Monday - December 4, 2006
 Want to view the archive of past issues? Click here. Manage your Profit from the Pros subscription: 1. ZACKS RANK BUY STOCKS Zacks #1 Rank stocks average a 31.8% 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 - The Genlyte Group Incorporated (GLYT) The Genlyte Group Incorporated (GLYT) beat the Street’s earnings estimate for 16 consecutive quarters, with eight of those periods registering double-digit surprises. The company, which was first featured as an Aggressive Growth pick on Sep 12, is up an impressive 25%. Analysts have been upping their profit forecasts for both this year and next. GLYT is trading at 19.1x this year's estimates, below the projected long-term growth rate of 20.0%, giving the stock a PEG ratio of 0.96. Read the full analysis on GLYT now! Growth & Income - Airgas, Inc. (ARG) Airgas, Inc. (ARG), which was first presented as a Growth & Income pick on Mar 31, exceeded analysts’ earnings expectations over the past six quarters by an average margin of 7.9%. After posting solid results for the second quarter, the company upped its full-year earnings per share guidance. ARG has a current dividend yield of 0.66% and a five-year average dividend yield of 0.55%. Read the full analysis on ARG now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum - Gulf Island Fabrication (GIFI) On Nov 1, Gulf Island Fabrication (GIFI) reported third-quarter earnings of 75 cents per share, improving 316% from the same quarter in 2005. GIFI’s result also marked an 88% positive surprise above analysts’ consensus estimates. It was the second consecutive quarter that GIFI delivered a positive earnings surprise. Read the full analysis on GIFI now! Value - Lennox International, Inc. (LII) Lennox International, Inc. (LII), a Zacks #1 Rank stock, topped analysts’ earnings expectations for five straight quarters by an average margin of 15.1%. Consensus estimates for both this quarter and the full year of 2006 have risen over the past 60 days. The company has a price-to-book ratio of 2.5, compared to 4.9 for the market. Its return on equity of 19% betters the industry average of 18%. Read the full analysis on LII now! Zacks Rank Resources
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. Arch Capital Group Ltd. (ACGL) is a Zacks #1 Rank (Strong Buy) company that sports a PEG ratio of 0.47. In late October, the company reported after-tax operating income of $2.62 per share for the third quarter. The result topped the consensus estimate by nearly 45% and reversed the year-ago loss. Arch Capital Group’s quarterly earnings per share have come in ahead of analysts’ expectation each time over the past four consecutive quarters. Continue your research on ACGL now! The Manitowoc Company, Inc. (MTW) recently released an update on its full-year 2006 expectations and provided an initial year 2007 forecast. For 2006, the company anticipates earnings per share to range between $2.70 and $2.75 excluding special items. Analysts are in agreement as evidenced by current estimates of $2.75 per share, which moved up from the two months-ago level of $2.61. MTW’s outlook for 2007 ranges between $3.75 and $4.00. Wall Street is currently forecasting $4.00, up 30 cents from last week. MTW's PEG ratio is 0.44. Continue your research on MTW now! Superior Energy Services, Inc. (SPN) offers a current PEG ratio of 0.38. In late October, the company announced third-quarter earnings of 68 cents per share, exceeding Wall Street expectations by nearly 10% and surpassing the year-ago result. The company has topped analyst earnings estimates for the past four straight quarters. Superior Energy Services stated that all business units performed very well. Continue your research on SPN now! Tidewater Inc. (TDW) can be an attractive value investment as its PEG ratio currently stands at 0.28. The Zacks #1 Rank (Strong Buy) company posted fiscal second-quarter results in late October. 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Great Stocks often have Great Peers Kevin Matras looks at how to find winning stocks in the winningest sectors. Read more... 3. ZACKS EQUITY RESEARCH This week’s volatility could be followed by more volatility next week. A few important economic reports will be matched by a probable drop in earnings estimate revisions, leaving traders to speculate as to what is going to happen in the first quarter and beyond. Expected cold temperatures could cause oil prices to rise even further. On the geopolitical front, the commission led by James Baker and Lee Hamilton will release their bipartisan report on Iraq. Although the report won’t directly impact market direction, it will generate a lot of discussion. Oil traders may keep an eye on the political fallout with a focus of trying to figure out whether Middle East policy will change as a result of the report. