Zacks Bull and Bear of the Day Highlights: Cadbury Schweppes, H&R Block, China Unicom and Agnico-Eagle Mines

Business Wire, Sept 12, 2006

CHICAGO -- Zacks Equity Research highlights Cadbury Schweppes PLC (NYSE:CSG) as the Bull of the Day and H&R Block (NYSE:HRB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on China Unicom (NYSE:CHU) and Agnico-Eagle Mines (NYSE:AEM). 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 Cadbury Schweppes PLC (NYSE:CSG). Cadbury Schweppes' management is improving organizational performance, specifically through the implementation of Fuel for Growth and Smart Variety Plans in order to improve margins. Also the company is more focused; in last few months, the integration of Adams Confectionery acquisition has been completed and the non-core European Beverage business was divested. In addition, the Savings from the Fuel for growth program and price increases more than offset the negative effect from rising input costs. Hence, the stock is rated a Buy.

Bear of the Day:

Our Bear of the Day recommendation is for H&R Block (NYSE:HRB). First quarter earnings were negatively impacted by the deteriorating mortgage business, while competition remains intense in the tax business. Until we see evidence that the mortgage business has stabilized, we expect limited upside movement in the share price.

Analyst Blog:

China Unicom (NYSE:CHU) announced its financial results for the first half of 2006. Its net earnings increased by more than 20% because operating costs increased at a slower rate than revenues. Although China Unicom will face stiff competition in the future and operate two networks at the same time, which will dilute the company's focus, earnings growth was solid during the past two quarters because of value-added services and cost controls. The stock appears fairly valued at current levels. Thus, we maintain our Hold recommendation.

Agnico-Eagle Mines, Limited (NYSE:AEM) reported second-quarter EPS of $0.31, well ahead of our expectations of $0.18, and strongly higher than the year-ago level of $0.15, primarily due to higher metal prices. Going forward, higher gold and by-product (like copper, zinc, and silver) prices bode well for future top-line growth. The company also has a healthy pipeline of long-term projects to boost gold production. Nevertheless, Agnico-Eagle is incurring heavy exploration costs. For 2006, management anticipates a more than 100% increase in capital expenditure to $163 million. We reiterate our Hold recommendation on shares of AEM.

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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