Zacks Equity Research highlights France Telecom (NYSE: FTE) as the Bull of the Day and LeapFrog Enterprises (NYSE: LF) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on EV3 (Nasdaq: EVVV) and The Corporate Executive Board (Nasdaq: EXBD). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for France Telecom (NYSE: FTE). We reiterate our Buy rating on France Telecom ADRs. Improved free cash flow visibility over the next six months, combined with an attractive and safe dividend yield, suggest the stock could still reach our adjusted for dividends target price of $29.80. We now expect some earnings growth for 2007, but the main investment thesis for FTE is P/E multiple expansion. We believe investors aggressively de-rated FTE’s P/E multiple in 2005-2006 due to limited cash flow visibility, but we view those fears as overdone and expect the stock to make new highs going forward.

Bear of the Day:

Our Bear of the Day recommendation is for LeapFrog Enterprises (NYSE: LF). Management’s actions to improve long-term operating results through increased R&D and incremental marketing spending in 2007 is leading to another year of negative earnings. In addition, the ongoing decline in sales of educational items is being exacerbated by the unfavorable domestic retail environment. The SchoolHouse division is also under pressure. Since positive earnings are not expected until 2008, the stock is rated a Sell.

Analyst Blog:

Like the first quarter, EV3 (Nasdaq: EVVV) reported second quarter results below expectations, largely due to higher litigation expenses. Given the shortfalls, we are increasing our 2007 loss estimates. However, the proposed FoxHollow deal complements EVVV's strengths and increases profitability, with the combined company expected to earn $0.60-$0.70 per share on anticipated $585-$615 million in revenue in 2008, and $0.90-$1.10 per share and $700-$750 million in revenues in 2009.

We maintain our Hold rating on shares of The Corporate Executive Board (Nasdaq: EXBD) following the release of Q2 [second quarter] financial results. While Q2 EPS [earnings per share] came in slightly ahead of expectations, the upside was largely due to a lower share count, as net income actually declined year-over-year. While margins remain under pressure, the company does seem to have stabilized operations and is working to return to its previous staffing targets. We consider the shares to be appropriately valued near current levels, after trading higher following the release of Q2 results. Our $70 price target reflects a multiple of approximately 33x our 2007 EPS estimate.

Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649.

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.

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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.

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