EQUITIES Rx (VIPPS INDEX) For 2011

[ICEQUITY]

Zacks Bull and Bear of the Day Highlights: ReneSola, SUPERVALU, Amazon.com, Apple and Google

CHICAGO, Jan. 28, 2011 /PRNewswire/ -- Zacks Equity Research highlights: ReneSola Ltd. (NYSE: SOL) as the Bull of the Day and SUPERVALU Inc. (NYSE: SVU) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL) and Google (Nasdaq: GOOG).
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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:
Aided by the global solar renaissance and Chinese solar ambitions, low-cost Chinese solar player ReneSola Ltd. (NYSE: SOL) is making up for the recession that affected its fiscal 2009 performance.
The company's fortunes look good due to its geographically diversified customer base, ongoing expansion programs, a subsidy program in China, improving operating efficiencies, rising margins and material cost savings through its vertically-integrated production structure. ReneSola also expanded its presence into solar module original equipment manufacturing (OEM) services to make modules for others.
We believe that ReneSola is set for stronger growth in the first half of 2011. With a cheap valuation, we upgrade ReneSola to Outperform with a price target of $12.00.
Bear of the Day:
SUPERVALU Inc. (NYSE: SVU) reported lower-than-expected earnings of $0.24 per share in the third quarter of fiscal 2010. Earnings declined 52.9% year-over-year and were 22.6% lower than the Zacks Consensus Estimate of $0.31.
Net sales for the quarter declined 5.9% year-over-year to $8,673 million primarily because of declines in the retail food segment and supply chain services segment. Therefore, the company lowered its guidance for fiscal 2011.
Furthermore, intense competition in the retail food segment concerns us, while the significant unionized labor force at SUPERVALU has inherent risks. As such the Underperform rating is maintained.
Latest Posts on the Zacks Analyst Blog:
Amazon Results Don't Match Run-Up
Investors had been giddy with excitement for Amazon.com Inc. (Nasdaq: AMZN) 4th quarter earnings results during regular trading Thursday. Before earnings were announced after the closing bell, AMZN shares had run up over $9 per share (5.17%). But then reality set in...
Even though Amazon.com Inc. posted an earnings beat of 91 cents per share -- the Zacks Consensus Estimate was 88 cents -- the world's largest online retailer fell short on the revenue side, posting sales of $12.95 billion in the quarter, just missing the Zacks consensus of $12.97 billion.
So in after-market trading, AMZN shares dropped 10% immediately -- erasing the entire day's gains, and then some. After starting to creep back up following the initial disappointment, after-market trading remains dismal at this hour.
Part of the run-up earlier was associated with call options on AMZN shares, which expire Friday. But the other part was the optimism about Amazon.com's December quarter, especially following the stellar performances by Apple Inc. (Nasdaq: AAPL) and Google (Nasdaq: GOOG) last week, and reports of double-digit year-over-year online retail growth.
Compared to Amazon.com's 4th quarter of 2009, its numbers are quite favorable: though revenues disappointed compared to expectations, they did grow 36% from $9.52 billion a year ago, and the 91 cents per share beat 4Q09's 85 cents by 7.1%. For the company's 1st quarter of fiscal 2011, Amazon.com guided revenues between $9.1 and $9.9 billion -- in line with current consensus estimates.
Analysts have been modestly optimistic about Amazon.com's 4th quarter earnings results -- 6 of the 33 covering the company had upwardly revised estimates within the past month. But over the past 90 days, the Zacks consensus estimate had actually fallen a penny from 89 cents per share.
Well, as they say: 'seeing is believing'. Those who caught Amazon-fever prior to the company's earnings results might consider this a lesson learned.
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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