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Zacks Analyst Blog Highlights: Abbott Laboratories, Textainer Group Holdings, Ltd., Texas Instruments Inc., St. Jude Medical, Inc. and Amag Pharmaceuticals, Inc.

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: Abbott Laboratories (NYSE: ABT), Textainer Group Holdings, Ltd. (NYSE: TGH), Texas Instruments Inc. (NYSE: TXN), St. Jude Medical, Inc. (NYSE: STJ) and Amag Pharmaceuticals, Inc. (Nasdaq: AMAG).

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Here are highlights from Thursdays Analyst Blog:

Abbott Shows Earnings Strength

Abbott Laboratories (NYSE: ABT) again beat both consensus of $0.77 and our EPS estimate of $0.76 for the third quarter with EPS of $0.79. We continue to rate shares of Abbott Labs a Buy on the belief that earnings will grow at a CAGR [compound annual growth rate] of almost 12% over the next five years. Strong sales are driven by leading product Humira, an anti-inflammatory for rheumatoid arthritis and psoriasis.

Abbott offers potentially the strongest combination of growth and relative risk in all of the large-cap pharma space. Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business. Based on our model, the company is expected to deliver double-digit EPS growth through the end of 2012. We believe Abbott possesses a low risk profile and will continue to trade at an industry premium.

Textainer Initiated a Hold

Textainer Group Holdings, Ltd. (NYSE: TGH) is the world's largest lessor of intermodal containers, with a total fleet of more than 1.3 million containers representing over 2 million TEUs (twenty-foot equivalent units) and a 20% market share. TGHs fleet is dominated by dry freight standard containers, used to transport manufactured component parts, consumer staples, electronics and apparel.

We are initiating coverage on Textainer with a Hold recommendation and a $10 target price. TGH posted second quarter net earnings before nonrecurring items of $21 million, or $0.44 per diluted share, up 31% from $16 million, or $0.41 per diluted share, in the year-ago quarter. Total revenues for the quarter rose 15% to $69.6 million compared to $560.7 million in the prior-year quarter, largely due to a 158% increase in trader container sales to $10.4 million from $4 million last year.

Texas Instruments Slows Tempo

Texas Instruments (NYSE: TXN) is the largest supplier of analog and DSP integrated circuits. Management reduced production in the last quarter, as distributors started cutting inventories in June. Utilization rates will be cut again in the third quarter, with a corresponding negative impact on margins.

The revenue guidance range of down -3% to up 6% appears very broad. The shares have good long-term potential, but the business is increasingly correlated to macro conditions, which are highly uncertain at this point.

St. Jude Medical Upgraded to Buy

St. Jude Medical (NYSE: STJ) is a leading medical device manufacturer producing consistent double-digit revenue and earnings growth over the past decade. Revenue growth is fueled by numerous product introductions, advancing in technological sophistication, and capturing higher margins.

Growth will be fueled by global demographic trends - aging populations in developed nations and the rapid urbanization of developing countries. These trends both give rise to growing demand for cardiovascular health care.

Amag Pharma with Huge Upside

Amag Pharmaceuticals, Inc. (Nasdaq: AMAG) develops superparamagnetic iron oxide nanoparticles for use in pharmaceutical products. The company's focus is on developing IV iron replacement therapy for anemia in chronic kidney disease and imaging agent to aid in diagnosis.

The company filed the NDA for its lead drug, Ferumoxytol, in December 2007 and we expect the FDA approval to come in early 2009. Clinical data in over 1,700 patients indicate an excellent safety profile for the drug with lower incidents of heart problems.

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