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Here are highlights from Wednesday's Analyst Blog:

Big Day for Semiconductors

Intel Corp. (INTC) has been fined 1.06 billion Euros by the European Commission (EC) for anti-competitive business practices. We have blogged about the suit in the past, and short of the amount (which is historic), it is not a surprise.

The suit alleges Intel gave discounts in exchange for preferential treatment for the manufacturers that used its chips. While the amount of the fine is historic, it will not dent the cash balance of INTC. We would be more concerned about how it affects Intel's market share over the coming quarters.

Applied Materials (AMAT) also released results last night with the top-line beating expectations and the bottom-line meeting them. Guidance was cautious, which was expected.

Entergy Results Disappoint

Entergy Corp. (ETR) released financial results for the 1st quarter of 2009 in which the company reported a 23.8% decrease in earnings of $235.3 million, or $1.20 per diluted share ($1.22 basic), compared to $308.7 million, or $1.56 per diluted share ($1.60 basic), in the year-ago quarter.

Ongoing operating earnings were reported at $252.6 million, or $1.29 per share, compared with $308.7 million, or $1.56 per share, in the comparable prior-year quarter.

Alpha Buying Foundation Coal

Today, Alpha Natural Resources, Inc. (ANR) announced that it would purchase, in an all stock deal, Foundation Coal Holdings, Inc. (FCL) whereby FCL shareholders would receive 1.084 shares of ANR for every share of FCL. Based off of its 5-day moving average of $32.73 per share, this represents a 37% premium over FCL's 5-day moving average.

Alpha will also assume the +$500 MM of Foundation's net debt. The merged company will trade and operate under the Alpha name. The merger effectively gives the new company diversification -- the old ANR was exclusively focused in Central and Northern Appalachia (W. Virginia, Virginia, Kentucky, Pennsylvania), while the majority of Foundation Coal reserves and production come from the Powder River Basin (Wyoming). The reserve diversity will help the new ANR because the old ANR brings a higher margin product -- metallurgical coal -- whereas Foundation Coal produces almost all steam coal, which is used in the electric generation process, and does not experience as much market volatility as metallurgical coal.

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Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds.

3 Powerful Picks

Fidelity Select Utilities Portfolio (FSUTX) was incepted in December 1981 and seeks capital appreciation. It is non-diversified.

The fund invests primarily in common stocks of companies in the utilities industry and companies that derive a bulk of their revenue from utility operations. Douglas Simmons has managed this Zacks#1 Rank ("Strong Buy") fund since October 2006. It has an expense ratio of 0.88%.

The fund's top holdings include Exelon Corp. (EXC), Sempra Energy (SRE) and Entergy Corp. (ETR).

American Century Utilities Inv (BULIX) is designed for investors who seek long-term capital growth and income. The fund may invest a portion of assets in foreign securities, debt securities, preferred stock and equity-equivalent securities.

The fund limits its purchase of debt securities to investment-grade obligations. As of December 2008, its turnover ratio was 16%. The fund's annual returns have topped its benchmark index in the last 1-, 3-and 5-year periods. It has an expense ratio of 0.69%.

Southern Co. (SO), American Electric Power (AEP) and Public Service Enterprise Group Inc. (PEG) are among the fund's key holdings.

Vanguard Utilities Index Adm (VUIAX) seeks to track the performance of a benchmark index that measures the investment return of stocks in the utilities sector. It is non-diversified.

The fund assesses a 2% redemption fee on shares held less than one year to discourage short-term trading. Unit holders have to make a minimum initial investment of $100,000 to enter the fund. Donald M. Butler has been the lead manager at the fund since 2004.

The fund's top 10 holdings include Dominion Resources Inc. (D), FPL Group Inc. (FPL) and Duke Energy Corp. (DUK)

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Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

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The energy producer said it continues to expect full-year earnings of $6.70 to $7.30 per share, excluding items.

Entergy's guidance is in-line with the consensus estimate of $6.84 per share, which has moved lower by 10 cents over the past month as 6 out of 15 covering analysts reduced estimates.

Meanwhile, first-quarter earnings came in at $1.29 per share, excluding items, which missed the lowered consensus by 6 cents.

Revenues declined 2.6% year over year to $2.8 billion, as Entergy witnessed sluggish performance across all segments.

ETR, a Zacks #3 Rank ("Hold") stock, is trading on higher-than-usual volume of approximately 3 million, compared to average volume of about 1.8 million.

Lone Pine Capital & Stephen Mendel - Holdings

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Favorable regulatory rate hikes, higher contract and market energy pricing, increased generation from the Palisades nuclear plant acquisition, a reasonable valuation and steady recovery from the hurricane damage of September 2007 will continue to deliver strong earnings and cash flow growth.

Furthermore, the company’s share-repurchase program continues to boost EPS. Therefore, we reiterate our Buy recommendation on ETR with a six-month target price of $117. Price appreciation to our near-term valuation target, coupled with a quarterly cash dividend of $0.75 per share which appears sustainable and secure represents annualized total return potential of 24.7%.

Anticipated rate increases, a relatively strong balance sheet and decent earnings visibility at the Entergy Nuclear business are some of the company’s attractive investment features. In addition to the approval of a revised rate settlement, the LPSC agreed to provide for rate recovery of the two supply plan contracts, once approved by the commission, through the recovery provision for new capacity in the FRP.

After 17 years of rate freeze in Texas, Entergy Texas reached a $59.5 million two-step base rate increase settlement with the broader segment of customers consisting of Entergy Texas’ retail customers. At the same time, a competing settlement was introduced by the Texas Commission staff and three interveners. Hearing is underway on Entergy Texas settlement which began at the end of June 2008. ETR is expected to receive favorable legislation and re-file its rate case with the Public Utilities Commission of Texas soon.

Read the full analyst report on ETR