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drugstore.com, LoopNet, Research In Motion, Apple and Palm

May 04, 2009 | Comments: 0
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DSCM | LOOP | RIMM | AAPL | PALM

For Immediate Release

Chicago, IL – May 4, 2009 – Zacks Equity Research highlights drugstore.com (DSCM - Snapshot Report) as the Bull of the Day and LoopNet, Inc. (LOOP - Snapshot Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Research In Motion, Inc. (RIMM - Analyst Report), Apple, Inc. (AAPL - Analyst Report) and Palm, Inc. (PALM - Snapshot Report).

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:

drugstore.com (DSCM - Snapshot Report) reported better-than-expected top-line results for the first quarter, while EPS were in line. For the second quarter, DSCM expects revenue of $93-$97 million and a slight loss to break even earnings.

We continue to believe that investors should focus on the company strategy to achieve profitable sales growth over the long term. Its strategy includes increasing share in the over-the-counter market, growing its international business, entering new partnership arrangements, and expanding into higher margin product lines.

We think these initiatives could produce strong long-term earnings growth. We rate drugstore.com a Buy with a $3.00 target price.

Bear of the Day:

We reiterate our Sell rating on shares of LoopNet, Inc. (LOOP - Snapshot Report) following the release of Q1 results. Although the company owns the leading online commercial real estate marketplace, we believe that a challenging near-term operating environment will curtail share price appreciation.

Continuing macro-economic challenges will likely put stress on the commercial real estate sector, in our opinion, as slower economic growth combined with tight access to debt capital may limit transaction activity. Various key operating metrics have weakened for four consecutive quarters, and we believe that a lower multiple is appropriate at this time.

Latest Posts on the Zacks Analyst Blog:

Wireless Symposium Next Week

Next week the Wireless Enterprise Symposium will be held in Orlando/>, Florida/>/>. At this event last year, Research In Motion, Inc. (RIMM - Analyst Report) introduced a number of products, and we expect some will be introduced this year. Trade sources suggest that there will be several software enhancements for the Blackberry and more details of its recently introduced Blackberry App World.

The penetration of Apple, Inc. (AAPL - Analyst Report) into the corporate market has been hindered by device security concerns (which may also be a concern with the new Palm, Inc. [PALM - Snapshot Report] operating system) and this may be addressed by RIM at this conference. 

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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