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Zacks Bull and Bear of the Day Highlights: Gap, HSBC Holdings, ToyotaMotor, General Motors and Ford Motor



 Zacks Bull and Bear of the Day Highlights: Gap, HSBC Holdings, ToyotaMotor,
                        General Motors and Ford Motor

PR Newswire

CHICAGO, Dec. 27, 2012

CHICAGO, Dec. 27, 2012 /PRNewswire/ -- Zacks Equity Research highlights Gap
Inc. (NYSE:GPS) as the Bull of the Day and HSBC Holdings (NYSE:HBC) as the
Bear of the Day. In addition, Zacks Equity Research provides analysis on
Toyota Motor Corp. (NYSE:TM), General Motors Company (NYSE:GM) and Ford Motor
Co. (NYSE:F).

(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:

Gap Inc.'s (NYSE:GPS) third-quarter 2012 earnings of $0.63 per share came in
line with the Zacks Consensus Estimate, and surged 66% from the year-ago
quarter on the back of increased sales along with improved margins and a lower
share count. During the quarter, Gap's net sales increased 8.0% year over year
to $3,864 million.

The solid quarterly performance prompted management to raise its fiscal 2012
earnings guidance range to $2.20-$2.25 per share from $1.95-$2.00 forecasted
earlier. We believe that Gap's determined endeavors to keep itself on the
growth trajectory have paid off amid a sluggish economic environment.

Moreover, the company is undertaking an international expansion strategy. The
company, to counter the domestic market saturation, is aiming total sales of
approximately 30% from its overseas operations and online business by 2013.
Currently, we are maintaining our long-term Outperform recommendation on the
stock.

 Bear of the Day:

We are downgrading our long-term recommendation on HSBC Holdings (NYSE:HBC)
ADRs to Underperform to reflect the penalty to be paid to settle
money-laundering charges and its credit ratings downgrade by Fitch. Moreover,
the company's third quarter net income was significantly down from the
year-ago period and included additional provision for various investigations
faced by it.

Quarterly core results were adversely impacted by higher operating expenses.
There are also concerns related to the impact of the Euro-zone crisis, weak
revenue growth in its mature markets and regulatory restrictions.

Our six-month target price of $48.00 per ADR equates to about 11.1x the Zacks
Consensus Estimate for 2012. This target price implies an expected negative
total return of 10.0% over that period. This is consistent with our long-term
Underperform recommendation on the ADRs.

Latest Posts on the Zacks Analyst Blog:

Toyota Penalized for Recall Again

The Transportation Department of U.S. again slapped a fine of $17.35 million
on Toyota Motor Corp. (NYSE:TM) due to its late response regarding a defect in
its vehicles to safety regulators as well as a late recall of those vehicles.
According to the department, it was the maximum allowable fine under the law
for not initiating a recall in a timely manner.

In May this year, National Highway Traffic Safety Administration (NHTSA)
notified Toyota about "floor mat pedal entrapments" in some of its Lexus
hybrid models. Manufacturers are legally obligated to notify the U.S. safety
regulators within five business days once they come to know of a safety
defect.

However, the automaker responded a month later stating that it is aware of 63
incidents related to the defect in the vehicles. Consequently, it announced a
recall of 154,036 units of Lexus RX 350 and RX 450h luxury hybrid sports
utility vehicles in June in order to fix the problem of loose floor mat that
could force down the accelerator pedal.

The latest fine adds to $48.4 million imposed by the U.S. government on the
company in 2010 due to late recall of millions of defective vehicles. The past
string of recalls has already tarnished Toyota's reputation, resulting in
declining sales and lower vehicle resale value.

Since November 2009, the automaker has recalled about 20 million vehicles
globally, surpassing all other automakers. The company also lost its No.1
position to General Motors Company (NYSE:GM) and Ford Motor Co. (NYSE:F) in
terms of sales volumes in the U.S. due to the loss of reputation as well as
negative impact from natural disasters in Japan and Thailand in 2011.

Get the full analysis of all these 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.

About Zacks Equity Research

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Continuous analyst coverage is provided for a universe of 1,150 publicly
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insights to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.

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