Tuesday - February 27, 2007
 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 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 - Lam Research (LRCX) On Feb 14, Guess? Inc. (GES) continued a recurring theme this month, that of delivering a positive earnings surprise. GES has done that for 14 straight quarters now. On Feb 14, GES reported EPS of 99 cents, up 73.7% from last year and a 7.6% positive surprise over analysts’ consensus. Sales grew 33.8% to $346.4 million and income rose 196.6% to $45.68 million. Since GES was featured as a Momentum Stock of the Day on Aug 18, 2006 the stock has risen 75.49%, proof of the power of earnings surprises. Read the full analysis on GES now! Lennox International Inc. (LII), first presented as a Value pick on Dec 1, has returned over 23%. The company topped the Street's earnings estimate for the past six quarters. Consensus earnings estimates continue to trend higher for LII. Read the full analysis on LII 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: Recent Price Strength This screen looks for stocks trading in the upper range of their 52-week highs along with attractive Zacks Rank and Broker Ratings. This strategy proves that the "trend is your friend" with a +35.5% return versus +4.9% for the S&P 500 in 2005. Ansoft Corp. (ANST) recently hit a new 52-week high and is currently trading very close to it. In mid-February, the company posted fiscal third-quarter results. The company's quarterly earnings per share result increased on a year-over-year basis and topped the consensus estimate by nearly 11%. Ansoft Corp. stated that it had an excellent quarter with particularly strong revenue growth in its high-performance product line and in both domestic and international markets. ANST’s share price increased by 18% over the past four weeks. Read the full analysis on ANST now! CECO Environmental Corp. (CECE) is trading near its 52-week high and experienced 23% growth over the past four weeks. In early November, the company reported third-quarter earnings of eight cents per share, which topped the year-ago result of three cents. The company mentioned that its order flow this year has remained consistently strong with bookings through October of over $126 million compared to $69.5 million through October of 2005. Read the full analysis on CECE now! Corrections Corp. of America (CXW) recently announced fourth-quarter earnings of 52 cents per share. The result beat the consensus estimate by 18% and topped the year-ago total. The company is within reach of its 52-week high and experienced 10% growth over the past four weeks. The company stated that financial results for the fourth quarter cap a very strong year. CXW’s revenues and operating margins improved significantly as a result of continued growth in inmate populations, both at the federal and state levels. Read the full analysis on CXW now! Globecomm Systems Inc. (GCOM) is trading close to its 52-week high and experienced 2% growth over the past four weeks. The company recently released fiscal second-quarter earnings of 11 cents per share, improving on last year’s six cents and surpassing analysts’ estimates by 10%. Revenues for the second quarter increased 22.8% to a record $36.7 million, versus $29.9 million in the year-prior period. Read the full analysis on GCOM 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 new screening strategy. More... 3. ZACKS EQUITY RESEARCH From time to time, we like to check in to see how high-growth technological industries are performing, especially compared with expectations. Recently we sat down with senior analyst Ian T. Gilson, CFA, Ph.D to get his outlook on the flat-panel and high-definition television [HDTV] industry. How do you see the state of the HDTV market at this time? Well, the first thing I would mention is that there are many changing dynamics, and on a world-wide scale. In 2006, conventional TV (CRT) sales became less than 50% of all TV sales in terms of units sold. About 1.2 billion households have at least one TV set. About 48 million, or 4%, owned HDTV sets as of the end of 2006. Of this, 58% (27.8 million) were in the USA and 20% in Japan. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - That said, lack of content has inhibited growth thus far, meaning there is lots of potential for improvement. Industry experts expect that there will be more than 150 million households with HDTV by the end of 2011. So there is plenty of room for high rates of growth for at least the next seven years. LCD flat-panel TV sales grew by 85% in 2006 to a total of $22.5 billion. Plasma (PDP) sales grew 28% to $7.2 billion. Other digital TV sales were at least $0.5 billion, for a total market of over $30 billion. Is HDTV something that has been around for awhile and is just now catching on, or is it genuinely new technology? If you’ll allow me to get a bit technical here for a moment, HDTV is defined as a quality digital TV set capable of at least 