(Source: Business Wire)
Zacks Equity Research highlights AmBev (NYSE: ABV) as the Bull of the Day and General Motors (NYSE: GM) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ctrip.com International (Nasdaq: CTRP), Freeport McMoRan (NYSE: FCX) and Health Net, Inc. (NYSE: HNT).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day: AmBev (NYSE: ABV)
We are changing our recommendation on Companhia de Bebidas das Americas, or AmBev, from Hold to Buy. The company posted positive results for the third quarter of 2008, with excellent results in Brazil and in Argentina.
Parent company InBev's desire to acquire Anheuser-Busch appears to be positive for the company. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.
Moreover, we believe that the company being a producer of a low-cost, daily use product focusing on domestic markets will be less exposed to the recent international crisis. Indeed, we have an optimistic view on the medium to long term demand for soft drinks in Latin America.
Bear of the Day: General Motors (NYSE: GM)
General Motors Corporation is one of the largest automobile manufacturers in the world. But weak North American sales, falling production volumes and rising raw material costs are increasing our concern for the stock.
Significant incentives to stimulate sales and keep inventories lean are eating into margins. Furthermore, GM sales are hampered by poor resale values. The company is at a disadvantage compared to its competitors owing to huge pension and health care costs.
GM has also delayed new model launches and has slowed production. It apprehends a significant cash crunch and might even face bankruptcy if the U.S. economic slump continues and it fails to get any government aid. These issues compel us to rate the shares a Sell with a six-month target price of $2.00.
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Ctrip.com International (Nasdaq: CTRP)
We are downgrading Ctrip.com International, Ltd. - ADR shares from Buy to Hold. Longer term, Ctrip.com is well-positioned to generate strong growth as more Chinese consumers use online travel-related services. Unfortunately, the company's near-term picture is not as bright.
Slowing global economic growth is reducing the demand for travel-related services, and that is negatively impacting Ctrip.com's revenues and profit margins.
