Mark Vickery

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Zacks.com 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: drugstore.com (Nasdaq: DSCM), Intuit, Inc. (Nasdaq: INTU), Moody's Corp. (NYSE: MCO), Penske Automotive Group (NYSE: PAG) and ArvinMeritor Inc. (NYSE: ARM).

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Here are highlights from Monday's Analyst Blog:

DSCM What the Doctor Ordered

Drugstore.com's (Nasdaq: DSCM) second quarter sales were better than expected, and its net loss of $0.02/share was in-line with consensus estimates. The company also maintained its full-year outlook of $490-$500 million in sales and a net loss of $3.0 million to a net profit of $1.0 million.

The management's strategy to focus on improving profit margins started to take shape in the second half of 2006. We expect these positive trends to continue for the next several quarters. The company's business model should be able to generate stable revenue and cash flow thanks to the large percentage of repeat customer orders, which accounted for 81% of its sales in the second quarter of 2008.

Intuit a Hold on Valuation

Intuit, Inc. (Nasdaq: INTU) is expected to report its fiscal Q4 and FY2008 results on August 21. Earlier, the company reported revenues of $1.3 billion in Q3:FY08, up 15% from a year ago, and surpassed our estimate of $1.28 billion.

Recently, the management announced a restructuring plan whereby the company will eliminate 7% of the workforce. They reiterated its guidance for revenues to come between $3.05 billion and $3.06 billion in FY08. However, GAAP EPS should come around $1.38-$1.40, down from the previous forecast of EPS around $1.42 $1.44. On a non- GAAP basis, Q4 EPS is now expected between ($0.07) and ($0.09).

Moody's Trading Near Fair Value

Moody's Corporation (NYSE: MCO) has a solid franchise in the rating of debt instruments, and has diversified itself with credit research and international growth. This has helped MCO offset declining ratings revenues, which fell 35% in the first half of 2008.

Although debt markets will likely be slow to recover, comparisons will become easier in the fourth quarter as MCO reaches the one- year anniversary of the current credit crisis. The company achieved its targets for Q2 and re-affirmed full-year guidance, leading us to believe further downside is limited. On the negative side, Moody's is facing increased competition from its peers and is likely to face additional expenses related to increased regulation.