Thursday - January 13, 2005
 Want to view the archive of past issues? Go here. Get the latest investment alert technology and receive the most up-to-date Profit from the Pros content as it’s published, in Real Time, with no waiting. Learn more about this free tool at: http://at.zacks.com/?id=1517. Manage Profit from the Pros subscription: 1. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentary that recently appeared on Zacks.com. Following the article you will find previews of other profitable commentaries with insights and recommendations from leading investment experts.
The New Year began with selling, as inflation fears and profit taking have triggered broad-based declines. Hardest hit have been last year’s winners, including small and midcap stocks. Continued sector rotation seems likely, so the averages may stagnate or pull back in the near term. Still, with the primary trend in the bullish camp, subscribers should be looking for buying opportunities. As opportunities present themselves, Richard Moroney’s and his team’s recommended cash position will be reduced. For now, their cash position remains at 10% to 16%. Sector rotation likely. In a reversal from last year, the average U.S. stock has underperformed the Dow Jones Industrial Average and S&P 500 Index so far in 2005. Small and midcap stocks have suffered from profit-taking, as have such 2004 leaders as the materials, energy, industrial, and transport sectors. Also weighing on stocks are concerns regarding inflation, Federal Reserve policy, and U.S. budget and trade deficits. Both the Dow Industrials and Dow Transports have pulled back from highs reached Dec. 28, and a first-quarter correction in both averages would not be surprising. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - After bottoming Oct. 25 at 9749.99, the Industrials rallied nearly 1,105 points, or 11%, to 10,854.54 on Dec. 28. The Transports rallied nearly 846 points, or 29%, from Aug. 6 to Dec. 28. With typical one-third to two-thirds retracements of those advances, the Industrials would trade at 10,100 to 10,500 and the Transports would trade at 3250 to 3550. Such corrections are commonplace — and necessary — during bull markets. The Wall Street adage that market advances climb a “wall of worry” is especially apt today. As the article on the left side of page 1 suggests, advisory sentiment is unusually bullish. Option prices also reflect optimism, as investors are not willing to pay much to protect stock portfolios from losses. Some Federal Reserve Board members are concerned that investors may be irrationally exuberant. In minutes released from the Dec. 15 board meeting, the Fed said some members believed that the prolonged period of policy accommodation “might be contributing to signs of potentially excessive risk-taking in financial markets.” Whether or not the market suffers a near-term correction, a pickup in sector rotation seems likely. Subscribers should be looking for buying opportunities on a stock-by-stock basis, as Moroney and his team expect higher-quality stocks to post worthwhile gains over the next 12 months. Attractive buys include MBNA (NYSE: KRB) and PepsiCo (NYSE: PEP). Bunge (NYSE: BG) is an integrated global agribusiness and food company spanning the farm-to-consumer food chain. Bunge processes, produces, moves, distributes and markets food on five continents. Nike, Inc.'s (NYSE: NKE) principal business activity involves the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is the one of the largest sellers of athletic footwear and athletic apparel in the world. The company sells its products to retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in numerous countries around the world. Home Depot (NYSE: HD) is the one of world's largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager's Hardware in New Jersey Get clear Buy, Hold and, yes, SELL advice from one of the nation`s oldest and most successful investment newsletters. Our in-depth analysis and advice have been helping subscribers weather market volatility since 1946. Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=346. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - b) Great Expectations for 2005 Jeff Manera says the Superstock Investor’s Master List portfolio is poised for a solid 2005. Learn what to expect in 2005 and why several of this expert’s holdings should continue to move forward even if the market doesn’t. More... John Reese highlights some forces at work that could impact the economic picture in 2005. Read how political and economic events of 2004 could carry over into the new year and then take a look at a new addition to the Hot List. More... Walter Frank says the New Year party is over for the markets. Read about the positive signs this expert is seeing at the beginning of 2005 and discover what he has to say about the dollar. Afterwards read up on the Quant Foreign Value Fund. More... Intel`s earnings were considered a positive by the Street, but Richard Rhodes is wondering if it’s sustainable. Get his take on the chipmaker’s latest news. More... Gregory Spear says it’s still to early to get really bearish on this market, but there have been some alarming signs of late. Read about this market that appears to have no tolerance for bad news. More... Featured Expert articles are courtesy of the 60+ leading investment newsletters that have partnered with us to create the Zacks Expert Advice service. Check out the Experts section of Zacks.com daily to find profitable stock picks and timely market commentary at: http://at.zacks.com/?id=637.
2. WEEKLY COMMENTARY: Experts Watch Zacks.com offers 3 unique weekly commentaries that all further
our mission to help you Profit from the Pros. Today is the
latest installment of Experts Watch from Trace Johnson. Each
week Trace shares winning strategies from leading investment
experts to outperform in any market environment. Bull Markets Don't Take Passengers After a very potent Santa Claus rally, and a difficult start to the New Year, investors have been left a bit flummoxed. The extreme readings of positive sentiment throughout the market at the end December saw the market drift higher for little or no reason. However, after it became clear a Santa Claus rally would come to fruition, there was little the bears could do to fight it off. Yet, the bears launched a correction immediately upon the inception of 2005, which shook out a bunch of the complacent investors. The question now is, "What's Next?" The experts scrutinize sentiment and fundamentals to answer this question and highlight their favorite stocks for this New Year. Dr. Melvin Pasternak, editor of the StreetAuthority Swing Trader, notes that bullish sentiment has declined dramatically over the last several weeks. The 10-day moving average of the CBOE Put/Call Ratio has risen to .82 -- a neutral reading -- after hovering near .55 for most of December. The low ratio of puts, contracts to sell a stock at a given price level due to expectations it will fall, relative to calls indicates that the options traders were broadly expecting stocks to rise. Hence, the increase in the ratio is evidence that there is less expectation for rising stocks.
