Friday - May 12, 2006
 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 Keeping tabs on the woes of the automotive industry for Zacks Equity Research is senior analyst Paul Raman, CFA. We wanted to find out if Q1 numbers were offering any good news for investors, and to see when he might expect to see some light at the end of the tunnel. Are Q1 earnings showing any positive signs in the automotive industry? If so, what? So far, earnings results have been weak in the auto industry. Earnings are being battered by high raw material costs, slow volumes and weak pricing. Generally, there are very few positive signs to point to. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The last time we spoke, you mentioned hybrid cars took only 1% of the market. Do you see this increasing in the future? If so, how high, and by when? Hybrid cars are still about 1% of the market. There is gas savings from hybrids, but prices for these vehicles are far above gas-powered vehicles. This is stunting demand growth for these cars. This market share will grow in the future, but I don't have a specific prediction by how much due to alternative vehicles such as hydrogen powered vehicles, etc. Gas prices could fall should a recession hit the U.S., possible by as much as 50%. Does Ford continue to make inroads in hybrid vehicles? Does GM plan on getting into the game anytime soon? Ford (F) is making some progress with hybrids, particularly in the SUV area. I don't see GM (GM) as a formidable competitor in the near future with hybrids, as they tend to be focusing on hydrogen-powered vehicles. What are some of your top Buy and Sell recommendations at this time? Toyota (TM) and Honda (HMC) are two key Buys. They have small cars that don't break and are affordable. These companies are the ideal beneficiaries from high gas prices and they can gain market share from GM and Ford due to high gas prices. ArvinMeritor (ARM), Dana (DCN) and Delphi (DPHIQ.PK) are key Sells. These suppliers sell to GM and Ford primarily, and are being hit by weak pricing and high raw material costs. Pension and health care issues are hurting these companies. Your outlook for the auto industry: when does it start to appear more favorable, in your estimation? The key to the auto industry improving is to stop seeing interest rates increasing. This should help auto demand and stabilize the housing market. Gains in the housing market have been financing auto purchases by consumers. Any declines in raw material costs would help as well, as pricing power in the industry is likely to remain weak. Paul Raman, CFA is a senior Zacks analyst covering the automotive industry. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog - NEW! Get real-time market insights from Zacks Equity Research Analysts. To see the latest posts, click here. Comstock Resources (CRK) - Strong Production Growth. For full Zacks research report, click here. UAL Corp. (UAUA) - High Costs & Competition. For full Zacks research report, click here. Rebound Continues for Hotels In the Home Stretch
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: Earnings and Margins This Profit Track goes to the heart of fundamental investing by finding companies with healthy earnings. The main ingredients are the search for Earnings Growth and Net Profit Margins. Then for good measure we make sure earnings estimates are moving higher which is a strong indicator of future performance and that brokerage firms are positively rating the stock. Earnings are the single most important metric for a company. Combine that with a healthy Net Profit Margin and you find a screen that has generated a cumulative return of +425% since January 2001. During 2005, this screen continued its winning ways with a +22.3% return. Here are four stocks that make the grade for the Earnings and Margins Profit Track: Commercial Metals Company (CMC), a Zacks #1 Rank (Strong Buy) company, generated earnings growth of nearly 110% last year over the previous year. In late March, CMC announced second-quarter earnings of $1.29 per share, improving on the year-prior result of 91 cents and exceeding the consensus estimate by over 31%. Revenues increased 3% to $1.64 billion in the quarter from $1.6 billion a year earlier. Continue your research on CMC at: http://at.zacks.com/?id=2290. Kforce, Inc. (KFRC), a provider of professional and technical specialty staffing services, has met or exceeded analysts’ earnings expectations for seven consecutive quarters. The company topped the Street’s estimate by 15.4% in early May when it posted first-quarter profits of 15 cents per share. The company’s EPS in the prior-year quarter amounted to eight cents. Earnings at Kforce, Inc. grew close to 62% last year compared to the year prior. Continue your research on KFRC at : http://at.zacks.com/?id=2291. Ladish Co., Inc. (LDSH) meets the requirements for this Profit Track with annual earnings that were up an impressive 250% year-over-year. LDSH recently posted first-quarter earnings