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Medical equipment industry

Zacks Equity Research Highlights Stocks for Long-Term Investment

Strategic Insights

— 1 min read

Zacks Equity Research, a leader in providing quantitative and qualitative analysis to help investors make informed decisions, has featured several stocks in its Analyst Blog. The latest stocks discussed include American Medical Systems Holdings, Inc. (Nasdaq:AMMD), Laserscope (Nasdaq:LSCP), eBay (Nasdaq:EBAY), Cititrends (Nasdaq:CTRN), and Zumiez (Nasdaq:ZUMZ). In its analysis, the company provides insights into the stocks' potential, highlighting the strengths and weaknesses of each.

Key Takeaways:

  • American Medical Systems Holdings, Inc. (Nasdaq:AMMD) plans to acquire Laserscope (Nasdaq:LSCP) for $16.00, which should be accretive to its GAAP earnings per share in 2008. However, the lack of financing and synergy detail creates tremendous uncertainty.
  • The acquisition-adjusted 2007 EPS estimate for AMMD is $0.67, with a target price of $16.00 based on a 1.2x 2007 P/E/G multiple.
  • Despite current macro fears, many retailers are experiencing booming business and are expected to return to price in stocks once the back-to-school shopping season starts.
  • eBay (Nasdaq:EBAY), Cititrends (Nasdaq:CTRN), and Zumiez (Nasdaq:ZUMZ) are considered strong candidates for long-term investment due to their solid market positions and growth potential.
  • Zacks Equity Research covers 1,150 publicly traded stocks, providing continuous coverage and analysis.

Statistics:

  • The acquisition price for Laserscope (Nasdaq:LSCP) is 4x 2007 revenues.
  • American Medical Systems Holdings, Inc. (Nasdaq:AMMD) expects 2006 EPS dilution of $0.10-$0.15.
  • The target price for American Medical Systems Holdings, Inc. (Nasdaq:AMMD) is $16.00 based on a rough-cut acquisition-adjusted 2007 EPS estimate of $0.67.

Sources:

  • Zacks.com
  • Zacks Equity Research
  • http://at.zacks.com/?id=2673
  • http://at.zacks.com/?id=2645
  • http://at.zacks.com/?id=2674
  • About Zacks Investment Research, Inc.
  • About Zacks Equity Research
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