Zacks Analyst Blog Highlights: J.P. Morgan, Goldman Sachs, Citibank, Royal Caribbean and Carnival Corporation.

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Wed Jun 10, 2009 8:57am EDT

http://www.profits.zacks.com/
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:
J.P. Morgan (NYSE: JPM), Goldman Sachs (NYSE: GS), Citibank (NYSE: C), Royal
Caribbean (NYSE: RCL) and Carnival Corporation (NYSE: CCL). 

Get the most recent insight from Zacks Equity Research with the free Profit from
the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Tuesday`s Analyst Blog:

A Stress-Test Do-Over?

The good thing is that, with the exception of the unemployment rate, things have
not been worse than the more adverse scenario, and the banks have been able to
raise the capital needed to withstand that scenario. The release of the original
stress test results focused almost exclusively on the more-adverse scenario.
Thus, provided the economy does not turn out to be "more adverse than the more
adverse," none of the "too big to fail" 19 is likely to actually fail. 

That, however, does not provide much of a margin of safety. It is sort of ironic
that the chief overseer of the program is coming out with this call on the very
day that 10 of the 19 have gotten approval to withdraw from the program. On the
other hand, the stress test did provide pretty clear delineation between the
strong banks like J.P. Morgan (NYSE: JPM) and Goldman Sachs (NYSE: GS), which
are at the front of the line to get out from under the TARP, and the weaker
institutions like Citibank (NYSE: C) and GMAC (a.k.a. Ally Bank), which are a
long ways away from being free of the need for government help. 

Royal Caribbean`s Flu Impact

Royal Caribbean (NYSE: RCL) announced this morning that the outbreak of the H1N1
virus, or "swine flu," would negatively impact the company`s earnings by
approximately $0.22 per share. 

Last month, Royal Caribbean`s competitor Carnival Corporation (NYSE: CCL)
announced that it would be negatively impacted by approximately $0.05 per share,
with the potential for an additional negative $0.05 per share going forward. 

The fact that the impact of the outbreak was notably greater to Royal Caribbean,
relative to Carnival, is not surprising. The flu outbreak occurred just prior to
the scheduled launch of a new Royal Caribbean product, Pacific Dream, targeting
Mexican nationals. The company was forced to cancel the launch, and the ship sat
idle. The associated expenses and lost revenue added to the expense of changing
existing itineraries away from Mexican ports. 

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks.
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and target prices are six-month time horizons. 

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