Tuesday - August 21, 2007
 Want to view the archive of past issues? Click here. Manage Profit from the Pros subscription: 1. ZACKS RANK BUY STOCKS Zacks #1 Rank stocks average a 32.2% 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) Listen to the audio podcast on RATE through Zacks' NEW Audio Feature. Sun Life Financial, Inc. (SLF) has advanced over 18% year to date and is currently trading near 52-week highs. A breakout above current resistance would be particularly encouraging, adding support to the stock's recent momentum. Read the full analysis on SLF now! Excel Maritime Carriers Ltd. (EXM) reported second-quarter earnings per share of 71 cents, beating the consensus earnings estimate of 57 cents by 24.6%. This marked the second straight quarter in which the company surprised to the upside. Revenues rose 5.7% to $37.3 million from $26.7 million in the second quarter of last year. The company also declared a quarterly cash dividend of 20 cents per share. Consensus earnings estimates continue to trend higher for EXM. Read the full analysis on EXM 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 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. Here are four stocks that make the grade for the Upgrades and Revisions Profit Track: Administaff, Inc. (ASF), recently declared a quarterly dividend of 11 cents per share, which will be paid on September 7, 2007 to all stockholders of record as of August 23, 2007. On August 1, the company posted record quarterly results.
Second-quarter earnings of 50 cents per share outpaced the previous year's 37 cents and exceeded the consensus estimate by 28%. Revenues for the second quarter jumped 11.5% on a year-over-year basis. Administaff stated that its strong operating results have positioned it well to take advantage of new market and product opportunities over the second half of 2007 and into next year. ASF produced earnings per share growth of 100% over the past five years. Read the full analysis on ASF now! Belden, Inc. (BDC), Zacks #1 Rank (Strong Buy) company, announced second-quarter results in late July. Adjusted income per share from continuing operations was 79 cents, versus last year's second-quarter result of 51 cents. The result was 11% ahead of analysts' expectations. The company increased its full-year 2007 guidance from a range of $2.50 to $2.70 per share to a new range of $2.80 to $2.95. Wall Street is in agreement as evidenced by current 2007 forecasts of $2.90 per share, up from last month's $2.64. BDC experienced earnings per share growth of 46% over the past five years. Read the full analysis on BDC now! Lacrosse Footwear, Inc. (BOOT) recently reported second-quarter earnings per share of 15 cents, topping the consensus estimate by 15%. Consolidated net sales totaled $24.9 million, an increase of 14% from the previous year's $21.8 million. The company mentioned that it is particularly encouraged by the positive customer response to its new spring lines of Danner and LaCrosse products During the past five years, Lacrosse Footwear experienced earnings per share growth of 30%. Read the full analysis on BOOT now! Cummins, Inc. (CMI) satisfies the criteria for this Profit Track with earnings per share growth of 181% over the past five years. In late July, CMI released record results for the second quarter. Earnings per share of $2.13 jumped ahead of the consensus estimate by 34%.
Second-quarter revenues of $3.34 billion were up 18% on a year-over-year basis. Cummins raised its 2007 earnings guidance to a range of $7.15 to $7.65 per share from $6.00 to $6.50 per share. Analysts are in agreement as evidenced by current expectations of $7.47 for 2007, up from last month's estimates of $6.41. Read the full analysis on CMI 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Lesson Learned From Hanging a Door Kevin Matras goes over a Relative Price Strength strategy for finding winning stocks in all markets. More... 3. ZACKS EQUITY RESEARCH As we continue to look globally for new areas in which to diversify our portfolios in these uncertain times, some advice from Zacks senior European insurance industry analyst Duong Vuong, CFA came in handy. He was able to tell us what to look for from the insurance companies he covers. You cover some of the main European insurers. How are things looking for these companies lately? In the property/casualty insurance segment, sharp premium rate increases in the past few years have translated into strong increases in premiums and underwriting income, which we are now witnessing in the companies' results. However, with higher profitability due to higher premiums and benign losses, the industry's capital has built up. This should lead to increasing pricing competition going forward, particularly with the moderate loss trends on both the commercial and personal sides. Slower premium growth will eventually translate into slower earnings growth for the industry. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Are things different on the life insurance side? Our outlook for the life segment is slightly more positive, especially for the companies that sell variable life and annuity products. The relatively low interest rates are favorable for the margins of fixed-income products. Is there lots of U.S. exposure for some of the main European insurance companies? Some of the companies in my coverage are significant players in the U.S., such as Aegon, N.V. (AEG). In fact, the Americas - the U.S. and Canada - accounted for 60% of income last year. The Netherlands, which is where the company is based, contributed just 29%. Is this a good thing or a bad thing for a company like Aegon? The sagging U.S. dollar has a positive effect on the sales for Aegon. Further, as Aegon is focusing mostly on life insurance, its position in the market is more favorable compared to non-life insurance companies. To read the complete Analyst Interview, click here. Duong Vuong, CFA is a senior analyst covering U.K. and other European companies in various industries for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include J.C. Penney (JCP), Peet's Coffee & Tea (PEET), AmBev (ABV) and Harris Corporation (HRS). Get their latest posts: click here. Banco Santander Santiago (SAN) - Nice Valuation. For full Zacks research report, click here. Embraer Air (ERJ) - Lackluster Results. For full Zacks research report, click here. The Week of Aug 20 - Aug 24 Listen to the audio podcast for Earnings Trends through Zacks' NEW Audio Feature:
