Deckers and Coca-Cola FEMSA CHICAGO--(BUSINESS WIRE)--October 31, 2006 Zacks Equity Research highlights URS Corporation (NYSE: URS) as the Bull of the Day and Navarre Corporation (Nasdaq: NAVR) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Deckers (Nasdaq: DECK) and Coca-Cola FEMSA S.A. de C.V. (NYSE: KOF). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676. Here is a synopsis of all four stocks: Bull of the Day: Our Bull of the Day recommendation is for URS Corporation (NYSE: URS). We expect URS to report third-quarter EPS of $0.58, consistent with the prior-year level, amid strong federal business and growth in private sector business. We have raised our FY06 & FY07 revenue forecast on federal to 11% from 9% due to Congress' recent approval of additional funding for military operations in Iraq and a favorable budget outlook for O&M spending. Regarding private sector, high oil prices keep us optimistic on the near and intermediate term picture. We believe oil companies will continue to reinvest profits back into refinery upgrades and pipeline projects. On top of these positive factors, the rise in state and local budgets should lead to sorely needed infrastructure spending in FY07. We retain our Buy rating on the stock. Bear of the Day: Our Bear of the Day recommendation is for Navarre Corporation (Nasdaq: NAVR). We expect Navarre's second-quarter results (which are scheduled for October 30) to be similar to its disappointing first quarter report. We are leaving our estimates unchanged. We maintain our Sell rating on the stock. Our target price is $3.25, which is 10 times our fiscal 2007 EPS estimate. Our bearish view stems from the company's low-margin business model, risky growth strategy and leveraged balance sheet. Analyst Blog: Simply put, Deckers (Nasdaq: DECK) hit the ball out of the park with its third quarter earning report. Its third quarter sales were $7 million above our estimate, and its EPS were $0.28/share ahead of our estimate. To reflect the upside, we increased our 2006 EPS estimate by $0.31 and our 2007 EPS estimate by $0.21. Moreover, we continue to believe that DECK is a Buy-rated stock because of its substantial long-term growth potential and attractive valuation. Its shares trade at 17 times our 2007 EPS estimate, which is still below our estimate of the company's long-term earnings growth rate of 20%. We think the stock has the strength to reach 20 times our 2007 EPS estimate, or $62, which is our new target price. Upgrading KOF to Buy We are changing our current recommendation on Coca-Cola FEMSA S.A. de C.V. (NYSE: KOF) from Hold to Buy. The company posted very positive figures for third quarter 2006, improving revenues and gross profit in all its territories, reducing its debt and producing its solid net income. Additionally, the short-term outlook for Latin American economic growth is positive, and Coca-Cola FEMSA's valuation is still attractive compared to other similar companies. Get the full analysis of all four 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 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. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677. About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2650. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. CONTACT: Zacks.com Terry Ruffolo Media Relations 312-630-9880, ext. 213 Visit: www.zacks.com
Zacks Bull and Bear of the Day Highlights: URS, Navarre,
Press spacebar to pause and continue. Press esc to stop.