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Telecommunications equipment industry

Zacks Equity Research Analysts Highlight Key Stocks to Watch

Strategic Insights

— 2 min read

Zacks Equity Research analysts have provided insights on several stocks, including Motorola, Cisco Systems, Yahoo!, and HDFC Bank, highlighting their financial performance and potential growth opportunities. The analysts' recommendations and target prices provide valuable information for investors looking to make informed decisions.

Motorola's impressive quarterly results exceeded expectations, with revenues growing by 29% over the same period last year. The company's success in the digital entertainment set-top device market and its expansion into new revenue streams, such as mobile media and WiMax, are significant factors in its growth. With a strong balance sheet and management guidance for a 20-23% increase in earnings, Motorola's stock price target is set at $40.

Meanwhile, Yahoo!'s leadership in online advertising and its growing traffic are expected to positively impact its bottom line in the coming year. Despite recent disappointing results, the analysts reiterate their Buy rating on Yahoo! with a six-month target price of $40.00.

HDFC Bank has seen its estimates raised, with a new EPADS estimate of $2.46 for fiscal 2007 and $3.32 for fiscal 2008. The company's strong loan growth and margin improvement are expected to offset higher compensation expenses. Its $0.35 dividend is considered safe.

Key Takeaways:

  • Motorola's quarterly results exceeded expectations, with revenues growing by 29% over the same period last year.
  • The company's success in the digital entertainment set-top device market and its expansion into new revenue streams are key factors in its growth.
  • Yahoo!'s leadership in online advertising and growing traffic are expected to positively impact its bottom line in the coming year.
  • HDFC Bank's estimates have been raised, with a new EPADS estimate of $2.46 for fiscal 2007 and $3.32 for fiscal 2008.
  • Motorola's balance sheet is strong, with $14.5 billion in cash and short-term investments compared to total debt of approximately $4.2 billion.
  • The company's management guidance for a 20-23% increase in earnings is a positive indicator.

Statistics:

  • Motorola's quarterly revenues grew by 29% over the same period last year.
  • The company's balance sheet shows $14.5 billion in cash and short-term investments compared to total debt of approximately $4.2 billion.
  • HDFC Bank's new EPADS estimate for fiscal 2007 is $2.46.
  • HDFC Bank's new EPADS estimate for fiscal 2008 is $3.32.
  • Yahoo!'s six-month target price is $40.00.
  • Motorola's stock price target is set at $40.

Sources:

  • Zacks.com, "Motorola 2Q Summary"
  • Zacks.com, "Target $40 on Yahoo!"
  • Zacks.com, "HDFC Bank Estimates Raised"
  • Zacks Equity Research, "Profit from the Pros" e-mail newsletter
  • Zacks Investment Research, Inc., "About Us"

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