Monday - February 5, 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 - Jacobs Engineering Group Inc. (JEC) Jacobs Engineering Group Inc. (JEC) has exceeded earnings estimates in seven straight quarters, with year-over-year growth averaging about 30% during that time. Four analysts have raised their 2007 numbers. Over the past month, 2007 estimates have increased 25 cents to $4.19 per share, while next year's numbers have risen 36 cents to $4.88 per share. Read the full analysis on JEC now! Growth & Income - BlackRock, Inc. (BLK) BlackRock, Inc. (BLK) beat the Street’s earnings estimate in seven out of the past eight quarters by an average margin of 6.4%. The company recently reported strong results for the fourth quarter and full year of 2006. BLK increased revenues for the past seven years. Consensus estimates have been trending higher for this Zacks #1 Rank stock. On Nov 2, the Board of Directors declared a quarterly cash dividend of 42 cents per share of common stock. BLK is currently yielding 1.0%. Read the full analysis on BLK now! Momentum - TeleCommunication Systems (TSYS) TeleCommunication Systems (TSYS) will announce earnings for the December 2006 quarter on Feb 7. The consensus estimate is for a loss of two cents, versus a loss of three cents in the December 2005 quarter. TSYS has delivered three straight quarters with a positive earnings surprise. Read the full analysis on TSYS now! Value - Parker-Hannifin Corporation (PH) Parker-Hannifin Corporation (PH), a Zacks #1 Rank stock, topped the Street’s earnings estimate in 12 out of the past 14 quarters. The company recently reported solid results for the second quarter and first half of fiscal 2007. Analysts have been upping their profit forecasts for both this year and next. On Jan 25, the Board of Directors declared a regular quarterly cash dividend of 26 cents per share and authorized the repurchase of up to 10 million shares. Read the full analysis on PH 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: Growth and Income This screen looks for stocks that are paying dividend yields of greater than 8% along with other attractive fundamental attributes. Although this screen is based on a long-term and lower risk approach to investing, it has a history of outperforming the S&P 500. American Home Mortgage Investment Corp. (AHM), a Zacks #1 Rank (Strong Buy) company, recently announced fourth-quarter earnings of $1.21 per share, soaring past the previous year's 27 cents and surpassing the consensus estimate by nearly 2%. AHM also declared a fourth-quarter dividend of $1.06 per share, versus the year-prior dividend of 91 cents. Additionally, AHM’s Board of Directors increased its dividend policy to $1.12 per share per quarter, or $4.48 per share on an annualized basis. AHM offers a current dividend yield of 12.15%. Continue your research on AHM now! Canetic Resources Trust (CNE), one of Canada's largest oil and gas royalty trusts, recently announced a monthly cash distribution of approximately 16 cents per trust unit in U.S. dollars. In early November, the company posted third-quarter earnings, which surged past the consensus estimate by 277%. Canetic Resources Trust fulfills the criteria for this Profit Track with a current dividend yield of 15.56%. Continue your research on CNE now! Eagle Bulk Shipping Inc. (EGLE) is another Zacks #1 Rank (Strong Buy) name. EGLE sports a current dividend yield of 10.87%. In early November, the company reported third-quarter adjusted earnings per share of 34 cents, which matched the consensus estimate. The third-quarter report also stated that a dividend of 51 cents per share was paid on November 2, 2006 to shareholders of record as of October 30, 2006. Continue your research on EGLE now! Vector Group Ltd. (VGR) declared a quarterly dividend of 40 cents per share in early December, which was paid in late December. In mid-November, the company released third-quarter earnings of 32 cents per share, which outpaced the year-ago result. Revenues were $137.7 million, compared to last year’s $125.0 million. Vector Group is currently yielding 8.84%. Continue your research on VGR 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kevin Matras goes over a price and volume screen for finding stocks on the move. Read more... 3. ZACKS EQUITY RESEARCH As we head into February, it is worth taking a look at how 2007 is shaping up so far. The Dow gained 1.3% in January, its seventh consecutive monthly gain. The S&P 500 rose 1.4%, a bullish sign for those who follow the January indicator. (This prediction tool says that how the S&P 500 fares in January determines whether or not the index will end the year with an annual gain or loss.) The Nasdaq was even stronger, rising 2%. Earnings season has been decent, but the ratio of positive to negative surprises has not been as strong as we have seen in previous quarters. The ratio for companies within the S&P 500 is at 2.9:1, as of Thursday evening (301 reports). For the broader Zacks Rank universe, the ratio is at 1.8:1 (1245 reports). Growth has been running above expectations, but we are seeing 2007 full-year forecasts drift slowly lower. The Zacks Revisions Ratio is at 0.70 for companies within the Zacks Rank universe – a sign that more estimates are being cut than are being revised upwards. (It is also below 1.0 for companies within the S&P 500.) Brokerage analysts expect the average company in the Zacks Rank universe to generate 27.7% growth and the average company in the S&P 500 to generate 12.5% growth this year. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moving on to next week, more than 470 companies are confirmed to report earnings. About 60 belong to the S&P 500. Economic releases will be limited to the ISM’s services index (Monday), December consumer credit (Wednesday) and weekly initial jobless claims (Thursday). Companies That Could Surprise During the Week of Feb 5 - 9 Mastercard (MA) has a limited history as a publicly-traded company, but has topped expectations the two times it has reported. Ahead of the company’s fourth-quarter report, one brokerage analyst is expecting another positive surprise: the Most Recent Consensus calls for profits of 20 cents. The consensus estimate is more conservative at 14 cents. Mastercard will report on Friday, Feb 9, before the start of trading. Napster (NAPS) recently raised its fiscal third-quarter revenue estimate to “more than $28 million” citing the addition of 48,000 subscribers and the positive impact of Napster Japan. The company had previously guided for revenues to exceed $27 million. Brokerage analysts still expect NAPS to post losses into fiscal 2008, but the magnitude of the expected losses is falling. The consensus estimate calls for the company to have generated a loss of 30 cents in its fiscal-third quarter, a one-cent improvement over the forecast of a month ago. The Most Recent Consensus is more bullish in calling for a loss of 28 cents per share. NAPS has topped earnings estimates for seven consecutive quarters. Napster will report on Thursday, Feb 8, after the close of trading. The Most Recent Consensus estimate on TECO Energy (TE) calls for the company to have earned 25 cents per share during its fourth quarter. This average of the brokerage estimates made within the last 30 days is notable because it is six cents higher then the current consensus estimate of 19 cents, which is the average all brokerage estimates made within the last 120 days. TE has topped forecasts for five consecutive quarters. Investors should note, however, that the average magnitude of surprises has been 3.5 cents, however. TECO Energy will report on Tuesday, Feb 6, before the start of trading. The Walt Disney Company (DIS) has delivered 14 positive earnings surprises in a row. Three brokerage analysts have raised their fourth-quarter profit forecasts within the past 30 days, suggesting the mouse could have more magic left. The current consensus estimate calls for profits of 39 cents, two cents above the forecast of a month ago, and the Most Recent Consensus calls for profits of 41 cents per share. Disney will report on Wednesday, Feb 7, 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 Starwood Hotels & Resorts (HOT), Siliconware Precision Industries (SPIL), Orbital Sciences (ORB) and Grey Wolf (GW). To see their latest posts, click here. Gilead Sciences (GILD) - Promising New Drugs. For full Zacks research report, click here. Sony Corporation (SNE) - Market Slowing. For full Zacks research report, click here. Strength in Consumer Staples to Continue Seems Like Groundhog Day 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: Cardinal Health’s (CAH) Average Broker Recommendation recently improved to 1.82. According to Zacks Research Digest, analysts like Cardinal’s financial strength; its repurchase program and its disciplined approach to capital deployment. The company’s divestiture of its Pharmaceutical Technologies and Services (PTS) segment is also considered a positive by analysts. They believe it will help Cardinal to focus on its core business while helping it build a more streamlined and strategically focused organization. Recently, Cardinal announced that it will sell its PTS segment to The Blackstone Group for about $3.3 billion in cash. Read the Research Digest report on CAH Corning Inc. (GLW) believes it is well-positioned for continued growth and success in 2007. Analysts appreciate the company’s leadership in the still-growing LCD market. Corning expects the overall LCD glass substrate market to grow in the mid-30% range, and anticipates that its LCD glass volume to grow at the upper end of the range. According to Zacks Research Digest, some analysts are doubtful about the sustainability of the strong performance of the LCD business, but a majority still expect the segment to continue performing well given ongoing strength in the end market for LCD monitors, TVs and notebooks. The company’s Average Broker Recommendation improved to 1.71. Read the Research Digest report on GLW Broadcom Corporation (BRCM), which will report quarterly results on Feb 8, watched its Average Broker Recommendation rise to 1.95. According to Zacks Research Digest, analysts like Broadcom’s targeting of emerging markets; its ability to work through inventory problems; and its good position in core enterprise networking and access segments. Furthermore, by developing advanced, system-level, software-rich products that serve converging markets, analysts believe Broadcom is well-positioned to gain market share and growth faster than the overall semiconductor sector. Read the Research Digest report on BRCM The Kroger Company (KR) Average Broker Recommendation is up to 1.79. According to Zacks Research Digest, analysts like Abbott’s acquisition of Kos Pharmaceuticals. Analysts believe that the deal adds strength to the company’s late stage pharma pipeline. Read the Research Digest report on KR 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. Growth at a Discount Richard Moroney highlights high-potential stocks with attractive PEG ratios, P/E ratios, expected growth rates, track records, and returns on investment. More... Donald Rowe says the stock market is still undervalued by 28%. Benefit from his insight and discover his recommendations. More... Ian Wyatt highlights a developer of semiconductor controllers for digital media storage and mobile multimedia devices. Discover why he likes this company. 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. | |||||||||


