CHICAGO, Oct. 14, 2011 /PRNewswire/ -- Zacks Equity Research highlights Interactive Brokers Group (Nasdaq: IBKR) as the Bull of the Day and Teradyne, Inc. (NYSE: TER) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Google Inc. (Nasdaq: GOOG), Apple, Inc. (Nasdaq: AAPL) and Motorola Mobility (NYSE: MMI).
(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:
We are upgrading our recommendation on Interactive Brokers Group (Nasdaq: IBKR) to Outperform as its brokerage business continued to perform well and the company reinstated its quarterly dividend. Despite declining market volumes, Interactive Brokers' Market Making segment is positioned to improve on better revenue capture.
We expect the company's strategy with respect to structural changes in the business to bode well. Also, larger average trade sizes continue to improve its Electronic Brokerage segment results.
Our six-month target price of $17.00 per share equates to about 13.5x our earnings estimate for 2011. Combined with a quarterly dividend of $0.10 per share, this target price implies an expected total return of 23.1% over that period. This is consistent with our Outperform recommendation.
Teradyne, Inc. (NYSE: TER) is a leading provider of automated test equipment. The company's second quarter earnings beat the Zacks Consensus, although revenue growth was sluggish. Forward guidance indicates slack demand, particularly for back-end testing equipment.
While there could be pockets of strength, we think that the negative mix of business, relatively lower exposure to the memory segment and the uncertainty at semiconductor manufacturers will impact results in the next few quarters. As a result, we think that investors are likely to discount the product lineup, leaner cost structure and strong balance sheet.
The company is expected to return earnings growth of 11.9% compared to the peer group average of 12.6%. We believe there is further downside to the shares and we are therefore downgrading the shares to Sell. Our price target also moves from $17 to $12 (10.3X P/E).
Latest Posts on the Zacks Analyst Blog:
Google Hits Another Homer in Q3
Even though analysts seemed a tad wary of Google Inc. (Nasdaq: GOOG) 3rd quarter 2011 earnings numbers after the closing bell today, the search engine king stepped up to the plate and took one long. Revenues of $9.72 billion were up 33% year over year and 8% sequentially. Diluted EPS (how Zacks reports Google's earnings) reached $8.33, easily topping the $7.59 Zacks Consensus Estimate.
The 10% positive earnings surprise bested the average positive surprise over the last 4 quarters of 8.5%, and after-market traders duly took notice. Up 1.91% in regular Thursday trading, GOOG shares have shot up 5.2% in the after-market, which is tempered a bit from the initial reaction to the earnings report.
Kicking off Google's press release this afternoon was a proud notice that Google+, GOOG's new social network, has already surpassed 40 million users. Much the way Google has the pluck to have attempted to rival Apple, Inc.'s (Nasdaq: AAPL) iPhone with its Android operating system for smartphones, so does Google+ appear to be going after market share from soon-to-go-public Facebook, Inc.
This all said, Google does have its work cut out for it. Aside from buying Motorola Mobility (NYSE: MMI) for $12.5 billion earlier in the 3rd quarter, Google has also increased its workforce by 10% over the past three months. Add some anti-trust hearings with the Federal Trade Commission and some concerns over Android patent wars, and it may be understandable why 4 analysts have actually downwardly revised estimates over the past month for Q4 and the full fiscal year.
Then again, with Google's growing reputation of continuing to beat market expectations soundly (nearly always -- GOOG did post a 1.4% miss in Q1 2011), we'll see if some of the 21 current earnings estimates on the company are revised upward in the coming days.
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.
Share this article