While we expect that Pep Boys has benefitted from GM and Chrysler closing hundreds of dealerships across the country, their stock price appears to have risen too high too fast.
We agree with the consensus opinion that last quarter was likely the low point for Ciena. However, our third quarter expectations are slightly above the Street’s consensus as we believe improving customer demand will lead to a sequential improvement over last quarter’s results.
Investors have flocked to ADC Telecom in 2009 as the stock is a great play on both the mobile internet revolution as well as a recovery in China.
The company’s portfolio of consumer products appears to be holding up quite well despite the economic challenges.
Wall Street’s estimates don’t appear to be taking into account the recent stabilization that we are seeing the economic environment. While Medtronic still faces strong headwinds, we are expecting a relatively flat sequential performance from what we saw last quarter.
While sales of Dell computers have been significantly impacted by the economic recession, we believe that IT spending is beginning to show signs of improvement.
Wall Street has taken a very negative view towards Burger King’s fourth quarter earnings results. In fact, analyst consensus estimates are below the low end of the company’s guidance range. In addition, analysts at JP Morgan and Citigroup both downgraded the fast food chain in recent weeks. Now that the bar has been set so low, we believe there is significant potential for upside surprise. ...
While Wall Street analysts are expecting Hewlett-Packard to report results at the low end of the company’s guidance range, we are taking a more bullish view and believe HPQ’s results will come in at the high end. While there’s not likely to be significant increases in IT budgets in the near term, our view is that the aggressive reductions in corporate IT budgets are over. ...
We are looking for Barnes & Noble to report earnings at the midpoint of their guidance range after delivering stronger than expected results last quarter. While the book seller continues to face severe economic headwinds, we believe the company remains focused on maintaining gross margins and reducing expenses.
While top-line growth remains challenging due to weak economic factors, Target continues to deliver strong margins through solid expense management.