And More... Click here to read the full article with commentary and
recommendations from leading market experts. http://at.zacks.com/?id=14 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SCREEN OF THE WEEK Creating a Custom Consensus of your Winningest Screens Kevin Matras combines some of his winningest strategies to create a Custom Consensus screen. See how it's done and how you can do it too. And get 3 top consensus picks from this week's list. More... ALL STAR TOP PICKS The transportation industry looks poised for a solid year, and the All Stars have four recommendations to move your portfolio to a more profitable level. More... 3. BEST OF ZACKS INDEPENDENT RESEARCH The analysts from Zacks Independent Research create a mountain of insightful equity research everyday of the week. Here you will find the best of that information recently published on Zacks.com. BULL OF THE DAY Lubrizol Corp. (LZ) - Recent Acquisition to Bring Over $1 Billion Ocwen Financial (OCN) - Current Valuation Too Lofty Yield Curve for Banks Flattened Oil Prices to Ease in 2005 Peak Fourth Quarter Earnings Season Fast Approaching
4. TRADING STRATEGIES: Profit Tracks Zacks.com is proud to share with you some of the best trading strategies that truly allow you to Profit from the Pros. Today we highlight… This strategy uses the PEG Ratio to find attractively priced stocks poised for price appreciation. The PEG Ratio is simply the P/E (Price divided by Earnings) of a stock divided by its 5 year projected growth rate. Too often investors think of value investing being the antithesis of growth investing. The beauty of using PEG is that you can find value stocks even amongst hot growth stocks. If you like to use a company`s PE ratio to determine its value, you`ll love using the PEG ratio. Find out which companies offer the greatest value regardless of growth rate to enjoy stellar returns. Value investing may be boring to some, but a +114.4% return in 2003 and a 32.7% YTD return in 2004 (thru 12/3/04) may create many converts to this Profit Track. Agrium Inc. (NYSE: AGU) is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America and Argentina. Favorable fundamentals and a continued focus on margin improvement helped Agrium put together a solid third quarter, including earnings per share, excluding items, of 43 cents that topped the consensus by almost +54%. The company also decided to raise its earnings guidance for the year. This Zacks #1-ranked stock has a PEG Ratio of .19, placing it well under the .55 parameter and underscoring its place on this Profit Track. To continue your research on AGU, click here. Hovnanian Enterprises, Inc. (NYSE: HOV) primarily designs, constructs and markets multi-family attached condominium apartments and townhouses and single family detached homes in planned residential developments. Hovnanian Enterprises is a Zacks #1-ranked stock with PEG ratio of .28, suggesting that this company has room to run moving forward. Though California storms will impact first quarter earnings, the company continues to expect the full year to surpass $6.50. Hovnanian raised it to the guidance in early December after another solid quarterly performance. To continue your research on HOV, click here. New Century Financial Corporation (NYSE: NEW) is a specialty finance company that, through its subsidiaries, originates, purchases, sells and services sub-prime mortgage loans secured primarily by first mortgages on single-family residences. New Century Financial stated that loan production volume for December 2004 increased +43% to $4.3 billion, while full year 2004 production advanced +54%. The company, which targets fiscal 2005 production volume at $45 billion or more, has a PEG ratio of .32. Given its encouraging outlook for this year, New Century Financial has a lot of room to run moving forward. To continue your research on NEW, click here. All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this Upgrades and Revisions strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to the this powerful stock picking tool. Learn more about the Research Wizard and Free Trial offer at : http://at.zacks.com/?id=1370 5. ZacksAdvisor.com TIMELY BUY of the WEEK Resources Connection, Inc., (RECN) Resources Connection, Inc., (RECN) provides outsourced professional services on a project basis to firms of varying sizes in a broad range of industries worldwide. The company’s primary areas of expertise include: accounting and finance, information technology, human resources, risk management and internal audit, and supply chain management. The company also assists clients with periodic needs, such as budgeting and forecasting, audit preparation, public reporting, and assisting clients with their compliance efforts under the Sarbanes Oxley Act of 2002. The company, founded in 1996 as a division of Deloitte & Touche, became a wholly-owned subsidiary of Deloitte in January 1997. Resources Connection completed its initial public offering in December 2000, following a management-led buyout in April 1999. Diversification into new professional service lines, expansion of offices and staff strength, acquisitions, and benefits from the Sarbanes-Oxley Act are the key positives associated with the company. Resources Connection has posted strong internal growth. According to the company, it has grown at a compounded annual rate of 46.8% from fiscal year 1998 to 2003 by broadening its services.
Resources Connection Inc. announced its first-quarter profit more than tripled on its internal audit, finance and accounting businesses, beating industry expectations. For the three months ended Aug. 31, the company reported income of $11.6 million, or 46 cents per share, compared with $3.4 million, or 15 cents per share, in the year-ago quarter. Revenue for the quarter nearly doubled to $115.4 million compared with $59.5 million in the 2004 quarter.
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Zacks #1 Stocks on the Move 05/20/2013
| Company Name | Symbol | %Change |
|---|---|---|
| ORBOTECH LTD | ORBK | 10.86% |
| NOAH HOLDING | NOAH | 9.92% |
| SONIC FOUNDR | SOFO | 9.45% |
| VIPSHOP HOLD | VIPS | 9.20% |
| RENEWABLE EN | REGI | 8.98% |
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