Thursday - May 26, 2005
 Want to view the archive of past issues? Go to: http://at.zacks.com/?id=114. Get Profit from the Pros content in Real-Time. 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.
Stocks were sharply higher last week after positive news was reported on several fronts. All of the major indexes reported similarly strong gains. The NASDAQ Composite led the way for the third consecutive week with a 3.5% gain for the period. The S&P 500 and the Dow Jones Industrial Average followed closely behind in adding 3.3% and 3.5%, respectively. The government reported last week inflation figures for the month of April. The headline number for consumer inflation indicated a 0.5% increase in consumer prices. However, the core CPI, which excludes food and energy prices, was unchanged for the month. This helped to assuage investors’ fears that higher energy prices are starting to seep into other areas of the economy. In addition to the positive inflation data, there was good news regarding energy. The U.S. Department of Energy said last week that crude stocks for the week ended May 13 rose by 4.3 million barrels to 334 million barrels, the highest monthly figure since May 1999. OPEC also pegged its inventories at 53.8 days, which is close to their goal of 55 days. Finally, gasoline reserves rose a greater-than-expected 1.1 million barrels last week to 214.8 million. The high reserves make it likely that any spike in energy prices will be limited during peak summer demand and energy prices much more likely to be lower by autumn. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The good news on inflation will allow the Fed to maintain its “measured” approach to raising interest rates. This means we can look forward to quarter-point hikes at the Fed’s June and August meetings. These small hikes will not affect the economy, but will allow the Fed more room in the future to reduce rates should the economy stumble. Stocks have responded well to all of the news and are now in an up-trend. It is important to note that valuations remain near multi-year lows despite the climb in prices, as earnings have risen correspondingly. As such, cautious investors can feel confident in buying stocks at current prices knowing the investment environment has improved and valuations are quite reasonable. Hydril (NASDAQ: HYDL) is engaged worldwide in engineering, manufacturing and marketing premium tubular connections and pressure control products for oil and gas drilling and production. Its premium tubular connections are used in drilling environments where extreme pressure, temperature, corrosion, and mechanical stress are encountered and environmentally sensitive drilling. Its pressure control products are primarily safety devices that control and contain fluid and gas pressure during drilling, completion, and maintenance of oil and gas wells in the same environments. Ventiv Health, Inc. (NASDAQ: VTIV) is a unique sales and marketing partner providing innovative strategic and tactical solutions globally for the pharmaceutical and life sciences industry. The company offers a broad range of integrated sales and marketing services including educational programs targeted to physicians, specially-designed strategic marketing plans, and sales execution utilizing its own extensive sales network. American Eagle Outfitters (NASDAQ: AEOS) announced on Tuesday that the company’s President, Roger Markfield, will be stepping down. However, Mr. Markfield will serve as President through this year and has signed an agreement to serve as an advisor to the company through 2012. Susan McGalla, Executive Vice President of Merchandising, was promoted to President of the American Eagle Brand, in which she will be directly responsible for the design, merchandising, and marketing functions. Ms. McGalla has been a key to the company’s recent growth and improvement. VeriSign (NASDAQ: VRSN) announced on Wednesday the acquisition of R4 Global Solutions, a leading provider of solution consulting services for companies evolving their supply chains with the implementation of Radio Frequency Identification (RFID), Electronic Product Codes (EPC), and other data sources. VeriSign purchased R4 Global Solutions for $15 million in cash. OTC Insight® specializes in growth stocks, particularly in the small to mid-cap range. This monthly publication, which focuses on Nasdaq listed stocks, is a by-product of the research we use to select stocks for our managed client portfolios through Insight Capital Research and Management, Inc.® Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=342. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Richard Moroney says investors seeking health exposure should spread their bets. More... Paul Tracy demonstrates how to position a portfolio for solid gains in a volatile market: More... Gregory Spear believes that we may be in the late stages of a cyclical bull market. More... Charles Norton and Allen Gillespie say Urban Outfitters has plenty of room to grow. More... f) A Key Area of Value in the Financial Sector Kelley Wright and his team believe that Citigroup remains a profitable proposition for the long-term. 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. BEST OF ZACKS EQUITY RESEARCH BULL OF THE DAY Jacobs Engineering (JEC) - Work Projects Returning. Tom Online - ADR (TOMO) - Growing Competition in China. Las Vegas Keeps Getting Hotter Water Utilities Benefit from Population Growth Earnings Guidance Positive So Far
