1. ZACKS RANK BUY STOCKS: Today we highlight four new stocks: ANSYS (ANSS), L-3 Communications (LLL), Murphy Oil (MUR) and Fossil (FOSL). Get these stories below.
2. BEST OF EQUITY RESEARCH: Several entertainment-related companies are bucking the slowing economy, including NFLX, ATVI and TTWO. Read the Industry Rank and get our Bull and Bear Stocks of the Day.
3. STRATEGIES & IDEAS: ScanSource (SCSC) is turning barcodes into big bucks. Read the Timely Buy of the Week article.
4. ZACKS EXTRA: Mitch Zacks believes that the market's current weakness is a buying opportunity for investors with a longer-term horizon. Don't miss his audio.
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Thursday - March 6, 2008
I want to share with you some comments from Eric Rothmann, Senior Financial Services Analyst with Zacks Equity Research, concerning bond insurer Ambac (ABK).
"Yesterday, Ambac Financial Group, Inc. (ABK) announced it would sell at least $1.5 billion in stock and convertible securities to help boost capital levels at its main insurance unit, which has been facing potential ratings downgrades.
While this move should help to retain its current credit rating, it is abundantly clear that the market was not pleased.
"By selling $1.0 billion in new shares (using $10 per share), ABK would substantially dilute its shares outstanding (basically a doubling).
"Considering that we are at the beginning of a mortgage meltdown versus the trough, we view the $1.5 billion in additional capital as more of a `Band-aid effect'.
"ABK is also attempting to shore up its capital base by suspending new business in the riskiest segment of the market.
While capital may improve from this action over time, earnings will be hampered over the near-term.
"We rate the shares of ABK a Sell."
Zacks Premium subscribers can read Eric's Feb 14 report on ABK
Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst & Editor
Profit From the Pros
1. ZACKS RANK BUY STOCKS
The Zacks Rank is a powerful short term stock ranking system that has generated a 32% average annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value.
Aggressive Growth - ANSYS, Inc. (ANSS)
ANSYS (ANSS) posted an average surprise of 19.9% over the past four quarters. This year's earnings estimates have risen six cents to $1.36 over the past week. Read the full analysis on ANSS now!
Growth & Income - L-3 Communications Holdings, Inc. (LLL)
L-3 Communications (LLL) upped its dividend by 20% and continues to invest in internal initiatives and acquisitions. Analysts have increased full-year 2008 earnings projections. Read the full analysis on LLL now!
Momentum - Murphy Oil Corporation (MUR)
Murphy Oil (MUR) reported blistering fourth-quarter results in late January, including a 135% jump in income. The CEO offered positive guidance moving forward. Read the full analysis on MUR now!
Value - Fossil, Inc. (FOSL)
Fossil (FOSL) surprised on estimates for the fourth-quarter by 10.29% and guided first quarter sales higher by 12% to 14%. Read the full analysis on FOSL now!
OTHER ZACKS RANK RESOURCES
- Zacks Rank Home Page: Go there now.
- All Zacks #1 Rank Stocks . Learn more...
- Zacks Wealth Management: Own all the Zacks #1 Rank stocks in a portfolio managed by Zacks. Learn more...
- Education: Our free guides and articles show how to most effectively use Zacks.com based on your specific style of
investing. Learn more...
2. BEST OF EQUITY RESEARCH
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The Zacks Equity Research team of 50 analysts generates a mountain of timely research every day that is geared towards long term stock investing. Here we turn the spotlight on some of their hottest insights.
INDUSTRY RANK w/ Charles Rotblut
Entertain Your Portfolio
Several entertainment-related companies are bucking the slowing economy, including NFLX, ATVI and TTWO. More...
Stocks featured recently include Nordstrom (JWN), Plexus (PLXS), Universal Health Services (UHS) and Core Labs (CLB). Get their latest posts.
BULL OF THE DAY
Pride International (PDE) - Nice Price. For the full Zacks research report, click here.
BEAR OF THE DAY
National City (NCC) - Fallout Continues. For the full Zacks research report, click here.
ZACKS ANALYST INTERVIEW
Recently Issued Tech Buy Reports
We take a closer look at Buy-rated tech stocks XLNX, VRSN and CAI. More...
EARNINGS TRENDS w/ Dirk Van Dijk
Earnings Season Almost Over
Tech looked terrific during the quarter and Energy hit a gusher. However, Financials folded. More...
EARNINGS PREVIEW w/ Charles Rotblut
The Week of Mar 3 - Mar 7
Fourth-quarter earnings season wraps up this week with reports from AES, BIG, CIEN, COST, DDS, HRB, NSM and SPLS: More...
OTHER ZACKS EQUITY RESEARCH RESOURCES
- Zacks Equity Research Home Page: Go there now.
- All Rating Upgrades . Learn more...
- Zacks Elite narrows down Zacks Equity Research recommendations into three focused portfolios. Learn more...
- Zacks Method for Trading: Transform your trading by applying the full force of the Zacks Rank. Learn more...
3. STRATEGIES & IDEAS
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Here you will find fresh articles loaded with profitable investment strategies and ideas to help you beat the market.
Today we highlight...
TIMELY BUY of the WEEK
ScanSource, Inc. (SCSC)
This company is turning barcodes into big bucks. More...
SCREEN OF THE WEEK
The Market is Cheap
Kevin Matras explains why the market looks so cheap at these levels, and how to start planning your market-bottoming purchases. Stocks highlighted include CGNX, FDP and XLNX: More...
ZACKS INVESTMENT MANAGEMENT
Benefits of Estate Planning
Learn about five reasons why you should have an estate plan - and why you should get started now. More...
A Nation of Jailbirds
The terms "breakout" and "correction" have a whole new meaning in this context. Read about CXW, CRN and BCO. More...
FREE REPORT: Top 10 Stock Picking Strategies
Most of the strategies highlighted in the articles above were created using the Zacks Research Wizard screening and backtesting software. Learn more about this powerful tool and get your free copy of our special report "Top 10 Stock Screening Strategies".
4. ZACKS EXTRA
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MITCH ON THE MARKETS (AUDIO)
Mitch Zacks, Portfolio Manager at Zacks Investment Management, believes the market's current weakness is a buying opportunity for investors with a longer-term horizon. Listen to the audio here.
For more Zacks audio, click here.
Growth & Income: Figuring the Return on Assets
Momentum: Support and Resistance
Value: Understanding Price/Earnings-to-Growth (PEG)
Aggressive Growth: Measuring a Stock's Volatility through Beta
Education Home: Click here.
Orbital Sciences (ORB)
The Put/Call Ratio Greater than 1.0 filter highlights this satellite and rocket manufacturer.Read the commentary.
Options homepage: Go there now.
ROUNDTABLE REVIEW (AUDIO)
Panelists share their thoughts on current stock market volatility. Also discussed is whether we'll see a housing bailout. Listen to his audio here.
For more Zacks audio, http://at.zacks.com/?id=4168.
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Regards and Happy Investing,
Charles Rotblut, CFA
Senior Market Analyst
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