For Immediate Release
Chicago, IL – November 18, 2009 – Zacks Equity Research highlights NeurogesX (NGSX) as the Bull of the Day and Sears Holdings (SHLD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target Corporation (TGT), Wal-Mart Stores Inc.(WMT) and Amazon.com Inc. (AMZN).
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:
NeurogesX (NGSX) received some very good news this week when the U.S. FDA approved Qutenza for the management of postherpetic neuralgia (PHN). Management will now move forward with preparing for the commercial launch during the first half of 2010.
Securing reimbursement and hiring the sales force remain the next biggest hurdles for the company. However, with approval now complete and the financial position solid ($57 million in cash on hand), we remain very position on the NeurogesX story.
We recommend accumulating the stock at today's level up to $12 per share. Our rating is Outperform.
Bear of the Day:
Sears Holdings’ (SHLD) vulnerability to continued economic downturn is adversely affecting its top-line growth. The company recorded an 8.6% decline in same-store sales and closed 28 non-performing stores during fiscal 2009 second quarter amid a slump in the housing sector and sluggish apparel sales.
Moreover, intense competition from giant discounters, mass merchants and regional stores coupled with the seasonality of business and exposure to foreign currency fluctuations severely undermine the company's future growth prospects and sustainability.
Consequently, we have changed the recommendation for the company from Neutral to Underperform as we anticipate it to perform well below the broader market.
Latest Posts on the Zacks Analyst Blog:
Target’s Earnings Top Estimates
Target Corporation (TGT) recently reported better-than-expected third-quarter 2009 results.
Net earnings for the quarter jumped 18.4% year-over-year to $436 million, on the heels of a 5.5% decline in credit card expenses, an 18.3% fall in net interest expense, and lower effective tax rate (36.1% in the quarter as against 41.7% in the prior-year quarter).
Target’s quarterly earnings of 58 cents a share outdid the Zacks Consensus Estimate of 49 cents. Earnings for the quarter rose 18.6% year-over-year from 49 cents a share reported in the year-ago quarter. Total revenue for the quarter inched up by 1.1% to $15,276 million. Retail sales rose 1.4% to $14,789 million, but the revenue from the Credit Card segment fell 7.5% to $487 million.
Despite the stronger-than-expected result, Target holds a cautious outlook about its fourth-quarter results. Realizing the fact that customers are reluctant to pay higher prices, Target announced an aggressive price cut on DVDs, books and toys for the upcoming holiday season.
Target, which currently operates 1,743 stores in 49 states, competes with other major discount retailers such as Wal-Mart Stores Inc.(WMT) and Amazon.com Inc.(AMZN).
Comparable-store sales for the quarter fell 1.6%, an improvement over a decline of 3.3% posted in the prior-year quarter. The number of transactions rose to 0.6%, but the average transaction amount dropped 2.2% in the quarter.
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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