Monday - April 16, 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 - Zumiez (ZUMZ) Zumiez (ZUMZ) is experiencing phenomenal growth. The company has exceeded earnings estimates in six out of the past seven quarters. Year-over-year growth has averaged over 60% over the past three quarters. Four analysts have raised their estimates for this year. Earnings estimates have been on the rise as well. Over the past 90 days, this year's estimates have increased six cents to 96 cents per share. The company has a long-term growth rate of 28.71%. Read the full analysis on ZUMZ now! Growth & Income - Goodrich Corporation (GR) Goodrich Corporation (GR), which was first featured as a Growth & Income stock on Aug 8, 2006, continues to shine. The company topped analysts’ earnings expectations in 12 out of the past 14 quarters. After reporting solid fourth-quarter and full-year 2006 results, GR raised both its revenue and profit guidance for this year. The company is currently yielding 1.6% and its return on equity tops that of the industry average—17% compared to 11%. Read the full analysis on GR now! Momentum - Potash Corporation of Saskatchewan Inc. (POT) Potash Corporation of Saskatchewan Inc. (POT) is up 21.2% for 2007 on strong industry and company fundamentals. With the stock at 52-week highs, the underlying trend is clearly to the upside with no resistance to impede upward price action. However, the Apr 26 earnings report will largely decide whether momentum continues to be positive in the short-term. Read the full analysis on POT now! Value - Aspreva Pharmaceuticals Corporation (ASPV) Aspreva Pharmaceuticals Corporation (ASPV) beat the Street’s earnings estimate four quarters in a row by an average margin of 41.0%. In early February, the Zacks #1 Rank company reported impressive results for both the fourth quarter and full year of 2006. Consensus estimates for both this quarter and the full year are up over the past two months. ASPV has a price-to-book ratio of 2.7, compared to 4.0 for the industry, and its PEG ratio currently sits at 0.31. Read the full analysis on ASPV 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 Track: Upgrades and Revisions This strategy focuses primarily on Positive EPS Estimate Revisions and Brokerage Rating Upgrades. Over the last 20 years Zacks Investment Research has proven that earnings estimate revisions are the most powerful force driving stock prices. Studies have also shown that stocks receiving upward EPS revisions tend to receive additional upward revisions in the future. Then consider that stocks receiving these upward revisions generally have brokers upgrading their Ratings, which is also a proven mover of stock prices. There are other parameters to this strategy, but the Rating Upgrades and positive EPS Revisions are the two powerful active ingredients. Acuity Brands, Inc. (AYI) is a Zacks #1 Rank (Strong Buy) company that has seen earnings per share growth of 19% over the past five years. The company recently reported fiscal second-quarter results, stating that it once again produced record results that exceeded its internal expectations. Earnings per share of 55 cents eclipsed the previous year’s second-quarter total of 32 cents and topped the consensus estimate by 12%. Continue your research on AYI now! General Cable Corp. (BGC), another Zacks #1 Rank (Strong Buy) name, will release financial results for the first quarter on May 2, 2007. In mid-February the company completed its acquisition of Jiangyin Huaming Specialty Cable Co. Ltd., a Chinese manufacturer of specialty automotive and industrial cable products. In early February, the company posted fourth-quarter earnings of 67 cents per share. The result surpassed analysts' expectations by 14% and soared past the previous year's total. Revenues climbed to $925.3 million from last year's $617.5 million. BGC experienced earnings per share growth of 78% over the past five years. Continue your research on BGC now! Comtech Telecommunications Corp. (CMTL), also a Zacks #1 Rank (Strong Buy) company, put together a five-year growth track record of 81%. The company announced fiscal second-quarter earnings of 68 cents per share. The result outpaced last year’s 50 cents and surpassed the consensus estimate by 48%. Net sales for the second quarter increased to $111.4 million from the year-prior $95.7 million. Continue your research on CMTL now! Middleby Corp. (MIDD) rounds out this list of Zacks #1 Rank (Strong Buy) stocks. Middleby posted record net sales and earnings for the fourth quarter. Earnings totaled $1.34 per share, exceeding the consensus estimate by 13% and beating the previous year’s result. Quarterly net sales improved by 27.8% on a year-over-year basis. During the past five years, MIDD produced earnings per share growth of 68%. Continue your research on MIDD 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Screening for Stocks to Pick the Right Options Kevin Matras explains why a good stock screener can be your best tool for picking options. Read more... 3. ZACKS EQUITY RESEARCH
Earnings season has officially kicked off with Aloca (AA) posting first-quarter earnings per share of 79 cents. The result beat analysts’ expectations by two cents. Saying that this week will be a busy one, when it comes to earnings reports, is a definite understatement. 253 companies are scheduled to report. Looking at the full expectations for the first quarter, a substantial slowdown in year-over-year earnings growth is expected almost across the board. The median firm in the S&P 500 is expected to post earnings that are just 7.1% higher than a year ago, well below the 12.7% growth posted in the fourth quarter. