CHICAGO, July 26, 2011 /PRNewswire/ -- Zacks Equity
Research highlights El Paso Corporation (NYSE: EP) as the
Bull of the Day and The Goldman Sachs Group Inc. (NYSE: GS)
as the Bear of the Day. In addition, Zacks Equity Research provides
analysis Skyworks Solutions, Inc. (Nasdaq: SWKS),
Verizon (NYSE: VZ) and AT&T (NYSE: T).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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:
El Paso Corporation's (NYSE: EP) high-grade E&P
assets and large inventory of pipeline projects offer significant
value in the long run. The company benefits from hedging a
substantial portion of its future production, which offers
operating clarity and cash-flow visibility even when energy prices
remain volatile.
We believe the competence of management and the company's access
to financing will enable successful execution of El Paso's
industry-leading pipeline backlog going forward. We upgrade our
recommendation for EP shares to Outperform based on the company's
announcement to split its business into two strong stand-alone
entities, as well as its raised 2011 guidance.
We believe the separation will enable further balance sheet
improvement and greater operational transparency for the new
company. El Paso possesses a Zacks #1 Rank, indicating a Strong
Buy.
Bear of the Day:
The Goldman Sachs Group Inc. (NYSE: GS) reported second
quarter 2011 earnings per share of $1.85, significantly below the Zacks Consensus
Estimate of $2.29 per share. Coupled
with global macroeconomic concerns, the results deteriorated driven
by a decrease in revenue and poor performance in the Institutional
Client Services division.
Further, the Investing and Lending division also recorded lower
revenues. After reviewing the results, we are maintaining our
Underperform recommendation on the shares.
Our six-month price target of $117.00 equates to about 9.3x our earnings
estimate for 2011. Combined with the $0.35 per share dividend, the price target
implies an expected negative total return of 8.4% over that period,
which is consistent with our Underperform recommendation.
Latest Posts on the Zacks Analyst Blog:
Skyworks Beats Expectations
Skyworks Solutions, Inc. (Nasdaq: SWKS) reported revenues
of $356.1 million, which surpassed
management's guidance of $345
million. The reported figure includes $6.5 million of revenue from the acquisition of
SiGe semiconductor (which closed on June 10,
2011).
Excluding the SiGe contribution, revenue would've been
$350 million, up 27% year-over-year
organically.
Skyworks posted a net income of $51.5
million or $0.27 per diluted
share compared to a net income of $34.7
million or $0.19 per diluted
share in the year-ago quarter. Excluding acquisition-related
charges but including stock-based compensation expense, Skyworks
reported a net income of $0.41 per
share, beating the Zacks Consensus Estimate by a penny.
Guidance
Going forward, Skyworks projects revenues of $400 million, with a $20
million – $25 million from the
SiGe acquisition. Gross margin is expected around 44.6% – 45.0%.
Excluding stock-based compensation expenses and restructuring
charges, EPS is expected at $0.53.
Skyworks continues to benefit from strong underlying demand in
the mobile Internet market driven by market share gains and new
product ramps. Broadband mobile subscriptions continue to grow in
leaps and bounds.
The advent of cloud computing is expected to take the trend
further with the ever-growing need for wireless connectivity. The
products from Skyworks support all smartphone and tablet operating
systems, including Android, Symbian, Windows Mobile and others.
Skyworks continues to gain traction on the network
infrastructure side of the mobile Internet connection as operators
install new base stations, new routers, and back-haul equipment to
expand coverage of data services and prepare for next generation
LTE deployments.
As carriers like Verizon (NYSE: VZ) and AT&T
(NYSE: T) accelerate their LTE plans, Skyworks expects a solid
opportunity for growth in the coming years with its broad product
portfolio.
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
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events impacting stocks and the financial markets.
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