Foods, Quinenco and HMS Holdings CHICAGO--(BUSINESS WIRE)--November 07, 2006 Zacks Equity Research highlights Sinopec (NYSE:SNP) as the Bull of the Day and Whole Foods Market (Nasdaq:WFMI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Quinenco (NYSE:LQ) and HMS Holdings (Nasdaq:HMSY). 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 China Petroleum & Chemical, or Sinopec (NYSE:SNP). Sinopec recently reported strong financial results for the third quarter of 2006, due to increased production and high crude oil prices. While a number of uncertainties remain, we believe that the near- to medium-term environment supports its continued upstream production growth and downstream capacity expansion. Moreover, Sinopec's integrated petrochemical and refining businesses are expected to benefit from possible price reform for refined products in China. Therefore, we are maintaining our Buy recommendation for Sinopec. Bear of the Day: Our Bear of the Day recommendation is for Whole Foods Market (Nasdaq:WFMI). We are downgrading WFMI shares from Buy to Sell. Whole Foods reported in-line fourth quarter results, but management surprised investors by forecasting slower growth rates beginning in fiscal year 2007. WFMI shares sold off over 20% in after-hours trading on the news. Unfortunately, we think there is further downside ahead for the stock, which is still trading at over 31 times fiscal year 2007 EPS estimate. With WFMI's growth declining, growth and momentum investors are selling the stock. Meanwhile, the stock is too expensive for value investors to step in and buy. As a result, we believe the stock will slide down to $30, or about 20 times our fiscal year 2007 EPS estimate. Analyst Blog: We are keeping our Buy recommendation on Quinenco (NYSE:LQ). Our economic outlook for Latin America, particularly in Chile and Brazil, remains positive, and the company's results in the first nine months of 2006 were positive. We are particularly impressed by the strong performance of Quinenco's manufacturing segment, which we believe will continue to outperform in future months. The Argentine inflation rate and disappointing results for Quinenco's telecommunication business remain a concern, but do not change our positive view on the company's short-term outlook. Our six-month target price has increased from $14.00 to $15.75. HMS Holdings (Nasdaq:HMSY), a market leader in the revenue recovery and cost containment of government healthcare programs, has just acquired its only rival. With little customer overlap and complementary services, the merger should be beneficial to the company. HMS is expected to realize savings in overhead. This and higher gross margins from minimal competition should lessen the impact of additional interest costs. The impact on sales and earnings for 2006 will be modest because of the timing and cost of the transaction. The company should post dramatic gains for 2007. Sales and earnings are expected to grow by 50%. A one-year target price of $18.00 is fair. 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. 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Zacks Bull and Bear of the Day Highlights: Sinopec, Whole
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