3. 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 Profit Track strategy uses Return on Equity (ROE) to discover solid stocks. ROE is one of the quickest ways to gauge whether a company is creating assets or gobbling up investors’ cash. One of the quickest ways to gauge whether a company is creating assets or gobbling up investor’s cash is to look at their ROE. This fast moving Profit Track returned +70.4% in 2003 and an impressive +30.3% in 2004. Barnes Group, Inc. (NYSE: B) has a ROE of 11.11 and a price to sales ratio of .69. In mid-April, the company said it had a balanced, strong first quarter with each of its business segments generating record sales. Each segment also experienced organic growth during the quarter. Barnes Group’s first-quarter earnings of 54 cents per share topped the consensus estimate by almost 23% and beat last year’s 40 cents. To continue your research on B, click here. The Pantry, Inc. (NASDAQ: PTRY), which has a price to sales ratio of .20, recently reported fiscal second-quarter earnings of 18 cents per share. The result was ahead of the consensus estimate by about 38%. The company commented that it had record earnings and comparable store volumes were above expectations for this seasonally weak period. With a ROE of 26.90, this operator of convenience stores is a solid company that is creating assets. To continue your research on PTRY, click here. Rent-Way, Inc. (NYSE: RWY) recently posted fiscal second-quarter earnings per share that eclipsed the consensus estimate by an impressive 350%. This operator of rental-purchase stores mentioned that its new stores, which it defines as those open less than 15 months, continue to collectively perform ahead of plan. In addition, its store opening plan remains on course. Rent-Way is another solid name that boasts a ROE of 13.71 and a price to sales ratio of .46. To continue your research on RWY click here. UGI Corporation (NYSE: UGI) is a holding company that distributes and markets energy products and related services through subsidiaries and joint venture affiliates. The company recently announced a pre-stock split second fiscal quarter earnings of $2.23 per share, surpassing last year’s result and exceeding the consensus estimate by almost 27%. With a ROE of 20.15 and a price to sales ratio of .58, this is a company that’s creating assets with an appealing valuation. To continue your research on UGI, click here. All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening 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=1993 4. ZacksAdvisor.com TIMELY BUY of the WEEK Yellow Roadway Corp. (YELL) Yellow Roadway Corporation, formerly known as Yellow Corporation, is a holding company that, through wholly owned operating subsidiaries (Yellow Transportation, Roadway Express, New Penn, Reimer Express, Meridian IQ and Yellow Technologies), offers its customers a wide range of asset based and non-asset-based transportation services integrated by technology. In addition, it is one of the world’s largest providers of regional, national, and international less-than-truckload (LTL) transportation service to the industrial, manufacturing and retail industries. The company provides these services through three reportable segments including Yellow Transportation, Meridian IQ, and Roadway Express. Yellow Transportation, its largest operating unit, provides transportation services by moving shipments through its regional, national and international networks of terminals, utilizing primarily ground transportation equipment that it owns or leases. Meridian IQ is a non-asset global transportation management company that plans and coordinates the movement of goods worldwide to provide customers a single source for transportation management solutions including carrier management, order management, shipment planning, shipment execution, and financial reconciliation. YELL reported an excellent March 2005 quarter. Earnings came in at 92 cents per share, which beat estimates by more than 8% and represented solid growth over last year. The stock should continue to outperform due to their strong earnings momentum.
