For Immediate Release

Chicago, IL – December 24, 2009 – Zacks Equity Research highlights Capital One (COF) as the Bull of the Day and Kroger Co. (KR) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walgreen Co.(WAG), Micron Technology (MU) and Tiffany & Company (TIF).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

We are upgrading our recommendation on Capital One (COF) to Outperform. The company's third quarter earnings were substantially ahead of the Zacks Consensus Estimate, driven primarily by higher-than-expected revenue and almost stable expenses.

However, increased provisions and decrease in average deposits were on the downside. Nevertheless, we anticipate continued synergies from the company's geographic diversification and expense management initiatives. Additionally, the repayment of the bailout money and the warrants

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Whole Foods Market Inc. (WFMI), the natural and organic grocer, recently reported its fourth quarter results. Earnings of 19 cents a share beat the Zacks Consensus Estimate by a penny, surging 18.8% from 16 cents posted in the prior-year quarter. On a reported basis, including unusual items, earnings came in at 20 cents a share, far ahead of 1 cent delivered in the year-ago quarter.   The stringent cost-control measures, effective inventory management, improved store-level performance and increase in lower-priced brands drove earnings growth. Whole Foods sees earnings of $1.05 to $1.10 per share for fiscal year 2010, just below the Zacks Consensus Estimate of $1.11.


Whole Foods sustained its growth momentum in the top line for the second consecutive quarter. After rising 2% year on year in the third-quarter, revenues climbed 2.3% to $1,829.2 million in the fourth quarter, showing signs of revival. Earlier, the company saw a 0.4%

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Office Depot Inc. (ODP), the global supplier of a range of office products and services, recently teamed up with Acme United to offer ‘Fight the Flu Kit’. With the spread of swine flu (H1N1 virus), more and more businesses are taking measures to prevent their employees from being infected by the deadly virus.   The ‘Fight the Flu Kit’ designed by Acme United's PhysiciansCare includes a facemask, gloves, hand sanitizer, cleaning wipes, and facial tissues, and is currently available for $7.99 at Office Depot retail locations.   There are companies also offering seasonal flu vaccines. Kroger Co. (KR) had earlier made seasonal flu vaccines available at its 1,900 stores, effective September 2009. Target Corp. (TGT) is also offering flu vaccinations readily available at over 1,500 Target Pharmacy locations nationwide effective October. These vaccines do not safeguard against the deadly H1N1 flu, but are essential to protect ...

Target Corp. (TGT) recently said that reasonably priced seasonal flu vaccinations will now be readily available at its 22 Target Clinic locations in Minnesota. The cost of flu vaccines start at only $24, while pneumonia vaccination will be obtainable for $35. The company also said that from October, vaccines would be available at more than 1,500 Target Pharmacy locations.

Although these vaccines do not safeguard against the deadly H1N1 flu, these are essential to protect families against seasonal flu and are recommended by Centers for Disease Control and Prevention. Local, state and federal health authorities are currently administering the production and distribution of H1N1 vaccine.

More than 200,000 people suffer from seasonal flu in the U.S. every year. The target group falls within the age bracket of 6 months to 19 years and 50 years or above, pregnant women, people with chronic diseases, individuals admitted to nursing homes,

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Recently, Kroger Co.’s (KR) Family of Pharmacies announced that from the beginning of September 2009, seasonal flu vaccines would be readily available to the masses in its more than 1,900 stores at a convenient price.   The vaccines are certified by the company’s expert pharmacists and pharmacy technicians, and will available for $25 per vaccine. Last year too, Kroger Family of Pharmacies delivered approximately 1 million flu vaccines. The Centers for Disease Control promotes seasonal flu vaccinations.   The target groups vulnerable to seasonal flu includes individuals in the age group of 6 months to 19 years and those who are 50 years old or above, pregnant women, people suffering from any chronic disease, individuals living in nursing homes, workers in health care departments, and caretakers of children less than six months old.   Recently the world has been hit by the deadly H1N1 ("Swine") flu. Kroger, apart ...

