First Advantage (FADV)

Hain Celestial (HAIN)
By Zacks Equity Research
Feb 10, 2010
The recent economic downturn has been exerting pressure on consumer disposable incomes triggering a shift in focus from higher priced organic products to cheaper private label brands. Consequently, retailers and distributors are being compelled to reduce inventories, thus exerting pressure on sales growth at The Hain Celestial Group (HAIN).

Moreover, in the natural and organic foods market, Hain Celestial faces intense price competition from big players, which could also negatively impact the company's sales and margins. However, HAIN's strategic investments and sustained effort to contain costs, increase productivity and enhance cash flows and margins has enabled it to weather the downturn to some extent.

That said, we downgrade our recommendation to Underperform and set a price target of $13 per share. The company currently has a Zacks Rank of #5 (Strong Sell).

Vulcan Materials (VMC)
By Zacks Equity Research
Feb 09, 2010
Despite being the largest producer of construction aggregates and a leading producer of other construction materials, Vulcan Materials (VMC) faces a challenging environment in the construction industry.

The economic crisis, leading to a significant reduction in new home construction, continues to impact its sales volume. Furthermore, the company's operations are highly susceptible to inclement weather and volatility in energy costs. Its cash position has also deteriorated.

These have led us to recommend shares of the company as Underperform. We set a target price of $40.

Newell Rubbermaid (NWL)
By Zacks Equity Research
Feb 08, 2010
Newell Rubbermaid's (NWL) susceptibility to the global economic downturn is adversely affecting its top-line growth. The company recorded a 14% decline in net sales during 2009 amid a drastic squeeze in consumer disposable income and corporate spending.

Moreover, intense competition from other established manufacturers, coupled with a debt-heavy balance sheet and exposure to adverse foreign currency translations, severely undermine the company's future growth prospects and profitability.

Consequently, our recommendation for Newell Rubbermaid is Underperform as we anticipate it to perform well below the broader market.

GameStop Corp. (GME)
By Zacks Equity Research
Feb 05, 2010
The video game industry, of which GameStop Corp. (GME) is a part, surged ahead for a number of years but is now grappling with the recession.

Heavy job losses and reduced access to credit markets have led to lower discretionary spending. This has resulted in lower demand for video game consoles and new software. Moreover, the cutthroat competition from big-box retailers is also weighing upon the company's results.

These unfavorable backdrops were evident from the company's sluggish holiday sales season, which prompted management to lower its comparable-store sales and earnings guidance. Thus, we maintain an Underperform rating on the stock until we see an upturn in the company's growth trajectory.

Vulcan Materials (VMC)
By Zacks Equity Research
Feb 04, 2010
Despite being the largest producer of construction aggregates and a leading producer of other construction materials, Vulcan Materials (VMC) faces a challenging environment in the construction industry.

The economic crisis, leading to a significant reduction in new home construction, continues to impact its sales volume. Furthermore, the company's operations are highly susceptible to inclement weather and volatility in energy costs.

Its cash position has also deteriorated. These have led us to recommend shares of the company as Underperform. We set a target price of $40.