(Source: Business Wire)
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: Wal-Mart (NYSE: WMT), Verizon (NYSE: VZ), AT&T (NYSE: T), Bank of America (NYSE: BAC) and Citigroup (NYSE: C).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Monday's Analyst Blog:
Neither a Hero Nor a Coward Be
Wal-Mart (NYSE: WMT) is going to pick up market share, but it is of a sharply shrinking pie of consumer spending. Are they really better off now than they were a year ago? It seems to me that Verizon (NYSE: VZ) and AT&T (NYSE: T) should survive this coming recession just fine, and for both you get paid about 7% while you wait. These may not the most exciting investments in the world, but I think we have had enough excitement for the time being.
While I expect earnings estimates to continue to fall for 2009, based on current expectations, 2/3 of the blue chips have 2009 P/E's below 10x. If the 2009 P/E is lower than the 2008 P/E, it indicates that the analysts still expect positive earnings growth for next year.
Don't just sit there like a deer in the headlights and do nothing in this situation. On the other hand, there are still major risks out there. The Finance Ministers of the world are starting to do the right thing, following the lead of the U.K. A deep worldwide recession is already baked in the cake, but at least now we are turning the oven off.
However, the immediate economic future now looks like something more on the scale of the early 1980's, not the early 1930's. The stock market will turn before the economy does, however I am not yet convinced that the bounce we see today marks the absolute bottom. We might retest the lows, or maybe even go a bit below the worst of Friday's levels. However, we are closer to the bottom than we are to the top.
Note that the dividend yields are based on 4x the last dividend paid, and that Bank of America (NYSE: BAC) and Citigroup (NYSE: C) have since indicated that they will be cutting their dividends, thus the yields are overstated.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
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 long-term.
Continuous 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: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics 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 http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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 any security.
