Zacks Bull and Bear of the Day Highlights: Eaton, Big 5 Sporting Goods, Tiffany & Company, Signet Jewelers and Zale

   Zacks Bull and Bear of the Day Highlights: Eaton, Big 5 Sporting Goods,
                 Tiffany & Company, Signet Jewelers and Zale

  PR Newswire

  CHICAGO, Aug. 26, 2011

CHICAGO, Aug. 26, 2011 /PRNewswire/ -- Zacks Equity Research highlights Eaton
Corp. (NYSE: ETN ) as the Bull of the Day and Big 5 Sporting Goods (Nasdaq:
BGFV ) as the Bear of the Day. In addition, Zacks Equity Research provides
analysis Tiffany & Company (NYSE: TIF ), Signet Jewelers Limited (NYSE: SIG )
and Zale Corporation (NYSE: ZLC ).

(Logo:  http://photos.prnewswire.com/prnh/20101027/ZIRLOGO )

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678
.

Here is a synopsis of all five stocks:

Bull of the Day :

Eaton Corp. (NYSE: ETN ), a diversified power management company and global
leader in electrical components and systems, outperformed Zacks Consensus
Estimates yet again, driven by 12% end-market growth. Eaton sees 2011 shaping
up as the best year in its history. Following the better-than-expected second
quarter results, the company raised its full-year guidance and expects to see
record sales and profits in 2011.

Eaton has gradually transformed itself from an automotive and truck component
manufacturer into a diversified industrial enterprise with leading positions
in its core electrical, hydraulic and aerospace market segments. An
improvement in global market conditions should help boost the company's bottom
lines.

Eaton's stable dividend program, which yields an impressive 3.6%, also makes
the stock attractive. We are maintaining our Outperform rating on Eaton.

Bear of the Day :

Big 5 Sporting Goods' (Nasdaq: BGFV ) second-quarter 2011 earnings dropped the
prior-year quarter. The decline was primarily attributable to a 1.7% fall in
same-store sales. Accordingly, the company has lowered same-store sales
projections for third-quarter 2011, reflecting a sharp decline from the
prior-year quarter.

Big 5 Sporting Goods also sees intense competition from national chains, mass
merchandisers and regional stores which may dent its future operating
performance. Moreover, the seasonal nature of business and risks associated
with sourcing from foreign countries may have an adverse impact on the
company's future performance.

Our long-term Underperform recommendation on the stock indicates that it would
perform well below the broader market. Our target price of $6.65, 10.2x 2011
EPS, reflects this view.

Latest Posts on the Zacks Analyst Blog :

Earnings Preview: Tiffany & Co.

Tiffany & Company (NYSE: TIF ), a high-end jewelry designer, manufacturer and
retailer, is scheduled to report its second-quarter 2011 financial results
before the bell on Friday, August 26, 2011. The current Zacks Consensus
Estimate for the quarter is 69 cents a share. For the quarter under review,
revenue is $786 million, according to the Zacks Consensus Estimate.

First-Quarter 2011, a Synopsis

Tiffany posted better-than-expected first-quarter 2011 results buoyed by
improved demand for luxury items worldwide and consequently raised its full
year outlook. The quarterly earnings of 67 cents a share surpassed the Zacks
Consensus Estimate of 57 cents, and rose substantially from 48 cents earned in
the prior-year quarter.

Tiffany, which faces stiff competition from Signet Jewelers Limited (NYSE: SIG
) and Zale Corporation (NYSE: ZLC ), posted net sales of $761 million during
the quarter, up 20% from the prior-year quarter, on the heels of a stellar
performance in Americas, Asia-Pacific and European regions, healthy same-store
sales growth and new collection launches.

Total revenue also handily beat the Zacks Consensus Estimate of $703 million.
Comparable-store sales climbed 19% in the quarter under review. In constant
currencies net sales jumped 16% and comps grew 15%.

Guidance

Tiffany raised its fiscal 2011 earnings guidance on the back of
stronger-than-expected results. Tiffany now projects earnings in the range of
$3.45 to $3.55, up from a range of $3.35 to $3.45 per share, forecasted
earlier.

Second-Quarter 2011 Zacks Consensus

The analysts considered by Zacks, expect Tiffany to post second-quarter 2011
earnings of 69 cents a share. The current Zacks Consensus Estimate reflects a
growth of 25.5% from the prior-year quarter's earnings. The current Zacks
Consensus Estimate for the quarter ranges between 64 cents and 77 cents.

Zacks Agreement & Magnitude

Of the 17 analysts following the stock, only 1 has increased the projection
and none lowered their estimates, thereby keeping the Zacks Consensus Estimate
constant over the last 30 days. In the last 7 days, only one analyst revised
the estimate upwards, while none slashed their estimates, thus having no
material impact on the Zacks Consensus Estimate.

Positive Earnings Surprise History

With respect to earnings surprises, Tiffany has topped the Zacks Consensus
Estimate over the last four quarters in the range of 3.6% to 27.8%. The
average remained at 13.2%. This suggests that Tiffany has beaten the Zacks
Consensus Estimate by an average of 13.2% in the trailing four quarters.

Tiffany to Outperform

Tiffany is well positioned to deliver robust sales and earnings growth by
leveraging capital investments made in the past several years. The company
holds a significant position in the world jewelry market and is poised to
benefit from its enhanced geographic reach. With signs of improvement in
retail environment, Tiffany plans to accelerate its store expansion program.

Moreover, with a healthy balance sheet, Tiffany remains committed to achieving
long-term objectives of at least a 15% return on equity and a 10% return on
assets. The company in the wake of better-than-expected first-quarter 2011
results now anticipates a mid-teens percentage rise in total net sales and an
increase of 18% to 21% in earnings per share for fiscal 2011.

Currently, we have a long-term Outperform rating on the stock. However,
Tiffany holds a Zacks #3 Rank, which translates into a short-term Hold
recommendation.

Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649 .

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