Zacks Analyst Blog Highlights: Standard Motor Products Inc., Plexus Corp., Strayer Education, Inc., Hubbell Inc. and Barrick Gold Corp

Business Wire, Nov 3, 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: Standard Motor Products Inc. (NYSE: SMP), Plexus Corp. (Nasdaq: PLXS), Strayer Education, Inc. (Nasdaq: STRA), Hubbell Inc. (NYSE: HUB.B) and Barrick Gold Corp. (NYSE: ABX).

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Here are highlights from Friday's Analyst Blog:

Standard Motor Downshifting

New York-based Standard Motor Products Inc. (NYSE: SMP) enjoys strong brand recognition and a less cyclical end-market within the auto and auto parts industry. Moreover, SMP expects to benefit from the shifting of its production facilities to Reynosa, Mexico due to lower labor costs.

In the third quarter, Standard Motor's consolidated net sales were $202.9 million, compared to consolidated net sales of $206.2 million during the comparable quarter in 2007. Earnings from continuing operations for the third quarter of 2008 were $397 thousand or 2 cents per diluted share, compared to earnings of $4.8 million or 26 cents per diluted share in the third quarter of 2007.

Plexus Target Lowered, Still a Buy

Plexus Corporation (Nasdaq: PLXS) has posted several quarters of strong results, with significantly higher-than-expected revenue and bookings. We believe that PLXS is among the best positioned in the industry and is poised to grow with strong pipeline and new customer wins in 2009 and beyond.

Moreover, we believe the company's strong execution will result in increased profitability despite macro-economic headwinds. We therefore maintain a Buy rating on the stock but lower our six-month price target to $28.00, reflecting the current challenging economic environment.

Strayer Worth the Premium

Strayer Education (Nasdaq: STRA) offers undergraduate and graduate degree programs in accounting, business administration, education, information technology (IT), and public administration. Strayer University is committed to providing post-secondary education to working adult students so that they can advance in their careers and professional lives.

Financial results for the past eleven quarters have been above expectations and management's guidance for 2008 and 2009 portends continued double-digit EPS growth. The company benefits from positive pricing through annual 5% tuition increases. The 2009 tuition increase was announced concurrent with the third quarter earnings report.

Hubbell Downgraded to Sell

Orange, CT-based Hubbell Inc. (NYSE: HUB.B) is an original equipment manufacturer (OEM) of electrical products. The firm operates and reports results along three segments Electrical, Power and Industrial Technology. The Electrical Products segment serves the commercial, residential, industrial, utility and telecom/other markets.

Hubbell reported third-quarter 2008 results that exceeded both top and bottom line expectations. The good storm season was the primary driver of growth in the last quarter, although pricing actions and acquisitions also contributed. The company is benefiting from restructuring actions, with management continuing to attribute some of the margin expansion to production efficiencies and improved cost management.

Barrick Gold a Hold Presently

Barrick Gold Corp. (NYSE: ABX) is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada.

In the third quarter, Barrick reported net income of $254 million ($0.29 per share) and operating cash flow of $542 million ($0.62 per share). Reported net income included special items of $97 million ($0.11 per share) for impairment charges relating to Barrick's interest in Highland Gold and certain other portfolio investments.

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