Top Performing Stocks for the Week Ended Dec 19
The five best performing stocks on the Zacks #1 Rank List last week were: Cadence Pharmaceuticals, Inc. (CADX - Snapshot Report), Life Partners Holdings, Inc. (LPHI - Snapshot Report), Western Refining, Inc. (WNR - Snapshot Report), Deckers Outdoor Corporation (DECK - Analyst Report) and Omnicare, Inc. (OCR - Snapshot Report).
Analysts expect losses for both this year and next. However, those losses have narrowed by 4 cents and 8 cents, respectively, over the past 2 months. In addition, analysts currently expect next year's loss to be narrower than this year. In its third-quarter report from early November, CADX reported a loss per share that improved upon both the year-ago loss and the consensus.
Life Partners Holdings, Inc. (LPHI - Snapshot Report) announced last week that it expects to report fiscal third-quarter earnings per share of 61 cents, compared to 44 cents in the year-earlier period. Analysts were expecting 55 cents. In addition, the company plans to report revenue growth of 46% in the quarter. The company stated that it deals exclusively with assets that have an inherent value and do not rely on future market performance to realize gains. This puts LPHI in a very attractive and desirous position during such a hectic market environment.
Shares of LPHI gained 25% last week, which put the company on the Zacks #1 Rank Top Performers List. Over the past 2 months, earnings estimates for this fiscal year, ending February 2009, are up 5.2% while expectations for next fiscal year, ending February 2010, increased 9.9%. Analysts currently expect next fiscal year's profit to advance approximately 21% from this year. LPHI is engaged in the secondary market for life insurance, or "life settlements".
Western Refining, Inc. (WNR - Snapshot Report) has enjoyed a rise in analysts' earnings estimates over the past several weeks. Expectations for this year are up more than 350% from 2 months ago, including a gain of 8.5% in the past 30 days. Meanwhile, expectations for next fiscal year are up 157% in 2 months and 116% in 30 days. WNR is an independent refining and marketing company headquartered in El Paso, TX.
The company made the Zacks #1 Rank Top Performers List for last week as shares gained 14.9%. For its third-quarter, which was reported in early November, WNR reported earnings per share of $1.61, which easily beat the year-ago performance while soaring past the consensus. The improvement in operating income was attributed to higher refined product margins.
Deckers Outdoor Corporation (DECK - Analyst Report) shares gained 14.4% last week, which made the footwear company a top-performing Zacks #1 Rank. Earnings estimates for this year advanced 2.9% over the past 2 months, while expectations for next year advanced 1.6% in that timeframe. Analysts also expect profit growth of about 17% for next year over this year, which is an encouraging sign for the future.
DECK has an excellent record of beating Wall Street's quarterly earnings expectations. In the past 4 quarters, the company has put together an average surprise of approximately 26%. The company has been getting a lot of traction thanks to its popular UGG brand of shoes. For its third quarter report from late October, DECK announced earnings per share of $1.97, which topped the consensus by more than 8%. Net sales improved 52.5%, while sales for the UGG brand jumped 57.1%. DECK also raised its fourth-quarter and full-year outlook.
Omnicare, Inc. (OCR - Snapshot Report) provides services that are essential, regardless of how the economy, in general, may be faring. The company has watched earnings estimates for this year and next advance by 11.7% and 12.7%, respectively, over the past 2 months. With shares gaining 14.2% last week, the company was a top-performing Zacks #1 Rank company. OCR is a leading provider of pharmaceutical care for the elderly.
In its third-quarter report from late October, OCR announced earnings per share, excluding items, of 61 cents, which eclipsed the consensus by more than 24%. In the year-ago quarter, EPS was 44 cents. Sales improved to $1.6 billion from $1.54 billion. OCR also raised its full-year outlook to between $2.09 and $2.11. The company stated that the quarter's results reflect both the ongoing stabilization and progress of its core business and the strong growth of its specialty pharmacy businesses.