Friday - November 17, 2006
 Want to view the archive of past issues? Click here. Manage Profit from the Pros subscription: 1. ZACKS RANK BUY STOCKS Zacks #1 Ranked stocks average a 32.4% annual return. Every day on Zacks.com we highlight four new 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 – Cognos (COGN) Cognos (COGN) has exceeded earnings estimates in 12 out of the past 13 quarters, with nine of those periods registering double-digit surprises. Seven analysts have raised their estimates for this year and next year. Over the past 60 days, this year's estimates have jumped 11% to $1.41 per share. Next year's estimates have risen 8.9% to $1.71 per share. Read the full analysis on COGN now! Ritchie Bros. Auctioneers Incorporated (RBA) exceeded analysts’ earnings expectations for seven consecutive quarters by an average margin of 28.6%. Earnings per share are projected to grow 15.5% over the next 3-5 years. Consensus estimates for both 2006 and 2007 have been trending higher. This Zacks #1 Rank stock has a current dividend yield of 1.6% and a five-year average dividend yield of 0.82%. Read the full analysis on RBA now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Chindex International (CHDX) reported earnings on Monday, Nov 13 at 15 cents per share. The result amounted to a 150% positive surprise when compared to the consensus earnings estimate of six cents. Read the full analysis on CHDX now! IPSCO, Inc. (IPS), which was first presented as a Value stock on Jan 31, continues to exceed analysts’ earnings expectations. When the company surprised to the upside by 16.3% for the third quarter, it marked the seventh straight quarter in which IPS beat the Street’s estimate. This Zacks #1 Rank stock has a price-to-book ratio of 2.0, compared to 4.7 for the market. IPS’s return on equity of 33% betters the industry average of 22%. Read the full analysis on IPS now!
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: PEG Ratio 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. Let's take a closer look. A company with a P/E Ratio of 20 and a Growth Rate of 10% will have a PEG Ratio of 2.0 (20 / 10 = 2.0). While a company with a P/E Ratio of 40 and a Growth Rate of 50% will have a PEG Ratio of only 0.8 ( 40 / 50 = 0.8) The stock with the P/E of 40 is actually the better bargain since its PEG Ratio is lower (0.8) implying it's undervalued with more upside potential. In general, a PEG value of less than 1 is considered undervalued while greater than 1 is thought to be fully valued to overvalued. The lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth. Here are four stocks that make the grade for the PEG Ratio Profit Track: Celadon Group, Inc. (CLDN) is a Zacks #1 Rank (Strong Buy) company that sports a PEG ratio of 0.52. In mid-October, the company released fiscal first-quarter earnings of 30 cents per share. The result improved on last year’s 20 cents and surpassed analysts’ expectations by approximately 7%. Celadon Group stated that higher freight rates and continued focus on cost controls allowed it to improve its operating ratio by 300 basis points to 89.2% in the September 2006 quarter from 92.2% in the September 2005 quarter. Continue your research on CLDN now! Houston Wire & Cable Company (HWCC) satisfies the criteria for this Profit Track as evidenced by its PEG ratio of 0.49. The company recently posted third-quarter earnings of 45 cents per share, beating the consensus estimate by nearly 41%. Sales increased to a record $90 million from the previous year’s $58 million. Wall Street has been issuing upward revisions of full-year earnings forecasts. Current 2006 estimates of $1.43 per share are 14% above one month-ago levels. Continue your research on HWCC now! NATCO Group, Inc. (NTG) recently reported third-quarter earnings per share of 49 cents, exceeding the consensus estimate by 2% and outperforming the year-prior result. The company mentioned that the continuation of strong market conditions in each of its operating areas, in combination with industry leading technology and a capable, global management team give it confidence that it should finish 2006 strongly and deliver another year of record results in 2007. NTG's PEG ratio is 0.37. Continue your research on NTG now! Tidewater Inc. (TDW) offers a PEG ratio of 0.27. The Zacks #1 Rank (Strong Buy) company recently announced its financial results for the fiscal second quarter. Earnings per share improved year-over-year and were ahead of Wall Street forecasts. In fact, Tidewater turned in earnings per share that have topped analysts’ estimates over the past five consecutive quarters. Continue your research on TDW now! To see the full list of stocks that currently pass this winning screen, 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 this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report “Top 10 Stock Screening Strategies.” - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Diversification and Portfolio Weighting Kevin Matras shows how a good stock screener can be your best tool for picking options. More... 3. ZACKS EQUITY RESEARCH As another quarterly earnings season for the U.S. auto industry comes and goes, a recovery in this market still seems as far off as ever. Is there any relief in sight anywhere? To find out, we asked senior auto analyst Paul Raman, CFA for his opinion. Are we seeing any improvement at all – either sequentially or year-over-year – is U.S. auto sales? Auto sales are still down in the mid-single-digits in the U.S., with even steeper declines for the gas-hogging SUVs. There is some slight improvement sequentially, but it is not appear to be significant at this time. Should we notice a trend emerging from this point forward, we may adjust our outlook somewhat. But this is rather unlikely right now. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - This has been a long and deep trough for the industry. Do you foresee anything getting better? The trough has been long and has been driven by increasing short-term rates. I do not see things changing, due to my belief that the Fed is not likely to cut rates in the near future. Again, if something were to change in this regard, so might our perspective. From a valuation perspective, might we be at or near attractive entry points, even if the recovery is still a ways off? The stocks have value, and this could be an entry point provided the investor is patient. Many stocks are trading at 8-10 times earnings, 3-6 times cash flow and near book value. Clearly, there is value here, which is something that perhaps many of the still-negative news items on the auto industry might be overlooking. Do you expect a shift in U.S. Congressional control might have some affect on automakers, such as a quicker ramp-up to autos using alternative fuels? Why or why not? I don't see Congress altering the auto industry's strategies significantly. This is driven primarily by rising gas prices and the impact the consumer has on the companies. Read the complete ANALYST INTERVIEW now. Paul Raman, CFA is a senior analyst covering the automotive industry for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Double Eagle (DBLE), Cerus Corporation (CERS), Regency Centers (REG) and Hoku Scientific (HOKU). To see their latest posts, click here. Regency Centers (REG). - Impressive Growth. For full Zacks research report, click here. Bank Mutual (BKMU) - Negative Returns Expected. For full Zacks research report, click here. Video Game Maker Scores Earnings Season Almost Over Find out which stocks have been recently upgraded by Zacks Equity Research: click here. Read the reports on all of the stocks on the Zacks Equity Research Buy List: click here.
4. FEATURED EXPERTS Here we cast the spotlight on timely Featured Expert commentaries that recently appeared on Zacks.com.
Bill Martin updates investors on the quarterly performance of a well-known bookseller. Check out his “Quick Hit Alert.” More...
Don Dion says contrarians could find opportunities in the coming quarters. Read his commentary and learn about the featured mutual fund. More...
Richard Lehmann discusses the investment opportunities available in international distressed debt. Benefit from his insight. 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. Or view the full list of Zacks #1 Ranked stocks. 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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