Zacks Analyst Blog Highlights: Evergreen Solar, JC Penney Co., Cousins Properties Inc., Georgia Gulf Corp. and Royal Caribbean Cruises Ltd.

CHICAGO--(BUSINESS WIRE)--Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Evergreen Solar (Nasdaq: ESLR), JC Penney Co. (NYSE: JCP), Cousins Properties Inc. (NYSE: CUZ), Georgia Gulf Corp. (NYSE: GGC) and Royal Caribbean Cruises Ltd. (NYSE: RCL).

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Here are highlights from Friday’s Analyst Blog:

Evergreen Solar Compelling

Evergreen Solar (Nasdaq: ESLR) engages in the development, manufacturing and marketing of solar power products worldwide, including solar cells, panels and photovoltaic systems. Its modules are designed for a range of solar electric power applications, including water pumping, communications, outdoor lighting, rural electrification, recreational vehicles and stand-alone or grid-connected AC applications.

The growth potential of the solar industry as a whole, and Evergreen Solar in particular -- with a $3 billion and 1GW [gigawatt] contractual backlog -- remains a compelling story. Capacity expansion and progress toward near-term break-even earnings make it one of the fastest growing alternative energy stocks. Positive factors include the significant new multi-year sales contracts, ongoing expansion programs over the next few years, improving operating efficiencies, technological upgrades and planned new string factory.

JCP Sees Tough Holiday Ahead

JC Penney Co. (NYSE: JCP) sells family apparel, jewelry, shoes, accessories, household goods, and home furnishings through its stores, catalogs and website. The company reported weak September sales and gave equally pessimistic third quarter guidance. JC Penney now expects to earn $0.50-$0.60 per share in the third quarter, down from its previous guidance of $0.70-$0.75. We reiterate our Sell rating on the shares.

The difficult macro environment is taking its toll on consumer discretionary spending and JC Penney's results. We are heading into the important holiday shopping season, which is the worst time for any retailer to find its stores struggling to generate sales growth. That does not bode well for its earnings or its stock price. We are reducing our estimates for 2008 and 2009.

Cousins (CUZ) Downgraded to Sell

Atlanta, GA-based Cousins Properties Inc. (NYSE: CUZ) is a Real Estate Investment Trust (REIT) involved in the acquisition, financing, development, management, and leasing of office, retail and industrial properties. CUZ controls properties throughout the US, including Atlanta, Charlotte, Austin, San Francisco, LA and Washington, DC.

CUZ has a large development pipeline with significant lease up risk from new retail projects. The current yield is now near 9%, although the company is not funding the dividend with operating cash. Shares have dropped nearly 30% over the past two days due to a general market sell-off. Despite this, on a P/FFO [price-to-funds from operations] basis, CUZ still trades at a significant premium to peer group averages.

Georgia Gulf (GGC) in a Deep Hole

Georgia Gulf (NYSE: GGC) is a leading North American manufacturer and marketer of two integrated chemical product lines, chlorovinyls and aromatics. The company is suffering from potentially overpaying for Royal Plastics, a company that makes vinyl-based housing products. The $1.5 billion acquisition resulted in an equal increase in debt. The company recently renegotiated its debt compliance (leverage and interest coverage) ratios, as the company is in danger of non-compliance.

Also, Georgia Gulf saw high production cost due to volatile energy prices. The company was unable to recover costs by increasing prices of its products. Prices for natural gas (the key input) are increasing, which is negating the impact of product price increases. This has compressed margins for the company. Natural gas prices are expected to rise further, stemming from strong US consumption, low inventory, and limited drilling activity.

Royal Caribbean Full-Steam Ahead

Royal Caribbean (NYSE: RCL) is the second-largest passenger cruise operator in the world. The company operates a total fleet of 37 ships including its leading Royal Caribbean Cruises and Celebrity Cruises brands, and the recently acquired Pullmantur brand. The company's ships will carry over 4 million passengers this year to destinations worldwide.

We maintain our Buy rating for Royal Caribbean, primarily due to valuation. The current top-line environment appears to be resilient, and we consider Royal Caribbean to be poised to strongly benefit given an increase in demand. Fuel prices have moderated in recent weeks, and we expect the recently announced cost saving initiative to provide significant benefits.

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