Business Services Industry

Zacks Bull and Bear of the Day Highlights: Dell, Inc., Kimberly-Clark, Marsh & McLennan and Mitsubishi UFJ

Business Wire, May 25, 2007

CHICAGO -- Zacks Equity Research highlights Dell, Inc. (Nasdaq: DELL) as the Bull of the Day and Kimberly-Clark Corporation (NYSE: KMB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marsh & McLennan (NYSE: MMC) and Mitsubishi UFJ Financial Group (NYSE: MTU). 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 Dell, Inc. (Nasdaq: DELL). Although Dell has struggled as of late, we believe that the worst is behind the company and results should improve as cost cutting drives improved margins and Windows Vista should help reaccelerate top-line growth towards the second half of 2007. Moreover, the company should also benefit from its improved service initiatives and disciplined pricing. We therefore upgrade DELL share to a Buy rating with a six month price target of $30.00.

Bear of the Day:

Our Bear of the Day recommendation is for Kimberly-Clark Corporation (NYSE: KMB). Kimberly-Clark has strong consumer brands and is well respected for product innovation, especially in the diaper category. Despite progress on the company's three cost savings programs (FORCE, the Global Business Plan, and the Strategic Cost Reduction Plan), rising raw material costs, weak European operations and competitive pressures are constraining earnings growth. Therefore, the stock's rating is a Sell.

Analyst Blog:

Including Putnam, which Marsh & McLennan (NYSE: MMC) discloses as a discontinued operation, and excluding the restructuring charges, 1Q07 results missed our expectations by about two pennies. MMC continues to redefine its operations into more of a diversified entity. Current opportunities for the company appear to be exhibited more from its consulting as well as its risk consulting and technology operations than its risk and insurance services. The sale of its Putnam operations should create capital redeployment opportunities, focused more on share repurchases. While share repurchases would help to support the share price, we would look to see additional future announcements on revenue generation to take hold before considering upgrading the shares of MMC.

We recently raised our rating on Mitsubishi UFJ Financial Group, Inc. (or MUFG, NYSE: MTU) to Buy from Hold, as we now believe the shares represent a good value following recent price declines. Our target price is $14. MUFG reported 2006 fiscal year net earnings (ending March 31, 2007) of 881 billion yen, down 26% year over year and modestly below our estimate, largely to higher-than-expected credit costs.

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.

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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.

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(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.

 

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