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Zacks Bull and Bear of the Day Highlights: Cytori Therapeutics, Red Robin Gourmet Burgers Inc., Ford, Eaton and TRW Automotive

October 19, 2009 | Comments: 0
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CYTX | RRGB | F | ETN | TRW
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For Immediate Release

Chicago, IL – October 19, 2009 – Zacks Equity Research highlights Cytori Therapeutics (CYTX - Analyst Report) as the Bull of the Day and Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (F - Analyst Report), Eaton (ETN - Snapshot Report) and TRW Automotive (TRW - 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:

We continue to be very positive on Cytori Therapeutics (CYTX - Analyst Report) and believe the company's Celution System, a better mousetrap for quickly and efficiently harvesting adult stem cells, will see sales ramp significantly over the next few years.

Sales of the system have been tracking with our expectations. Ultimately, the clinical data will determine the pace at which the ramp continues. So far, the clinical data has been exciting, and with several investigator-sponsored programs ongoing. Additional data expected over the next few years will have an immediate impact on the financial results.

Today's price represents a very attractive entry point in our view. We are maintaining our Outperform rating and $8 target.

Bear of the Day:

Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report) is vulnerable to economic headwinds, and we believe that the stock will continue to underperform the restaurant industry. Impeding the growth is its sagging same-store sales and declining traffic counts.

The company's second-quarter 2009 same-store sales fell 11.5%. The chain expects guest counts to remain negative, and expects restaurant-level operating margins to decline by 50 to 80 basis points in fiscal year 2009.

In addition, more than 50% of total restaurants are located in areas, which have been hit hard by the housing downturn and economic slowdown. This may dampen the company's growth potential.

Latest Posts on the Zacks Analyst Blog:

Capacity Utilization Improves

We are doing better at the base of production, with utilization of crude goods (sort of reflects more mine output than factory output) at 82.6%, up from 81.4% in Auguast and 80.3% in July. Semitfinsihed utilization rose to 67.3% from 67.0% in August and 66.3% in July. The utilization of factories making finished goods rose to 69.3% from 68.6% in August and 67.5% in July.

Much of the increase in output (and utilization) comes from the Auto industry, where production rose 7.4% in September after gains averageing 11.0% in August and July. The increase in output at firms like Ford (F - Analyst Report) and its suppliers like Eaton (ETN - Snapshot Report) and TRW Automotive (TRW - Analyst Report) was clearly tied to the Cash for Clunkers program. Now that the program is over, and the depleted inventories have been rebuilt, the big question is: can it continue? If it does in October and November, it will be a very good sign for the economy.

Overall, this is an encouraging report. We are headed in the right direction, but we still have a very long way to go.

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.

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