Welcome!

News Feed Item

Zacks Bull and Bear of the Day Highlights: Alkermes, China Life Insurance, Chipotle Mexican Grill, Panera Bread and Jack in the Box

CHICAGO, Jan. 21, 2013 /PRNewswire/ -- Zacks Equity Research highlights Alkermes (Nasdaq:ALKS) as the Bull of the Day and China Life Insurance (NYSE:LFC) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chipotle Mexican Grill Inc. (NYSE:CMG), Panera Bread Co. (Nasdaq:PNRA) and Jack in the Box Inc. (Nasdaq:JACK).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

We are impressed by the expanded product portfolio at Alkermes (Nasdaq:ALKS) following its purchase of Elan's EDT unit. The company continues to expect adjusted earnings per share in the range of $0.88-$1.02 for fiscal 2013. Revenues are still projected in the range of $510-$540 million.

The US approval of type II diabetes drug Bydureon is a major positive for Alkermes as the drug offers significant commercial potential. We are also pleased by the diversified pipeline at Alkermes. The successful development and commercialization of these candidates should boost the company's top line.

We believe that the current price represents an attractive entry point for long-term investors and hence upgrade the stock to Outperform. Our price target of $27.00 is based on 6.8x our fiscal 2013 revenue estimate.

Bear of the Day:

We are downgrading our recommendation on China Life Insurance (NYSE:LFC) to Underperform based on the constant decline in operating cash flow, which is affecting the financials. The gradual decline in premiums and increasing competition on the domestic front are the other downsides.

The company also faces substantial interest rate and currency risks, which limit upside. China Life also reported a net loss in the third quarter, due to a surge in operating expenses, which offset the operating income increases.

The company has a strong brand name, an extensive domestic distribution channel, strong investments and stable ratings. However, our six-month target price of $46.00 equates to 48.4x our earnings estimate for 2012. Combined with the $0.55 per ADR annual dividend, this target price implies an expected negative return of 9.4% over that period.

Latest Posts on the Zacks Analyst Blog:

Chipotle to Cater Beyond Stores

In order to counter sluggish same-store sales performance in a cutthroat environment, Chipotle Mexican Grill Inc. (NYSE:CMG) is banking on a new sales generating initiative. This Denver-based company will start its catering service in its home court Colorado beginning Jan 21 and expand it across the nation in due course.

Basically, management intends to capitalize on the reputation of Chipotle's products by offering an off-premise service. The service will allow groups of 20 to 200 guests to select meals as per their own preference as they do at Chipotle restaurants. This initiative will make Chipotle go beyond its outlets and cater to its customers in their homes, schools and offices, which will further enhance the company's presence.

Although Chipotle's fourth quarter 2012 revenue is expected to increase 17.2% year over year, of late, the company has been reeling under comps pressure. Its same-store sales gain of 4.8% during the third quarter marked a 650 basis points (bps) downfall year over year and 320 bps sequentially. For the fourth quarter, Chipotle is likely to post 3.8% comps growth, which will again be a sequential decline of 100 bps.

Apart from launching a catering service, Chipotle will also test a new vegetarian offering called Sofritas in San Francisco Bay Area next month. If successful in its test run, the product will be rolled out in additional markets.

Chipotle's innovative offerings always distinguish it from its peers. It already has its 'Food With Integrity Program' in store that focuses on a higher mix of naturally raised pork, chicken and beef, and organic produce. It is the only national restaurant company to use fresh produce since 2008.

However, as far as catering is concerned, Chipotle is not the only company to use this as an incremental sales driver. One of its close peers

Panera Bread Co.

(Nasdaq:

PNRA

) is benefiting largely from this initiative. Panera's catering business has expanded about 20% over the past 10 years, which is anticipated to witness a further boost from the convenient online ordering option.

There is also Jack in the Box Inc.'s (Nasdaq:JACK) Qdoba Mexican Grill chain that offers catering services. We believe, like some of its industry equivalents, catering will prove to be a strong growth driver for Chipotle in the years to come. Chipotle currently retains a Zacks Rank #3 (Hold).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...