Zacks Bull and Bear of the Day Highlights: Logitech, H&R Block, Diageo and Sprint Nextel

Business Wire, Feb 27, 2007

CHICAGO -- Zacks Equity Research highlights Logitech (Nasdaq: LOGI) 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 Diageo (NYSE: DEO) and Sprint Nextel (NYSE: S). 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 Logitech (Nasdaq: LOGI). Logitech reported a solid third quarter of 2007, despite weakness in its console gaming segment. Revenue growth from its audio, notebook cordless mice, PC Gaming, and Harmony remote segments were strong, although revenues from its OEM segment were also lower than anticipated. Management continues to execute well, as the company improved its margins across the board, while managing its cash cycle, which improved the company s cash flow dramatically in the quarter. We still believe Logitech is the dominant player in the peripheral marketplace, and continue to rate shares of LOGI a BUY with a price target of $32.00 over the next six months.

Bear of the Day:

Our Bear of the Day recommendation is for H&R Block (NYSE: HRB). We maintain our Sell rating for H&R Block following the release of third quarter financial results. The fact that the company plans to divest itself of its Option One Mortgage unit and focus its efforts on its core businesses is likely a long-term positive, but we do not believe that it resolves all of the issues currently facing the company. The company expects to announce the results of its attempts to sell the Option One business in March, and we will update our outlook at that time.

Analyst Blog:

Diageo (NYSE: DEO) is the world's leading premium drinks company, with a collection of beverage brands across the spirits, wine and beer categories. These brands include: Smirnoff, Johnnie Walker, Guinness, Baileys, J&B, Captain Morgan, Cuervo, Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. It is a global consumer goods company, operating in over 180 markets around the world and was formed by the merger of Grand Metropolitan Public Limited Company and Guinness, Plc, in 1997. The company sold the Burger King chain last year to focus on beverages. While further buybacks may provide some support for the stock, we see limited upside due to the low growth environment that Diageo operates in. As such, at its current valuation, the risk/reward is balanced. We continue to rate the stock a Hold.

Sprint Nextel (NYSE: S) is a leading provider of business and wireless communications services in the U.S. The combined entity of Sprint/Nextel provides opportunities in business and wireless markets, where Sprint has historically focused on the consumer base and Nextel on wireless and business accounts. However, recent operating performance has been tepid as the company continues to lose a significant number of postpaid subscribers to its rivals

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.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.