Zacks Bull and Bear of the Day Highlights: BorgWarner, Gentiva Health Services, Dell, Hewlett-Packard and Cisco Systems

Sep 14, 2011, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, Sept. 14, 2011 /PRNewswire/ -- Zacks Equity Research highlights BorgWarner, Inc. (NYSE: BWA) as the Bull of the Day and Gentiva Health Services (Nasdaq: GTIV) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Dell Inc. (Nasdaq: DELL), Hewlett-Packard Co. (NYSE: HPQ) and Cisco Systems Inc. (Nasdaq: CSCO).


Full analysis of all these stocks is available at

Here is a synopsis of all five stocks:

Bull of the Day:

BorgWarner, Inc. (NYSE: BWA) continues to focus on new product launches supported by new business opportunities and acquisitions. Demand for its fuel-efficient engines and transmissions have grown stronger due to more stringent government regulations. As a result, the company's revenues soared 28% in the second quarter of 2011, despite a drop in global vehicle production.

Furthermore, the company expects 25% to 28% growth in sales in 2011. Its profit significantly exceeded the Zacks Consensus Estimate by $0.14 per share during the reported quarter.

Our long-term Outperform recommendation on the stock indicates that it will perform better than the overall market. Our $82 target price, 18.6X our 2011 EPS estimate, reflects this view.

Bear of the Day:

We have downgraded our recommendation on Gentiva Health Services (Nasdaq: GTIV) to Underperform, prompted by poor operating performance coupled with weakening financial position. The company's second-quarter earnings lagged the Zacks Consensus Estimate, on the back of high interest payments as well as increased expenses, resulting in a deteriorated cash position.

However, the strong growth in Hospice segment, driven by the Odyssey acquisition, led to a huge surge in revenue, which was offset by the rising costs. The company needs to engage in effective cost control, while continuing its current acquisition strategy.

Overall, the future outlook for Gentiva does not look very promising. Our six-month target price of $6.25 equates to 3.0x our earnings estimate for 2011. This price target implies an expected total negative return of 8.4% over that period.

Latest Posts on the Zacks Analyst Blog:

Dell Inks OEM, Storage Deals

Dell Inc. (Nasdaq: DELL) recently announced that a range of hardware including servers from Dell OEM Solutions will be deployed by Tripleplay Services, a leading provider of Internet Protocol television (OTC: IPTV), Video Streaming and Digital Signage solutions. Financial terms of the deal were not divulged.

Tripleplay Services' IP media solutions are designed to meet the needs of closed communities, including corporate, education, hospitality, health and residential accommodation.

Tripleplay's decision to migrate from Hewlett-Packard Co. (NYSE: HPQ) was largely on account of the lack of clarity regarding the latter's product roadmap, as well as the higher level of support promised by Dell OEM Solutions.

Dell's extensive product portfolio and comprehensive services help its OEM customers power their own solutions. OEMs use its products to efficiently design, develop and deliver their Dell-powered technologies. Tripleplay Services now joins the group of OEMs, with the ability to achieve economies of scale and reduce or eliminate complexities and overhead costs of bringing a product to market.

In another development, Dell was chosen to offer its Fluid Data solutions (or enterprise storage solution) to luxury jet service provider Flight Options. The solution was developed by Compellent Technologies, which was acquired by Dell in December 2010. The solution will help Flight Options improve the reliability, scalability, efficiency and automation of its virtualization efforts, at the same time reducing costs and Storage Area Network management time.

Over the past few months, Dell has been focusing on expanding its networking capabilities and enhancing its server and storage portfolio for a wider and more comprehensive enterprise offering. We believe this approach is exactly what Dell needs to compete against the likes of Cisco Systems Inc. (Nasdaq: CSCO) and Hewlett-Packard Co.

Though we understand that soft demand in the Consumer segment, a high debt level and stiff competition from technology majors will remain concerns, we feel that Dell will successfully capitalize on increased IT expenditures and show top-line improvement.

Currently, Dell has a short-term Hold recommendation, as indicated by the Zacks #3 Rank.

Get the full analysis of all these stocks by going to

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 analyst 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

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT 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

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

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.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

SOURCE Zacks Investment Research, Inc.