Zacks Bull and Bear of the Day Highlights: CACI International, Evergreen Solar, Monster Worldwide and Umpqua Holdings

Business Wire, May 11, 2006

CHICAGO -- Zacks Equity Research highlights CACI International (NYSE:CAI) as the Bull of the Day and Evergreen Solar (Nasdaq:ESLR) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Monster Worldwide (Nasdaq:MNST) and Umpqua Holdings (Nasdaq:UMPQ). 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 CACI International (NYSE:CAI). Revenue was $435.4 million, up 4.9% year over year but below our estimate. There was essentially no organic revenue growth. Management reduced its organic revenue growth target for fiscal 2007 to 8% to 10%. On the other hand, the company won $640 million in new contract awards. Funding orders rose 66% sequentially. And the company has been selected as one of the prime contractor for two very large contracts. As a result, we maintain our Buy rating but have adjusted target price of $70.

Bear of the Day:

Our Bear of the Day recommendation is for Evergreen Solar (Nasdaq:ESLR). Although we continue to like the Evergreen story and the growth potential for the solar industry as a whole, we simply cannot justify the current share price valuation, which is significantly ahead of fundamentals at over 1,400x our 2007 estimate. Positives include significant new multi-year sales contracts, increased manufacturing throughput and capacity expansions, improving operating efficiencies and a new silicon supply contract. Nevertheless, continuing earnings losses, volatile and often negative gross margins, and ongoing silicon supply shortages collectively suggest that this stock is priced for perfection. Accordingly, we maintain our Sell recommendation on ESLR - based purely on valuation - with a six-month target price of $13.

Analyst Blog:

Total revenue in Q1 for Monster Worldwide (Nasdaq:MNST) grew 28% year over year to $292 million, exceeding our expectations. Overall organic revenue growth was 27% and Monster's was 34%. Additionally, overseas sales momentum keeps building. The operating margin also rose by 350 basis points to 19.7%, compared to the same period a year ago. The company clearly reported an excellent quarter. Nevertheless, the stock price has appreciated considerably and we believe it is fairly valued. Therefore, we continue to rate Monster Worldwide a Hold and have set a six-month target price to $58.

Q1 core EPS was a penny shy of our estimate for Umpqua Holdings (Nasdaq:UMPQ), and overall the quarter was once again a bit weaker than we had projected. Revenue was softer than expected (both spread and non-interest), while expenses were higher. A sizeable net recovery and related minimal loss provision kept pre-tax very close to our model, while the tax rate came in higher than expected. A few key data points do not appear in the earnings releases, and our analysis may change slightly on review of the 10-Q. At this time, however, there is little change in our outlook or estimates. Our target is unchanged, but the price is beginning to look interesting. Our model now incorporates the acquisition of WSBA, assuming a June 30 close.

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.

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 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=2677.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics 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 by going to http://at.zacks.com/?id=2650.