U.S. Markets open in 7 hrs 49 mins

Gorman Rupp, American Vanguard, Pharmacyclics, GlaxoSmithKline and Johnson & Johnson highlighted as Zacks Bull and Bear of the Day

Zacks Equity Research

For Immediate Release

Chicago, IL – June 03, 2014– Zacks Equity Research highlights Gorman Rupp (GRC-Free Report) as the Bull of the Day and American Vanguard (AVD-Free Report)  as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Pharmacyclics Inc. (PCYC-Free Report), GlaxoSmithKline (GSK-Free Report) and Johnson & Johnson (JNJ-Free Report).
Here is a synopsis of all five stocks:

Bull of the Day:

Gorman Rupp (GRC-Free Report) has beaten the Zacks Consensus Estimate in each of the last four quarters with an impressive performance in the March 2014 quarter. Along with a fair valuation, this stock pays a small dividend and as a Zacks Rank #1 (Strong Buy), it is the Bull of the Day.

Gorman Rupp calls themselves "The Pump People" - and with good reason. The company makes and sells pumps and pump systems for use in water, waste-water, flood control, construction and petroleum industries just to name a few. Founded nearly 80 years ago by J.C. Gorman and H.E. Rupp, the company has grown from humble beginnings to 1,240 employees. GRC increased the cash divided in 2013 sustaining a record of dividend increases for 41 consecutive years and will pay the 257th consecutive quarterly divided during the second quarter of 2014.

Groman Rupp reported results for the first quarter of this year back in April and it was a strong strong quarter indeed. GRC posted EPS of $0.38, ten cents ahead of the Zacks Consensus Estimate of $0.28 for a positive earnings surprise of 35%. The company also posted revenue of $110M, $14M ahead of estimates for a 14.2% positive revenue surprise.

Before this recent strong beat, the company posted three other beats of the Zacks Consensus Estimate. The June 2013 quarter, which was reported in July of that year was a beat of $0.08 or 30% ahead of expectations. A solid revenue surprise of $12 pushed quarterly revenue to $106M that quarter and the stock moved higher by 9% in the session following the report.

Bear of the Day:

American Vanguard (AVD-Free Report) has been a Zacks Rank #5 (Strong Sell) for longer than any other current #5. It moved to a Rank #5 on March 4 of this year with the next oldest #5 being added on April 1. That is a long time without any increases to earnings estimates, and today it is the Bear of the Day.

Here at Zacks I manage the Home Run Investor portfolio of stocks. I look for small cap stocks that have great upside potential and we have found a lot of big winners. I added American Vanguard to the portfolio back on November 27 of 2012. We subsequently sold the stock about six months later on February 27 for a loss of 5.36%. The idea behind Home Run Investors is to cut your losses early, before they become big losses. A year and a half later I am looking back and I see I avoided a substantial amount of pain.

American Vanguard is a chemical company that formulates chemicals for crops, human and animal protection. American Vanguard was founded in 1969 and is headquartered in Newport Beach, California.

On the first of May, the company reported earnings for the March 2014 quarter. It was a beat of the Zacks Consensus Estimate by 4 cents of 133%. Right off the bat, you would think that is a great thing, but you need to dig a little deeper than just if a company beats estimates or not. The topline line was a major disappointment, coming in $10M below expectations or about 11% below the Zacks Consensus Estimate.

The real concern for investors was that on April 10 of this year the company guided Wall Street down due to elevated channel inventories. They said that revenues would be 33% lower than year ago levels and earnings would be break-even to a few cents per share for the quarter.

Additional content:

Encouraging Data on Pharmacyclics/J&J Drug
Pharmacyclics Inc. (PCYC-Free Report) announced encouraging data on oncology drug Imbruvica (ibrutinib) from a phase III study (RESONATE: n=391). The study was evaluating Pharmacyclics’ Imbruvica (ibrutinib) versus GlaxoSmithKline (GSK-Free Report) and Genmab's Arzerra (ofatumumab) in patients suffering from relapsed or refractory chronic lymphocytic leukemia (CLL.TO) or small lymphocytic lymphoma (:SLL). The patients were treated at least once before for the disease which affects predominantly elderly people.
Results from the multi-center, international, open-label, randomized study, which was published in an online first edition of the New England Journal of Medicine, revealed that treatment with Imbruvica caused patients to live longer without the disease worsening compared to those in the Arzerra arm. Data revealed a 78% reduction in risk of progression or death in patients treated with Imbruvica compared to those being treated with Arzerra. The overall response rate was also found to be favorable in the Imbruvica arm.
We note that the RESONATE study was stopped early following the recommendation of an independent Data Monitoring Committee (:DMC) as it had already met the trial’s primary and a key secondary endpoint of progression-free survival and overall survival, respectively.
Pharmacyclics and partner Johnson & Johnson (JNJ-Free Report) gained accelerated approval from the U.S. Food and Drug Administration (:FDA) for Imbruvica in the previously treated CLL indication in Feb 2014. Full approval was sought in April for the same indication on the basis of data from the RESONATE study. Gaining the FDA nod, as far as full approval for the indication is concerned, should be a mere formality for the partners given the highly impressive data from the RESONATE study.
We remind investors that Imbruvica was approved by the FDA in Nov 2013 as a monotherapy for treating patients suffering from mantle cell lymphoma (:MCL). The drug has been approved to treat MCL patients who have been treated at least once for the disease. The drug is being studied for other oncology indications as well. We expect investor focus to remain on updates regarding Imbruvica, going forward.
Pharmacyclics carries a Zacks Rank #3 (Hold).
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
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.
About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on GRC - FREE
Get the full Report on AVD - FREE
Get the full Report on PCYC - FREE
Get the full Report on GSK - FREE
Get the full Report on JNJ - FREE
Follow us on Twitter:  https://twitter.com/zacksresearch
Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on GRC

Read the analyst report on AVD

Read the analyst report on PCYC

Read the analyst report on GSK

Read the analyst report on JNJ

Zacks Investment Research