Despite Market Turmoil, Estimates are Still Rising 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. Last week, Mark Fightmaster walked us through the Zacks Unusually High Volume filter, with a focus on call activity. This week, let's take a look at the same Zacks filter, with an eye toward unusual put activity. Specifically, this filter takes a look at option volume from the previous day and scans for unusually high activity. Today, we're looking for unusually high put volume in comparison to call volume. This filter is valuable because it can reveal a high level of pessimism toward a particular stock. Before we dive any deeper into technicals and sentiment for Apple, a little background is in order. What is the filter? Well, let's first define a put and a call. A put is simply a bet that the underlying stock is going to move lower, while a call is a bet that the underlying stock is going to move higher. According to our Expectational Analysis(R) methodology, heavy attention paid to calls by investors indicates an increase in optimism toward an equity, and can present the opportunity for a solid bearish addition to your portfolio. Before looking at Apple specifically, 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. According to our filter results, Apple (AAPL) experienced put volume of 200,118 contracts yesterday, compared to its average put volume of 64,270 contracts. In other words, the tech giant experienced 3.1 times its typical put volume during the course of the session. However, a quick check in with the Unusually High Call Volume filter reveals that Apple also experienced exceptionally high call volume yesterday. Optimism may not be flagging toward Apple just yet, as its Schaeffer's put/call open interest ratio (SOIR) is at an annual low of 0.61 (with the caveat that this number could adjust significantly after August options expire today). Technically, Apple had a stellar bull run in early 2007, but has recently seen its momentum falter amid the broad-market pullback. The equity is still gapped above staunch support from its 10-month moving average, but has breached support from its 10-day and 20-day moving averages. Those two trendlines formed a bearish crossover as Apple continued to slip, which could indicate that the equity has a short-term struggle ahead of it as it attempts to rally higher. In the September series of options, which will shortly become front-month contracts, peak call open interest lies at the 150 strike, with 26,466 contracts currently in residence here. These bets are heavily optimistic, as Apple's annual peak resides at $148.92 - a level it touched on July 27 before quickly retreating. Meanwhile, the stock's highest monthly close to date is $131.76, which it also attained in July. On the bears' side, put buyers are favoring the September 130 strike, which has relatively light open interest of 18,722 contracts. With Apple shares fighting to maintain their foothold above 120 in today's session, the stock is already well below potential options-related support at this level - although, as mentioned previously, the stock's 10-month moving average is still waiting to be tested. However, Apple would have to drop as low as the 104 level to meet up with support from this trendline. Apple may be able to reverse its short-term slump and turn higher, thanks in large part to its reputation for creating innovative, cutting-edge technology. However, it will likely not benefit from an unwinding of short interest - currently, only 3.5% of the stock's float has been sold short, a figure that would take less than one trading day to fully unwind. Taken in the context of Apple's rock-bottom SOIR, it may be possible that the Apple bandwagon has gotten a little overcrowded. The same holds true on the analyst front, where Apple has won nine "strong buy" and six "buy" ratings, compared to just three "holds." Any downgrades from these raging bulls could compound the technical downward pressure Apple is feeling. 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, and best of luck in your trading! To learn more about the Unusually High Volume Calls 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. Best of the Zacks $100,000 Challenge Zacks is conducting a nationwide talent search to find the very best stock pickers. The winner gets a $100,000 dream job with Zacks! . Sign up for free to join the competition, or just read what stocks the leading players are trading on the Zacks Challenge Player Blogs. Best of the Zacks Challenge Player Blogs Here's what the leading players are saying lately: Java J >> JAVA'S MARKET MUSINGS #118 << Read More or Comment on this post. TheInstitutional (Rank #8 with $164,098) NO SHELTER YET FOR THE MARKET Read More or Comment on this post. Dreyerd (Rank #39 with $136,816) TOP TEN LONGS Read More or Comment on this post. Read all the Player Blog posts. 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 55,000 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 to help take definitive action to 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. *Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR’s. 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
- PFP 5/21: Below the Surface
- AWS 5/20: The Fed In Focus This Week
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% |
| SONIC FOUNDR | SOFO | 9.45% |
| VIPSHOP HOLD | VIPS | 9.20% |
| RENEWABLE EN | REGI | 8.98% |
| EAGLE BULK S | EGLE | 7.84% |
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.