CHICAGO, Oct. 2, 2013 /PRNewswire/ -- Zacks Equity Research highlights Herbalife (NYSE:HLF-Free Report) as the Bull of the Day and Beacon Roofing (Nasdaq:BECN-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis ontheAstellas Pharma, Inc. (OTC:ALPMY-Free Report), Pfizer Inc. (NYSE:PFE-Free Report) and Merck & Co, Inc. (NYSE:MRK-Free Report).
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Here is a synopsis of all five stocks:
Herbalife (NYSE:HLF-Free Report) the subject of a lot of controversy but it is also a Zacks Rank #1 (Strong Buy).
Herbalife has topped the Zacks Consensus Estimate in each of the last 28 quarters which is a pretty unique accomplishment.
The last two beats were $0.20 and $0.22 -- but put in better perspective when you look at the percentage surprise. The March 2013 quarter came in 18.7% ahead of expectations and the June 2013 quarter was 18.5% ahead of analysts' estimates. Those are some pretty big beats.
Herbalife is a network marketing company that sells weight management, nutritional supplements, energy, sports and fitness, and personal care products worldwide. Herbalife offers its products through retail stores, sales representatives, sales officers, and independent service providers. The company was founded in 1980 and is based in Grand Cayman, the Cayman Islands.
In a mid-December 2011 conference, Bill Ackman disclosed that he is short approximately 20 million shares of Herbalife. The total short interest as of the end of December was approximately 37 million shares. Ackman asserts that the company is nothing short of a pyramid scheme and will end up at $0.00. To further substantiate this claim, Ackman needs the FTC to investigate the company and despite recent rumors and Freedom of Information Acts, there has been no such investigation.
Beacon Roofing (Nasdaq:BECN-Free Report) has seen estimates for 2013 and 2014 fall recently. A recent downgrade has pushed the Zacks Rank to the lowest level. BECN is a Zacks Rank #5 (Strong Sell). It is the Bear of the Day.
The stock fell a significant amount the other day due to a downgrade from Robert W. Baird. The investment firm lowered their rating on the stock to Neutral from Outperform and took their target down to $39 from $42 based on lower estimates. Lowered estimates are a key reason stocks become Zacks Rank #5 (Strong Sell).
Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials to contractors, home builders, building owners, and other resellers. As of August 9, 2013, it operated through a network of 231 branches in 38 states of the United States, and Canada. Beacon Roofing Supply, Inc. was founded in 1928 and is based in Peabody, Massachusetts.
BECN has hit a rough patch in what is a spotty-to-good earnings history. The last three reports have all come in under the Zacks Consensus Estimate, with the most recent miss being the biggest in quite a while. The company reported earnings of $0.55 vs. the $0.71 estimate, for a miss of $0.16 or 22% below expectations. On that earnings release the company also lowered guidance, further reducing expectations for the future.
Additional content:
Positive Top-Line Data for Astellas
Astellas Pharma, Inc. (OTC:ALPMY-Free Report) announced positive top-line data from a phase III study (SECURE) on its invasive aspergillosis candidate, isavuconazole. Isavuconazole is an azole antifungal agent, jointly developed by Basilea Pharmaceuticals AG and Astellas. The companies had entered into an agreement in Feb 2010.
The global, double-blind, randomized phase III study evaluated the safety and efficacy of once-daily isavuconazole versus Pfizer Inc.'s (NYSE:PFE-Free Report) Vfend (twice daily). The study achieved its primary objective of non-inferiority to Vfend for the treatment of invasive fungal disease caused by the Aspergillusspecies. The all-cause-mortality was 18.6% in the isavuconazole arm and 20.2% in the Vfend arm.
The secondary endpoint of overall success rate at the end-of-therapy in patients with proven/probable disease was almost similar between the two groups.
As per information provided by Astellas, invasive aspergillosis is found in 5-13% of bone marrow transplant patients, 5-25% of heart or lung transplant patients and 10-20% of recipients of intensive chemotherapy patients for leukemia.
Besides the SECURE study, the candidate is currently being evaluated in two other phase III studies, namely, VITAL and ACTIVE.
The open-label phase III VITAL study evaluates isavuconazole for the treatment of patients with invasive life-threatening fungal disease and the treatment of aspergillosis patients with pre-existing renal impairment. Enrolment is complete and the review of diagnosis and outcomes by the Independent Data Review Committee is in progress.
The double-blind, randomized phase III ACTIVE study evaluates the use of isavuconazole (intravenous and oral) versus Merck & Co, Inc.'s (NYSE:MRK-Free Report) Cancidas (intravenous) followed by Vfend (oral) for the treatment of candidemia and other invasive candida infections. The enrollment in the ACTIVE study is in progress.
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