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Tuesday brings revised third-quarter productivity, October factory orders and the November ISM non-manufacturing survey. The New York Fed Manufacturing Index and the October FOMC meeting notes will be released on Wednesday, potentially causing a an increase in volume and volatility during the afternoon session. Initial jobless claims, as always, will be released on Thursday. November employment numbers will be published before the open on Friday, followed by the 10 a.m. release of the University of Michigan’s preliminary December consumer confidence index. The FOMC will hold its final meeting of the year on Dec 12. Rates are not expected to change. The year’s final IPOs could be completed next week. Among the offerings on deck are footwear maker Heelys, low cost airline Allegiant Travel Company and coal and natural gas partnership Penn Virginia. Companies That Could Surprise During the Week of Dec 4 – 8 JoS. A. Bank Clothiers (JOSB) is the only company reporting next week with a recent upward revision in quarterly earnings estimates. Over the past 30 days, two of the five covering analysts adjusted their forecasts, causing the consensus to rise by a penny to 30 cents per share. Investors should note that the 60-day old estimate was also at 30 cents per share, so this is not a very strong signal. JOSB did beat second-quarter estimates by three cents and has topped expectations during three out of the past four quarters, so a positive surprise is not out of the realm of possibilities. JoS. A. Bank will report on Thursday, Dec 7, before the start of trading. America’s Car-Mart (CRMT) warned that it would likely report a second-quarter loss in a range of 16 to 20 cents per share; analysts had been expecting a profit of 32 cents per share. The company said that a greater proportion of customers were having difficulties making payments. In addition, comparable store-sales were down. Analysts cut their projections to a loss of 18 cents per share, as well as materially lowering projections for fiscal 2007 and fiscal 2008. CRMT has missed expectations during three out of the past four quarters. Fleetwood Enterprises (FLE) said a few weeks ago that fiscal second-quarter revenues totaled approximately $528 million, a 16% decrease from a year ago. (Higher interest rates and higher fuel costs are negatively impacting the mobile home industry.) All of the covering analysts promptly lowered their fiscal second-quarter forecasts causing the consensus estimate to fall by 27 cents to a loss of 33 cents per share. FLE has missed expectations for two consecutive quarters, most recently by a margin of 15 cents. Fleetwood will report on Thursday, Dec 7. Toll Brothers (TOL) announced preliminary fiscal fourth-quarter results in early November, which caused analysts to slash their projections. Since that time, analysts have cut their forecasts even further. The current consensus estimate calls for fiscal fourth-quarter profits of $1.05 per share, two cents less than a week ago and 25 cents less than a month ago. The most recent consensus is even more bearish at $1.00 per share. TOL does have a history of exceeding expectations, but the trend right now is clearly pointing to a miss. Toll Brothers will report on Tuesday, Dec 5, before the start of trading. Read the complete Earnings Preview now! Charles Rotblut, CFA is the Senior Market Analyst for Zacks.com. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include BHP Billiton Ltd. (BHP), Winston Hotels (WXH), Wyeth (WYE) and Credit Suisse Group (CSG). To see their latest posts, click here. Baker Hughes, Inc. (BHI) - Strong, Steady Growth. For full Zacks research report, click here. LeapFrog Enterprises (LF) - Weakening Market. For full Zacks research report, click here. Best of EuroTech Getting Pricey Seasonal Lull 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. RESEARCH DIGEST What is Wall Street saying about your stocks? You’ll find the answer in our exclusive Research Digest reports. Everyday we provide three new free reports on Zacks.com. The rest are made available to our Zacks Premium members. BB&T Corporation (BBT) The Hershey Company (HSY) The Ryland Group, Inc. (RYL) Click here to see all Research Digest Reports All Star Analyst Portfolio Broker Rating Upgrades 5. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentary that recently appeared on Zacks.com. Back to Energy Gregory Spear sees a rotation back to energy. Check out his commentary and stock profile. More... Don Dion provides his economic outlook. Discover what this mutual fund expert has to say about the retail sector. More... Dr. Edward Olmstead expects sideways action with an upside bias for November and says option buyers should focus on the longer term. 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 at. 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 and 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 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 06/19/2013
| Company Name | Symbol | %Change |
|---|---|---|
| SONIC FOUNDR | SOFO | 4.40% |
| SUPPORTCOM I | SPRT | 3.75% |
| UNISYS CORP | UIS | 3.31% |
| SHORETEL INC | SHOR | 3.22% |
| GREEN MOUNTA | GMCR | 3.13% |
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.
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