CHICAGO, April 14, 2011 /PRNewswire/ -- Zacks Equity
Research highlights Tesoro Corp. (NYSE: TSO) as the Bull of
the Day and Campbell Soup Co. (NYSE: CPB) the Bear of the
Day. In addition, Zacks Equity Research provides analysis on
Merck & Co., Inc. (NYSE: MRK), Bayer (OTC: BAYRY)
and Bristol-Myers Squibb (NYSE: BMY).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
View Full analysis of all these stocks
Here is a synopsis of all five stocks:
Bull of the Day:
Supported by continued favorable trends in the refining
industry, along with its initiatives to improve reliability and
reduce operating costs, we are maintaining our Outperform
recommendation on Tesoro Corp. (NYSE: TSO) shares. We are
optimistic about the sector given the improvement in economic
activity overseas and prospects for stronger fuel demand in the
domestic market.
Additionally, we believe Tesoro's strategic actions to improve
its performance and competitiveness in a cost-effective manner will
drive the company's profitable growth and boost its stock
valuation. Tesoro's scale and diversification benefits, afforded by
its portfolio of seven refineries, add to the positive
sentiment.
As such, we believe Tesoro is well positioned going forward and
view it as an attractive investment. Our $33 price objective reflects a 2011 P/E multiple
of 14.8x.
Bear of the Day:
Campbell Soup Co. (NYSE: CPB) posted second-quarter 2011
earnings of $0.71 that remained in
line with the Zacks Consensus Estimate but declined 4% from the
prior-year period. Due to sluggish demand in the U.S., the sales of
U.S. Soup, Sauces and Beverages division and North America Food
Services division inched down 4% and 1%, respectively.
Moreover, Campbell is highly leveraged, which could adversely
affect its credit worthiness and make it more susceptible to
macro-economic factors and competitive pressures. Additionally,
intense competition from other established players and exposure to
unfavorable foreign currency translations undermines the company's
growth prospects.
Consequently, we have downgraded our recommendation on the stock
to Underperform from Neutral. Our long-term Underperform
recommendation on the stock indicates that it will perform well
below the broader market. Our target price is $30.00 or 12.4x of 2011 EPS.
Latest Posts on the Zacks Stock Analysis Blog
FDA Clears Merck Cancer Drug
Recently, the US Food and Drug Administration (FDA) cleared
Merck & Co., Inc.'s (NYSE: MRK) skin cancer (melanoma)
drug, Sylatron (peginterferon alfa-2b). The once-weekly injectable
drug has been approved by the US regulatory body for subcutaneous
use.
Sylatron has been approved as an additional therapy to treat
skin cancer patients (with microscopic or gross nodal involvement)
within 84 days of surgery including the removal of lymph nodes. The
US agency has cleared Sylatron on the basis of data from the
European Organisation for the Research and Treatment of Cancer
(EORTC) study (n=1,256).
The drug is prohibited for treating patients who are
historically allergic to peginterferon alfa-2b or interferon
alfa-2b. Moreover, the drug has not been cleared to treat
skin-cancer patients suffering from autoimmune hepatitis and also
those affected by hepatic decompensation. The FDA stated that
Merck's drug should be stopped permanently by patients showing
symptoms of their depression worsening or persisting. Furthermore,
the drug should be stopped for treating patients suffering from
psychosis or encephalopathy.
The approval of Sylatron is a huge positive for Merck as the
melanoma market represents significant market opportunity. Merck
will compete with established players like Bayer (OTC:
BAYRY) in the market. Moreover, the FDA approval
of Bristol-Myers
Squibb's (NYSE: BMY) Yervoy earlier in the year has
intensified competition in the market.
Get the full analysis of all these stocks
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
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