Zacks Bull and Bear of the Day Highlights: HCP, Inc., Navigant Consulting, Altria Group, Eli Lilly and Supertex Inc.

For Immediate Release

Chicago, IL – July 23, 2009 – Zacks Equity Research highlights HCP, Inc. (HCP - Analyst Report) as the Bull of the Day and Navigant Consulting (NCI - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Altria Group (MO - Analyst Report), Eli Lilly (LLY - Analyst Report) and Supertex Inc. (SUPX - 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:

HCP, Inc. (HCP - Analyst Report) continues to raise cash through asset sales and equity issuance.

The company has done a successful job of delevering and strengthening the balance sheet. With nearly $1.4 billion available on its credit facility, the company has adequate capital to address 2009 and 2010 debt maturities.

We continue our Buy rating. We think healthcare will continue to outperform other REIT sectors in 2009.

The yield is still over 8% and is being covered with operating cash. The current payout is safe, and think HCP is one of the best positioned names.

Bear of the Day:

Utilization rates continue to decline, and bill rates are down as well. Navigant Consulting (NCI - Analyst Report) is taking steps to restructure its business, but the operating environment remains challenging.

As we have maintained for some time, we expect Navigant s utilization rates to remain under pressure as clients continue to defer or forgo engagements. Companies in every industry are seeking to cut expenses wherever possible, and the operating climate for business consulting firms remains extremely challenging.

Until we see further evidence that NCI can improve utilization rates and operating results, we believe that a premium valuation is unwarranted. Our price target of $9.00 reflects a multiple of 13x our 2009 estimate.

As such, we continue to rate the shares a Sell at this time.

Latest Posts on the Zacks Analyst Blog:

Altria Beats, Raises Guidance

Altria Group (MO - Analyst Report) recently reported strong second-quarter results, as adjusted earnings increased 8.7% to 50 cents from 46 cents in the prior-year quarter, primarily driven by the smokeless tobacco category.

Net revenues increased 33% year-over-year to $6.7 billion, driven by cigarette segment results that increased 22.5%. The company was able to pass on the increase in federal taxes by raising prices, which, in turn, raised segment revenue. The acquisition of UST and cigars (up 16.8%) also contributed favorably to the top line.

Lilly Posts Good Second Quarter

Eli Lilly (LLY - Analyst Report) turned in another very good quarter. Revenue grew 3% to $5.29 billion, right in-line with our estimate. Revenues would have been up 9% had it not been for a negative foreign exchange headwind. Revenues consisted of $5.11 billion in product sales and $180 million in collaborative and other revenues.

Key products that contributed to growth during the second quarter were Cymbalta at $744 million, up 14%, Alimta at $385 million, up 40%, Cialis at $364 million, up 1%, Byetta at $115 million, up 15%, and Erbitux at $100 million. Other products that contributed to the top-line include Zyprexa at $1.20 billion, down 3%, Gemzar at $385 million, down 20%, and the diabetes care franchise at $825 million, down 7%. Animal health sales at $275 million were up 8%.

Supertex Beats Despite Revenue Dip

Supertex Inc. (SUPX - Snapshot Report) yesterday reported net sales of $13.5 million, down 10% sequentially and down 40% year over year, against consensus estimate of $15.9 million. Management had expected sales to be modestly up sequentially.

Gross margin increased to 53% from 42% in the prior quarter due to increased fab and test capacity utilization. R&D spending was higher due to increased new product development and introduction activities.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

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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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