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - This week’s calendar of economic events is a little on the heavy side as well. March retail sales will be released today. They rose 0.1% in February. Tuesday brings March CPI (February CPI jumped 0.4%) and last month’s housing starts. Starts of new homes jumped to an annual rate of 1.53 million last month from the revised 1.40 million pace in January, the lowest in nine years. Industrial production/capacity utilization data is also on the Tuesday docket. There are no economic indicators scheduled for either Wednesday or Friday. Companies That Could Surprise During the Week of Apr 16 to Apr 20 When it comes to topping the consensus earnings estimate, Piper Jaffray Companies (PJC) usually comes through in a big way. PJC beat the Street’s estimate in seven consecutive quarters by an average margin of 39.6%. In six out of the seven quarters, the company managed to surprise to the upside by a double-digit percentage. Analysts are calling for first-quarter profits of 78 cents per share. This marks a five-cent jump over the past 30 days and a three-cent improvement over the past week. Upward revisions were submitted by two of the four covering analysts over the past month. One analyst upped his estimate in the past seven days. PJC recently announced that it will purchase Fiduciary Asset Management LLC for $66 million in cash in a move to enter the asset management business. PJC is scheduled to report its first-quarter results on Wednesday, Apr 18. As the airline industry heads into the strong spring season, many carriers will begin to reap the rewards associated with cost cutting measures they have been undertaking. Consensus earnings estimates have shot upward for Continental Airlines, Inc. (CAL). Profit forecasts for this quarter currently sit at eight cents per share. This marks a 12-cent improvement when compared to the consensus of 60 days prior. Over the past seven days, estimates have risen by two cents. Seven of the 11 covering analysts boosted their estimates over the past 30 days. CAL exceeded analysts’ earnings expectations over the past four quarters by an average margin of 26.7%. In its most recent quarter, the Street was calling for a loss of 15 cents per share. CAL wound up losing four cents, equating to an impressive 73.3% positive earnings surprise. The company recently reported that its March traffic climbed 3.4% on stronger trans-Atlantic travel. CAL is scheduled to report its first-quarter results on Thursday, Apr 19. Read the complete Earnings Preview now! Jim Licato is a Senior Analyst at Zacks.com - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include MAF Bancorp (MAFB), Public Storage (PSA), salesforce.com (CRM) and Infosys (INFY). To see their latest posts, click here. salesforce.com (CRM) - Huge Potential Market. Ful Stocks featured recently include MAF Bancorp (MAFB), Public Storage (PSA), salesforce.com (CRM) and Infosys (INFY)l Zacks research report, click here. King Pharmaceuticals (KG) - Product Concerns. For full Zacks research report, click here. Don’t Get Excited Over Retail Results Earnings Season Kicks Off with Subdued Expectations 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: United States Steel Corporation (X) has watched its Average Broker Recommendation rise to 2.42 of late. According to Zacks Research Digest, analysts appreciate that the company’s domestic operations are fully self-sufficient in iron ore, which is seen as an advantage with international prices increasing. Also, its product mix is improving as U.S. Steel is upgrading its facilities to focus on value-added products such as cold-rolled and coated carbon steel. Other factors that the analysts polled at Research Digest mentioned were its ability to defend its margins and its acquisitions both at home and abroad. One of those recent acquisitions was Lone Star Technologies. U.S. Steel, which is a Zacks #2 Rank stock, is scheduled to report its first-quarter results on Apr 24. Read the Research Digest report on X Peabody Energy’s (BTU) Average Broker Recommendation is currently up to 1.68. Analysts polled by Zacks Research Digest believe the company’s performance over the past five years sets the stage for significant cyclical cash flow and earnings improvement over the next three years. Analysts also believe that Peabody Energy remains strong enough to capitalize on promising long-term coal fundamentals. Finally, new coal fired power generation; coal conversion technologies and growth in emerging markets are seen as primary drivers of demand. Peabody Energy will release first-quarter numbers on Apr 19. Read the Research Digest report on BTU Hewlett-Packard Company (HPQ) is a Zacks #2 Rank company as earnings estimates for the year ending in October have risen 4.7% over the past month. Its Average Broker Recommendation is up to 1.95 of late. The computing and imaging giant is one of the largest and most diversified technology companies in the world; leads in market share in inkjet and laser printers; and is among the market leaders in PCs, servers, storage and IT services. According to analysts polled at Zacks Research Digest, Hewlett-Packard is posting strong sales and shifting focus to improving margins and earnings consistency in all operating divisions. More specifically, several analysts were positive about the Services business, with potential for growth in the outsourcing business in particular. Read the Research Digest report on HPQ Applied Materials’ (AMAT) was highlighted in the Broker Upgrades Commentary in mid-March. Since then, its Average Broker Recommendation has risen further to 1.7. According to Zacks Research Digest, analysts appreciate that AMAT is not solely dependent on equipment revenue, and could experience higher growth rates than its peers if the flat panel display and service sectors outgrow the organic equipment industry. While these two segments are not expected to completely offset weakness in the semiconductor business, they provide a potential for upturn and downside protection in the case of a downturn. Read the Research Digest report on AMAT 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. No Rate Cut Anytime Soon In the latest release of The Spear Report Professional Edition, Gregory Spear says the greater concern is the slowing economy. More... Ian Wyatt highlights a company that has posted a steady rise in sales since it began reporting in 2002. More... In the latest edition of All Star Fund Trader, Ron Rowland discusses some sector trends worth noting. 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. | |||||||||


