Zacks Bull and Bear of the Day Highlights: Private Bancorp, Pan American
Silver, AVEO Pharmaceuticals, Astellas Pharma and Cleveland BioLabs
CHICAGO, May 6, 2013
CHICAGO, May 6, 2013 /PRNewswire/ --Zacks Equity Research highlights Private
Bancorp (Nasdaq:PVTB) as the Bull of the Day and Pan American Silver
(Nasdaq:PAAS) as the Bear of the Day. In addition, Zacks Equity Research
provides analysis on AVEO Pharmaceuticals Inc. (Nasdaq:AVEO), Astellas Pharma,
Inc. (OTC:ALPMY) and Cleveland BioLabs Inc. (Nasdaq:CBLI).
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
The broad financial sector has been a strong performer so far in 2013, as it
has been leading the market in the year-to-date timeframe. Furthermore, the
space has actually been beating out the S&P 500 from a one year look as well,
suggesting a pretty strong trend of outperformance for this key market sector.
However, we have begun to see some new trends develop in this corner of the
market during the current earnings season as big banks have been having a bit
of trouble. Major banking institutions have been doing quite well on earnings,
but have seen sluggish revenues, suggesting that they may have a bit of
trouble growing in the near future.
For this reason, it may be time to look elsewhere in the financial sector for
better growth candidates, and for firms that are better poised to take
advantage of current market trends. And with the domestic economy coming back
a bit, investors may want to focus on regional banks like Private Bancorp
(Nasdaq:PVTB)for their exposure.
While PVTB was beaten down in the financial crisis, the company is now back on
track and a tremendous value. The firm has seen a solid start to 2013, as the
stock is up about 18% year-to-date, while its PEG ratio is still well below
the industry average at just 1.76.
Furthermore, unlike many of its peers in the space, PVTB could see a very
strong performance in terms of earnings growth in the near future. Current
expectations call for year-over-year growth of nearly 68% for the current
quarter, and an impressive 49% growth rate for the current year.
Bear of the Day:
With stock prices at record highs and some brewing optimism over the economy
at large, there has been little demand for safe haven investments. This trend
has been devastating for many precious metal mining companies, leading to huge
losses for these firms in 2013.
Unfortunately, this trend could continue despite some worries over another
summer slowdown. After all, the dollar remains quite firm against global
currencies and this could remain true after the recent ECB rate cut, and
Japan's impressive effort to weaken the yen as well.
These factors suggest that many precious metal mining companies should still
be avoided by many investors, and especially so in the short term. And nowhere
is this more the case than in the volatile silver mining world with Pan
American Silver (Nasdaq:PAAS).
This important silver miner has had a horrendous start to the year losing more
than 30% of its value in just the first four months of 2013. Longer term
trends are even worse, if you can believe that, as PAAS has declined by over
60% in the past two years.
Yet before you start thinking this is now a deep value stock, you should
consider the earnings estimate trend for the embattled company. Analysts seem
to be in complete agreement on the company's lackluster future, as current
year EPS growth stands at an anemic 3%.
Latest Posts on the Zacks Analyst Blog:
Negative Opinion on Astellas/AVEO Candidate
AVEO Pharmaceuticals Inc. (Nasdaq:AVEO) and partner Astellas Pharma, Inc.
(OTC:ALPMY) recently received disappointing news from the US Food and Drug
Administration (FDA) as its Oncologic Drugs Advisory Committee (ODAC) voted
against the approval of their oncology candidate, tivozanib. The news
adversely impacted AVEO's stock price.
The ODAC mentioned that tivozanib was unable to demonstrate a favorable
benefit-to-risk evaluation for the treatment of patients suffering from
advanced renal cell carcinoma (RCC).
We note that the ODAC gives independent expert advice and recommendations to
the US regulatory body and the FDA is not bound to follow its recommendation
but it generally does so.
A New Drug Application (NDA) for tivozanib seeking approval for the treatment
of patients with advanced RCC was submitted in Sep 2012. The FDA accepted the
application in Nov 2012 with a response expected by Jul 28, 2013.
The FDA's advisory body reviewed findings from 17 studies (n>1,000) including
the phase III TIVO-1 (TIvozanib Versus SOrafenib in 1st line Advanced RCC)
study. In the TIVO-1 study, tivozanib achieved a statistically significant
improvement in the primary endpoint of progression-free survival (PFS)
compared to Nexavar.
We are disappointed by the news. We expect investor focus to remain on the
response from the FDA for tivozanib. However, we see very low chances of the
candidate getting approval at this point.
Tivozanib is being studied in other additional programs and studies as well
including the BATON and TAURUS studies. The BATON (Biomarker Assessment of
Tivozanib in ONcology) program includes studies assessing tivozanib biomarkers
in solid tumors. TAURUS (TivozAnib Use veRsUs Sutent in advanced RCC: Patient
Preference) is being conducted to demonstrate patient preference of tivozanib
compared to Sutent (sunitinib) as first-line therapy in patients with advanced
Other pipeline candidates at AVEO include oncology candidates AV-203 and
While AVEO carries a Zacks Rank #2 (Buy), Astellas carries a Zacks Rank #5
(Strong Sell). Currently, Cleveland BioLabs Inc. (Nasdaq:CBLI) looks 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
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
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