Zacks Bull and Bear of the Day Highlights: Johnson & Johnson, Stone Energy, Valero, Home Depot and Lowe’s

For Immediate Release

Chicago, IL – July 15, 2009 – Zacks Equity Research highlights Johnson & Johnson (JNJ - Analyst Report) as the Bull of the Day and Stone Energy (SGY - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Valero (VLO - Analyst Report), Home Depot (HD - Analyst Report) and Lowe’s (LOW - 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:

Johnson & Johnson (JNJ - Analyst Report) has an enormously diverse revenue stream consisting of market leading products in all three of its business segments. However, due to a number of products expected to experience declining sales as well as the affects of foreign exchange, revenue will fall in 2009.

We expect EPS to experience a more moderate decline, benefiting from improving margins and share buybacks. However, J&J's consistency, product diversity, financial stability and long-term growth potential make it a very attractive holding in this turbulent market. We rate the stock a Buy based on the stock's attractive valuation and strong company fundamentals. Our price target is $70.

Bear of the Day:

Our continued Sell recommendation on Stone Energy (SGY - Analyst Report) shares reflects the company s weak competitive position in an unfavorable macro environment. We believe that Stone's asset portfolio, centered on the Gulf Coast/Gulf of Mexico regions and lacking meaningful exposure to the emerging shale plays, is not suited for the current environment of low commodity prices and restricted access to capital.

With a debt-heavy balance sheet (debt-to-capitalization ratio of 68.9%), Stone has limited financial flexibility in the current credit constrained environment.

Latest Posts on the Zacks Analyst Blog:

Retail Sales Numbers Mixed

If auto sales are stripped out, sales rose just 0.3% in June -- a slower pace than May’s 0.4% rise and below the consensus expectations for a 0.5% increase. The other big factor was sales at gasoline stations, which rose by 5.0% for the month, but are down 31.6% for the year. Clearly what is going on has much more to do with the price per gallon than the number of gallons sold. The increase in gas station sales matched the 5.0% rise in May.

Recently however, gasoline prices have started to back off again, so I would not expect such a big gain in July. Gasoline prices are for the most part a function of crude oil prices, so do not read the increasing sales there as a good thing for the independent refining companies like Valero (VLO - Analyst Report). Analysts have been hacking away at their forecasts for those firms recently.

The overall tone of the report showed continued pressure on discretionary spending. Building Material store sales -- think Home Depot (HD - Analyst Report) and Lowe’s (LOW - Snapshot Report) -- fell 0.9% on the month, more than reversing a 0.4% gain in May. On a year over year basis they are down 13.0%.

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.

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 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.

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=5508.

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=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com