(Source: Business Wire)

Zacks Equity Research picks Yum! Brands, Inc. (NYSE: YUM) as Bull of the Day and ABB Ltd. (NYSE: ABB) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Citigroup (NYSE: C), JP Morgan Chase (NYSE: JPM) and Capital One (NYSE: COF).
Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678
Bull of the Day
Yum! Brands, Inc. (NYSE: YUM) shares are a great way to gain exposure to China as well as other fast-growing international markets, which constitute the only stable segment of the restaurant industry.
Both the overseas divisions of Yum! Brands are expanding rapidly. China (28% of 2008 revenue) and Yum! Restaurants International [YRI] (27% of 2008 revenue) segments are on track to grow operating earnings by an average CAGR of 20% and 10%, respectively, over the next five years. The U.S. operations (50% of revenue) also show signs of revival.
Reinvigorating sales are Taco Bell's recent product launches, including fruit smoothies and a value menu. KFC U.S. remains Yum!'s one weak spot, with an outdated menu. A key to improvement will be its 1H09 launch of a new grilled chicken line, the first step in Yum!'s strategy to add healthier and more portable menu items.
Bear of the Day
ABB Ltd. (NYSE: ABB) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact.
The global economic growth -- coupled with the attendant demand for power and automation -- that stimulated investment in new and expanded plants over the last 12 to 24 months is expected to decline to some degree during 2009, which is cause of concern for ABB.
Even with ABB's impressive menu of offerings, we remain somewhat cautious with respect to the possibilities for the next year, as there are significant economic uncertainties -- both political and economic -- on the horizon. Consequently, we have decided to downgrade ABB to a SELL and have adjusted our target price to reflect the current market environment.
Recent Analysis from the Analyst Blog
Consumer Credit Drops Sharply
As the economy continues to be in recession and job losses continue to rise sharply, consumers are cutting back on spending.
Further, credit-card lines continue to be reduced by the lenders. It is estimated that available lines were reduced by nearly $500 billion during 4Q08 alone. The balances on consumers' credit cards fell at a rate of 9.7% in February 2009 -- the fastest rate of decline since 1976.