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Zacks Bull and Bear of the Day Highlights: American Eagle Outfitters, ReneSola, Express Scripts, Medco Health Solutions and WellPoint - Press Releases

For Immediate Release

Chicago, IL - December 23, 2011 - Zacks Equity Research highlights American Eagle Outfitters ( AEO ) as the Bull of the Day and ReneSola Ltd. ( SOL ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Express Scripts Inc. ( ESRX ), Medco Health Solutions, Inc. ( MHS ) and WellPoint Inc. ( WLP ).

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 :

A solid comparable-store sales performance helped American Eagle Outfitters ( AEO ) to register strong top-line growth of 10.7% during third-quarter 2011. American Eagle leverages its sturdy line of well-established brands and their premium positioning to uphold its unique niche in the specialty retailing sector.

Moreover, the company's cost-saving initiatives and long-term growth strategy will not only provide financial flexibility but will also help to drive value proposition. Further, management's efforts to boost cash flow and maintain a debt-free healthy balance sheet bode well for future operating performance.

Our long-term Outperform recommendation on the stock indicates that it would perform well above the broader market. Our target price of $16.00, based on 17.2x 2011 EPS, reflects this view.

Bear of the Day :

ReneSola Ltd.'s ( SOL ) significant presence in the solar module original equipment manufacturing (OEM) market is currently slated to underperform, owing to Europe's challenging financing environment. The near-term valuation of the company will be adversely impacted by tepid solar products demand in Europe (especially Germany).

Rising competition, credit risk from its customers, oversupply glut of solar wafer and modules in the market, and the company's high R&D expenses are our reasons behind this view. Given the industry-wide high inventory level, we believe performance is only going to be downhill going forward.

We advise investors to exit from the stock for now and look for a favorable entry point in the future. We are apprehensive over any near-term margin recovery for the company given the industry trend of cascading average selling prices.

Latest Posts on the Zacks Analyst Blog :

Shareholders Back Express Scripts-Medco Merger

Express Scripts Inc. ( ESRX ) is en route to implement its proposed merger with Medco Health Solutions, Inc. ( MHS ), as the company's stockholders gave the green signal for the adoption of the agreement and plan of merger, dated July 20, 2011.

In July this year, Express Scripts had agreed to acquire Medco for $29.1 billion ($71.36 per share) in cash and stock. At the time of announcing the deal, Express Scripts announced that Medco shareholders will receive $28.80 in cash and 0.81 shares of Express Scripts for each share of Medco that they own.

Following the closure of the acquisition, which is expected in the first half of 2012, Express Scripts' shareholders will own approximately 59% of the merged entity, with Medco's shareholders holding the remaining percentage.

In a span of few years, this will be the third major acquisition for Express Scripts.

In July 2008, Express Scripts acquired the Pharmacy Services Division of Medical Services Company. Medical Services Company is a leader in providing pharmacy benefit management ( PBM ) services to clients, providing workers compensation benefits. Further, in December 2009, Express Scripts acquired NextRx, WellPoint Inc. 's ( WLP ) PBM segment. The deal significantly expanded Express Scripts PBM business. Finally, the acquisition of Medco Health is expected to help lower the cost of prescription drugs and improve the quality of healthcare, thereby attracting more patients.

However, recently Express Scripts and WellPoint voiced concerns about a contractual dispute. WellPoint said that it differs from Express Scripts on the contractual interpretation of certain terms in the agreement and certain operational matters associated with Express Scripts' performance.

While WellPoint is threatening to drag Express Scripts to court regarding the matter, Express Scripts is hopeful of a mutual settlement.

Currently, we have a Neutral recommendation on Express Scripts. The stock carries a Zacks #3 Rank (Hold rating) in the short-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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AMER EAGLE OUTF ( AEO ): Free Stock Analysis Report

EXPRESS SCRIPTS ( ESRX ): Free Stock Analysis Report

MEDCO HLTH SOL ( MHS ): Free Stock Analysis Report

RENESOLA LT-ADR ( SOL ): Free Stock Analysis Report

WELLPOINT INC (WLP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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