Zacks Bull and Bear of the Day Highlights: United Parcel Service, Hudson City Bancorp, Select Comfort and Maxim Integrated

Business Wire, July 27, 2007

CHICAGO -- Zacks Equity Research highlights United Parcel Service (NYSE: UPS) as the Bull of the Day and Hudson City Bancorp (Nasdaq: HCBK) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Select Comfort (Nasdaq: SCSS) and Maxim Integrated Products (Nasdaq: MXIM). 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 United Parcel Service (NYSE: UPS). We are continuing our Buy rating on United Parcel Service, Inc., as well as our $80 target price as we continue to believe the stock is undervalued. UPS reported second quarter EPS [earnings per share] of $1.04, a penny above consensus, and meeting our estimate. Excellent results in the international small package business, particularly in Asia and Europe, offset challenging conditions in the U.S. small package business. We are maintaining our 2007 diluted EPS estimate at $4.20, near the high end of management guidance that is calling for a 6-10% gain to $4.10-4.25, as well as our 2008 estimate at $4.60.

Bear of the Day:

Our Bear of the Day recommendation is for Hudson City Bancorp (Nasdaq: HCBK). The Company's highly leveraged balance sheet with an overwhelming securities portfolio remains a source of bewilderment to us in light of excess capital on the books. In addition, the overall negative sentiment with respects to credit quality industry wide, leads us to think that an upside in the shares will not be sustainable currently. Thus, we reiterate our Sell rating and lower our price target to $10.90 per share.

Analyst Blog:

We remain positive on Select Comfort (Nasdaq: SCSS) shares, due to its significant long-term growth potential. The company's long-term goals include annual sales growth of 15% and annual earnings growth of 20%. What's more, the stock is trading at 14.9 times our 2008 EPS [earnings per share] estimate, which is well below our estimate of the company's long-term earnings growth rate. As such, we view this as an attractive valuation. We recommend purchasing the shares on dips. We reiterate our Buy rating. Our target price is $21, which is 19x our 2008 EPS estimate.

Maxim Integrated Products (Nasdaq: MXIM) is an OEM [original equipment manufacturer] of semiconductor analog and mixed signal ICs [integrated chips]. Forward guidance was for a 9-13% growth in the 14-week fourth quarter. Management did not announce further details, and expects to restate results from 2000 through 2006 pursuant to the stock option issue. Additional capacity and a more suitable die bank should support growth in fiscal 2008. The stock is trading at two-year lows, indicating strong upside potential when these issues are resolved. Consequently, we reiterate our Buy rating on MXIM shares.

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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