Zacks Bull and Bear of the Day Highlights: Winnebago Industries, Gold Fields, Teva Pharmaceutical Industries, Biogen and Novartis
Zacks Equity Research
For Immediate Release
Chicago, IL – March 11, 2013 – Zacks Equity Research highlights Winnebago Industries, Inc. (WGO) as the Bull of the Day and Gold Fields Limited (GFI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Teva Pharmaceutical Industries Ltd. (TEVA), Biogen (BIIB) and Novartis (NVS).
How can you tell the economy is back? Because consumers are buying RVs again. Winnebago Industries, Inc. (WGO) managed to make it through the Great Recession, gobbling up market share along the way. This Zacks Rank #1 (Strong Buy) is now poised for triple digit earnings growth in 2013 as RV sales rebound.
Winnebago's brand recognition is so strong that when you think of RVs it's the first name that comes to mind. Founded in 1958 in Iowa, Winnebago manufactures a variety of recreation vehicles ("RVs") including motor homes, travel trailers and fifth wheel products.
Given consolidation in the industry during the Great Recession, Winnebago was able to add to its market share and now has about 20% of the RV market.
Motor home sales peaked in 2004 at 69,000 and plunged during the Great Recession. By 2011, only 25,000 motor homes were shipped. But that number is expected to slowly rise as the economy improves and the Baby Boomers age.
It's tough being a gold miner in 2013. Gold prices have slid to 8 month lows. Many miners are also having trouble getting the yellow metal out of the ground. Gold Fields Limited (GFI) , a South African miner, recently provided disappointing 2013 production guidance which sent earnings estimates tumbling. It's a Zacks Rank #5 (Strong Sell).
Gold Fields is an unhedged gold producer with 6 operating mines in Australia, Ghana, Peru and South Africa. Four other projects are ongoing.
Even if gold prices are elevated, a gold miner doesn't make money without getting it out of the ground. A whole host of things can impact production from natural disasters to geopolitical risks to power outages due to poor infrastructure.
In the fourth quarter of 2012, Gold Fields suffered from major strikes. Gold production fell 7% in the quarter due to the strikes.
Teva Pharmaceutical Industries Ltd. (TEVA) and Active Biotech recently announced that the first patient for their phase III CONCERTO study has been enrolled.
The multinational, randomized, double-blind placebo-controlled study is being conducted in patients with relapsing-remitting multiple sclerosis (RRMS). Two doses of laquinimod (0.6 mg and 1.2 mg) will be evaluated in the study with the primary endpoint being confirmed disability progression as measured by the Expanded Disability Status Scale (:EDSS).
Laquinimod has been evaluated in two other phase III trials (ALLEGRO and BRAVO) earlier. The candidate is also being studied for Crohn’s disease and lupus.
The successful development and launch of laquinimod would help strengthen Teva’s multiple sclerosis drug portfolio. Being an oral formulation, laquinimod could provide an advantage over therapies that require injection or infusion.
Teva already has a multiple sclerosis product in its portfolio – Copaxone. Copaxone is approved for the reduction of the frequency of relapses in RRMS, including patients who have experienced a first clinical episode and have MRI features consistent with multiple sclerosis.
We are pleased with Teva’s efforts to expand its multiple sclerosis franchise. The multiple sclerosis market represents significant commercial potential. The disease is estimated to affect more than 400,000 people in the US . Worldwide, it is estimated that more than two million people may be suffering from multiple sclerosis.
Key players in the multiple sclerosis market include Biogen (BIIB) and Novartis (NVS) among others.
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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