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Zacks Bull and Bear of the Day Highlights: Tiffany, Developers Diversified, Alcoa, Barrick Gold and DuPont

October 07, 2009 | Comments: 0
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TIF | DDR | AA | ABX | DD
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For Immediate Release

Chicago, IL – October 7, 2009 – Zacks Equity Research highlights Tiffany (TIF - Analyst Report) as the Bull of the Day and Developers Diversified (DDR - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alcoa(AA - Snapshot Report), Barrick Gold (ABX - Analyst Report) and DuPont (DD - Analyst 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:

Tiffany (TIF - Analyst Report) is well positioned to deliver robust sales and earnings growth through leveraging capital investments made over past several years in distribution, manufacturing and diamond sourcing processes. The company, which holds a significant position in the world jewelry market, is poised to benefit from its increased geographic diversification once the economy rebounds.

However, to weather the downturn, Tiffany is concentrating more on smaller size store formats that offer selected collections of lower priced higher-margin products, which in turn enhance store productivity.

Further, to protect its shrunken revenue base, the company has been paring its cost structure by reducing its headcount and trimming capital expenditure with fewer store openings. Consequently, our Outperform rating on the stock persists.

Bear of the Day:

Developers Diversified (DDR - Analyst Report) has a relatively high leverage compared to its peers due to acquisitions over the past several years. Developers Diversified is raising cash through asset sales, debt, and by selling 30 million shares and additional warrants to the Otto family, a shopping center developer in Germany.

The equity sale is dilutive and the long-term sustainability of the company is under doubt. Our recommendation for the company is Underperform as we anticipate it to perform well below the broader market.

Latest Posts on the Zacks Analyst Blog:

Demand for Gold, Stocks and Bonds?

Clearly, not every investor believes the recovery will be V-shaped.

Today is purely a trading rally ahead of the "official" start of third-quarter earnings season. (Alcoa [AA - Snapshot Report] reports this afternoon.) We will need a good reaction to profit reports to sustain this rally.

As far what your own portfolio, pay attention to trends in earnings estimates. Several analysts have recently cut their 2009 and 2010 forecasts on Barrick Gold (ABX - Analyst Report). Conversely, estimates are rising on some cyclical stocks, such as DuPont (DD - Analyst Report).

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.

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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

 

 


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