Monday - January 22, 2007
 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 - Autodesk (ADSK) Autodesk (ADSK) has beaten earnings expectations in each of the last 14 quarters. Nine of the surprises have been over 10%. Year-over-year growth has been explosive over this time period. Three analysts have raised their estimates for both this year and next. 2007 estimates have increased eight cents to $1.29 per share over the past 90 days. Similarly, next year's estimates have risen 11 cents to $1.60 over that time period. Read the full analysis on ADSK now! Growth & Income - Total System Services, Inc. (TSS) Total System Services, Inc. (TSS) is a Zacks #1 Rank stock that has either matched or beat the consensus earnings estimate for the past 16 quarters. The company recently reported impressive results for both the fourth quarter and the full year. TSS has a current dividend yield of 0.94% and a five-year average dividend yield of 0.68%. The company’s return on equity nearly doubles that of the industry average—20% compared to 11%. Read the full analysis on TSS now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum - Verifone Holdings (PAY) On Dec 7, Verifone Holdings (PAY) reported earnings of 30 cents per share for the quarter ended October 2006. The EPS was 66.7% higher than the October 2005 quarter and an 11% positive surprise above analysts’ expectations. Sales grew 20% to $156.6 million while income grew 73% to $20.9 million. The next earnings report is expected to be released on Feb 22, with analysts’ consensus estimate of 30 cents. Read the full analysis on PAY now! Value - ProCentury Corporation (PROS) ProCentury Corporation (PROS) beat analysts’ earnings expectations for the past four quarters by an average margin of 14.0%, helping this insurance holding company retain its Zacks #1 Rank status. On Nov 15, the company’s Board of Directors declared a quarterly cash dividend of four cents per share. ProCentury has a price-to-book ratio of 1.8 and its PEG ratio currently sits at 0.79. Its return on equity of 16% tops the industry average of 13%. Read the full analysis on PROS 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: Discounted Fundamental Strength This Profit Track identifies stocks with strong underlying fundamentals and low valuations. These are companies with solid balance sheets and a history of profitability that are reasonably priced. Although conservative in approach, this strategy has generated double-digit returns for five consecutive years. Drew Industries, Inc. (DW) will announce fourth-quarter results in mid-February. In late October, the company reported third-quarter net sales of $181 million, increasing from they previous year’s $171 million. Drew Industries satisfies the criteria of this Profit Track with a current ratio of 2.04 and a debt/equity level of 0.35. The company offers a PEG ratio of 0.85 and a price/sales multiple of 0.73. Continue your research on DW now! Gehl Co. (GEHL) reported third-quarter results in late October. Earnings per share totaled 59 cents, which topped the consensus estimate by 5% and exceeded the year-ago result. The company said its record third-quarter results showed continuous progress as GEHL achieved solid revenue growth and improved gross margins. GEHL has a PEG ratio of 0.74 and a price/sales multiple of 0.63. Continue your research on GEHL now! JAKKS Pacific, Inc. (JAKK) offers current ratio of 2.74 and a debt/equity level of 0.17. In mid-October, the company posted third-quarter earnings of $1.26 per share, eclipsing the year-prior $1.05 and beating Wall Street forecasts by approximately 2%. JAKK stated that with strong initial orders for the holidays, it achieved record third-quarter sales and has positive momentum heading into the fourth quarter. Continue your research on JAKK now! Plexus Corp. (PLXS) will release financial results for its fiscal first quarter on January 24, 2007. In early November, the company reported non-GAAP earnings of 54 cents per share for the fiscal fourth quarter. The result surpassed last year’s 24 cents and outpaced analysts’ expectations by nearly 15%. Plexus noted that the balance sheet was strengthened in 2006 by strong cash flows from operations. The company’s current ratio stands at 2.25 and its debt/equity level is 0.05. Continue your research on PLXS 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ‘Magic Numbers’ and Relative Valuations Kevin Matras looks at how to find winning stocks in the winningest sectors. Get four top picks from the top four sectors Read more... 3. ZACKS EQUITY RESEARCH Earnings season has not gotten off to as good a start as I would have expected. Through Thursday evening, positive surprises have outnumbered negative surprises by a ratio of 1.5:1 for stocks within the Zacks Rank universe. At a similar point during third-quarter earnings season, positive surprises were outnumbering negative surprises by a margin of 2.1:1. Profits are rising, but not a rate that I would consider to be spectacular. The median company has reported fourth-quarter profit growth of 9.4%. On an adjusted basis (which excludes the top and bottom 5% of companies), profits have risen at a 13.7% pace. The economy did appear to hit a speed bump during the fourth quarter. In addition, the number of earnings estimate revisions dropped materially in December and stayed comparatively low in early January. The lack of changes by analysts may be partially attributable to more companies holding back on providing updated guidance. It is possible that the economy slowed just enough to limit the number of companies able to surpass expectations, but not enough to create a wave of warnings. It should be noted, however, that most companies have yet to report, so the results could change. