DeVry, Inc.

While many stocks have suffered major losses in the new year, DeVry, Inc. (DV - Analyst Report) has not only moved higher since it was featured in late October but is also trading near a 52-week high. In addition to maintaining strong share price performance in a tough market, the Zacks #1 Rank (Strong Buy) company has demonstrated solid earnings growth. DeVry’s fiscal first-quarter earnings of 40 cents per share, excluding items, more than tripled the previous year’s 13 cents. Results for the second quarter are scheduled to be released on Jan 24. DV sports impressive numbers on the income side as well. The company’s dividend yield of 0.2% is above the industry average. In early November, DeVry approved a 20% dividend increase, raising its annual dividend from 10 cents to 12 cents per share. Read our Oct 30, 2007 analysis.

Updates to Previous Growth and Income Zacks Rank Buy Stocks

Shares of Potash Corp. of Saskatchewan, Inc. (POT) continue to trade higher, compared to the share price levels of mid-October when the company was last featured as a Growth & Income pick. Analyst estimates are on the rise for 2008. Five out of 11 covering analysts lifted full-year forecasts from last month’s $5.27 per share to $5.74. Two of the analysts upped projections to $5.99 over the past week. The most accurate 2008 earnings expectation stands even higher at $6.80. In mid-November, the company, another Zacks #1 Rank (Strong Buy), declared a quarterly dividend of 10 cents per share. Potash’s dividend yield of 0.3% is above the industry’s average of 0.1%. In late October, the company posted record third-quarter earnings of 75 cents per share, eclipsing the year-prior 46 cents. Read our Oct 19, 2007 analysis.

Watson Wyatt Worldwide, Inc. (WW), which garnered a rating of Zacks #2 Rank (Buy), is a Hold with a rating of Zacks #3. However, Wall Street forecasts have risen. Current earnings estimates of $3.04 per share for the year ending June 2008 are above the mid-October projection of $2.92. The company is scheduled to report fiscal second-quarter results on February 7, 2008. Read our Oct 18, 2007 analysis.

Last Week’s Growth and Income Zacks Rank Buy Stocks

Callaway Golf Co. (ELY), a Zacks #1 Rank (Strong Buy) company, declared a dividend of seven cents per share in late November. The company is yielding 1.85%. ELY announced third quarter results in early November. Net sales of $235.5 million increased by 22% on a year-over-year basis. Excluding charges, pro forma earnings per share for the third quarter totaled six cents, reversing the previous year’s loss of 16 cents. The company’s pro forma 2007 guidance for earnings ranges between 85 to 89 cents per share, an increase from the previous outlook of 78 to 84 cents. Wall Street is in agreement with Callaway, forecasting 2007 earnings at 88 cents per share. Read the full analysis on ELY.

Frontier Oil Corporation (FTO) is a Zacks #1 Rank (Strong Buy) company that delivered its most profitable third quarter ever in early November, which included earnings per share that were 11.5% ahead of the consensus estimate. Wall Street has issued upward revisions of earnings estimates for the 2008 year. The company’s earnings per share are expected to grow by 26% over the next 3 – 5 years. Frontier’s return on equity (ROE) is a robust 54%. Read the full analysis on FTO.

Monsanto Co. (MON) is a play on the hot agriculture space. Shares of this Zacks #1 Rank (Strong Buy) pick have been soaring to 52-week highs and hit the highest point thus far just a couple days ago. Monsanto recently declared a quarterly dividend of 17.5 cents per share. The dividend yield of 0.6% is outperforming the industry. The company delivered a strong fiscal first quarter in early January. Monsanto upped its full-year earnings per share guidance as did Wall Street. During the past 30 trading days, all 10 covering analysts revised earnings forecasts upward from $2.59 per share to $2.78 for the year ending August of 2008. Read the full analysis on MON.

Flowserve Corp. (FLS) recently announced record bookings for both the fourth quarter and full year. The company declared a dividend of 15 cents per share in mid-November and is yielding about 0.7%. FLS offers a ROE of 17%. In early November, the company announced record third-quarter performance in earnings per share, sales and bookings. Flowserve increased its sales target for 2007 to between $3.6 and $3.7 billion. FLS earnings per share are expected to grow by 15% over the next 3 – 5 years, which is in line with the industry average. Read the full analysis on FLS.