Zacks Bull and Bear of the Day Highlights: Cummins, Enzon Pharma, NextEra Energy, Bank of America and Progress Energy

  Zacks Bull and Bear of the Day Highlights: Cummins, Enzon Pharma, NextEra
                 Energy, Bank of America and Progress Energy

  PR Newswire

  CHICAGO, June 15, 2011

CHICAGO, June 15, 2011 /PRNewswire/ -- Zacks Equity Research highlights:
Cummins Inc. (NYSE: CMI ) as the Bull of the Day and Enzon Pharma (Nasdaq:
ENZN ), as the Bear of the Day. In addition, Zacks Equity Research provides
analysis on NextEra Energy Inc . (NYSE: NEE ), Bank of America Corporation
(NYSE: BAC ) and Progress Energy Inc. (NYSE: PGN ).

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Full analysis of all these stocks is available at

Here is a synopsis of all five stocks:

Bull of the Day :

Cummins Inc. (NYSE: CMI ) is set to benefit from fuel economy improvements,
new emission standards and increased prices. The company's results improved
significantly in the most recent quarter, driven by the truck market recovery
in North America and continued strength in non-U.S. markets.

Earnings exceeded the Zacks Consensus Estimate by $0.31 per share during the
quarter. Furthermore, Cummins raised its EBIT guidance for 2011 based on
higher profits in the first quarter of 2011.

These factors have led us to maintain our Outperform recommendation. Shares of
Cummins are currently trading at 13.1X our 2011 EPS estimate of $7.87. Our
$132 target price, 16.8X 2011 EPS, reflects this recommendation.

Bear of the Day :

Enzon Pharma's (Nasdaq: ENZN ) first quarter 2011 net loss of $0.07 per share
was narrower than the year-ago loss of $0.20 due to substantial cost cutting
by management. The discontinuation of the development of PEG-SN38 for mCRC was
a major blow to Enzon, leaving it with just one clinical program in mid-stage
development and all other programs in early stages of development.

Moreover, royalties from the sales of PegIntron, comprising a substantial part
of revenues, have been declining. Recent FDA approval of Incivek and Victrelis
can pose strong competition to PegIntron, which could further decline
royalties from PegIntron sales.

We have, therefore, downgraded our rating on the stock from Neutral to
Underperform. At the end of the first quarter, P/B multiple of the stock was
approximately 2.1. Our price target of $9.50 corresponds to a P/B multiple of
approximately 1.9.

Latest Posts on the Zacks Analyst Blog :

NextEra Gets Wind Project Funding

NextEra Energy Inc . (NYSE: NEE ) said Bank of America Corporation (NYSE: BAC
), the largest U.S. lender, has agreed to invest $177 million in a tax-equity
transaction linked to a wind farm project of its business unit, NextEra Energy
Resources LLC.

As part of the transaction, NextEra Energy sold Class B membership interests
in White Oak Energy Funding LLC, a 150 megawatt wind energy project located in
Illinois, to the bank. The company said the transaction will comprise of two

The White Oak project is expected to qualify for a cash grant under section
1603 of the American Reinvestment and Recovery Act . This is NextEra Energy's
first tax-equity transaction which includes cash grant as a component.

Based in Juno Beach, Florida, NextEra Energy Inc. through its subsidiaries
engages in the generation, transmission, distribution and sale of electric
energy in Florida. The company competes with Progress Energy Inc. (NYSE: PGN

NextEra reported 2011 operating earnings of 94 cents per share, at par with
the year-ago quarter. The results of the company lay below the Zacks Consensus

As of March 31, 2011, NextEra had $425 million in cash and cash equivalents,
up 40.7% from $302 million as of December 31, 2010. Long-term debts of the
company were $18.3 billion with a debt-to-equity ratio of 47%.

NextEra Energy expects its 2011 earnings to be in the range of $4.35 to $4.65
per share. The company also expects earnings to grow at an average rate of 5%
to 7% from 2011 through 2014. The Zacks Consensus Estimates for second-quarter
2011, fiscal year 2011 and fiscal year 2012 are $1.07 per share, $4.47 per
share and $4.74 per share, respectively.

We maintain our Neutral recommendation on NextEra Energy. The quantitative
Zacks #3 Rank (short-term Neutral rating) for the company indicates no clear
directional pressure on the stock over the near term.

Get the full analysis of all these stocks by going to .

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.

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