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - This week, more than 400 companies are scheduled to report earnings - the busiest week of the year. Several large-cap names are on deck, so volatility could increase. The economic calendar is light. The Conference Board will issue its January consumer confidence index on Monday. Thursday brings weekly jobless claims and December existing home sales. On Friday, economists will get a look at the December durable goods orders report. As a heads up, the Federal Open Market Committee will hold its first meeting of the year starting a week from Tuesday. Companies That Could Surprise During the Week of Jan 22-26 Bristol-Myers Squibb (BMY), like many big pharmaceutical companies, is facing increased competitive pressures. However, BMY has beaten expectations three times during the past four quarters by an average margin of 10%. Ahead of the company’s fourth-quarter report, two analysts have recently raised their forecasts. The current consensus estimate calls for profits of 16 cents per share and the Most Recent Consensus is more bullish at 17 cents per share. Bristol-Myers Squibb will report on Thursday, Jan 25, before the start of trading. Estimates on Franklin Resources (BEN) have been rising notably over the past two months. Estimates are up a cumulative total of six cents to $1.51 per share, including a one-cent increase within the past week. The Most Recent Consensus is even more bullish at $1.52 per share. The favorable financial market conditions are a plus to asset managers such as BEN. The company has topped forecasts by a wide margin during each of the past four quarters. Franklin Resources is scheduled to report on Thursday, Jan 25, after the close of trading. Last Tuesday, NCR Corporation (NCR) preannounced fourth-quarter earnings of “91 cents or more” per share and raised its full-year adjusted profit guidance to $2.08 or more. The company’s previous guidance called for full-year adjusted profits of $1.94 to $1.99 per share. No reason was given other than that revenues were stronger than expected. Analysts quickly revised their fourth-quarter forecasts to 91 cents per share, a 12-cent increase. The company has topped expectations for four consecutive quarters, so the “or more” part of the guidance could be foreshadowing some good news. NCR will report on Thursday, Jan 25, before the start of trading. SAP AG (SAP) preannounced fourth-quarter revenues of approximately euro 2.2 billion. The company said software revenues rose about 7%, in part due to market share gains. Five of the nine covering brokerage analysts adjusted their forecasts in response, resulting in a three-cent increase in the consensus estimate to 77 cents per share. The Most Recent Consensus is more bullish at 79 cents per share. SAP is scheduled to report on Wednesday, Jan 24, before the start of trading. AMD (AMD) warned last week that fourth-quarter profits will be “substantially lower than in the third quarter”. The chipmaker’s margins were hurt by lower selling prices. Not surprisingly, brokerage analysts have slashed their projections. The current consensus estimate, which calls for profits of 13 cents per share, is half of the forecast of just a month ago. The Most Recent Consensus is more bearish at eight cents per share. Investors should note that forecasts for 2007 have been materially cut as well. AMD is scheduled to report on Tuesday, Jan 23, after the close 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 Goodyear Tire & Rubber (GT), Pinnacle Airlines (PNCL), Allscripts (MDRX) and Amazon.com (AMZN). To see their latest posts, click here. Avon Products (AVP) - Good Entry Point. For full Zacks research report, click here. Amazon.com (AMZN) - Way Overvalued. For full Zacks research report, click here. Hotels Stay Big in M&A Activity Earnings Season Off to a Slower Start 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. Here is a synopsis of stocks with recent broker upgrades: NCR Corporation’s (NCR) Average Broker Recommendation rose to 2.5 of late. According to Zacks Research Digest, the company benefits from its strong knowledge base in retail and financial markets, putting it in a good position to accumulate significant market and technical knowledge. Furthermore, NCR’s restructuring initiatives, especially addressing profitability and working capital, is seen as a positive argument. Read the Research Digest report on NCR Hospira Inc. (HSP) has watched its Average Broker Recommendation rise to 2.00 recently. Hospira, which is a specialty pharmaceutical and medication delivery company, is well diversified and focused on a growth-oriented corporate strategy, according to brokerage firms polled at Zacks Research Digest. Analysts are paying particular attention to international operations when it comes to long-term growth for the company. The company has pumped money into research and development, resulting in new products, and there should be an increasingly powerful new product flow over the next couple of years. Read the Research Digest report on HSP Norfolk Southern Corporation (NSC) According to Zacks Research Digest, the covering firms believe that a continued strong U.S. economy will sustain demand for rail freight services for the next several years. Based on this thesis, firms believe the company will achieve double-digit earnings growth. Management is considered one of the best in the industry regarding execution; thus, the Street has considerable confidence in the ability of management to deliver on further growth initiatives at NSC. NSC possesses industry-leading operating fundamentals, a solid reputation for customer service, and an increasing labor force to meet the demands of the companys vast railroad network. Read the Research Digest report on NSC Anheuser-Busch Cos. Inc. (BUD): Analysts believe that management has taken a number of steps designed to enhance beer volume growth in a challenging market, including the introduction of new products led by sales initiatives, new packaging and tactical price promotions. Other key positive arguments highlighted in Zacks Research Digest include BUD’s dominant player position, pricing power, competitive advantages, marketing campaign and international capability. Read the Research Digest report on BUD Click here to see all Research Digest Reports All Star Analyst Portfolio Broker Rating Upgrades 5. FEATURED EXPERTS Here we cast the spotlight on timely Featured Expert commentaries that recently appeared on Zacks.com. Sideways Action Dr. Melvin Pasternak explains that the market remains technically vulnerable despite the S&P's retest of its previous high. Benefit from his analysis. More... Nadine Wong profiles a biotech with a pipeline that has great potential. Discover why she forecasts outperformance for this company. More... Paul Tracy offers information on one of the most profitable industries on the planet. 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 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 05/22/2013
| Company Name | Symbol | %Change |
|---|---|---|
| ALLIANCE FIB | AFOP | 9.31% |
| SONIC FOUNDR | SOFO | 7.77% |
| TRI TECH HOL | TRIT | 6.62% |
| A M R CP | AAMRQ | 4.52% |
| FLOWERS FOOD | FLO | 4.31% |
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