Avon Products Inc. (AVP) is seeing bullish earnings estimates ahead of reporting next week. The full-year Zacks Consensus Estimate of $1.66 per share is up 5 cents over the past 90 days. For 2010, analysts polled by Zacks are projecting earnings of $2.11 per share, versus last month's $2.08 and the 3 months-ago forecast of $1.95.

Company Description

Avon Products is beauty company with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through 5.8 million independent Avon Sales Representatives. Avon's product line includes beauty products as well as fashion and home products. The company features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark.

Rising Forecasts and Strong Momentum

The company is seeing bullish earnings estimates ahead of reporting nest week. The full-year Zacks Consensus Estimate of $1.66 per share is up 5 cents

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CEO Andrea Jung has transformed Avon Products (AVP) over the last nine years. The company has grown aggressively in the Beauty products category, especially overseas in developing markets. Management instilled financial discipline in the company through the multi-year supply chain cost reduction program along with the Product Line Simplification (PLS) and Strategic Sourcing Initiatives (SSI). Avon is an above-average growth company among its peers, but there are inherent risks associated with the direct sales business model and the dependence on developing markets for growth. The annualized cost savings associated with Product Line Simplification (PLS) initiative and Strategic Sourcing Initiative (SSI) are above expectations. The target price of $36.25 is based on a 22 P/E on trailing 12-month earnings. The Buy rating is maintained. Zacks Investment Research

On account of mounting competition from alternative channels and evolving consumer needs towards a healthier life, the natural and organic sector is gaining importance. The natural products sector (which includes organic foods, nutritional and herbal supplements, cosmetics and medicines, among other categories) generated sales of over $68 billion in 2008. Over the last five years, the natural products industry grew 8% versus 2% for the overall grocery industry. Most recently in 2008, the natural products industry grew 7.4% versus a 2% decline for the grocery industry.

Food companies like Dean Foods (DF), Hain Celestial (HAIN), United Natural Foods (UNFI) and Del Monte (DLM) are market leaders in the natural products sector, and the competition is primarily based on brand recognition, price, taste preference and quality. Acquisitions have been a key part of these companies strategy to build their market share. Acquisitions have not only expanded their geographical

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For Immediate Release

Chicago, IL - June 22, 2009 - Zacks Equity Research highlights NCR Corporation (NCR) as the Bull of the Day and Rite Aid Corporation (RAD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Avon Products (AVP), Kimberly-Clark (KMB) and Pepsi Bottling Group (PBG).

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:

Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in

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For Immediate Release

Chicago, IL - June 22, 2009 - Zacks Equity Research highlights NCR Corporation (NCR) as the Bull of the Day and Rite Aid Corporation (RAD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Avon Products (AVP), Kimberly-Clark (KMB) and Pepsi Bottling Group (PBG).

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:

Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in

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Most Asian markets closed higher Wednesday amid media reports Bank of America (NYSE:BAC), one of the 19 financial firms undergoing stress tests, would need $35 billion in fresh capital to offset the impact of credit losses.  Uncertainty over the test results, to be made public Thursday, kept investors on the sidelines early in the day but markets rebounded as investors saw fresh buying opportunities.  The Shanghai Composite Index in Mainland China edged up 1% and Hong Kong's Hang Seng added 2.5% to close at 16,834.57. South Korea's Kospi edged 0.3% lower. 

U.S. markets felt the jitters yesterday as the anxiety over the pending stress test results somewhat offset Bernanke's optimistic view that the U.S. economy is on track for a recovery.  The Fed Chairman's testimony before the joint congressional economic committee, nevertheless, helped equity markets end the day relatively flat.  The S&P 500 declined 0.4% but managed to

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* According to the FTC, directors holding positions at both Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) raise the possibility of unfair competitive advantages

* Kraft (NYSE:KFT) reported better-than-expected first quarter earnings of 45 cents a share, beating estimates by 5 cents, as revenues fell 6.5% to $9.4 billion

* Archer Daniels Midland (NYSE:ADM) reported worse-than-expected second quarter earnings of 37 cents a share, a 12 cent miss, as revenues plunged 20.7% to $14.8 billion

* Duke Energy (NYSE:DUK) reported worse-than-expected first quarter earnings of 28 cents a share, a 4 cents miss, as revenues declined 0.7% year-over-year to $3.31 billion

* Avon Products (NYSE:AVP) reported first quarter earnings of 27 cents a share, which missed estimates by 6 cents, as revenues fell 12.9% to $2.18 billion

* CVS (NYSE:CVS) announced better-than-expected first quarter earnings of 55 cents a share, beating estimates by a penny, as revenues jumped 9.7% year-over-year to $23.4 billion

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Highlights include Avon Products (AVP), Coca Cola Enterprises (CCE), Pepsi Bottling Group (PBG) and Procter & Gamble (PG).A major theme at CAGNY (Consumer Analysts Group of New York) was the depth, breath and speed of the rally in the U.S. dollar in late 2008. That flight to the U.S. dollar continues now in the 1st quarter of 2009. The moves of the dollar versus many currencies were unprecedented — one even being an 8 standard deviation event (a one in a trillion occurrence). Global risk aversion — precipitated by the failure of Lehman — brought about U.S. dollar strengthening as the credit crisis drove a flight to quality.In September 2008, the U.S. and global credit markets seized, and the commercial paper markets closed for almost all companies except a few rated A-1 P-1. Retailers and distributors (which are not rated A-1 …

Avon Products (AVP) presented at the CAGNY (Consumer Analysts Group of New York) today in Boca Raton. The company continues to execute its 4-Point Turnaround Plan first announced in November 2005. Under the pillars of 1) Commitment to Brand Competitiveness, 2) Win with Commercial Edge, 3) Elevate Organizational Effectiveness, and 4) Radically Transform the Cost Structure, the company had sparked growth in the Beauty and Fragrance categories, along with capturing $270 in annualized cost savings. Also, PLS (Product Line Simplification initiative) and SSI (Strategic Sourcing Initiative) have garnered cost savings of $40 million and $135 million, respectively.The Color category appears to be turning around, aided by the Mistake-Proof Mascara, Pro-To-Go, and Plumping Lipstick campaigns featuring Reese Witherspoon. Look for the new Fragrance Spotlight introduction in April featuring newly signed Courtney Cox.Management also announced a new restructuring program today, targeting $200 million in cost savings ...

Avon Products (AVP) is benefiting from both the expansion into the developing and emerging markets and its emphasis on the Beauty products portfolio. Management aims to achieve high single-digit local currency revenue growth supported by margin expansion over the long term.

Over $200 million in costs savings have been achieved since 2002 by implementing the multi-year supply chain cost reduction program. Management expects to achieve cost savings of an additional $300 million in savings as the company implements ERP in Europe and North America.

Developing and emerging markets contribute over 50% of total sales. Management expects the contribution to expand to 68% over the coming 10 years as high-growth opportunities are pursued in developing markets. India, Central and Eastern Europe, China, Russia, and Latin America are highlighted as high growth areas. "AVP" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research