Zacks Bull and Bear of the Day Highlights: Red Robin Gourmet Burgers, hhgregg, Actavis, AstraZeneca and Mylan
Zacks Equity Research
For Immediate Release
Chicago, IL – March 4, 2013 – Zacks Equity Research highlights Red Robin Gourmet Burgers (RRGB) as the Bull of the Day and hhgregg (HGG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Actavis, Inc. (ACT), AstraZeneca (AZN) and Mylan (MYL).
Many investors were worried that the Fiscal Cliff deal would be devastating to consumer discretionary firms. The prospect of higher taxes was expected to cut into many paychecks, and curtail spending levels in the process.
This has not been the case through the first two months of the year though, as many consumer discretionary firms, and particularly several in the restaurant space, have seen great starts to 2013. This has especially been the case for the small but surging Red Robin Gourmet Burgers (RRGB).
If you haven’t heard of Red Robin, don’t be worried. The firm isn’t exactly McDonald’s or even Wendy’s in terms of its scope, as the Colorado-based company has less than 500 total restaurants. Still, the number of Red Robin locations is quickly surging as many consumers are embracing their lineup of burgers and various other lunch and dinner items.
Electronic retailing was once a lucrative business. Companies like Best Buy and RadioShack dominated the field and were known across the country by anyone looking for a TV, videogame, or computer.
However, with the rise of Amazon and other e-commerce sites, many of these electronic retailers have become merely showrooms for online firms. This has allowed internet companies to poach sales from big box stores, and crater profits for brick-and-mortar companies that are drowning under high fixed costs.
While most investors have focused in on the giants of the space, some relative newcomers, like hhgregg (HGG), have also been impacted by the trends. In fact, the small electronic retailer has seen its share price tumble by about one-third in the past two years.
This is obviously a pretty depressing trend given that the broad market has been well into the green in the time period. However, it is worth noting that the stock hasn’t been going straight down, as HGG has added about 30% in the year-to-date time frame.
Actavis, Inc. (ACT) recently gained US Food and Drug Administration (:FDA) approval for its generic version of Suboxone (buprenorphine HCl and naloxone HCl dihydrate SL tablets, 2 mg/0.5 mg and 8 mg/2 mg).
The company intends to launch its generic version of Suboxone immediately. Suboxone, which is indicated for the maintenance treatment of opioid dependence, posted sales of about $625 million in the US for the 12 months ending Dec 31, 2012. The sales data is as per IMS Health.
Actavis Pharma, the company’s global generics business, is expected to post revenues of $6.3 billion - $6.5 billion in 2013. The segment had posted sales of $4.4 billion in 2012, up 32%.
Actavis is the third largest player in the global generics market and has a presence in more than 60 countries. As of Dec 31, 2012, Actavis had more than 185 Abbreviated New Drug Applications (ANDAs) pending FDA approval. These include 49 first-to-file opportunities of which 33 could be exclusive first-to-files.The company intends to launch its generic version of AstraZeneca’s (AZN) Pulmicort Respules in the second quarter of 2013. While Actavis expects an additional competitor for generic Concerta to enter the market in the first quarter of 2013 and a second competitor later this year, it does not expect any competition for its generic versions of Lidoderm and Adderall XR until 2014.
Actavis currently carries a Zacks Rank #3 (Hold). Other generic players like Mylan (MYL) currently look better positioned with a Zacks Rank #2 (Buy).
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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