Whole Foods Market (WFMI) recently reported better-than-expected third quarter 2009 results with low single-digit growth in both the top-line and bottom-line. EPS came in at 25 cents, surpassing the Zacks Consensus Estimate of 19 cents, and up 4.2% year over year compared to 24 cents reported in the prior-year quarter, driven by stringent cost-control measures and improved store-level performance. On account of the better-than-expected results, management raised its full-year earnings outlook. The company now expects fiscal year 2009 EPS in the range of 80 cents to 82 cents, up from 65 cents to 70 cents forecasted earlier. For the fourth quarter 2009, EPS is expected to be in the range of 16 cents to 18 cents. Whole Foods' total revenue climbed 2% to $1,878.3 million, after falling 0.5% in the second quarter of 2009, and increasing 0.4% in the first quarter, showing signs of revival with ...

Highlights include Medco Health Solutions, Inc. (MHS), Wal-Mart Stores Inc. (WMT), CVS Caremark (CVS), Walgreen (WAG), Target Corp. (TGT), Kroger Co. (KR) and Caterpillar Inc. (CAT).Back in 2006, Wal-Mart Stores Inc. (WMT), the world's largest retailer, started first by selling select generic drugs for $4 per monthly prescription. This was a move which negatively impacted many smaller operators and pressured CVS Caremark (CVS), Walgreen Company (WAG), Target Corp. (TGT), Kroger Co. (KR) and other prescription-drug sellers into offering similar prices. Then in September 2008, Wal-Mart entered into a direct agreement with Caterpillar Inc. (CAT) offering certain generic drugs for free as part of a pilot program for more than 70,000 Caterpillar Inc. employees, retirees and their spouses and dependents. The agreement represented a direct (prescription drug) pricing contract with the employer, and ...

Kroger (KR) reported fourth quarter EPS of $0.53, which was $0.01 ahead of our estimate and the consensus.

Revenue was $17.3 billion, well below our forecast of $18.4 billion. The revenue shortfall was due to the drop in gasoline prices. Excluding fuel sales at the company's supermarket fuel centers and convenience stores, total sales increased 4.4% over the prior-year quarter.

For fiscal year 2009 ending Jan 2010, Kroger expects identical-store sales of 3% to 4% and earnings per share of $2.00 to $2.05. We think the company is being conservative, which is prudent in this difficult economic environment.

We believe the company will be able to beat its fiscal year 2009 EPS guidance, due to a higher mix of private-label brand sales and continued market share gains. We reiterate our Buy rating on Kroger shares and six-month target price is $25, or 12x our fiscal year

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We reiterate our Buy rating on Kroger Co. (KR) ahead of its fourth quarter earnings report, which is scheduled for March 10. Management expects to report full-year earnings per share of $1.88-$1.91. Our estimate is $1.91.

We think Kroger shares are attractively priced at these levels and view this entry point as buying opportunity. Kroger's low prices and private-label brands continue to help the company take market share from competitors, and its cost controls are helping offset gross margin declines.

Our six-month target price is $25, or 12x our fiscal year 2009 EPS estimate. Zacks Investment Research

Kroger Co (KR) reported a 6% drop in quarterly profit, hurt by the effects of hurricane Ike, and issued 2008 earnings guidance that fell short of market expectations. The downbeat outlook sent shares tumbling nearly 7%.

For the latest third quarter, the grocery store chain earned $237.7 million, or 36 cents per share. Excluding items, profit was 39 cents, a penny above the consensus earnings estimate. Sales rose 9% to $17.6 billion.

Current sales trends have led Kroger to boost its full-year outlook to $1.88 to $1.91 per share, up from $1.85 to $1.90. Yet, it fell below the average forecast of $1.92 a share. While the company has weathered the economic downturn better than its peers this year, it cautioned that sales could slow in 2009.

Kroger was down more than 6% at $25.59 in noon trade on the New York Stock Exchange.

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