Zacks Analyst Blog Highlights: Cameron International Corp., CastlePoint Holdings Ltd., Tower Group Inc., CVS Caremark Corp. and Wal-Mart Stores Inc

Business Wire, Sept 9, 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: Cameron International Corp. (NYSE: CAM), CastlePoint Holdings Ltd. (Nasdaq: CPHL), Tower Group Inc. (Nasdaq: TWGP), CVS Caremark Corp. (NYSE: CVS) and Wal-Mart Stores Inc. (NYSE: WMT).

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Here are highlights from Monday's Analyst Blog:

Cameron Int'l Estimates Upped

Weakness in oil prices continues to weigh on Cameron International Corp. (NYSE: CAM) shares and the rest of the group. In the last four weeks alone, the stock is down approximately 10%, modestly lower than the peer group's average of 11%. Despite the pullback, the stock is far from cheap and commands a premium valuation relative to its oilfield service peers.

As such, we are maintaining our Hold recommendation. We have raised our earnings estimates, however, to reflect the positive guidance and still favorable operating environment. Our new 2008 and 2009 EPS estimates are $2.66 and $3.24, up from $2.60 and $3.16, respectively.

CastlePoint High for Tower Group

CastlePoint Holdings Ltd.'s (Nasdaq: CPHL) 2Q08 results were $0.35 per share, a nickel below our expectation.

During the quarter, CPHL announced its acquisition by Tower Group Inc. (Nasdaq: TWGP), which is expected to close during 3Q08. This will eliminate the dual CEO role of Michael Lee in both TWGP and Castle Point. We maintain a Buy rating on the shares of CPHL as the price offered by TWGP offers a premium over CPHL's current price which is enhanced by the time left before the close.

CVS Caremark Feels Wal-Mart Heat

CVS Caremark Corp. (NYSE: CVS) is one of the leaders in the domestic drug store industry and the pharmacy services industry. The management embarked on an aggressive expansion strategy, including the merger of equals with Caremark.

There is substantial operational risk concerning the integration of the five significant acquisitions that were closed during the last two years. Also, generic drug introductions and Wal-Mart's (NYSE: WMT) entry into the generic drug industry are negatively impacting the profitability of the drug store industry, including CVS Caremark. Therefore, the stock is rated a Hold.

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