Zacks Analyst Blog Highlights: Tractor Supply Co., Rent-A-Center Inc., Weatherford International Ltd, Baker Hughes, Inc. and National Oilwell Varco Inc

Business Wire, July 25, 2008

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tractor Supply Co. (Nasdaq: TSCO), Rent-A-Center Inc. (Nasdaq: RCII), Weatherford International Ltd. (NYSE: WFT), Baker Hughes, Inc. (NYSE: BHI) and National Oilwell Varco Inc. (NYSE: NOV).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Thursday's Analyst Blog:

Tractor Supply Surprises

Tractor Supply (Nasdaq: TSCO) reported better-than-expected results for the second quarter, beating the consensus estimate by $0.05. Management reiterated its sales and EPS guidance for full-year 2008. We are increasing our sales and EPS estimates for 2008 and 2009.

Despite the difficult macro conditions - including higher food and energy prices and weak consumer confidence - Tractor Supply's focus on sales growth and cost controls is enabling the company to deliver solid results. We think the stock is still cheap and represents a buying opportunity at these levels. We maintain our Buy rating and increase our target price from $37 to $39, which is about 15x our 2008 EPS estimate.

RCII a Hold Heading Into Q2 Report

We maintain our Hold on Rent-A-Center (Nasdaq: RCII) shares ahead of its second quarter earnings report scheduled for July 29. In the first quarter, Rent-A-Center reported better-than-expected results thanks to its restructuring efforts, but management kept its full-year EPS guidance at $2.17- $2.32.

Rent-A-Center's positive factors include its move into the payday loan business and strategic store closures, which should help improve the operating efficiency and cash flow generation of the largest company in the rent-to-own industry. Rent-A-Center's decision to open payday loan businesses, which offer check cashing, bill payment, and wire transfer services, is already paying off.

Valuation Factored in for WFT

Weatherford International's (NYSE: WFT) second-quarter earnings came on the weaker side due to a slowdown in its Canadian operations and cost overruns in Mexico. However, sales grew 23% year-over-year to $2.23 billion, boosted by strong international growth.

We believe that Weatherford will continue to experience sustained overall growth, aided by robust sales in the Eastern Hemisphere and Latin America and the emerging Canadian recovery. However, with Weatherford's premium valuation already incorporating these positives, we see limited upside from current levels and maintain our Hold recommendation unchanged. Our preferred names in this space include Baker-Hughes (NYSE: BHI) and National Oilwell Varco (NYSE: NOV).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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: 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 at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.