Top Performing Stocks for March

The five best performing stocks on the Zacks #1 Rank List last month were: Lindsay Corporation (LNN), Kirby Corporation (KEX), GameStop (GME), The MasterCard, Inc. (MA) and CSX Corporation (CSX).

Lindsay Corporation (LNN) announced that total revenues for irrigation equipment increased 62% in its fiscal second quarter, leading to a strong quarterly report overall and a spot on the Zacks #1 Rank top performers list for March.

Shares of the company gained 30% for the month.

Lindsay reported earnings per share of 79 cents during the quarter, which soundly surpassed the consensus by more than 132%. It also marked a solid year-over-year improvement from 21 cents. Total revenues jumped 70% to $108.4 million. Results include a pair of recent acquisitions and an increase in income tax expense.

Since Lindsay specializes in making and marketing irrigation equipment, the company is in a great position to capitalize on high agricultural commodity prices. LNN expects robust demand for its irrigation products both domestically and internationally in 2008.

Analysts appreciated the quarterly report and seem to agree that Lindsay has a lot of potential in the current environment. Earnings estimates for this fiscal year, which ends in August 2008, have risen 25% over the past month to $2.83 from $2.26.

Furthermore, expectations for next fiscal year are at $3.60, which would mark a more than 27% rise over this fiscal year.

In addition to irrigation products, Lindsay also makes and markets infrastructure and road safety products through its subsidiaries.

Kirby Corporation (KEX) looks to extend its streak of 16 consecutive quarters with year-over-year improvement on Apr 24, when it reports its first-quarter results. This upcoming report was at the center of KEX’s strong performance in March, which saw shares rise by 25%.

On Mar 17, KEX announced that first-quarter EPS should surpass 66 cents, compared to its previous forecast between 57 cents and 62 cents. Analysts wasted little time in boosting expectations for the quarter to 67 cents, marking a 9.8% improvement of the previous consensus of 61 cents.

The company attributed the raised forecast to stronger-than-expected demand for its marine transportation and diesel engine services operations.

KEX also made the Zacks #1 Rank top performers list for the week ended Mar 21.

For its fourth quarter, Kirby earned 64 cents per share, which inched past the consensus by about 1.6% but improved handily from the previous year’s 45 cents. This was its 16th straight quarter of year-over-year improvement. Meanwhile, consolidated revenues jumped 22% to $307.9 million from $251.4 million.

KEX beat Wall Street’s earnings expectations in each quarter last year with an average surprise of approximately 4.3%.

Earnings estimates for the full year, ending December 2008, continue to move in the right direction. Analysts boosted estimates by 8.7% in the past three months and 4.2% in the past 30 days.

GameStop (GME) continued to be one of the market’s hottest stories in March, as a strong quarterly report, solid outlook and favorable landscape combined to send shares higher by 22% during the month.

A gain of 38.4% in new video game software sales helped GameStop to another impressive performance. Fiscal fourth-quarter earnings per share of $1.14 surpassed the year-ago result of 82 cents and beat the consensus by 1.8%. Sales jumped 24.4% to $2.86 billion from $2.3 billion, and same-store sales increased 17.4%.

As impressive as those numbers are, analysts are even more excited for GME’s future potential in a thriving video game industry. For its fiscal first quarter, the company expected earnings per share of 32 cents to 33 cents, which was better than the consensus at the time of 29 cents.

Analysts, therefore, responded by raising expectations for the quarter by more than 17% to 34 cents over the past month.

GME now projects earnings per share between $2.25 and $2.34 for the fiscal year, which would improve upon fiscal 2007 by 25% to 30%. The consensus was expecting approximately $2.20.

As a result, estimates moved higher 7.3% over the past 30 days. Over the past three months, estimates are up by more than 13%.

Furthermore, same-store sales are expected to rise 24% to 25% for the fiscal first quarter, and between 10% and 12% for the fiscal year.

MasterCard, Inc. (MA) was drowned out a bit in March due to rival Visa’s IPO, but at the end of the month it was MA that made the top performers list. Shares of the company gained 17% as it moves toward its first-quarter report later this month.

MasterCard has an excellent record of beating Wall Street’s quarterly earnings expectations. In the past four quarters, the company has an average surprise of approximately 23%.

Earnings estimates for this year have been trending higher for a while, gaining 8.2% over the past three months and 1.8% over the past two months.

MA continues to benefit from exposure to growing international markets. In the fourth quarter, earnings per share of 89 cents, excluding a gain, topped the consensus by more than 23%. Net revenues advanced 28% to $1.07 billion. The company attributed results to its global business model, which helped worldwide purchase volume rise 16.1%.

MA made the Zacks #1 Rank Top Performers list for the week ended Mar 14, and was featured as both a Growth & Income and Momentum Stock of the Day at Zacks.com during the month.

CSX Corporation (CSX) told the market in mid-March that expectations for its first quarter and full year were too low. The railroad operator, therefore, provided guidance above Wall Street predictions, which led to a 16% advance in shares last month.

The market consensus was expecting 63 cents a month ago, but CSX announced that earnings per share between 74 cents and 77 cents was more like it. That would mark a year-over-year improvement between 42% and 48%.

As a result, earnings estimates for the quarter are up 17.4% over the past 30 days.

For the full year, EPS are now expected between $3.40 and $3.60, instead of analysts’ prediction of about $3.02. This would mark an improvement of 24% to 31% from 2007.

Analysts, therefore, raised the annual consensus by 14.6% in the past month.

(Both the quarterly and annual guidance includes a gain from a sale of real estate of four cents.)

CSX also decided to raise its long-term guidance through 2010.

In its fourth quarter, CSX earned 85 cents per share, excluding a gain, which beat the consensus by almost 33%. The result also easily surpassed the year-ago performance of 57 cents, excluding items. The company stated that the increase in operating income was due to strong revenue growth and productivity improvements, which allowed CSX to overcome the impact of higher fuel prices.

The company will announce its first-quarter results later this month.

Read the full analyst report on KEX

Read the full analyst report on MA

Read the full analyst report on CSX

Read the full analyst report on LNN

Read the full analyst report on GME