Financial News

Zacks Analyst Blog Highlights: CRA International, The Kroger Co., AvalonBay Communities, Inc., Juniper Networks, Inc. and Marathon Oil Corporation

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: CRA International (NASDAQ: CRAI), The Kroger Co. (NYSE: KR), AvalonBay Communities, Inc. (NYSE: AVB), Juniper Networks, Inc. (NASDAQ: JNPR) and Marathon Oil Corporation (NYSE: MRO).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Thursday’s Analyst Blog:

On CRA Int'l, a Sell is Advised

CRA International (NASDAQ: CRAI), formerly Charles River Associates, is a global provider of legal, regulatory, business consulting, and other expert services through its more than 680 consultants. CRA International competes with a broad range of public and private consulting firms.

We maintain our Sell rating on shares of CRAI prior to the release of year-end earnings. Third-quarter financial results fell well short of Street expectations, which marked the second such disappointment in the last three quarters. As such, we anticipate that investors will demand evidence that management has properly addressed the company's operational problems before affording a higher multiple to CRAI shares.

Kroger Co.: Buying Opportunity

The Kroger Co. (NYSE: KR) is one of the largest grocery retailers in the U.S. It operates 2,477 supermarkets and multi-department stores in 31 states under approximately 24 local banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's and Fry's Marketplace, to name but a few.

Kroger's third quarter results were slightly better than our expectations. Sales matched our forecast, while its EPS beat by $0.01, excluding a one-time charge of $0.03 related to Hurricane Ike. What's more, management raised its full-year EPS guidance from $1.85-$1.90 to $1.88-$1.91.

AvalonBay's Attractive Entry Point

Headquartered in Alexandria, Virginia, AvalonBay Communities, Inc. (NYSE: AVB) is a real estate investment trust (REIT) which primarily focuses on developing high-quality, multi-family apartment communities for higher-income clients in high barrier-to-entry regions of the U.S. As of September 30, 2008, the company owned or held ownership interests in 177 apartment communities, with 50,034 apartment homes in 10 states.

Operationally, we expect AVB to outperform peers in 2009, although multifamily fundamentals will slow in the coming quarters due to stagnant job growth and growing unemployment trends. Shares of AVB are off over 35% since October due to a general sector sell-off. We are changing our recommendation to Buy due to valuation.

Juniper Ntwks Outlook Cautious

Juniper Networks, Inc. (NASDAQ: JNPR) is enjoying robust growth in its infrastructure business. The company reported better-than-expected results for the third quarter; however, it provided cautious outlook for 2008 due to uncertain credit markets and economic concerns.

Although results have been good, we are growing increasingly concerned about levels of capital spending by service providers in light of indications that spending could be slowing. We have lowered our estimates for the fourth quarter of 2008 and for 2009, indicating weak growth prospects for the company amid a slowing economy. In light of this, we maintain a Hold recommendation on the shares of JNPR.

Marathon: More Upside Than Down

Marathon Oil Corporation (NYSE: MRO) has indicated interest in splitting the company into separate upstream/downstream entities, essentially undoing the integrated business model. The proposal is at a preliminary stage and a final decision is expected early next year. We can see such a course of action unlocking shareholder value, particularly given its downstream-heavy business structure that is weighing on its much improved upstream assets.

The company's strong inventory of development projects provides for visible production growth over the coming years. We believe that management's guidance of annual production growth of 7% through 2012 is on the conservative side.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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 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: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics 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=4580.

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

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.

Contacts:

Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.

Use the myMotherLode.com Keyword Search to go straight to a specific page

Popular Pages

  • Local News
  • US News
  • Weather
  • State News
  • Events
  • Traffic
  • Sports
  • Dining Guide
  • Real Estate
  • Classifieds
  • Financial News
  • Fire Info
Feedback