Zacks Bull and Bear of the Day Highlights: Johnson Controls, Luminex, The Walt Disney Company, News Corporation and Time Warner

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Feb 10, 2011, 09:56 ET

CHICAGO, Feb. 10, 2011 /PRNewswire/ -- Zacks Equity Research highlights: Johnson Controls (NYSE: JCI) as the Bull of the Day and Luminex Corp. (Nasdaq: LMNX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Walt Disney Company (NYSE: DIS), News Corporation (Nasdaq: NWSA) and Time Warner Inc. (NYSE: TWX).

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Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

Johnson Controls (NYSE: JCI) follows a strong cost-reduction strategy. The company expects to grow through meaningful acquisitions and increased capital expenditures.

Its Building Efficiency segment has recovered based on higher sales from Global workplace solutions. Its profit exceeded the Zacks Consensus Estimate in the most recent quarter.

These factors have led the company to raise its sales and earnings forecast for full year 2011. Thus, we have upgraded our recommendation on the stock from Neutral to Outperform and set a target price of $46.

Bear of the Day:

We reiterate our Underperform recommendation on Luminex Corp. (Nasdaq: LMNX). Earnings for fourth quarter and fiscal 2010 beat the Zacks Consensus Estimates, but profit plummeted year-over-year despite an increase in revenues.

Luminex operates in the highly competitive life sciences industry, which is characterized by rapid and continuous technological innovation. If Luminex is unable to respond to the changing requirements then its survival in the industry will be in question.

Moreover, demand for research and diagnostics applications is expected to remain weak given the lingering economic softness, thereby affecting the company's top line. Our $18 price target is based on 62.1x our fiscal 2011 earnings estimate.

Latest Posts on the Zacks Analyst Blog:

Disney Beats Expectations

The Walt Disney Company (NYSE: DIS) recently posted first-quarter 2011 results that beat the Zacks Consensus. The quarterly earnings of 68 cents a share outpaced the Zacks Consensus Estimate of 56 cents, and surged 45% from 47 cents earned in the prior-year quarter.

The increase in the bottom line was powered by growth across Media Networks, Studio Entertainment, Parks and Resorts and Consumer Products. Following the better-than-expected results a positive sentiment may be palpable among the analysts and we could witness a rise in the Zacks Consensus Estimates.

Total revenue in the quarter jumped by 10% to $10,716 million from the year-ago quarter, and also outdid the Zacks Consensus Estimate of $10,505 million. Total segment operating income soared 40% to $2,208 million.

Other Financial Details

During the quarter, Disney generated negative free cash flows of $94 million. The company ended the quarter with cash and cash equivalents of $3,039 million, total borrowings of $12,755 million and shareholders' equity of $37,797 million, excluding a non-controlling interest of $1,942 million. Capital expenditures in the quarter were $1,213 million.

Walt Disney is one of the world's leading diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, such as the namesake brand Walt Disney, ABC, ESPN, and Marvel Entertainment.

These renowned brands offer a strong competitive edge to the company and bolster its well-established position in the market against major players like News Corporation (Nasdaq: NWSA) and Time Warner Inc. (NYSE: TWX).

Currently, we have a long-term Neutral rating on the stock. Moreover, Disney holds a Zacks #3 Rank, which translates into a short-term Hold rating.

Get the full analysis of all these stocks by going to 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.

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