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Zacks Bull and Bear of the Day Highlights: Dr. Pepper Snapple, Supertex, PMI Group, Chesapeake Energy and Toyota

CHICAGO, May 14, 2008 (BUSINESS WIRE) -- Zacks Equity Research highlights Dr. Pepper Snapple (NYSE: DPS) as
the Bull of the Day and Supertex, Inc. (Nasdaq: SUPX) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis on PMI
Group (NYSE: PMI), Chesapeake Energy (NYSE: CHK) and Toyota Motor
Corp. (NYSE: TM).

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: Dr. Pepper Snapple (NYSE: DPS)

Dr Pepper Snapple Group continues to execute well in a difficult
soft drink environment. Last year, the company reported 21.4% net
sales growth, primarily due to acquisitions, and 3% organic net sales
growth. In addition, cost and productivity initiatives are more than
offsetting cost pressures from higher raw material prices. The company
enjoys an attractive product mix with emphasis on flavored CSDs
(carbonated soft drinks) and non-CSD beverages, such as ready-to-drink
tea, juice and juice drinks. Management has a sound business strategy;
with the stock at the low-end of the expected valuation range,
coverage is initiated with a Buy rating.

Bear of the Day: Supertex, Inc. (Nasdaq: SUPX)

For fiscal 2008, the company generated sales of $82.6 million,
down from $98.0 million in fiscal 2007, mainly due to reductions in
legacy EL driver sales and reduced foundry sales. 2008 was a
challenging year for the company as it experienced a dramatic change
in product mix due to a steep decline of $15.2 million in legacy EL
driver IC sales and a $2.4 million decline in foundry sales. We
currently have a Sell on the stock with a target price of $20.00.

Latest Posts on the Zacks Analyst Blog:

PMI Group (NYSE: PMI)

PMI Group's 1Q08 net operating loss of $3.37 per diluted share was
substantially worse than the estimates. The results suffered from
increased losses in the U.S. Mortgage Insurance Operations and the
impairment of PMI's investment in FGIC, which more than offset the
higher net income from International Operations.

PMI wrote-off the carrying value of its investment in FGIC. The
company's combined ratio worsened significantly while the claim rates
and average claim sizes increased considerably. We suspect the company
may need to raise capital in the coming months in order to satisfy the
requirements of the rating agencies.

Chesapeake Energy (NYSE: CHK)

Our continued favorable view of Chesapeake Energy shares reflects
the company's strong production-growth profile due to its
industry-leading inventory of development projects. The recent
announcement of new unconventional gas plays, particularly the
Haynesville Shale, provides for significant resource potential and a
multi-year inventory of low-risk development projects.

Our Buy recommendation remains unchanged, though we have raised
estimates and price objective. Our new 2008 and 2009 EPS estimates are
$3.97 and $4.25, up from $3.43 and $3.35, respectively.

Toyota Motor Corp. (NYSE: TM)

Toyota Motor Corp. continues to expand its production capacity in
a manner that increases efficiency and meets local demand while
placing it on the way to becoming the world's financially strongest
automaker. It has a strong presence in North America and has been
successful in grabbing market share from the leading U.S. automakers.
Moreover, the company also has a strong cash flow position and a
strong balance sheet.

However, rising costs, pricing pressures and huge capital
expenditures lead us to rate the stock a Hold with a six-month target
price of $96.00. Currently, ADRs of Toyota Motor Corporation are
trading at 12.3x our 2009 EPADR estimate of $8.22.

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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