Zacks Bull and Bear of the Day Highlights: Popular, Garmin, Mylan, Lannett and
CHICAGO, March 15, 2013
CHICAGO, March 15, 2013 /PRNewswire/ --Zacks Equity Research highlights
Popular Inc (Nasdaq:BPOP) as the Bull of the Day and Garmin (Nasdaq:GRMN) as
the Bear of the Day. In addition, Zacks Equity Research provides analysis on
Mylan Inc. (Nasdaq:MYL), Lannett Company, Inc. (AMEX:LCI) and QLT Inc.
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
The financial sector has broadly been leading the market higher as of late. In
fact, the segment has crushed the S&P 500's return over the past one year
period by about 500 basis points, suggesting to many that the sector is back
Yet while investors have seen big gains across the board in this corner of the
market, there is one industry that has been doing even better; regional banks.
These smaller banking institutions have avoided the worst of the financial
crisis, and are in many ways, leading the pack in the financial space.
A great example of this industry trend is in the case of Popular Inc
(Nasdaq:BPOP), a small, Puerto Rico-based banking institution. The company has
seen its shares surge over the past few months, and based on some ongoing
trends in the space, could see a continuation of this trend heading into Q2 as
A big reason for the optimism over BPOP is the company's ability to crush
earnings estimates. In the past four quarters, the company has posted an
average positive surprise of 42%, including a 58% beat in the previous
quarter. This demonstrates that the company is more than capable of exceeding
analyst expectations, even when sentiment is broadly positive over the
Bear of the Day:
There was a time when Garmin (Nasdaq:GRMN) was the key player in the
navigation equipment space. The firm's automotive and aviation products led
the way for many consumers, and allowed the company to rise to prominence over
the past few years.
However, with the advent of numerous competitors and near-universal
availability of GPS devices in phones, Garmin is now facing an extremely rough
period. In fact, its most important segment, the automotive/mobile space,
accounts for over half the company's net sales, but has not seen any growth
over the past three annual reports.
Obviously, when half of your business is flat it is tough to turn make a turn
higher, and that is largely why Garmin is now sporting a Zacks Rank of 5 or
This low Rank, which puts GRMN into terrible company, is due to how
unfavorably analysts are viewing these aforementioned trends. Estimates have
broadly come down in the past sixty days, with only one estimate going higher
in the past month, compared to five lower in the same time period.
Latest Posts on the Zacks Analyst Blog:
Mylan Settles Patent Dispute
Mylan Inc. (Nasdaq:MYL) recently announced that it has inked a deal with
Shionogi Inc. and Andrx to settle a patent-related dispute pertaining to the
generic version of Shionogi's Fortamet. The drug is marketed as an adjunct to
diet and exercise to bring down the level of glucose in the blood.
Following the agreement, Mylan can start selling its generic version of
Fortamet from Aug 1, 2013, or earlier under certain circumstances. Mylan did
not disclose the other terms of the deal. The transaction will be reviewed by
the US Department of Justice and the Federal Trade Commission.
The resolution of the patent-related dispute regarding Fortamet has removed a
significant overhang for Mylan and represents further good news for the
generic unit of the company. We note that the company has received quite a few
approvals on the generic front over the past few months.
Mylan's geographic reach and product depth, along with a robust generic
pipeline, are contributing to its overall growth. We are also pleased with
Mylan's focus on emerging markets. Over the long term, the biggest
opportunities for growth in the generics industry would be expansion in
However, we remain cautious of the company's performance in Europe, Middle
East and Africa. Additionally, as most of the large branded drugs are due to
lose patent exclusivity within the 2017–2018 period, we have little visibility
on the growth prospects of generic companies like Mylan beyond that timeframe.
Mylan carries a Zacks Rank #2 (Buy). Companies like Lannett Company, Inc.
(AMEX:LCI) and QLT Inc. (Nasdaq:QLTI) look more attractive in the pharma space
with a Zacks Rank #1 (Strong Buy).
Get the full analysis of all these stocks by going to
About the Bull and Bear of the Day
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