Zacks Bull and Bear of the Day Highlights: Cliffs Natural Resources Inc., Morgan Stanley, Family Dollar Stores, Inc., JPMorgan Chase & Co. and IBM - Press Releases
For Immediate Release
Chicago, IL – April 8, 2010 – Zacks Equity Research highlights Cliffs Natural Resources Inc. (CLF) as the Bull of the Day and Morgan Stanley (MS) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Family Dollar Stores, Inc. (FDO), JPMorgan Chase & Co. (JPM) and IBM (IBM).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Cliffs Natural Resources Inc. (CLF) is the largest producer of iron ore pellets in the U.S. Cliffs' increasing international iron ore exposure, recovery in its coal business and longer-term diversification into the chromium business are huge positives for the stock.
The company focuses on growing its international exposure in the face of a consistent decline in North American production. The Wabush acquisition is consistent with this approach, as production from this mine will be sold primarily in Europe.
The company has recently raised its iron ore and coal sales and production volumes with steel demand recovering in the last couple of months. Separately, Cliffs has also enhanced its financial flexibility by raising about $347 million through equity followed by compensation reductions, which should result in annual savings of $37 million.
We are downgrading our recommendation on Morgan Stanley (MS) to Underperform from Neutral. The company's fourth quarter earnings were substantially behind the Zacks Consensus Estimate.
Robust topline growth and a dip in interest and operating expenses were partially offset by losses in fixed income sales and debt-related credit spreads. Also, low level of activity was witnessed in sales and trading revenues although strong gains were posted in underwriting, wealth management and investment banking operations.
Given the current critical sustainability factor, we remain on the edge to notice the financial impact of the company's JV with MUFG that is scheduled to commence in May 2010.
Latest Posts on the Zacks Analyst Blog:
Family Dollar Earnings Surge
Family Dollar Stores, Inc. (FDO) has posted better-than-expected second-quarter 2010 results due to robust sales witnessed in the Seasonal and Electronics, Home Products and Consumable categories.
The quarterly earnings of 81 cents a share surpassed the Zacks Consensus Estimate of 78 cents, and jumped 35% from 60 cents delivered in the prior-year quarter. Management now expects third-quarter 2010 earnings between 71 cents and 76 cents a share, and fiscal 2010 earnings between $2.48 and $2.58.
The current Zacks Consensus Estimate for the third-quarter 2010 is 70 cents and for fiscal 2010 it is $2.47 per share. We can expect some upward estimate revisions following the company's improved guidance.
JPMorgan Allies with IBM
In an effort to provide solutions to organizations for rationalizing corporate travel expenses, JPMorgan Chase & Co. (JPM) said on Tuesday that it has entered into a partnership with IBM (IBM) by integrating its expense management tools and services with its Corporate Card solution.
This alliance will enable companies improve visibility into business travel costs, better leverage supplier relationships, reduce costs and time associated with expense report processing and audit expense reports.
With this alliance, JPMorgan’s PaymentNet online visibility and reporting tool, coupled with IBM’s auditing capabilities, are expected to result in greater overall program consistency.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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