Back to top

Press Releases

For Immediate Release

Chicago, IL – April 4, 2012 – Zacks Equity Research highlights Caterpillar Inc. (CAT - Analyst Report) as the Bull of the Day and POSCO - ADR (PKX - Analyst Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on ExxonMobil Corporation (XOM - Analyst Report), BP Plc (BP - Analyst Report) and ConocoPhillips (COP - Analyst Report).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

Caterpillar Inc.'s (CAT - Analyst Report) fourth-quarter EPS increased 53% to $2.25 and revenues surged 35% to a record $17.2 billion, driven by increased machine demand. Results were way ahead of Zacks Consensus Estimates.

With the Bucyrus acquisition, the company is positioned to be the #1 mining equipment manufacturer in the U.S. with a strong footing in the major mining markets of China and India. Caterpillar's backlog is at a record level, which holds promise for the year ahead. We believe Caterpillar's expansion plans of opening new facilities and furthering existing operations, particularly in the emerging markets, will boost its long-term potential.

Furthermore, the company's top line will continue to grow on the back of increasing demand for construction and mining equipment. We maintain our Outperform recommendation and set a target price of $128.00.

Bear of the Day:

POSCO - ADR (PKX - Analyst Report) reported disappointing financial results in 2011 with the company's net earnings falling roughly 12% year over year. Weak margins due to higher raw material costs led to the downfall.

Though the company's focus on expansion in the fast growing markets, such as graphene and synthetic natural gas, and investments in raw materials should be advantageous, the positive momentum suffers a setback in the near term due to global uncertainty.

Steel demand remains soft and lags behind supply, which in turn is hurting prices. Competition is increasing, impeding growth and restricting the stock's performance. Thus, we lower our recommendation from Neutral to Underperform with a 6-month target price of $77 per ADR.

Latest Posts on the Zacks Analyst Blog:

Exxon, BP, Conoco in Alaska Deal

ExxonMobil Corporation (XOM - Analyst Report), along with its partners, has entered into an agreement with the U.S. state of Alaska, whereby the participating companies will jointly work on the development of resources in the region.

ExxonMobil, the operator, together with BP Plc (BP - Analyst Report), ConocoPhillips (COP - Analyst Report) and TransCanada, have proposed to construct a $26 billion pipeline, capable of carrying 70,000 barrels per day of liquids into the Trans Alaska Pipeline System. The pipeline intends to preserve the leases of the participating companies.                                                                                 

The four oil companies have planned to make North Slope natural gas resources profitable within an Alaska Gasline Inducement Act (AGIA) framework. The companies plan to begin natural gas production in the Point Thomson field by May 2016 – with an initial yield of 10,000 barrels per day of natural gas condensate and 200 million cubic feet of natural gas. A new pipeline and a natural gas liquefaction terminal will also be required for making gas available to the market.

The settlement reconciles a long-standing row over the Point Thomson field – located about 95 kilometers east of Prudhoe Bay and estimated to hold around 300 million barrels of oil and 8 trillion cubic feet of natural gas.  The resolution will likely enhance oil production in Alaska and pave way for exports of liquefied natural gas to the promising markets in Asia.

Per the sources, the companies’ leases date back to 1977, while Alaska cancelled the leases in 2006, alleging the companies of deferring development of resources in the area. The companies, on the other hand, contended that Alaska wanted them to bring the Point Thomson field online prior to it being economically feasible. However, to prevent the suspension, the companies took legal recourse that reached the state Supreme Court.

ExxonMobil and BP hold the Zacks #3 Rank, which is equivalent to a Hold rating, while ConocoPhillips holds a Zacks #2 Rank, which translates into a Buy rating, for a period of one to three months. Longer term, we maintain a Neutral recommendation on all the three companies.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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=7158.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT 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=4582.

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

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

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.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com

http://www.zacks.com

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%