of 54 cents per share, surpassing the previous year’s 19 cents and surpassing the consensus estimate by 74%. The company said the strong performance in the first quarter stemmed from a rebound in the airline industry and the economy as a whole. Continue your research on LDSH at: http://at.zacks.com/?id=2292. The Manitowoc Company, Inc. (MTW), another Zacks #1 Rank (Strong Buy) company, has seen earnings growth of 62% year-over-year. The company has topped analysts’ earnings estimates in five straight quarters by an average margin of 11.8%, most recently by 11.9%. MTW recently raised its full-year 2006 earnings per share guidance. The company now expects 2006 earnings per share between $2.15 and $2.25. Continue your research on MTW at: http://at.zacks.com/?id=2293. 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. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Three Days Up: Price and Volume Kevin Matras goes over a price and volume screen for finding stocks on the move, NOW!!!: http://at.zacks.com/?id=2289. 3. ZACKS RANK BUY STOCKS Every day on Zacks.com we highlight four Zacks Rank Buy stocks. Each individual stock is chosen based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Momentum, Growth & Income and Value. Aggressive Growth – Foundation Coal Holdings, Inc. (FCL) Growth & Income – Caterpillar, Inc. (CAT) More...
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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.
There are certain basic dominant themes. The perception that the Fed is nearing the end of its interest rate cycle has weakened the dollar. The potential conflict in the Middle East continues to pressure commodity prices higher. As summer approaches, investors’ sector rotations are beginning to favor a more cautious and defensive allocation. While steel stocks have been very strong and have been leading all sectors, a weaker dollar would make U.S. steel cheaper as an export, so demand would increase. With centrals banks selling the dollar in anticipation of a U.S. rate cap the dollar could be under pressure for a while, so this is one group Dennis Slothower would be looking to buy in on pullbacks. Another theme related to the falling dollar is the rise in gold and mining stocks. If the dollar continues to trend lower, gold can still pack a punch and head much higher. Energy stocks continue to push higher, and frankly Slothower doesn’t know how long this trend will last. As long as the U.S. and Iran rattle their sabers heading into the summer months, Slothower will be on the side of the bulls when it comes to crude oil. If that should happen, ethanol could become more widely used. There is tremendous growth potential in the U.S. ethanol industry should gas prices stay high. Compared to other octane enhancers, ethanol remains the most viable and economical choice. The next few months should be exciting and profitable. Markets will react and over-react, and Slothower will keep you in the loop so we can bank those profits. Datalink Corporation (DTLK) operates as an information storage architect in the United States. It analyzes, designs, implements, and supports information storage infrastructures that store, protect, and provide continuous access to information. The company also offers installation and support services, consulting services, and configuration services. Datalink was founded in 1958 and is headquartered in Chanhassen, Minnesota. Amerigon Inc. (ARGN) engages in the design, development, and marketing of thermoelectric devices for sale to automobile and truck original equipment manufacturers in the United States and internationally. It has an agreement with Carrier Corporation and United Technologies Research Center to focus on the specific application of thermoelectrics to heating, refrigeration, and air conditioning systems for residential, commercial, and aerospace applications. Amerigon was founded by Lon E. Bell in 1991 and is headquartered in Dearborn, Michigan. During my 25-year career as a money manager, I’ve tested hundreds of market indicators. I’ve fine-tuned my strategy using specific indicators that work together to predict the market with incredible accuracy and find stocks flying under the radar screen. Indicators are pointing to a strong bull market in 2005. I don’t want you to miss a single day of what I’m convinced will be a spectacular bull market. http://at.zacks.com/?id=2366. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - b) Validea Hot List Handily Outperforms John Reese updates investors on the performance of the Hot List. Learn how well it stacks up against the S&P and discover three stocks. More... c) Economics Isn’t for Everyone - Unfortunately Kelley Wright says it may be time for oil to correct from a short-term trading perspective, and also highlights a couple of featured stocks. 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 05/20/2013
| 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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