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Zacks Bull and Bear of the Day Highlights: Grey Wolf, MTG Investment, U.S. Steel, TriQuint and Robert Half

Zacks Equity Research highlights Grey Wolf (AMEX: GW) as the Bull of the Day and MTG Investment (NYSE: MTG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Procter & Gamble (NYSE: PG), Federal Express (NYSE: FDX) and COPEL (NYSE: ELP).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: Grey Wolf (AMEX: GW)

We are maintaining our Buy recommendation and raising our estimates and price objective for Grey Wolf shares following the board of directors refusal of Precision Drillings unsolicited $9.30 per share bid. We agree with the boards assessment that the companys pending merger with Basic Energy offers better value for shareholders.

Following the completion of the merger with Basic, the company will be fairly diversified, both in terms of operations as well commodity-price exposure and enjoy scale economies. The diversification argument is particularly compelling, given the addition of Basic Energys well-servicing expertise to Grey Wolf's primarily land-drilling-focused operations.

Bear of the Day: MTG Investment (NYSE: MTG)

MTGs core 1Q08 results were better than our expectations. Improvement in business fundamentals, higher persistency, and insurance in force growth helped the results. However, the results continued to be impacted by increases in both the number of delinquent loans and foreclosures due to a further decline of home prices and slowing of economy. In addition, higher loss severities, especially in California and Florida, also negatively impacted the results.

The company has taken several combative actions to bolster its capital. We expect significant overhangs for the industry and for MTG, in particular, for at least the next several quarters. We have moderated our FY08 EPS loss expectation slightly, and lowered our FY09 EPS expectation for continued pressures on the housing markets.

Latest Posts on the Zacks Analyst Blog:

Procter & Gamble (NYSE: PG)

Procter & Gamble Company's acquisition of Gillette should be accretive to earnings in fiscal 2008, but gross margin is being negatively impacted by increased commodity and energy costs. Margin expansion has been particularly affected in the fabric and homecare business. The Hold recommendation is maintained.

Procter & Gamble's current top-line and unit volume performance continue to impress investors. The management is committed to a growth strategy based on (1) driving volume through product innovation and increasing penetration into developing markets and (2) expanding profitability by focusing on higher-margin categories. The plan is meeting with success in terms of top-line expansion, volume growth, and higher earnings.

Federal Express (NYSE: FDX)

We are maintaining our Hold on FedEx Corporation. In line with May 9 guidance, FDX reported fourth quarter EPS of $1.45 before a $2.22 per share Kinkos impairment charge, down 24% year over year.

We are reducing our fiscal 2009 diluted EPS estimate from $6.50 to $4.90, near the mid-point of FDX diluted EPS guidance of $4.75-5.25 as we have revised our fuel and revenue assumptions. Fuel surcharges will lag record high fuel costs, and the weak economy will hurt LTL freight, US express, and copy services. Remedial actions include cost-control measures and cuts in capital spending. FDX recently increased its annual dividend rate by 10% to $0.44 per share, which provides a 0.5% yield.

COPEL (NYSE: ELP)

We are keeping our Buy recommendation on Companhia Paranaense de Energia, or COPEL. The company's first quarter results were positive, the short-term outlook is also positive and the Brazilian business environment remains encouraging.

Additionally, energy consumption in Brazil is still heated, and the short-to-medium-term outlook is very encouraging. Moreover, becoming a part of the São Paulo Stock Exchange's Level 1 of Corporate Governance will enhance the positive aspects of the company. Finally, COPEL shares are trading at an attractive valuation.

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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.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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