Zacks Bull and Bear of the Day Highlights: Palm, Inc., UIL Holdings, Corcept Therapeutics and H. J. Heinz Company

Business Wire, July 5, 2006

CHICAGO -- Zacks Equity Research highlights Palm, Inc. (Nasdaq: PALM) as the Bull of the Day and UIL Holdings Corporation (NYSE: UIL) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Corcept Therapeutics, Inc. (Nasdaq: CORT) and H. J. Heinz Company (NYSE: HNZ). 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 Palm, Inc. (Nasdaq: PALM). Palm remains well-positioned to benefit from growth in the smartphone market with its Treo product line. Leveraging the success of Treo, Palm continues to launch new products, including the 700p and 700w with broadband data speeds. Moreover, we expect Palm to continue gaining traction in the enterprise market. Although the stock has been consistently volatile, we believe the long-term potential for the company great. We therefore maintain our Buy rating on Palm with a six-month price target of $25.00.

Bear of the Day:

Our Bear of the Day recommendation is for UIL Holdings Corporation (NYSE: UIL). We are increasingly cautious on the company's outlook. A premium earnings-based equity valuation and an indicated annual dividend greater than projected earnings in 2006 do not bode well for UIL stock. Although the company continues to generate a majority of its revenue from regulated electricity operations, and is strengthening and expanding its core utility operations, UIL's disappointing and volatile earnings - both historical and projected - a seemingly unsustainable dividend, an adverse regulatory environment in Connecticut prompt increased caution. Accordingly, we maintain a SELL recommendation on UIL with a six-month target price of $50.

Analyst Blog:

California-based Corcept Therapeutics, Inc. (Nasdaq: CORT) is a pharmaceutical company engaged in the development of drugs to treat acute psychiatric and neurological diseases. The company is involved with the development of Corlux, an oral medicine, used for the treatment of psychotic major depression (PMD). Although we are pleased to see the company working closely with the FDA on Corlux development, risks of clinical trial failure are still high. We model no revenues until Corlux's final approval in late 2007, an event on which we have low visibility. As such, we rate the shares a Hold.

Growth in its domestic businesses, strengthening international operations, and the reallocation of resources in favor of key brands are major positive trends for the H. J. Heinz Company (NYSE: HNZ); however, weakening margins due to rising fuel and commodity costs along with mounting competition, especially in Europe, are impeding earnings growth. Hence, the Hold recommendation is maintained.

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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