1366*768 resolution. True HDTV is 1920*1080p using 120Hz refresh. I bring this up only because this technology was introduced in late 2006. In other words, state-of-the-art HDTV is a very new technology. Because a higher percentage of HDTV sets are being sold in the U.S., is growth starting to slow in this market? Let me try to break it down for you this way: in the U.S., household penetration of television sets in general is over 95%, meaning it is an entirely saturated market. There were an estimated 109.6 million households with TV in the U.S. in 2004, and there are at least 110 million in 2006. Therefore, the HDTV market penetration in the U.S. at this time is, at most, 25%. So no – if anything, growth is poised to accelerate in the U.S. going forward. Also, consider that about 20% of TVs in the U.S. are replaced every year. So this means there are at least three years of high growth ahead in the industry just in the U.S. alone. You mentioned the different types of technology with high-definition TV sets. Are some selling better than others? Indeed they are. The number of 42-inch LCD sets grew at over 500% from January to December 2006, and are now outselling plasma sets for the first time. This is due to better image quality and improved brightness. Then again, plasma still rules in sets over 72 inches. The average size for TVs moved from about 32 inches at the end of 2005 to 35 inches by the end of 2006. The average size of LCD panels grew by 13% from July 2006 to January 2007. Which retailers are realizing the biggest gains from this high-growth market thus far? The major discounters, such as Walmart (WMT) and Costco (COST), are among the usual suspects, of course. Also, a company called Fry’s Electronics has done very well selling HDTVs, though they are still strictly limited to operations in the Western U.S. To a lesser extent, companies like Best Buy (BBY) and Circuit City (CC) contribute to moving lots of product, as well. However, other retailers are having problems. Click here to read the complete Analyst Interview. Ian Gilson, CFA, Ph.D is a senior analyst covering the flat-panel technology industry for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include H&R Block (HRB), J.C. Penney (JCP), AFLAC (AFL) and Dynavax Technologies (DVAX). Get their latest posts: click here. Logitech (LOGI) - Market Leader. For full Zacks research report, click here. H&R Block (HRB) - Pressured on Many Fronts. For full Zacks research report, click here. The Week of Feb 26 – Mar 2 Earnings Being Revised Upwards 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. OPTIONS CENTER Zacks has partnered with the leading options experts, Schaeffer's Investment Research, to provide you the best options commentary, research, and trading tools on the market today. Zacks/Schaeffer’s Options Trading service. I looked at the Zacks Put/Call Open Interest Ratio Filter last week and had such a good time that I’m revisiting the filter for today’s stock. What is the Put/Call Open Interest Ratio Filter? Well, let’s first define a put and a call. Puts are simply a bet that the underlying stock is going to move lower, while calls are a bet that the underlying stock is going to move higher. According to our glossary, the Schaeffer’s put/call open interest ratio (SOIR) is a ratio of open puts to open calls among options set to expire within three months for a given underlying security. A SOIR greater than one indicates that more puts are open than calls, indicative of pessimism from the speculative options crowd. This filter focuses on stocks whose put/call ratios have exceeded 1.00. Furthermore, a SOIR greater than one indicates that an unwinding of the existing pessimism could serve to push the underlying stock higher. This week’s filter on Zacks lists stocks with a SOIR greater than one. You can sort the results either alphabetically by underlying issue, or from highest SOIR to lowest SOIR. Before looking at a particular stock, let’s address our Schaeffer’s methodology. We are contrarian-based investors, indicating that we want to see skepticism toward an outperforming stock. On the other hand, we typically like to see optimism toward an underperformer. In our eyes, too much optimism is a sign that nearly everyone who wants to invest in a particular stock already has. Just because a stock sees substantial optimism doesn’t mean that we will blindly short that particular security; we need to see some negative price action or a major catalyst for a downside move in order to pull the trigger in most cases. Other indicators we use to measure overall sentiment include short interest, magazine cover stories, media comments, and analyst ratings. Scanning Friday’s list, I found a company that has popped up each of the last four times I have used this filter. Much like a nagging injury that you finally decide to have looked at, I decided to pay a bit of attention to ASML Holding (ASML). According to Hoover’s, ASML is one of