Back to top

Press Releases

Zacks Bull and Bear of the Day Highlights: Alkermes, Intel, Gap, American Eagle Outfitters and TJX

 ZacksTrade Now

For Immediate Release

Chicago, IL – October 18, 2012 – Zacks Equity Research highlights Alkermes Plc as the Bull of the Day and Intel Corporation as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Gap Inc. , American Eagle Outfitters Inc. and The TJX Companies Inc. .

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:

We are upgrading Alkermes Plc to Outperform following the upwardly revised adjusted earnings guidance provided by the company for fiscal 2013. The guidance was boosted following the successful completion of the refinancing of Alkermes' previously outstanding senior secured bank debt.

Alkermes has been performing well since the purchase of Elan's EDT unit last year, thanks to the expanded portfolio. Moreover, the US approval of type II diabetes drug, Bydureon, is a major positive for Alkermes as the drug offers significant commercial potential. We are also pleased by the pipeline progress at Alkermes.

We believe that there is significant scope for stock price appreciation from current levels. Our price target of $24.00 is based on 6.1x our fiscal 2013 revenue estimate.

 

Bear of the Day:

 

We are downgrading Intel Corporation shares from Neutral to Underperform following the company's lowered expectations for the next quarter. We think that weakness in mature markets, economic headwinds in some emerging markets and pressure from tablets and other competitors are taking a toll on the company.

We think current trends overshadow Intel’s $0.04 positive surprise versus the Zacks Consensus in the second quarter that was driven by strength in server and software businesses and supported by a moderate PC business. However, we remain positive about Intel's dominance in the high-margin server segment and promise of success in the mobile segment, although competition from ARM-based devices continues to intensify.

We believe that Ultrabooks and Win-8 are wild cards this holiday season and could skew results either way. We are also lowering our target price to $20.00, which is 9.4X our earnings expectations for 2012.

                                 

 

Latest Posts on the Zacks Analyst Blog:

 

Gap Streamlines Operations

 

Leading apparel retail chain Gap Inc. in the process of achieving superior long-term growth has created a new business structure that places the global operations of its brands under one executive. With this strategy of uniting its operations, the company expects to speed up its ability to swiftly respond to the evolving consumer needs, while expanding its world-wide presence and boosting shareholder value.

Gap announced that with the commencement of fiscal 2013, its North American, international, online, outlet and franchise divisions will be spearheaded by a single global executive for each of its brands – Gap, Banana Republic and Old Navy. Additionally, the company aims at bolstering its online presence as well as making technological advancements with the creation of a new Innovation and Digital Strategy team.

To facilitate this transition, the company made a few alterations in the existing management positions, which will be effective November 5 onwards. The company has promoted the president of Gap’s international division, Steve Sunnucks, to the position of the Global President, overlooking operations from New York. Assisting Sunnucks from San Francisco, Mark Breitbard, the senior product leader for the brand in the U.S. and Canada, will now be appointed as the President of Gap North America.

Art Peck, the current president of Gap North America, has been elevated to the position of President of the new innovation, digital strategy and new brands division.

At Banana Republic, Jack Calhoun, will assume his new role as the Global President and will focus on all channels and markets globally. He currently serves as the division’s president. At Old Navy, the company made an early start with this strategy, appointing Stefan Larsson as the Global President in April. He has assumed the new role starting this month.

Additionally, management indicated that it sees China operations as a major long term opportunity for its brands. Hence, the company has placed the China division under the direct supervision of Chairman and CEO, Glenn Murphy.

Nancy Green, presently working as the product leader for Old Navy, has been given the new role of supporting China operations. In her new role, she is empowered to channel the product assortment and merchandise for the China market.

Further, management stated that the current president of its online division, Toby Lenk, will be leaving the company following the transition in February 2013.

These changes are the result of the management shifts made in 2011 that targeted uniting the specialty and outlet divisions and also setting up the Gap Global Creative Center in New York.

Over the years, Gap’s five brands and more than 3,200 stores have spanned across over 40 countries globally, expanding significantly compared to operating in only eight countries in 2006. The company mainly competes with national and local department stores and discount stores, such as American Eagle Outfitters Inc. and The TJX Companies Inc. .

Gap currently maintains a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.

 

 

 

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.