For Immediate Release
Chicago, IL - December 28, 2011 - Zacks Equity Research
highlights
The St. Joe Company
(
JOE
) as the Bull of the Day and
BHP Billiton Ltd. - ADS
(
BHP
) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on
Sears Holdings
(
SHLD
),
Magnum Hunter Resources
(
MHR
) and
Ventas Inc.
(
VTR
).
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 changing our long-term recommendation for
The St. Joe Company
(
JOE
) from Neutral to Outperform, driven by its future growth
prospects. St. Joe is one of the largest real estate developers in
Florida.
The company is presently focusing on developing the adjacent
area of the Panama City-Bay County Airport, which was opened in
late 2010, to increase the future value of its holdings. St. Joe is
currently in defensive mode and continues to reduce capital
expenditures through stringent cost-cutting measures and reduction
in operating expenses.
The elimination of debt greatly reduces the risk to
shareholders. In addition, the company has adequate liquidity to
satisfy its near-term working capital needs and capital
expenditures. Our long-term Outperform recommendation on the stock
indicates that it would perform well above the broader market.
Bear of the Day
:
We have downgraded our recommendation on
BHP Billiton Ltd. - ADS
(
BHP
) from Neutral to Underperform based on declining industrial demand
on the back of sluggish economic growth in Europe and the U.S.
Other headwinds include competition from peers, an upsurge in oil
prices and rising inflation in the emerging markets.
Turning toward expenses, the cost of improving ore grades,
mining disruptions due to natural calamities, governmental delays
as well as currency fluctuations further thwart the stock. A slower
global growth rate, on the back of the European crisis and a
sluggish U.S. economy, may impact the demand for the company's
products and dampen revenue growth going forward.
Volatility in currency prices may have a significant impact on
the company's financial results going forward. Our $63.00 target
price, 7.3x fiscal 2012 EPADS, reflects our Underperform
recommendation.
Latest Posts on the Zacks
Analyst Blog
:
Expect a Slow, Upward Drift
Stocks will likely sustain last week's upward drift, though
trading action is expected to remain quiet given holiday-induced
light volumes. On the docket today, we have the Case-Schiller home
price index and the Conference Board's Consumer Confidence measure
for December.
The lack of any European news and the expected gain in U.S.
consumer confidence will likely keep overall sentiment favorable
today. The economic docket is fairly light the rest of this
holiday-shortened week, with weekly Jobless Claims, pending Home
Sales and the Chicago PMI as the major reports coming out
on Thursday. The first week of the New Year, however, is
packed with market-moving reports on the manufacturing and jobs
fronts, with the December non-farm payroll report coming out on
Friday, January 7th.
In corporate news,
Sears Holdings
(
SHLD
) reported weak quarter-to-date same-store sales and announced
plans to close 100 to 120 Sears and Kmart stores.
Magnum Hunter Resources
(
MHR
), the exploration and production company, raised its production
outlook for 2012.
Ventas Upgraded to Outperform
We have recently upgraded the long-term recommendation for
Ventas Inc.
(
VTR
), a premier healthcare real estate investment trust (REIT), from
Neutral to Outperform primarily driven by its healthy third quarter
2011 results and strong growth perspectives.
Ventas is engaged in the business of financing, owning and
leasing healthcare-related and senior housing facilities. The
company has one of the largest and most diversified portfolios in
the healthcare sector with exposure to all types of facilities.
The product diversity of the company allows it to capitalize on
opportunities in different markets based on individual market
dynamics, and provides a hard-to-replicate competitive advantage
over its peers.
Ventas usually leases its healthcare facilities under "triple
net" leases, under which the tenant pays all taxes, insurance and
maintenance for the properties, in addition to rent. This insulates
the company from short-term market swings that may adversely affect
the operations of a particular facility, and provides a steady
source of income.
Ventas reported strong third quarter results largely due to the
accretive effect of the acquisitions of Nationwide Health
Properties Inc. and Atria Senior Living Group, Inc., that had
resulted in potential synergies and cost savings.
In addition, the company has lately obtained a new credit
facility that has reduced the interest burden and increased its
borrowing capacity to enable it to capitalize on favorable
investment opportunities in future. This provides a significant
upside potential for the company in the long run.
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.
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BHP BILLITN LTD (
BHP
): Free Stock Analysis Report
ST JOE CO (
JOE
): Free Stock Analysis Report
MAGNUM HUNTER (
MHR
): Free Stock Analysis Report
SEARS HLDG CP (
SHLD
): Free Stock Analysis Report
VENTAS INC (
VTR
): Free Stock Analysis Report
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