Zacks Bull and Bear of the Day Highlights: SanDisk Corp., PetroChina Co. Ltd., Standard Motor Product Inc, Advance Auto Parts

Zacks Bull and Bear of the Day Highlights: SanDisk Corp., PetroChina Co. Ltd.,
 Standard Motor Product Inc, Advance Auto Parts Inc. and O'Reilly Automotive
                                     Inc.

PR Newswire

CHICAGO, Nov. 12, 2012

CHICAGO, Nov. 12, 2012 /PRNewswire/ --Zacks Equity Research highlights
SanDisk Corp. (NYSE: SNDK) as the Bull of the Day and PetroChina Co. Ltd.'s
(NYSE:PTR) as the Bear of the Day. In addition, Zacks Equity Research provides
analysis onStandard Motor Product Inc. (SMP), Advance Auto Parts Inc. (AAP)
and O'Reilly Automotive Inc. (ORLY) .

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

Here is a synopsis of all five stocks:

Bull of the Day:

SanDisk Corp. (SNDK) posted stellar third quarter results with both the bottom
and top lines surpassing the Zacks Consensus Estimates. Though the results
came below the year-ago levels, the sequential comps were better than
expected. Revenues from OEMs and Retail have begun to recover.

Fourth quarter guidance was encouraging as well. Though lackluster PC sales,
European issues, competition from Micron Technology Inc. and currency
fluctuations could hurt the fundamentals a bit, we remain overtly positive on
management's commentary of a turnaround story in the coming quarter and
beyond, and strong secular demand for NAND flash.

We upgrade the stock to Outperform. We set a three-month target price of
$52.00, representing a P/E multiple of approximately 28.7x our 2012 earnings
per share estimate, which is on par with the industry average.

Bear of the Day:

Following PetroChina Co. Ltd.'s (PTR) dismal third quarter showing, we are
downgrading the Chinese energy giant to Underperform from Neutral. The
Beijing-based integrated outfit recently posted weak quarterly results on the
back of a challenging operating environment and persistent refining losses.

We also remain concerned by PetroChina's oil production growth prospects,
considering its heavy exposure to significantly mature-producing areas. Other
near-term headwinds include high-priced gas imports amid low domestic gas sale
prices, policy uncertainty and an ambitious investment program.

Considering these factors, we see PetroChina as a risky bet that investors
should exit. These factors are reflected in our downgrade of PetroChina ADRs
to Underperform from Neutral. Our $123 price objective reflects a multiple of
5.5X the trailing twelve-month cash flow.

Latest Posts on the Zacks Analyst Blog:

Standard Motor Stays at Outperform

We are reiterating our Outperform recommendation on Standard Motor Product
Inc. (SMP). The leading manufacturer and distributor of automotive replacement
parts continue to benefit from strong brand recognition and a less cyclical
auto and auto parts industry.

Standard Motor, in the third quarter of 2012, reported a 23.7% growth in
adjusted earnings per share to 73 cents from 59 cents in the year-ago quarter,
surpassing the Zacks Consensus Estimate by 9 cents. Profits surged 22.6% to
$16.8 million from $13.7 million in the corresponding quarter last year.

Total revenues increased 16.8% year over year to $276 million, beating the
Zacks Consensus Estimate of $258 million. The growth was attributable to the
positive impact from the company's recent acquisitions and strong performance
of its Temperature Control segment.

Standard Motor benefits from its strong brand recognition and wide customer
base. The company distributes products under Standard, Blue Streak, BWD
Automotive and Niehoff brand for its Engine Management division. Under
Temperature Control division, it distributes products under Hayden and Four
Seasons brand. It also distributes products under private brands like CARQUEST
and NAPA Auto Parts for both the segments.

With greater focus on aftermarket, the company is not significantly exposed to
the cyclical automotive industry. The company is expected to benefit from the
rising demand of repair products due to the improved used vehicles market,
increase in the number of automobiles on the road and rise in the average auto
age to 10.8 years in the U.S.

In addition, the company will reap the benefits from the recent acquisition of
BLD, Forecast Trading and Compressor Works. The acquisition will enhance its
revenues and reduce the costs of products by further emphasizing on low cost
regions.

However, Standard Motor faces challenges from concentrated customer base. The
top five customers including Advance Auto Parts Inc. (AAP) and O'Reilly
Automotive Inc. (ORLY) accounts for more than 10% of the company's sales. Any
fluctuation may have an adverse effect on the company's results.

Our Outperform recommendation on the stock is backed by a Zacks #1 Rank, which
translates into a short-term (1 to 3 months) Strong Buy rating.

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About the Bull and Bear of the Day

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