(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: Arrow Electronics, Inc. (NYSE: ARW), E.I. du Pont de Nemours & Co. (NYSE: DD), Aracruz Celulose S.A. (NYSE: ARA), Ingersoll Rand Co., Ltd. (NYSE: IR), and Echelon Corp. (NASDAQ: ELON).
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Here are highlights from Tuesday's Analyst Blog:
Arrow Electronics Straight Across
New York-based Arrow Electronics, Inc. (NYSE: ARW) is one of the world's largest distributors of electronic components and computing products. The company sources products from about 800 suppliers and distributes them to over 130,000 customers (original equipment manufacturers, contract manufactures and commercial customers).
Arrow reported revenues of $4.09 billion in Q4:08, down 7.5% y/y and down 4.9% q/q. On a pro forma basis (including the impact of acquisition of LOGIX S. A.), sales were down 12% y/y. Gross margin came in at 12.7%, down from 13.9% generated a year ago and down from 13.1% recorded in the prior-year period, primarily due to an increase in the mix of business from Asia and ECS, as well as weakness in North American and European components.
Du Pont Risk/Reward Balanced
E.I. du Pont de Nemours & Co. (NYSE: DD) is the world's second leading chemical company. Non-G7 markets, agricultural chemicals and a focus on key customers and new products will drive growth. Strong performance in the agricultural products market and productivity are likely to outweigh increasing costs as well as weak auto and housing markets.
The company is focusing on nearly doubling its earnings growth rate. However, slowing demand in the U.S. markets is likely to offset growth in the Agriculture market. This compels us to rate the stock a Hold with a target of $23.00. Du Pont is currently valued at 10.1x our 2009 estimate of $2.25.
Aracruz Paper Outlook Wrinkled
We are reiterating our Sell recommendation on Aracruz Celulose S.A. (NYSE: ARA). The international outlook for pulp and paper prices is uncertain due to the current global financial crisis. The difficult economic environment in the U.S. and Europe resulted in a decrease in pulp's list prices all over the world.
Fourth quarter results were disappointing based on the huge derivative losses. The merger with VCP is a step in the right direction; however, the way the deal was done raises some concerns.
