Top Performing Stocks for the Week Ended Sep 5

The five best performing stocks on the Zacks #1 Rank List last week were: Hanger Orthopedic Group, Inc. (HGR - Analyst Report), The9 Limited (NCTY - Snapshot Report), Big Lots, Inc. (BIG - Snapshot Report), Knoll, Inc. (KNL - Snapshot Report) and Urban Outfitters, Inc. (URBN - Snapshot Report).

Hanger Orthopedic Group, Inc. (HGR - Analyst Report) was a Zacks #1 Rank Top Performer for the week ended Sep 5 as shares gained 6.3%. Earnings estimates for this year and next are up 6.5% and 6.8%, respectively, over the past 2 months. Furthermore, analysts currently expect next year's earnings to improve approximately 14.6% from this year, which is an encouraging sign for the future.

HGR, which provides orthotic and prosthetic patient care services, has a habit of meeting or beating Wall Street's quarterly earnings expectations. Over the past 4 quarters, the company has put together an average surprise of 15%. Most recently, HGR reported an earnings surprise of 25% in its second quarter, as EPS of 25 cents topped the consensus by a nickel. The result also eclipsed the year-ago result of 17 cents. Net sales increased 13% year over year to $181.2 million from $160.4 million.

Shares of The9 Limited (NCTY - Snapshot Report), an online game operator and developer in China, gained 5.9% last week. Earnings estimates for this top-performing Zacks #1 Rank company have been trending higher for a while, gaining 10.9% in 2 months and 4.3% in 30 days for this year. Next year's expectations are also on the rise and have increased 2.6% and 7% for this year and next, respectively.

NCTY has now beaten Wall Street's quarterly earnings estimates for 3 consecutive quarters. In early August, the company announced that it surprised by more than 27% in the second quarter as EPS reached 61 cents. Meanwhile, net revenues soared 69% year over year to US$66.3 million. Its revenues and net income were both records. NCTY attributed its results to the continuing growth of Blizzard Entertainment®’s World of Warcraft® and Soul of The Ultimate Nation.

Big Lots, Inc. (BIG - Snapshot Report) reported solid fiscal second-quarter numbers in late August. The closeout retailer also raised its EPS guidance for the full year. Earnings per share from continuing operations reached 32 cents, exceeding the consensus by a little more than 18.5%. BIG has now amassed an average surprise of 17.5%. Net sales advanced 1.9% to approximately $1.1 billion.

Thanks to its solid fiscal second-quarter numbers, BIG raised its 2008 earnings guidance to between $1.90 and $2. Over the past month, earnings estimates are up 5.3% for this fiscal year and 6.5% for next fiscal year. Analysts also expect an EPS improvement of about 8.1% next year over this year. Shares improved by 4.5% last week, which was enough to make the Zacks #1 Rank Top Performers List.

Earnings estimates for Knoll, Inc. (KNL - Snapshot Report) remain above levels from 2 months ago by 10.5% for this year and 5.6% for next year. The furniture maker made the Zacks #1 Rank Top Performers List last week as shares improved 3.7%. The company has a good record of meeting or beating analysts' earnings expectations, and has marked a surprise of 11.2% over the past 4 quarters.

The company's second-quarter report from July included adjusted earnings per share of 49 cents on net sales of $292.5 million. The earnings result topped the consensus by 22.5% while easily improving upon the year-earlier result of 37 cents. Net sales moved higher by 7.5%. KNL attributed results to its diversification strategy that focused on high design content businesses and away from dependence on North American systems sales.

Urban Outfitters, Inc. (URBN - Snapshot Report) is a Zacks #1 Rank Top Performer as shares gained 2.6% last week. Over the past month, earnings estimates for the fiscal years ending January 2009 and January 2010 are up 8% and 5.9%, respectively. In addition, analysts currently expect next fiscal year's profit to advance by more than 20% over this fiscal year.

URBN is performing better than most retailers, and enjoyed a boost last week after an analyst offered a favorable view of the fiscal third quarter. The company has put together a solid streak of better-than-expected earnings, and enjoys an average surprise of 12.6% over the past 4 quarters. In its second quarter, URBN reported earnings of 33 cents per share, which topped the consensus by almost 14%. It also marked a solid year-over-year advance from 19 cents. Sales advanced approximately 30% to $454.3 million. Same-store sales were up 13%.