Southwest Airlines, Embraer S.A., Louisiana-Pacific Corporation, Potlatch Corporation and Weyerhaeuser Co. highlighted as Zacks

  Southwest Airlines, Embraer S.A., Louisiana-Pacific Corporation, Potlatch
Corporation and Weyerhaeuser Co. highlighted as Zacks Bull and Bear of the Day

PR Newswire

CHICAGO, Jan. 17, 2013

CHICAGO, Jan. 17, 2013 /PRNewswire/ -- Zacks Equity Research highlights
Southwest America (NYSE:LUV) as the Bull of the Day and Embraer S.A. (NYSE:
ERJ) as the Bear of the Day. In addition, Zacks Equity Research provides
analysis ontheLouisiana-Pacific Corporation (LPX), Potlatch Corporation (PCH)
and Weyerhaeuser Co. (WY).

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

Here is a synopsis of all five stocks:

Bull of the Day:

We upgrade our recommendation on Southwest Airlines (LUV) to Outperform from
Neutral based on a number of constructive actions adopted by management. We
believe that the company remains committed to sustain its brand and
operational excellence via its cost-cutting measures, fleet rightsizing,
addition of new and attractive destinations.

The company's Evolve retrofit program, steady capacity growth, All-New Rapid
Rewards and several steps to enhance ancillary revenues will position it
advantageously in the coming days. Apart from the AirTran merger which can
provide additional synergies, Southwest has set a number of initiatives to
boost its profitability level in 2013.

We also appreciate Southwest s focus on uplifting its financial prosperity and
capital efficiency. The company has a target price of $13, based on 13.3x our
earnings estimate for 2013.

Bear of the Day:

While Embraer S.A. (ERJ) looks forward to its American and Continental
regional jets order, the loss of the Delta Airlines contract in the current
quarter has been detrimental to the future revenues of the company. This has
led to downward estimate revisions by most analysts covering the company.

Moreover, the highly competitive industry in which the company operates is
forcing Embraer to incur high costs with an increase in the prices of fuel
along with the possibility of order cancellations. Embraer reported a
significant increase in EPADS from a year-ago, but the results also reflected
a heavier tax burden, rising wages in Brazil, overt dependence on a few
customers and a drop in demand for business jets.

Based on the above factors, we downgrade our recommendation on the stock from
Neutral to Underperform. Our $25.00 target price, 9.0x 2013 EPADS, reflects
this view.

Additional content:

Louisiana-Pacific Now a Strong Buy

On January 15, Zacks Investment Research upgraded the premier supplier of
building materials, Louisiana-Pacific Corporation (LPX) to Zacks Rank #1
(Strong Buy), driven by a steadily improving housing market, which is
increasing the demand of its products.

Why the Upgrade?

Louisiana-Pacific Corporation has been witnessing increasing earnings
estimates, reflecting expectations for significantly higher year-over-year
earnings growth rates in fiscal 2013 and 2014. The long-term expected
earnings growth rate for this stock is 5.0%.

The upward movements of the estimates are driven by solid performance of the
Oriental Strand Board (OSB) and Siding segments in third quarter of 2012 and
its recent Peace Valley acquisition.

On November 6, 2012, Louisiana-Pacific Corporation's third quarter 2012
adjusted earnings per share (EPS) of 20 cents missed the Zacks Consensus
Estimate by 20%. Results, however, improved significantly from the prior-year
quarter loss of 19 cents, owing to improved pricing in the OSB segment.

Though net sales in the quarter improved 33%, it lagged the Zacks Consensus
Estimate by 1.5%. Top line improvement was driven by higher volumes at OSB
and Siding segments and price increases at the OSB segment.

Following the results of third quarter of 2012, Zacks Consensus Estimate for
fiscal 2012 increased 22.2% per share.

The upward movements of the estimates have also been encouraged by the recent
agreement with Canfor Corporation (CFP.TO) to acquire the latter's 50% share
in the Peace Valley Oriented Strand Board (OSB) mill, which was until now
owned by both the companies.

Louisiana will thereby become the sole owner. The Peace Valley acquisition
will strengthen Louisiana's OSB segment, which reported sales growth of 63% in
the third quarter of 2012 owing to an increase in housing activity. This
acquisition strengthens the company's position further to capitalize on the
rising housing momentum.

With housing market recovery gaining momentum, there has been a drop in
inventory levels and an increase in home prices. As such, most home building
companies are gearing up to introduce a number of new homes in order to meet
the increase in demand, which implies that demand for building materials has
also improved. Particularly, OSB segments and Siding segments are responding
well to the market impetus.

Other Stocks to Consider

Other companies with a favorable Zacks Rank and worth considering include
Potlatch Corporation (PCH) carrying a Zacks Rank #1 (Strong Buy), and
Weyerhaeuser Co. (WY) carrying a Zacks Rank #2 (Buy).

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
long-term.

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

through our Zacks.com is a property of Zacks Investment Research, Inc., which
was formed in 1978. The later formation of the Zacks Rank, a proprietary stock
picking system; 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 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: http://twitter.com/zacksresearch

Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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
affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

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, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com