Bucyrus International Inc.

Highlighted stocks include Bucyrus International (BUCY), Earthlink, Inc. (ELNK - Snapshot Report), ShengdaTech, Inc. (SDTH), Ternium SA (TX - Snapshot Report), and LDK Solar Company (LDK - Snapshot Report).

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Bucyrus International, Inc. (BUCY), the manufacturer of high productivity mining equipment for surface and underground mining industries, reported third quarter earnings on Oct 23 and met consensus estimates in a tough commodities environment.

Net earnings were $64.2 million, or 86 cents, compared to $28.6 million, or 39 cents in the third quarter of 2007. Diluted EPS were 85 cents, which were in-line with consensus estimates.

Surface mining continued to be hot, as sales rose 42.2% year-over-year. The increase was in both original equipment and aftermarket parts and service. BUCY saw strong demand in all three product lines: electric mining shovels, draglines, and blasthole drills. Capacity improvements at its South Milwaukee manufacturing facility also boosted sales.

Underground mining sales grew 17.4% on the back of strong global coal prices and demand. The company said market conditions for original equipment sales continue to be strong in U.S. and Eastern Europe.

Bucyrus was a Zacks #1 Rank (Strong Buy) when we last reviewed it on Oct 8. It is now a Zacks #2 Rank (Buy) stock.

Due to the market sell-off, BUCY is much cheaper than when we last reviewed it even though its fundamentals remain intact. It now trades at only 5.3x forward earnings. Its 1-year return on equity (ROE) is 23.25%. The company also pays a dividend, with a yield of 0.50%.

Read the Oct 8 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Earthlink, Inc. (ELNK - Snapshot Report) continues to thrive on the basic building block of providing Internet service. It has surprised on estimates 3 out of the last 4 quarters by an average of 19.82%. The company is cheap. It's trading at only 5.2x forward earnings. Read the Oct 21 analysis.

ShengdaTech Inc. (SDTH) has that rare combination of strong growth and value characteristics. The stock is cheap. It trades at only 6.4x forward earnings and yet earnings are expected to grow 20.67% over the next 5 years. Read the Oct 22 analysis.

Ternium SA (TX - Snapshot Report) is riding out a tough steel market by betting on strong Mexican demand. The company has surprised on estimates 3 out of 4 quarters by an average of 18.97%. TX is cheap. It trades at only 2x forward earnings. Read the Oct 23 analysis.

LDK Solar Company Ltd. (LDK - Snapshot Report) isn't seeing any signs of an economic downturn as the company recently raised third-quarter guidance as wafer shipments soared. LDK has surprised on earnings 3 out of the last 4 quarters on average of 36.54%. Read the Oct 24 analysis.

Read the full analyst report on BUCY