the world’s largest producers of semiconductor manufacturing equipment. The company competes with Japanese giants Canon and Nikon for supremacy in the market for the specialized photolithography systems used to imprint microscopic circuitry patterns onto silicon wafers. ASML sits atop the filter with its SOIR of 9.80. Technically, the shares enjoy the staunch support of their 10-week and 20-week moving averages. The last time the equity finished a week beneath this dynamic duo was this past August. However, notice that these trendlines, working in tandem, have helped push the stock higher since it hit a near-term low in September 2004. Further support is found in the form of ASML’s 10-month and 20-month moving averages. Again, this pair of trendlines has helped push the stock steadily higher. Since March 2003, the equity has finished below this dynamic duo just four times. In addition, the 10-month moving average has advanced through the 22 level. This is an important development, as 22 once acted as resistance and could act as support if needed. Should the trendline fail as support, the 22 level could create a floor on any further pullbacks. Now that we have looked at ASML’s technical assets, let’s look at a few of the sentiment indicators we like to use here at Schaeffer’s. We already know that puts outnumber calls nearly 10-to-one in the front three months of options, which would lead me to assume that pessimism is running high. Turns out, the assumption is correct, as this SOIR reading ranks higher than all but 1% of the past year’s worth of readings. Any shift from this group could send the stock higher thanks to buying pressure. A good way to get a gauge of sentiment is to look at analysts’ opinions. According to Zacks, five of the eight analysts covering ASML rate it a “buy” or better. This isn’t particularly inviting from our contrarian point of view. Nonetheless, the three “hold” ratings could easily become “buys” or better and drive the stock higher still. Furthermore, there is always a chance for positive initiation, which could serve to push the shares higher as well. Based on pessimism from the options pits and ASML’s performance, its Schaeffer’s Equity Scorecard rating comes in at 8.0 out of a possible 10. This high rating suggests that there is enough money waiting on the sidelines to push the stock higher as investors are drawn into the game. If you agree with my assessment, add ASML to your bullish watch list. A bullish play on this company lines up rather nicely from our contrarian point of view. Make sure to continue utilizing all of the valuable filters on these pages for more money-making ideas. Moreover, don't be afraid to make a few paper trades in order to see what strategy works best for you. Please remember that, when it comes to options, the majority of your trades are going to be losers. Don't get discouraged, because that's the beauty of the leverage that options provide. It takes only a few winners out of every 10 trades to make you a very happy investor. Thanks for reading, best of luck in your trading! To learn more about the Put/Call Ratio over 1.0 filter, click here. Discover all the tools and commentary available from the Zacks.com Options Center. Leverage the timeliness of Zacks #1 Rank stocks with options trades that maximize profits and minimize risks. Learn more about our new Options Trading service. 5. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentaries that recently appeared on Zacks.com. Dr. Melvin Pasternak says the Dow’s daily indicators are retreating rapidly from overbought levels after a prolonged period of bearish momentum divergence. More... The market was receptive to the overall picture presented by Chairman Bernanke, but investors looked closer and noticed it wasn't as rosy as it seemed. 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 Rank 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. | |||||||||
- Latest News
- Most Popular
- Roundtable Top Picks of the Week
- The Mega-Rally Rolls On
- RTI: Prediction Contest: S&P 500 on Dec. 31st
- Industry Rank Analysis: Shifting Into Overdrive
- Biotechnology ETF Investing 101
- 3 Dividend Stocks at Reasonable Prices
- RTI: Are You Doing the Elon Musk Trade?
- Buy These ETFs to Profit from "Sector Rotation"
- Options Strategies & the Zacks Rank
- AWS 5/20: The Fed In Focus This Week
- PFP 5/20: Will We Touch 1700?
Recent Quotes
| No Recent Quote currently available |
My Portfolio
|
My Portfolio Tracker One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today. |
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% |
Quick Links
Resources
Client Support
Zacks Research is Reported On:
Zacks Investment Research
is an A+ Rated BBB
Accredited Business.
Copyright 2013 Zacks Investment Research
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.
Visit performance for information about the performance numbers displayed above.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.