CHICAGO, Feb. 24, 2011 /PRNewswire/ -- Zacks Equity Research highlights: Nvidia Corp. (Nasdaq: NVDA) as the Bull of the Day and Strayer Education (Nasdaq: STRA) as the Bear of the Day. In addition, Zacks Equity Research provides analysis JA Solar Holdings Co. Ltd. (Nasdaq: JASO), China Sunergy Co. Ltd. (Nasdaq: CSUN) and Canadian Solar Inc. (Nasdaq: CSIQ).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Nvidia Corp. (Nasdaq: NVDA) is a worldwide leader in visual computing technologies. The company reported decent fourth-quarter numbers, but is optimistic about its long-term growth with the gradual recovery in demand for graphic chips.
Moreover, the company rolled out the first quad-core mobile processor. The company also received $1.5 billion in a licensing agreement with Intel Corp. that spans for six years.
The stock has traded in a trailing twelve month P/E of 36.3x, and going forward we expect it to trade around this multiple. We upgrade NVDA to Outperform and set a price target of $28.00, representing a P/E of 27.1x our 2012 EPS estimate.
Although Strayer Education (Nasdaq: STRA) posted better-than-expected fourth-quarter 2010 results, enrollments continue to fall. We observe that the growth in enrollments has decelerated sequentially.
After increasing 11% in the third quarter of 2010, the rate of growth in campus-based students dropped to 4% in the fourth quarter. Moreover, the rate growth in online students falls to 10%, following an 18% increase in the previous quarter. The company also informed that new student enrollment dropped 20% during the quarter.
The current potential risk looming over the education sector is the regulation proposed by the Department of Education creating an uncertainty over student enrollment trends. Currently, we maintain our Underperform recommendation on the stock.
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Strong Showing from JA Solar
JA Solar Holdings Co. Ltd. (Nasdaq: JASO) announced adjusted earnings per American Depositary Share (EPADS) of 54 cents in its fourth quarter, which beat the Zacks Consensus Estimate of 47 cents. Results also comfortably beat the year-ago adjusted earnings per ADS of 14 cents.
JA Solar expects its cell and module shipments to exceed 2.2GW in fiscal 2011, representing an increase of approximately 50% versus fiscal 2010. Module shipments are expected to be in the range of 500MW–600MW.
JA Solar is one of the most cost-efficient solar producers in the world, with a geographically diverse customer base as well as silicon wafer supply agreements in place to feed its production. Positive factors include ongoing expansion programs, improving operating efficiencies, rising margins and higher conversion efficiency.
JA Solar is steadily expanding its customer base worldwide, with strong growth in several geographic end markets including, U.S., Canada, Italy, Japan, Australia, China and India. The company had already signed supply agreements with multiple customers to meet 2011 product demand that exceeds 2 GW, and has received prepayments associated with these supply agreements, further improving its future order visibility.
We currently have a long-term Neutral recommendation on the JA Solar stock. In the near-term however apprehensions over the tepid module demand in Europe, rising competition, wafer dependency, the financial stability of its customers and the oversupply of solar cells in the market will restrain the valuation of the company.
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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