For Immediate Release
Chicago, IL – November 10, 2009 – Zacks Equity Research highlights NVIDIA Corp. (NVDA) as the Bull of the Day and Red Robin Gourmet Burgers (RRGB) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesoro Corporation (TSO), Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Bull of the Day:
NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.
The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up of its 40nm process technology and share gains in notebooks and desktops.
We are looking for meaningful revenue growth and sustainable margin expansion. We have changed our rating to Outperform with a six-month price target of $17.00.
Bear of the Day:
Red Robin Gourmet Burgers (RRGB) is vulnerable to economic headwinds, and we believe that the stock will continue to underperform the restaurant industry. Impeding the growth is its sagging same-store sales and declining traffic counts.
The company's third-quarter 2009 same-store sales fell 14.9%. The chain expects guest counts to remain negative, and expects restaurant-level operating margins to decline by 150 to 160 basis points in fiscal year 2009.
In addition, more than 50% of total restaurants are located in areas, which have been hit hard by the housing downturn and economic slowdown. This may dampen the company's growth potential.
Latest Posts on the Zacks Analyst Blog:
Tesoro Beats, Cuts Dividend in Half
Tesoro Corporation’s (TSO) third-quarter 2009 results came in significantly better than expected, helped by better demand balance in the company’s key West Coast region. Earnings per share came in at 24 cents, against Zacks Consensus Estimate of a penny loss.
Tesoro’s outperformance is in contrast to the steep losses posted by the other major refiners that have already reported -- Valero Energy Corp. (VLO) and Sunoco Inc. (SUN).
However, compared to the year-ago period, Tesoro’s earnings per share plunged 87.1%, while sales declined 45.4% to $4.7 billion -- severely hampered by depressed refining margins and lower throughput on the back of weak fuel demand and high inventories.
Tesoro announced a 50% reduction in its quarterly dividend to 5 cents per share (20 cents per share annualized). The new dividend is payable on December 15, to shareholders of record on December 1, 2009.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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.
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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.
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