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Zacks #1 Rank Top Performers

Heartland Payment Systems, Inc. and LSB Industries, Inc.

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By: Todd Bunton
June 09, 2011 | Comment(s): 0
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LXU | HPY

Zacks #1 Rank (Strong Buy) stock Heartland Payment Systems, Inc. (HPY - Snapshot Report) jumped 8.1% on Thursday. The company, which processes payment transactions, got a boost after the Senate blocked a move on Thursday to delay legislation that would cut fees that banks charge to retailers.

According to CNNMoney, this will benefit companies like Heartland, as well as retailers, because they're able to control the amount of fees that they collect on purchases. An analyst from Janney Capital upgraded the stock from "Neutral" to "Buy" on Thursday.

Meanwhile, LSB Industries, Inc. (LXU - Snapshot Report) rose 6.9%.

The company manufactures a broad range of hydronic fan coils, water source and geothermal heat pumps, large custom air handlers and other products used in commercial and residential air-conditioning systems. It also manufactures and sells chemical products for mining, quarry and construction, agricultural and industrial acid markets.

The company reported an outstanding quarter back on May 5 with earnings per share coming in 43% ahead of the Zacks Consensus Estimate. Net sales were up 36% year-over-year.

Esitmates soared after the strong quarter, sending the stock to a Zacks #1 Rank (Strong Buy). Based on consensus estimates, earnings are expected to grow 157% in 2011 and 13% in 2012.

Desptie this growth, shares trade at just 12x forward earnings, a discount to the industry average of 14x.

Other notable top performing Zacks #1 Rank stocks from Tuesday include: Majesco Entertainment Company (COOL - Snapshot Report), which jumped 9.0%, Moody's Corp. (MCO - Analyst Report), which rose 5.9%, and Transcend Services, Inc. (TRCR), which was up 5.7%.

To see the full list of Zacks #1 Rank (Strong Buy) stocks click here.

Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.

Read the full analyst report on LXU

Read the full analyst report on HPY

 

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