Friday - December 2, 2005
 Want to view the archive of past issues? Go to: http://at.zacks.com/?id=2283. Manage Profit from the Pros subscription: 1. ZACKS EQUITY RESEARCH Zacks Equity Research has a positive outlook for the drug-biotech group, and most of the excitement is stemming from the latter half of the space. Biotechnology companies are innovative and hold a lot of potential, but that hasn’t always translated into success for investors. The second half of the decade, though, may be a different story, as the industry’s research is finally beginning to pay off. The medical – biomed/genetics industry currently has a Zacks Industry Rank of 2.89, which places it 67th out of more than 200 industries. Since most biotech companies specialize in a specific area, the industry is very large and varied. Out of 158 companies with a Zacks Rank, two have a Zacks #1 Rank (Strong Buy) while 37 have a Zacks #2 Rank (Buy). Therefore, approximately 25% of the space has a buy rating, which leaves plenty of opportunity for investors. But, at the same time, the vastness of the industry means that demand for specific products, including those that have to yet to even exist, is paramount. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ”Biotechnology should deliver the next wave of pharmaceutical products to the market,” wrote Zacks Equity Research analyst Jason Napodano, CFA. “This should allow the group to outperform the broader sector.” Several factors will be boons for the industry, including an aging population and deep research & development spending. The fruits of that spending are driving the space forward, as there have been a number of breakthroughs in fields such as oncology, neurology, and cardiology. Consolidation in the industry is likely to rise from here on out as large pharma companies are in a good position to acquire smaller biotechs. This will allow them to boost profit potential by filling in holes in their more extensive pipeline. Small biotech and pharma companies will also likely join forces in order to better compete with the big boys and their product arsenals. The potential for combined M&A activity presents investors with a chance to pick up stocks that could appreciate substantially in the near future. Read the complete Industry Outlook at: http://at.zacks.com/?id=2362. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - BULL OF THE DAY Gilead Sciences (GILD) - Optimism in HIV Drugs. For full Zacks research report, click here. Aladdin Knowledge (ALDN) - Competition Mounting. For full Zacks research report, click here. Quick-Service Restaurants Look to Expand Finishing Up the Third Quarter
2. 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... Profit Tracks: Recent Price Strength This screen looks for stocks trading in the upper range of their 52-week highs along with attractive Zacks Rank and Broker Ratings. This strategy proves that the "trend is your friend" with a +14.6% return versus +2.4% for the S&P 500 for the first half of 2005 (through July 15). Here are four stocks that make the grade for the Recent Price Strength Profit Track: CE Franklin Ltd. (AMEX: CFK), an energy services company, recently reported third quarter earnings of 24 cents per share. The result beat the consensus estimate by 100% and was well above the result from last year. During the past four weeks, CFK’s share price has increased approximately 15% and is trading near its 52-week high. To continue your research on CFK click here. JLG Industries Inc. (NYSE: JLG), an industrial goods company, recently reported fiscal first quarter earnings of 54 cents per share, 58% above expectations and well above year ago levels. Over the past four weeks, the stock has soared about 25%, and the stock is currently trading near a new 52-week high. To continue your research on JLG, click here. Lakeland Industries Inc. (NASDAQ: LAKE), a healthcare equipment company, recently delivered fiscal second-quarter profits of 33 cents per share, 6% ahead of the consensus. Given this positive momentum in earnings, it is not surprising that shares of LAKE are trading near a new 52-week high and have advanced in price by about 2% over the past four weeks. To continue your research on LAKE, click here. Perficient Inc. (NASDAQ: PRFT), a business software company, recently posted third quarter earnings of eight cents per share, surpassing last year’s five cents and meeting the consensus estimate. Given positive earnings momentum, a share price increase of about 15% in the past four weeks, and a current share price that is right at its 52-week high, this company is proving that the trend is your friend. To continue your research on PRFT, click here. To see the full list of stocks that currently pass this winning screen, go to http://at.zacks.com/?id=2294. 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 this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report “Top 10 Stock Screening Strategies” at http://at.zacks.com/?id=2295. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Finding Growth Stocks at Excellent Values Kevin Matras shows you how to find great growth stocks at an excellent value: http://at.zacks.com/?id=2289. 