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Zacks Analyst Blog Highlights: Benchmark Electronics, Inc., Tower Group Inc., AutoZone, Inc., China Southern Airlines Company Limited and CEMEX S.A. De C.V.
Friday, December 12, 2008 12:11 AM


(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

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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: Benchmark Electronics, Inc. (NYSE: BHE), Tower Group Inc. (NASDAQ: TWGP), AutoZone, Inc. (NYSE: AZO), China Southern Airlines Company Limited (NYSE: ZNH) and CEMEX S.A. de C.V. (NYSE: CX).

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Here are highlights from Thursday's Analyst Blog:

Benchmark Setting Lower Bar

Benchmark Electronics, Inc. (NYSE: BHE) provides electronics manufacturing services (EMS) on a turnkey basis. The company specializes in engineering services -- including product design, printed circuit board layout, prototyping and test development.

With the Computing segment fading faster than expected, Benchmark Electronics is expected to face decelerating revenue growth in the coming quarters. Citing an early wind-down of mature projects, the company again reported a disappointing third quarter and offered a weak guidance for the fourth quarter as well.

Tower Group Outlook Clouding

Tower Group Inc.'s (NASDAQ: TWGP) core 3Q08 results came in at $0.79 per share, two cents ahead of our expectations, aided by a 21% rise in net premiums earned with growth exhibited from the Northeast and from the successful expansion into California, Texas, and Florida (this trend should continue into 2009).

The acquisitions of Castlepoint Holdings and Hermitage Insurance Group are expected to close before the end of 1H09. However, the pending integration of these acquisitions precludes us from adjusting our Hold rating on the shares of this company. Although we believe the company remains well-positioned to continue growing premiums at a rapid clip, we think the company's aggressive expansion plan in the softening market should in all likelihood experience a worsening within its combined ratios. Further, modest levels of subprime paper in the investment portfolio add a level of uncertainty over the near term.

AutoZone Downshifts Going Ahead

AutoZone, Inc. (NYSE: AZO) is a leading retailer of automotive parts and accessories. The company has significant cash flow and plans to expand its square footage growth. AutoZone has maintained a mid-single-digit square footage growth rate by opening new stores every year.

Although, the company is suffering from sluggish same-store sales, falling gas prices will eventually neutralize it.



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