Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Tuesday, June 24, 2008

Zacks Bull and Bear of the Day Highlights: Vivo Participacoes, Werner Enterprises, AstraZeneca, Raytheon and Primedia

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CHICAGO, Jun 24, 2008 (BUSINESS WIRE) ----Zacks Equity Research highlights Vivo Participacoes (NYSE: VIV) as the Bull of the Day and Werner Enterprises, Inc. (Nasdaq: WERN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AstraZeneca (NYSE: AZN), Raytheon Company (NYSE: RTN) and Primedia, Inc. (NYSE: PRM).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: Vivo Participacoes (NYSE: VIV)

The company has a dominant position and a strong brand in the fast-growing Brazilian wireless business. First quarter operating results were very positive, including continued debt reduction. The short-term outlook remains encouraging due to positive industry trends, coupled with the improvement in the Brazilian economic environment. Finally, the acquisition of Telemig and the new bands in all the regions where the company was not authorized to operate, both rendered positive news.

Bear of the Day: Werner Enterprises, Inc. (Nasdaq: WERN)

We are reducing our recommendation on Werner Enterprises to Sell from Hold, and lowering our target price to $17. At the same time, we are cutting our 2008 diluted EPS estimate to $0.80 from $0.87, reflecting higher estimated fuel costs now that oil is trading around $140 per barrel.

Our 2009 EPS estimate remains $1.07. We expect WERN's trucking operations to continue to be hurt by the weak U.S. economy, demonstrated by falling volumes and weak pricing due to increased truck supply and a softer freight market, as well as higher fuel costs and lower gains on truck sales. WERN reported first quarter EPS of $0.12, down 43% year over year.

Latest Posts on the Zacks Analyst Blog:

AstraZeneca (NYSE: AZN)

AstraZeneca Plc's key drugs such as Crestor (cholesterol), Seroquel (schizophrenia) and Symbicort (asthma) will continue to be the driving force of growth until the company can monetize its pipeline. Generic competition will eat into revenue growth, but productivity initiatives should pay off in the form of healthier margins and mid-single digit earnings growth for the next few years.

Raytheon Company (NYSE: RTN)

Raytheon Company offers investors strong order bookings and order backlog, an improving balance sheet, growing cash flow, above industry average return on equity (ROE), and one of the highest dividend yields in the industry. Solid performance in 2007 is expected to continue through 2008-09.

Going forward, however, concerns about the long-term growth of defense spending in the face of continuing budget deficits and risks related to the company's program execution remain significant risks. Accordingly, we note a bias to outperformance and maintain our Buy recommendation on RTN common stock with a six-month target price of $64.25.

Primedia, Inc. (NYSE: PRM)

Primedia's advertising revenue for its core Apartment Guide business appears to be stabilizing, as the softening housing market slows condo conversions, and shrinks the business customer base. Meanwhile, we expect cost cutting efforts, including the consolidation of six PRM offices in New York City into one, to bolster declining earnings before interest, taxes, depreciation and amortization (EBITDA).

The management is taking a number of steps to improve revenue growth and profitability of the company. It is upgrading editorial talent, reducing draw (number of copies printed for sale) and reinvesting the savings into higher quality copies. Early indications are mixed however, and it is a wait-and-watch story.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: 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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting 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=4582.

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.

SOURCE: Zacks.com

Zacks.com Mark Vickery 312-265-9380 Visit: www.zacks.com

Copyright Business Wire 2008 **********************************************************************
   As of Friday, 06-20-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND
   on 06-11-2008 for AZN @ $41.09. As of Friday, 06-20-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition
   system, indicated a DOWNTREND on 03-17-2008 for PRM @ $6.16. As of Friday, 06-20-2008 23:59, the latest Comtex SmarTrend Alert,
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