5. WEEKLY COMMENTARY: All Star Top Picks Zacks.com offers three unique weekly commentaries that all
further our mission to help you Profit from the Pros. Today we
will uncover the current top picks of 5-Star analysts in a hot
sector (a.k.a. All Star Top Picks). Why? First, it makes sense
to tap into industries that have potential to outperform the
market. Second, within that sector you want to be on board the
stocks with the best prospects. To help us uncover these top
picks we employ the keen insights of 5-Star analysts. Who are
they? Check out the "About Zacks All Star Analyst Survey"
section below. This week we explore the Apparel Retail Industry Consumers account for approximately two-thirds of the U.S. economy and the retail industry is often used as a sentiment barometer. April turned out to be a lackluster month for sales; neither disastrous as to cause panic nor encouraging enough to inspire confidence. May is more than half over now and analysts aren’t expecting much for this month either, especially since a good portion of the country is toiling through un-spring like weather. But recent performances from the likes of American Eagle Outfitters and Abercrombie & Fitch suggest that several apparel retailers are weathering this malaise quite well. In fact, the apparel/shoe retail industry has a Zacks Industry Rank of 2.71, according to Nick Raich’s “Weekly Earnings and Sector Update,” which places it 44th out of more than 200 industries. No major catalysts are expected for the first quarter. A few companies will register positive earnings surprises but the industry as a whole will likely be hampered by modest same-store sales at best. The year-over-year comparison will make the situation even tougher since the year-ago month had a solid performance. Nonetheless, fundamentals for the industry are appealing, given low inventory levels and improved pricing. Such factors should help first quarter results come in line with expectations while keeping a lid on major downward revisions for the second quarter. Analysts are looking past the near-term though and like what they see for their respective apparel retail universes. As the summer undoubtedly makes its presence known, the industry will have easier comparisons in June and July. Retailers are already preparing for the dog days with several companies in a strong position to gain ground, especially those oriented toward the teen demographic. This all sets the stage for what many analysts believe will be the major catalyst for retail, namely the back-to-school season. This late-summer, early-fall bonanza should be just what the doctor ordered for an industry that’s, literally and figuratively, under the weather. Add to that an improving economy and jobs market, neither of which are certain though, and you have the makings for an industry that’s running on all cylinders. However, apparel retail is an immense industry with dozens of companies competing for dollars, both in your wardrobe and in your portfolio. The analysts that cover this space are your most important resource in discovering those retailers with the product and plan best situated to thrive. They can also alert you to the companies will follow the macro trend in the economy, whether it be to the upside or downside. With the help of these analysts, you can insure that your portfolio is always in style. Who are the All Star Analysts of the Apparel Retail Industry? What stocks do they recommend now? The answers to these questions are found in the remainder of this All Star Top Picks article at : http://at.zacks.com/?id=1451. To see the full All Star Survey with access to all ratings, research and stock picks, then visit: http://at.zacks.com/?id=12. These are the best stock picks from the best stock pickers in
the business. This portfolio only includes stocks recommended
by five or more of the 5-Star analysts based on stock picking
performance. Since inception in July 2002 it has gained +38.7%
outpacing the +27.3% return of the S&P 500. See the full
portfolio at: http://at.zacks.com/?id=13 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SCREEN OF THE WEEK EPS Growth -- Past and Present Kevin Matras combines short-term and long-term Historical Earnings Growth with Earnings Estimate Revisions: http://at.zacks.com/?id=1410. OTHER TOOLS FROM ZACKS At the heart of Zacks Investment Research is the Zacks Rank investment philosophy that continues to vastly outperform the market. Our Zacks #1 Rank (Strong Buy) List has produced the following results for investors:
And just as importantly, our #5 Ranked stocks (Strong Sells) have alerted investors as to which stocks to dump from their portfolios to avoid unnecessary losses. To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Download a free copy now to prosper in the years to come, by visiting: http://at.zacks.com/?id=1424. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=1423. FREE PORTFOLIO TRACKER Do you believe that these events affect stock prices?
If you answered yes, then how are you staying on top of these changes for your stocks? If you are one of the 45,000 investors who wake up every morning to the Daily Portfolio Updates emails from Zacks.com, then you are all set. If not, then sign up now to get this vital information sent to you daily to help take definitive action to improve your portfolio's performance. Did we mention it's free? Get started now! We hope you enjoyed this issue of "Profit from the Pros", And we look forward to visiting with you again next week. REFER-A-FRIEND If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. If you're reading a forwarded copy, sign up for your own, so you get this wealth of information every week. Just click here. THANKS! Regards and Happy Investing, Stephen Reitmeister p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor. *The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. To contact us by mail: Zacks Investment Research To unsubscribe from receiving "Profit from the Pros" e-mail newsletter, click here. | ||||||||||
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Zacks #1 Stocks on the Move 05/21/2013
| Company Name | Symbol | %Change |
|---|---|---|
| SCIENTIFIC L | SCIL | 8.00% |
| NATUS MEDICA | BABY | 6.11% |
| SUMMER INFAN | SUMR | 6.02% |
| RADIANT LOGI | RLGT | 5.32% |
| NEW ORIENTAL | EDU | 4.51% |
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