Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, June 1, 2010
Mon, May 31, 2010
Fri, May 28, 2010 Ford Motor, American Oriental Bioengineering, Hewlett-Packard, IBM and 3Com
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Ford Motor Company (NYSE: [ F ]) as the Bull of the Day and American Oriental Bioengineering (NYSE: [ AOB ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Hewlett-Packard Company (NYSE: [ HPQ ]), International Business Machines (NYSE: [ IBM ]) and 3Com Corporation (Nasdaq: [ COMS ]).
Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].
Here is a synopsis of all five stocks:
[ Bull of the Day ]:
Ford Motor Company (NYSE: [ F ]) looks forward to widening its market share through its accelerated product transformation plan: "One Ford." Incorporating key objectives such as shifting focus from trucks to small cars, delivering more vehicles from fewer core platforms and implementing cost reduction efforts, the plan could have a positive impact on the stock.
In 2009, the plan had already turned in a profit after 4 years. Furthermore, it helped the automaker gain market share in the U.S.
In addition, favorable net pricing, structural cost reductions and improved Ford Credit results are driving Ford's earnings. These have led us to upgrade the recommendation on shares from Neutral to Outperform with a target price of $13.
[ Bear of the Day ]:
American Oriental Bioengineering's (NYSE: [ AOB ]) first quarter earnings per share came in at $0.04, well below both the Zacks Consensus Estimate of $0.07 and $0.10 reported in the year-ago period.
Although revenues recorded a 16.7% year-over-year increase to $53.7 million, we remain concerned about the declining operating margin. Prescription drug sales should continue their growth trajectory as China aims to reform its health care sector to incorporate unaddressed rural markets.
However, in the highly fragmented Chinese pharmaceutical industry, AOB's expenses are likely to increase given the need to stay ahead of its competitors and to meet stringent manufacturing norms. We maintain our Underperform recommendation on the stock.
Latest Posts on the Zacks [ Analyst Blog ]:
HP Leads the Server Market
Everything seems to be going in favor of the largest computer manufacturing company Hewlett-Packard Company (NYSE: [ HPQ ]). As per the recent report published by the technology research firm Gartner, HP generated $3.4 billion in server revenue during the first three months of the current year, up 16.0% compared to the year-ago period.
On the other hand, during the same period, the server revenue of International Business Machines (NYSE: [ IBM ]) dipped 2.1% to $3.05 billion.
The performances of the two companies in the last quarter put HP in the leadership position, with a 31.5% market share, exceeding IBMa™s market share of 28.4%.
After overtaking all its competitors in the PC market, the tech major has now taken aggressive measures and ended up grabbing the top slot in the server business. The company has already strengthened its networking line of business by grabbing another networking company 3Com Corporation (Nasdaq: [ COMS ]).
Enterprise Storage and Servers (ESS) is the largest business within the Technology Solutions Group (TSG). The segment has benefited from its move to Industry Standard Servers (ISS), changing the product mix within the ESS group.
During the second quarter of 2010, ESS revenue increased 31.0% year over year, driven by the increase in Industry Standard Server revenue, which moved up 54% year over year. We believe that with the revival in the macroeconomic scenario, and strengthening of IT spending, this segment should perform well in the ensuing quarters.
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.
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.
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Continuous analyst 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.
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