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

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) .


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

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.

Get today's four free Zacks #1 stocks with a free subscription to Profit from
the Pros newsletter:

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

Continuous analyst 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. Click here to subscribe to this
free newsletter today.

About Zacks is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leonard Zacks. As a PhD from MIT 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.

Follow us on Twitter:

Join us on Facebook:

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

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, brokerage, market making or
asset management activities of any securities. Visit for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Press spacebar to pause and continue. Press esc to stop.