3. ZACKS #1 RANK STOCKS The Zacks #1 Rank (Strong Buy) list is always limited to approximately 220 stocks. Four stocks that are currently included in this elite group are: Cal Dive International, JAKKS Pacific, Kopin and Plexus. Cal Dive International, Inc. (NASDAQ: CDIS) earnings estimates for the year ending December 2005 climbed 27 cents, or about 8%, from one month ago. For the 2006 year, current estimates are $4.92 per share, which is almost 16% above one month ago levels. In early November, the company reported third-quarter earnings of $1.05 per share, exceeding the consensus estimate by approximately 22% and improving on last year’s 59 cents. The company mentioned that due to the strength of its business model, it produced another record quarter for both earnings and cash flow. Continue your research on CDIS at: http://at.zacks.com/?id=2302. JAKKS Pacific, Inc. (NASDAQ: JAKK) posted third-quarter earnings of $1.05 per share in mid-October. The result topped the consensus estimate by about 19% and outperformed last year’s earnings. The company noted that it expects to realize its previously issued earnings guidance for 2005 of approximately $2.28 per share. Analysts project similar results. JAKK has surpassed analyst expectations in four out of the last five quarters. Continue your research on JAKK at: http://at.zacks.com/?id=2303.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kopin Corp. (NASDAQ: KOPN) earnings estimates for the year ending December 2005 jumped seven cents, or nearly 78%, over the past 30 trading days. Full year 2006 earnings estimates increased four cents, or nearly 31%, over the same time period. In early November, KOPN announced third-quarter earnings of eight cents per share, reversing last year’s loss of two cents and surging past the consensus estimate by 700%. The company noted that it delivered record performance on the top and bottom line. Continue your research on KOPN at: http://at.zacks.com/?id=2304. Plexus Corp. (NASDAQ: PLXS) earnings estimates for the year ending September 2006 moved up 15 cents, or approximately 17%, from one month ago. In early November, the company announced fiscal fourth-quarter earnings of 24 cents per share, topping the consensus estimate by about 41%. PLXS stated that it has consistently improved quarterly financial performance during this fiscal year, and ending the year on such a positive note is a tribute to the determined efforts of Plexus people around the world. Continue your research on TRN at: http://at.zacks.com/?id=2305. To see the full list of Zacks #1 Rank stocks (approximately 220 stocks), go to http://at.zacks.com/?id=2297. The Zacks Rank is a powerful stock indicator whose #1 Strong Buy stocks have risen by an average annual return of 33% since 1988 versus 11.8% for S&P 500. To help you fully understand how the Zacks Rank works and, more importantly, how you can profit by using the Zacks Rank, we have created a free report - The Zacks Rank - Harnessing the Power of Earnings Estimate Revisions. This valuable information is available at: http://at.zacks.com/?id=2296. 4. 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.
November, December and January are the three best months of the year for the stock market. For the best six-month period, add February, March and April. The Dow could rally to Dow 13,000 by mid-2006, which would correct most of the current market undervaluation. Another great economic boom and bull market is unfolding now. It will be driven by a number of unprecedented powerful forces. The most powerful force is the largest and wealthiest generation in U.S. history––the 77 million baby boomers who were born just after World War II. The first members of this generation will turn 65 starting in 2010. Between now and 2010, the spending power of this generation will produce the greatest economic boom in U.S. history, the greatest bull market in history and the last great real estate boom. Virtually no one believes that today. But no one would have believed that the Dow Industrial Average would triple between January of 1995 and January of 2000, either. But it did. And it was the least expected bull market in history. The 77 million baby boomers are purchasing vacation homes, retirement homes and second homes in the Sunbelt. And the migration of individuals of all ages from the Snowbelt to the Sunbelt is a powerful force for the real estate bubble in the Sunbelt states. Between 2005 and 2010, the spending power of 1.3 billion Chinese and over one billion English-speaking people in India will produce another great commodities boom. Over one-third of the world's population lives in China and India, and both countries are growing faster than the U.S (See the first chart on page 2.) High energy prices simply confirm the ongoing global economic boom. And the best is yet to come because of enormous global liquidity. During the economic boom and bull market between 1995 and 2000, the net worth of American households doubled from $20 trillion to $40 trillion. Since the bull market top in 2000, a bull market