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