Inc., Trammell Crow and Companhia Siderurgica Nacional
CHICAGO--(BUSINESS WIRE)--May 26, 2006
Zacks Equity Research highlights Sempra Energy
(NYSE:SRE) as the Bull of the Day and Saks, Inc. (NYSE:SKS) as the
Bear of the Day. In addition, Zacks Equity Research provides analysis
on Trammell Crow (NYSE:TCC) and Companhia Siderurgica Nacional
(NYSE:SID). Full analysis of all four stocks is available at
Here is a synopsis of all four stocks:
Bull of the Day:
Our Bull of the Day recommendation is for Sempra Energy
(NYSE:SRE). Impressive operating and financial results in 2005, led by
record performance in its commodities business and supported by solid
results in utility operations, support our bullish outlook on SRE.
Looking ahead, from a base of stable earnings via natural gas
pipelines and storage, we see earnings growth driven by continued
profitability at Sempra Commodities as well as significant
contributions from several new LNG receipt terminals. However, the
company might face difficulties from reduced cash flow and a
below-average dividend. Accordingly, based upon cheap forward earnings
valuation, we maintain SRE at a BUY recommendation with a six-month
target price of $48. Price appreciation to our near-term valuation
target, coupled with the increased $0.30 per share quarterly dividend
- which we consider sustainable and secure - represents annualized
total return potential of 17.5%.
Bear of the Day:
Our Bear of the Day recommendation is for Saks, Inc. (NYSE:SKS).
There was a great deal of noise surrounding Saks' first quarter
results because of numerous one-time items related to asset sales and
transition arrangements. After nearly $2 billion in asset sales, Saks
will need to improve its focus on improving its Saks Fifth Avenue
stores. Unfortunately, management has already cautioned investors to
expect weak sales trends in the second quarter, which should pressure
its profit margins. In the short term, those investors looking for
signs of a turnaround are going to be disappointed. Longer term may be
a different story, but it is much too early to speculate. As a result,
we continue to recommend that investors avoid SKS shares.
We are reiterating our Buy recommendation on shares of Trammell
Crow (NYSE:TCC). The company continues to have positive earnings
momentum in most business segments, and we believe it will likely
continue throughout 2006. We like management's focus on expanding its
operating margins, and feel it can continue the progress it has made
in the past few years. Trammell Crow is entering a cyclical business
expansion as the economy recovers, and the company is firing on all
cylinders, particularly in its Global Services business. Demand for
real estate services continues to grow in a still hot real estate
We maintain our Hold recommendation on Companhia Siderurgica
Nacional (NYSE:SID), even after the recent sell-off in emerging-market
stocks. We are still encouraged by the Brazilian short-term economic
outlook and its history of high dividends. However, the stock's
current valuation remains above the market average and well above
other Brazilian steel companies, first quarter results were
disappointing, and the outlook for steel prices in the short term is
Get the full analysis of all four stocks by going to
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