in bonds and real estate has added $10 trillion to household net worth. Americans are worth a record $50 trillion today. An estimated $26 trillion of the $50 trillion is fairly liquid, which is bullish for the stock market. Will household net worth double again from $50 trillion to $100 trillion by 2010? Don't bet against it. A record 139 million Americans are working today and they are the most productive work force on the planet! State, federal and local tax receipts are at record levels week after week, in spite of the damage from Hurricanes Katrina, Rita and Wilma. Economic liquidity is at record levels––and bull markets are all about liquidity. When the 1995-2000 economic boom and bull market began, only $2.8 trillion in cash was in money market accounts. Today, over $5.7 trillion is sitting in money market accounts. Corporations are holding a record $2 trillion in cash and cash equivalents. Corporate profits have been rising to record levels quarter after quarter for 13 straight quarters. Personal tax rates are still at the lowest levels in five decades. Meanwhile, the Fed has increased the Fed funds overnight interest rate from 1.0% in June of 2004 to 4.0% today. Nevertheless, the economic boom continues due to enormous liquidity and relentless growth of the M3 money supply. Fed Chairman Greenspan's best efforts to push-up mortgage rates have virtually failed. Mortgage rates are inching up, but they still remain near the lows. Rising home prices and rising real estate taxes will eventually slow the housing boom to a crawl. Mr. Greenspan will not puncture the housing bubble on his watch, which is scheduled to end on January 31, 2006. So, what does all of this enormous liquidity mean? It means that the U.S. stock market is the best low-risk investment opportunity between now and early to mid-2010. The stock market is currently 33% undervalued. Interest rates may rise a bit to correct some of the 33% undervaluation, but the Smart Money and the Wall Street Pros are betting that stock prices will rise dramatically to correct most of the undervaluation by mid-2006. Expeditors International of Washington (NASDAQ: EXPD) is engaged in the business of providing global logistics services. The company offers its customers a seamless international network supporting the movement and strategic positioning of goods. The company's services include the consolidation or forwarding of air and ocean freight. In each U.S. office, and in many overseas offices, the company acts as a customs broker. The company also provides additional services including distribution management, vendor consolidation, cargo insurance, and purchase order management. Lawson Software, Inc. (NASDAQ: LWSN) is a leading provider of enterprise software solutions targeting specific services industries. They offer comprehensive financial management, human resources, professional services automation, procurement, distribution and customer relationship management solutions designed to manage, analyze and improve its customers’ businesses. Their software solutions automate and integrate critical business processes, facilitating collaboration among customers, partners, suppliers and employees. Red Hat, Inc. (NASDAQ: RHAT) iis a leading developer and provider of open source software and services, including the Red Hat Linux operating system. Unlike proprietary software, open source software has publicly available source code and can be copied, modified and distributed with minimal restrictions. The web site, REDHAT.COM, is a leading online source of information and news about open source software and one of the largest online communities of open source software users and developers. A SUPER ECONOMIC BOOM IS COMING! Momentum investor, Donald Rowe brings decades of experience and helps you utilize The Wall Street Profit System 2005TM to double your money every three years! http://at.zacks.com/?id=2328. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - b) Rate Increases Coming to an End? Joseph Parnes explains that today’s bond market may impact the future of homebuilders. Then he details some long positions. More... c) Don’t Expect the Economy to Stall Mutual Fund expert Don Dion informs investors that during the third quarter the economy marched at its fastest pace all year. More... 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 Ranked (Strong Buys) have produced the following results for investors:
And just as importantly, the Zacks #5 Rank stocks (Strong Sell) List has 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=2296. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=2297. 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, Charles Rotblut, CFA 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 Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. 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 05/17/2013
| Company Name | Symbol | %Change |
|---|---|---|
| VIASAT INC | VSAT | 19.35% |
| OLD SECOND B | OSBC | 5.76% |
| GAMCO INVEST | GBL | 4.61% |
| CORNING INC | GLW | 4.47% |
| SYNCHRONOSS | SNCR | 4.23% |
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