Zacks Bull and Bear of the Day Highlights: Kimco Realty, Kimberly-Clark, Lamar Advertising and Sara Lee

Business Wire, Dec 12, 2006

CHICAGO -- Zacks Equity Research highlights Kimco Realty (NYSE: KIM) as the Bull of the Day and Kimberly-Clark Corporation (NYSE: KMB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Lamar Advertising Company (Nasdaq: LAMR) and Sara Lee (NYSE: SLE). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for Kimco Realty (NYSE: KIM). Shopping center owners continue to increase rents at a healthy pace. KIM had another strong quarter, and exceeded our FFO estimates by $0.03 per share. In response to a better-than-expected quarter, we have again raised our full-year 2006 estimates by $0.04 per share. The company's portfolio occupancy remains high at 95%, and we expect continued 10% rate increases on new and renewal leases in a still hot retail market. We are also encouraged by strong performances in the company's other lines of business, including its merchant building division, mortgage-financing arm, and preferred equity program.

Bear of the Day:

Our Bear of the Day recommendation is for Kimberly-Clark Corporation (NYSE: KMB). Kimberly-Clark has strong consumer brands and is well respected for product innovation, especially in the diaper category. Despite progress on the company's three cost savings programs (FORCE, the Global Business Plan and the Competitive Improvement Initiatives), rising raw material costs, weak European operations and competitive pressures are negatively impacting results. Therefore, the stock's rating is a Sell.

Analyst Blog:

Lamar Advertising Company (Nasdaq: LAMR) is benefiting from the rebound in pricing for local advertising and a stronger billboard business. However, increased capital expenditures and higher expenses related to the recently acquired outdoor advertising assets are reducing free cash flow and pressuring the operating margin. The company also is experiencing higher payroll and site lease expenses. The Hold rating for shares of Lamar Advertising is maintained.

The five-year Transformation Plan should benefit Sara Lee (NYSE: SLE) in the long term but over the next two years, the project provides little earnings visibility and no earnings progress. Rising raw material and packaging costs remain concerns for the company in the near term. In addition, management lowered long-term sales guidance to the range of 2% to 4%. Since the stock's decline has discounted much of the disappointment concerning the company's operations, the Hold recommendation is maintained. Our six-month target price is $17.50.

Get the full analysis of all four 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.

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