Zacks Bull and Bear of the Day Highlights: Dean Foods, Pao de Acucar, Wal-Mart and Ctrip.com

Business Wire, May 21, 2007

CHICAGO -- Zacks Equity Research highlights Dean Foods (NYSE: DF) as the Bull of the Day and Pao de Acucar (NYSE: CBD) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wal-Mart (NYSE: WMT) and Ctrip.com (Nasdaq: CTRP). 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 Dean Foods (NYSE: DF). Management has taken definitive actions to improve shareholder value from the spin-off of TreeHouse Foods in 2005 to a $15 per share special dividend in 2007. Management has focused on the branded products business, reduced SKUs [stock keeping units], and integrated strategic acquisitions in the Dairy Group. In 2007, management expects to complete the implementation of SAP throughout the company. Any relief from the expected lower price realizations in the organic milk market will dramatically accelerate earnings growth. The rating is being raised to a Buy.

Bear of the Day:

Our Bear of the Day recommendation is for Pao de Acucar (NYSE: CBD). We are changing our recommendation on Pao de Acucar from Hold to Sell. The company reported weaker-than-expected results for the first quarter, including lower margins and disappointing net income. Additionally, Sendas Distribuidora's performance remains weak, and the short-term outlook is not encouraging. The aggressive expansion of Wal-Mart (NYSE: WMT) in Brazil remains a concern. We are reducing our 2006 and 2007 earnings estimates on CBD. Our target price is $27, or 22x our 2007 EPS [earnings per share] estimate.

Analyst Blog:

Although its operating margin continued to decline because the air ticket business has lower margins than the hotel business, Ctrip.com (Nasdaq: CTRP) reported strong financial results for the first quarter of 2007 and exceeded market consensus estimates. Ctrip's results were driven by strong growth in all of its business units. We think Ctrip's recent results demonstrate that the company's long-term growth story remains intact. Therefore, we maintain our Buy rating on Ctrip.

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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