Dear Subscriber,

We will get an update to the University of Michigan's July consumer confidence index tomorrow. I am not expecting a great report given the ongoing worries about the labor market.

Nonetheless, some retailers are thriving in the current environment. In fact, they are seeing foot traffic increase, not decrease.

In this week's Industry Rank Analysis, I tell you who they are.

Read: Discount Retailers: Traffic & Sales Up


We are seeing a lot spin from CEOs in reaction to earnings news, which is not surprising.

What CEOs cannot hide from, however, is ROE. This indicator tells you whether or not the CEO is creating shareholder value.

Kevin Matras shows you an easy way to use ROE to find great companies in the Screen of the Week.

Read: Grading Management with ROE

Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst & Editor,
Profit From the Pros

Today's Top Stories: Thursday- July 23, 2009

ZACKS RANK BUY STOCKS

• Aggressive Growth - Synaptics, Inc. (SYNA) is posting phenomenal margins. The company's net profit margin is 9.7%, compared to the low 1.8% industry average. Return on Equity is nearly 37%, more than 10 times the 3.1% its peers average. Read More...
   
• Growth & Income - Baxter International Inc. (BAX) recently posted second-quarter earnings of 96 cents per share, topping the consensus estimate by 2% and surpassing the previous year's 85 cents. The company also upped its full-year earnings guidance, and analysts followed suit. Read More...
   
• Momentum - Bio-Referance Laboratories Inc. (BRLI) second-quarter revenue was up 16% from last year to $87.2 million, a company record. Earnings came in at 33 cents per share, besting the consensus of 28 cents. Read More...
   
• Value - Mirant Corporation (MIR) has surprised on estimates 3 out of the last 4 quarters by an average of 9.87%. The stock is cheap. MIR trades at just 5.4x forward earnings with a price-to-book of 0.60. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Best of Funds: Top Global Equity Funds
  Maintain a worldly portfolio with Sierra Core Retirement A (SIRAX) and Palantir Fund (PALIX).
  Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: HCP, Inc. – HCP
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Navigant Consulting - NCI
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: Transportation
  We would avoid companies that are in very volatile industries, such as shipping and airlines. Stock prices in these industries can display enormous gains and losses on a frequent basis and are not for the faint of heart. We have Sells on (OSG), (CEA), (DR Read More...
  
  
• Vocus (VOCS) Provides Increased Outlook
• Altria (MO) Beats, Raises Guidance
• Earnings Preview: Anadys (ANDS)

• Early-Warning Signs of Credit Trouble
• The Long-Distance Caregiver

EDUCATION: Growth and Income

Paying Attention to Free Cash Flow Read More...

PeopleAndPicks.com:

Player "sporthunter" finds a gem. "Well, July 23 has arrived and again CKSW has done it again. For the last 3 qauters this company has outperformed the market by over 300%". Read More...

• Growth & Income Stock Picks- July 22, 2009
• Upside: Zacks Rank Factor #3
• Discount Retailers: Traffic & Sales Up

PROFIT TRACKS: Low Price

This strategy helps investors find those stocks priced below $20 with a strong Zacks Rank. Stocks making the grade are (RINO), (NUS), (DLX) and (NNI). Read More...

EARNINGS TRENDS: Absolutely Bad and Relatively Good

Less than 1/3rd of reporting firms show higher earnings than a year ago, but positive surprises lead disappointments by almost 5:1. Read More...

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Regards and Happy Investing,

Charles Rotblut, CFA
Senior Market Analyst
Zacks.com

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