Zacks Bull and Bear of the Day Highlights: Navigant Consulting, Linear Technology, Toyota Motor, Honda Motor and Nissan Motor
Posted by: Auto Buff / Category: Toyota
SymbolPriceChangeHMC32.35+0.52
CHICAGO, Aug. 31, 2011 /PRNewswire/ — Zacks Equity Research highlights Navigant Consulting Inc. (NYSE: NCI) as the Bull of the Day and Linear Technology Corp. (Nasdaq: LLTC) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Toyota Motor Corp. (NYSE: TM), Honda Motor Co. (NYSE: HMC) and Nissan Motor Co. (OTC: NSANY).
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Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Navigant Consulting Inc. (NYSE: NCI) topped both earnings and revenues in its second-quarter 2011 results. Its utilization rate improved substantially. Navigant’s restructuring activities, construction dispute practice and economics consulting services delivered well in the second quarter.
Moreover, the number of active engagements also remained steady. The integration of Ethos Partners in the Healthcare segment also augurs well for the company.
Although a huge debt obligation against limited cash flow increases liquidity risk, we believe that the company’s inorganic expansion will facilitate its long-term growth. Hence, we upgrade the stock from Neutral to Outperform rating.
Linear Technology Corp. (Nasdaq: LLTC) is a leading OEM of analog and mixed signal semiconductors. The Japan crisis, continued lack of consumer confidence and credit-related crisis in the Americas and Europe led to a disappointing guidance.
Therefore, we advise investors to avoid the shares, since we believe there is uncertainty in near-term demand. This, along with the company’s debt burden, will continue to weigh on sentiments. We therefore reiterate our Underperform rating on LLTC shares.
The forward P/E of 13.2X based on our 2011 earnings estimate represents a 24.5% premium to the peer group, which opposes historical trends, indicating downside. The expected earnings growth rate of 9.0% is also significantly lower than the peer group growth rate of 14.3%.
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