(Source: Business Wire)
Zacks Equity Research highlights Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX) as the Bull of the Day and Navigant Consulting (NYSE: NCI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bristol-Myers Squibb (NYSE: BMY), Biogen Idec (Nasdaq: BIIB) and Strayer Education, Inc. (Nasdaq: STRA).
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:
Nexavar sales in the fourth quarter of 2008 remained strong for Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX). This is mainly attributed to the market penetration in the liver cancer market, while Nexavar market share in kidney cancer market has stabilized due to heavy competition from Pfizer and Wyeth.
We expect continued Nexavar sales growth in 2009 and over the next several years since the label has expanded to liver cancer. In addition to the US and EU, Nexavar has been approved in South Korea and China for liver cancer.
Nexavar will achieve blockbuster status in 2010. We maintain our Buy rating on Onyx shares with a price target of $45 per share.
Bear of the Day:
Shares of Navigant Consulting (NYSE: NCI) are trading at 14.8x and 13.8x our 2009 and 2010 EPS estimates, respectively -- an 18% premium to the 2009 peer group average. The company's 2008 acquisition of Chicago Partners has offset revenue and operating income declines in its existing business segments.
Until we see further evidence that NCI can improve utilization rates and operating results in its largest operating segments, we believe that a premium valuation, relative to the peer group average, is unwarranted.
Our price target reflects of multiple of 12.5x our 2009 EPS estimate.
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Bernanke: Recession Ends This Year
Overall, this morning's testimony from the chairman brought no new surprises. Bernanke called things as he saw them while trying to provide an ounce of optimism.
For investors, the chairman's speech is just another data point. Nothing has changed since yesterday and nothing new was presented. Rather, for better or worse, the Fed is moving forward with its previous announced plans. Whether more needs to be done is a subject of debate, but it shouldn't change your investment strategy.
How should you invest? Think conservative, counter-cyclical and defensive. Look at companies that either not directly dependent on a strong economy, such as Bristol-Myers Squibb (NYSE: BMY) or Biogen Idec (Nasdaq: BIIB), or those that benefit from a weak economy like Strayer Education, Inc.
