(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: Yum! Brands (NYSE: YUM), McDonald's (NYSE: MCD), Advanced Medical Optics, Inc., or AMO (NYSE: EYE), Abbott Laboratories (NYSE: ABT) and The Hain Celestial Group, Inc. (NASDAQ: HAIN).
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Here are highlights from Wednesday's Analyst Blog:
YUM Tastier than MCD in China
A report released by the World Economic Forum, ahead of its annual meeting later this month, said that China's gross domestic product could slow to less than 6% from an estimated 11.9% in 2007. Yum! Brands (NYSE: YUM), which generates 27% of its revenue and most of its earnings growth in China, is facing investor skepticism, which has driven its shares down 28% from their 52-week high, versus a decline of just 11% for McDonald's (NYSE: MCD).
Fueling investor trepidation is Yum!'s recent 2009 operating income guidance, which targeted growth of 15% to 20%, below its 20% growth trend for the region. Though 2009 will be a challenging year for Yum!'s China operations, with declining same-store sales (3% expected in the first half of 2009, improving to 7% in the second half of the year), three-quarters of its growth in the region is from new unit additions, all of which are company-owned and self-funded through Yum!'s free cash flow.
AMO a Hold Post-Abbott Deal
Advanced Medical Optics, Inc., or AMO (NYSE: EYE) entered into a definitive agreement to be acquired by Abbott Laboratories (NYSE: ABT). Price appreciation on the stock is limited to the all cash transaction price of $22 per share or approximately $2.8 billion.
Our target price is equal to this cash transaction price and assumes the transaction will close. The company is a global leader in the development, manufacture, and marketing of medical devices for the eye and contact lens care products.
Hain Celestial Keeps Healthy
The Hain Celestial Group, Inc. (NASDAQ: HAIN) produces, distributes, markets, and sells various natural and organic food, as well as personal care products. The company offers popular "better-for-you" products in grocery, snacks and frozen/refrigerated categories.
Healthy internal sales growth, driven by consumer demand for natural food products, and management's focus on improving profit margins bode well for Hain Celestial Group's outlook.
