CHICAGO, Jan. 3, 2011 /PRNewswire/ -- Zacks Equity Research highlights: Equinix, Inc. (Nasdaq: EQIX) as the Bull of the Day and FTI Consulting (NYSE: FCN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Moody's Corp. (NYSE: MCO), Bank of America Corporation (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM).
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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:
As a leading provider of co-location services, Equinix, Inc. (Nasdaq: EQIX) is well positioned in the market. The company delivered decent third quarter numbers and provided encouraging guidance for the fourth quarter and fiscal 2010.
We see a steady increase in the client base and strategic acquisitions that could enhance its revenue potential and expand its geographic reach. Though increased competition, European exposure, industry consolidation, and a long sales cycle will remain causes for concern, we believe that Equinix efforts to expand current facilities and its recurring revenue model will support the stock.
We upgrade the stock from Neutral to Outperform rating. Our target price of $97.00 represents a multiple of 129.3x fiscal 2010 EPS estimate above the industry average and S&P 500.
FTI Consulting's (NYSE: FCN) third quarter 2010 earnings were below the Zacks Consensus Estimate. The company's corporate/restructuring segment remains a drag on its growth due to softer trend in restructuring activities and a slowdown in new cases.
The company is also experiencing a tepid pace of recovery in the Merger & Acquisition markets. Overall, the near-term visibility remains unclear, as demand environment for practices remains uncertain given the current market volatility and clients cautious aggregate spending.
Going forward, we remain skeptical about the growth prospects of the company. Hence, we maintain an Underperform rating on the stock.
Latest Posts on the Zacks Analyst Blog:
Foreclosures Up: A Caveat for 2011?
According to the report from bank regulators, which covers only 64% of mortgages that are held by national banks and thrifts, the number of completed foreclosures increased 11.2% sequentially to about 245,000 in the third quarter.
The newly commenced foreclosures rose 31.2% over the prior quarter to 382,000. Also, the foreclosures in process increased 4.5% over the prior quarter to 1.2 million.
On the other hand, banks and government programs have altogether helped about 470,000 homeowners in the third quarter, down 17% from the second quarter.
According to Moody's Analytics, a wing of Moody's Corp. (NYSE: MCO), 2010 is expected to end with 1.8 million foreclosures in total. The firm also expects the number to swell to 2.1 million in 2011.
Ineptness of Government Efforts
The Obama administration's flagship effort - Home Affordable Modification Plan, or HAMP -- designed to help people in danger of losing their homes, saw a sharp drop in the third quarter. During the quarter, loans modified under HAMP plunged 46% to 59,000.
At the time of initiating the program in 2009, the officials expected it to modify about 4 million loans of delinquent borrowers. But according to a congressional panel's estimate, the program will finally be able to modify only about 700,000 to 800,000 delinquent loans. With this imminent wave of foreclosures, the inefficiency of the program is a major concern at this juncture.
Foreclosure Mess Nearing End?
The U.S. bank regulators and a task force of Attorneys General (AGs) of all 50 states are gearing up to settle the foreclosure mess at large financial institutions including Bank of America Corporation (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM) next month, Reuters reported on December 20. This would undoubtedly lessen the looming threat on housing recovery.
But the aftermath of faulty paperwork might still make it difficult for lenders to find home buyers in the years to come. The foreclosure mess would probably cast a long shadow on U.S. housing.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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