inc.'s advanced
packaging technologies have industry-wide application. June quarter
top-line results beat consensus estimates while the bottom-line missed
slightly. We continue to rate shares of TSRA a Buy.

The stock is currently trading at a 15.1x multiple of our 2009 earnings
estimate (P/E). Considering the company's
market strength and the potential of its IP, we expect solid revenue and
earnings growth to continue, even without any further blockbuster
developments. The firm has won five major lawsuits and now receives
royalty on approximately 80% of the DRAM market, which should be a
catalyst in 2009.

Colgate-Palmolive Co. (NYSE: CL)

Colgate-Palmolive has had a stellar long-term growth record. The company's
tight financial controls and history of new product innovations coupled
with efforts to enhance shareholder value through share repurchases and
dividend increases support a positive long-term view on the stock.
However, rising raw material/fuel costs and the costs related to the
implementation of the restructuring plan remain concerns.

Colgate-Palmolive stock has traded in a P/E multiple range of 18 to 27
over the last four years. However, during the last time of earnings
de-acceleration and a corporate restructuring in the mid-1990s, Colgate's
stock traded at a P/E in the low 20 s. The stock is currently trading at
a P/E multiple of 20.8, which is in the middle quartiles of the
historical range. Positive earning surprises along with savings from the
company's restructuring and business-building
plan should support future growth.

Gentiva Health Services (Nasdaq: GTIV)

Gentiva recently reported better-than-expected 2Q08 net income of
$12 million (up 34% y/y), or EPS of $0.41, reflecting solid increases in
Medicare related revenues in Home Health buoyed by higher episodic
patient admissions (up 10% y/y), increases in revenue per episode.

We believe the $147 million sale of CareCentrix is positive in terms of
both lowering long-term debt and supporting the management's
stated growth via acquisition strategy of its core home care business.
We retain a Hold rating at current levels.

Get the most recent insight from Zacks Equity Research with the free
Profit from the Pros newsletter: 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 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=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=4582.

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.

SOURCE: Zacks.com

Zacks.com 
Mark Vickery 
312-265-9380 
Visit: www.zacks.com

Copyright Business Wire 2008


 



 
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