Arris Group Inc., Comcast Corp., Google Inc., Royal Caribbean Cruises Ltd and Carnival Corp. highlighted in Zacks Analyst Blog

Arris Group Inc., Comcast Corp., Google Inc., Royal Caribbean Cruises Ltd and
               Carnival Corp. highlighted in Zacks Analyst Blog

PR Newswire

CHICAGO, Jan. 17, 2013

CHICAGO, Jan. 17, 2013 /PRNewswire/ -- announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Arris Group Inc. (ARRS), Comcast
Corp. (CMCSA), Google Inc. (GOOG), Royal Caribbean Cruises Ltd (RCL) and
Carnival Corp. (CCL).


Today, Zacks is promoting Four daily picks are offered free.

Here are highlights from Thursday's Analyst Blog:

Arris Forges Strategic Alliance

In a major strategic move, Arris Group Inc. (ARRS) entered into an agreement
to sell approximately 10.6 million of its common stock to Comcast Corp.
(CMCSA). The total consideration of the deal is $150 million. The cable TV
equipment vendor stated that this agreement is part of its previously
announced acquisition of the cable set-top box business of Motorola Mobility,
a subsidiary of Google Inc. (GOOG).

Last December, Arris decided to purchase the set-top box business of Motorola
Mobility for $2.35 billion. Of this, $2.05 billion will be paid in cash and
$300 million worth common stock of Arris will be given to Google. The Comcast
deal will reduce the total number of Arris' shares to be issued to Google
while raising the cash consideration by $150 million.

Consequently, both Comcast and Google will command 7.85% of the total
outstanding shares of Arris. The completion of the Comcast deal is subject to
the successful transition of the Motorola cable set-top business to Arris,
expected to take place by the second quarter of 2013.

The important feature of this deal is that Arris will get two large companies
namely Comcast and Google as its investors that have financial interest in the
success of its cable set-top box venture. Notably, Comcast is the largest
customer of Arris. Presently, Arris is a small contender in the high-speed
video and Internet delivery market.

The acquisition of the Motorola set-top box business will undoubtedly help
Arris strengthen its foothold in the video offerings market. Further, this
deal will strengthen Arris' patent portfolio and provide access to several
patents of Motorola Mobility.

Currently, Arris, Comcast and Google have a long-term Neutral recommendation.
While Comcast and Google have a Zacks Rank #3 (Hold) for the short term, Arris
has a Zacks Rank #2 (Buy).

Royal Caribbean Hits 52-Week High

Shares of Royal Caribbean Cruises Ltd. (RCL) reached a 52-week high of $36.25
on Tuesday, Jan 15, 2013, just before it is due to report fourth quarter 2012
earnings release later this month, beating its previous 52-week high of
$36.18. The closing price of the second largest cruise company on Jan 15,
2013, was $36.20, representing a solid one-year return of about 36.2% and
year-to-date return of about 2.3%. The average volume of shares traded over
the last three months stands at approximately 1,972K.

Growth Drivers

A strong business model, a slight competitive advantage over its closest peer
Carnival Corp. (CCL), following the latter's Costa Concordia ship grounding
disaster, improvement in booking scenario and exposure to the under-penetrated
Asian markets, are the major growth drivers for the shares of Royal Caribbean.

Being the second largest company in the industry, Royal Caribbean enjoys a
competitive advantage over many of its industry peers. In fact, after the
grounding of the industry's leading operator Carnival's ship Costa Concordia
in mid-January 2012, Royal Caribbean got a better exposure both on bourse and
business, though that tragic incident had a negative impact on the entire
sector. After a year of the disaster, the sector has started to revive from
shattered passenger confidence and recouped from extreme upheaval.

Although Europe still remains a tough market, overall bookings for the fourth
quarter of 2012 and for 2013 across all itineraries remained strong, with
year-over-year higher load factors and pricing. Caribbean yields are
anticipated to have finished year 2012 on higher note than the 2008-level.

Of late, the Asian market has become the area of focus for the company. The
company plans to cater to some under-served ports in China, which have far
lower penetration rate compared to cruise markets in the United States and

Concurrent to its third quarter earnings release, Royal Caribbean increased
its full-year guidance that that resulted in an upward movement in estimates
for the fourth quarter.

Valuation is Attractive

Royal Caribbean currently trades at a forward P/E of 17.40x, 11.9% discount to
the peer group average of 19.75x. Again, its price-to-sales ratio of 1.03x is
trading at a 12.0% discount to the peer group average 1.17x. The company's
price-to-book ratio of 0.91x is also lower than peer group average of 1.13x.

Hence, we believe compelling fundamentals helped the stock reach its 52-week
high. Having said this, we are expecting the company to report decent
quarterly results later this month.

Today, Zacks is promoting Four daily picks are offered free.

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