Fresh Del Monte Produce, Inc.

Highlighted stocks include Fresh Del Monte Produce, Inc. (FDP - Snapshot Report), Thinkorswim Group Inc. (SWIM), Powell Industries, Inc. (POWL - Snapshot Report), Titan Machinery, Inc. (TITN - Snapshot Report) and Republic Airways Holdings, Inc. (RJET - Snapshot Report).

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Fresh Del Monte Produce (FDP - Snapshot Report), the producer of fresh and fresh-cut fruit and vegetables as well as fruit juices, beverages, snacks and desserts, continued to see growth in the third quarter despite the global slowdown.

On Oct 28, the company reported third-quarter earnings that beat Wall Street estimates by 76.92%. Earnings per share were 46 cents compared to 51 cents per share in the year ago. Analysts were expecting 26 cents for the quarter.

Sales rose 10% to $832.9 million from $757.1 million in the third quarter of 2007. The growth was due to strong banana sales, which jumped 20% to $332.7 million. Volume grew 5% mainly in North America, due to the acquisition of Caribana in the second quarter of 2008. Other fresh produce also saw a 4% gain, especially in the gold pineapple, fresh-cut and melon product lines.

The company has pricing power, as prices rose 14% worldwide during the quarter. It also saw favorable currency exchange in Asia.

Consensus estimates for 2008 and 2009 are rising. 2008 estimates are up 2 cents to $2.76 in the last 7 days. For 2009, estimates are 5% higher than 2008 at $2.94.

Still Has Strong Value Fundamentals

FDP was a Zacks #1 Rank (strong buy) stock when we last reviewed it on Mar 4. It is now a Zacks #2 Rank (buy) stock. It is even cheaper than in March when it traded at 10x forward earnings as it now trades at 8.1x forward earnings.

Fresh Del Monte has surprised on earnings 3 out of the last 4 quarters by 31.19%. Read the Mar 4, 2008 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Thinkorswim Group Inc. (SWIM), the online brokerage and investor education company, posted record revenue and earnings per share in the third-quarter as its online brokerage business boomed. SWIM is cheap. It trades at only 7.9x forward earnings. Read the Dec 16 analysis.

Powell Industries Inc. (POWL - Snapshot Report), a manufacturer of systems and equipment for the distribution of electrical energy, is bucking the slowdown as it recently reported record orders, revenue and earnings per share in fiscal 2008. POWL is trading at only 9x forward earnings. Read the Dec 17 analysis.

Titan Machinery Inc. (TITN - Snapshot Report), the operator of agriculture and construction retail stores in the Upper Midwest, saw a 62% jump in revenue in the third-quarter 2009 as the agriculture sector continues to be robust. TITN raised 2009 guidance. Read the Dec 18 analysis.

Republic Airways Holdings, Inc. (RJET - Snapshot Report), the regional airlines, has surprised on estimates four quarters in a row by an average of 6.22%. The stock is cheap. It is trading at only 4x forward earnings. Read the Dec 19 analysis.