Zacks Bull and Bear of the Day Highlights: DR Horton, TripAdvisor,
GileadSciences, Johnson & Johnson and Bristol-Myers Squibb
CHICAGO, April 10, 2013
CHICAGO, April 10, 2013 /PRNewswire/ --Zacks Equity Research highlights DR
Horton Inc. (NYSE:DHI) as the Bull of the Day and TripAdvisor Inc.
(Nasdaq:TRIP) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on Gilead Sciences (Nasdaq:GILD), Johnson & Johnson
(NYSE:JNJ) and Bristol-Myers Squibb (NYSE:BMY)
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
Did you miss the homebuilder rally last year? It's not too late. DR Horton
Inc. (NYSE:DHI) is a Zacks Rank #1 (Strong Buy) that is expected to grow
earnings by 30% in 2013.
DR Horton is one of the largest homebuilders in the United States with
operations in 77 markets in 26 states. Its homes are priced from $100,000 to
The housing market has been recovering in 2013 but having been burned during
the peak of the boom, the homebuilders have been more conservative about
rolling out new product.
At the end of Fiscal 2012, DR Horton's backlog had risen 49.2%.
Interestingly, DR Horton finds itself in competition not so much with other
homebuilders but with existing home sellers. That's where the good news comes
in. Inventories of existing homes have been plummeting the last few months.
Bear of the Day:
Analysts had been too bullish on Internet travel site TripAdvisor Inc.
(Nasdaq:TRIP) to start off the year. After the company gave weak guidance,
earnings are now projected to grow only in the mid-single digits in 2013. That
makes this Zacks Rank #5 (Strong Sell) an expensive play with a forward P/E of
TripAdvisor is now one of the world's largest travel sites, offering traveler
reviews of hotels, attractions and restaurants from around the globe. The site
operates in 30 countries, including in China under the name daodao.com.
But the company also operates 19 other travel brands including such sites like
cruisecritic.com, familyvacationcritic.com, flipkey.com, seatguru.com and
On Apr 9, TripAdvisor announced it was acquiring Jetsetter.com, an upscale
members only travel booking site. Terms of the deal were not disclosed.
In February, the company's full year 2013 guidance was a disappointment as
investment spending was expected to increase. Margins are expected to be the
lowest in 5 years while the company adjusts to the mobile platform and absorbs
Latest Posts on the Zacks Analyst Blog:
Gilead Seeks FDA Approval
Gilead Sciences (Nasdaq:GILD) recently submitted a New Drug Application (NDA)
to the US Food and Drug Administration (FDA) seeking approval to market its
hepatitis C Virus (HCV) candidate sofosbuvir (formerly GS-7977).
Gilead is looking to get the candidate approved in combination with ribavirin
(RBV) as an all-oral therapy for treating patients affected with genotypes 2
and 3 of the disease. The NDA also includes data backing the use of sofosbuvir
in combination with RBV and pegylated interferon (peg-IFN) as a first-line
therapy in patients suffering from the genotypes 1, 4, 5 and 6 of the virus.
Gilead submitted the NDA on the basis of encouraging data from four phase III
studies (NEUTRINO, FISSION, POSITRON and FUSION). Data from the studies
revealed that sofosbuvir-based therapy for 12 or 16 weeks was either superior
or non-inferior to currently available HCV treatment options.
Approval of sofosbuvir would not only boost Gilead's top line but also
strengthen its position in the lucrative HCV market. A sizeable population
suffers from HCV the world over. However, the treated population is much
lower. This leaves the field open for new treatments. We note that companies
such as Johnson & Johnson (NYSE:JNJ) and Bristol-Myers Squibb (NYSE:BMY) are
also developing therapies to combat HCV.
Approval of sofosbuvir would not only bring down the duration of HCV therapy
to 12-16 weeks but also eliminate/reduce the duration of peg-IFN injections
depending on the genotype of the disease. Currently, HCV therapy includes
24-48 weeks of treatment with injectable peg-IFN. Moreover, the current
standard of care comes with several side effects which make it difficult for
patients to remain on treatment.
Gilead intends to seek EU approval for sofosbuvir in the second quarter of
2013. The European Medicines Agency (EMA) has already granted Gilead's request
for accelerated assessment of the company's Marketing Authorization
Application for sofosbuvir. The acceptance of the request can bring down EMA's
review time of the application by two months. Gilead also intends to seek
sofosbuvir approval in other countries.
Get the full analysis of all these stocks by going to
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
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. Subscribe to this free newsletter
today by visiting http://at.zacks.com/?id=7158.
Zacks.com 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 at
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.