Thursday - January 20, 2005
 Want to view the archive of past issues? Go here. Get the latest investment alert technology and receive the most up-to-date Profit from the Pros content as it’s published, in Real Time, with no waiting. Learn more about this free tool at: http://at.zacks.com/?id=1517. Manage Profit from the Pros subscription: 1. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentary that recently appeared on Zacks.com. Following the article you will find previews of other profitable commentaries with insights and recommendations from leading investment experts.
Stocks remain under pressure amid profit-taking and concerns regarding inflation and corporate earnings. A near-term correction would not be surprising, especially if December-quarter results prove disappointing. But, with the Dow Theory in the bullish camp and quality stocks available at reasonable prices, subscribers should be looking for buying opportunities. For now, Richard Moroney’s recommended cash position remains at 10% to 16%. Most U.S. stocks and all the major averages have declined so far in 2005. Historically, early January has been a bullish period, so this year’s weak start has many concerned. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - According to The Wall Street Journal, the Dow Industrials have declined in about 35% of years since 1897. But in years in which the Industrials dropped in the first five days of trading, the Industrials fell 50% of the time. Even excluding the first week and measuring change over the final 51 weeks of the year, the Industrials have declined about 44% of the time after first-week declines — much more often than average. Performance for the entire month of January is also used as a market barometer, so the reaction to December-quarter earnings will be watched closely. Thomson First Call says consensus estimates project S&P 500 Index earnings will show about 15% year-to-year growth — an impressive showing considering the 28% growth reported for the December 2003 quarter. Profit warnings and revision trends for the December quarter have been in line with historical norms, so growth will likely approach 17% or 18%. Such a gain would represent an acceleration from the September-quarter increase of 16.8%, though most of the improvement reflects higher estimates for the energy sector. As always, the market’s reaction will be the best gauge of whether December-quarter results represent good news. Also, any guidance for 2005 will be scrutinized closely. S&P 500 earnings are expected to climb 10.5% for 2005, and the index seems reasonably valued at 16 times expected 2005 earnings. But, with interest rates expected to rise, the bullish case for stocks depends importantly on earnings growth. If companies lower 2005 expectations, a bona fide secondary correction would not be surprising. Typical one-third to two-thirds corrections of recent advances would bring the Dow Industrials to 10,100 to 10,500 and the Dow Transports to 3250 to 3550. While a secondary correction is possible, subscribers should be looking for opportunities on a stock-by-stock basis. Attractive picks include Allstate (NYSE: ALL), Citigroup (NYSE: C), and PepsiCo (NYSE: PEP). Get clear Buy, Hold and, yes, SELL advice from one of the nation`s oldest and most successful investment newsletters. Our in-depth analysis and advice have been helping subscribers weather market volatility since 1946. Learn more about this newsletter and free trial offer at: http://at.zacks.com/?id=346. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gregory Spear says this may be a difficult earnings season due to a decelerating growth rate. Find out which sectors should have the highest year-over-year earnings growth, and how this expert plans to capitalize. More... c) There is No Template for Investing Don’t get caught up in the press’ narrative. Kelley Wright wants you to focus on the market of stocks and explains how a good dividend boost can reverse a declining trend. Read his analysis and a pair of stock profiles. More... d) It`s Still a Bull Market, Despite Early Attrition Dan Sullivan sorts out various seasonality factors that are often referenced in forecasting the market. Learn about the merits of each and then take a look at a pair of mutual funds profiles. More... e) 2005 Should See Solid Earnings Growth Jim Collins has confidence in earnings growth for 2005 and maintains a positive view on the economy and inflation. Read his analysis and take a look at a few stock picks for the week. More... f) The Symantec/Veritas Deal Should Be Positive Long-Term The market didn`t react favorably to the recent deal between Symantec and Veritas, but Paul Tracy says the combination should be positive for investors in the long haul. More... Featured Expert articles are courtesy of the 60+ leading investment newsletters that have partnered with us to create the Zacks Expert Advice service. Check out the Experts section of Zacks.com daily to find profitable stock picks and timely market commentary at: http://at.zacks.com/?id=637.
2. WEEKLY COMMENTARY: Experts Watch Zacks.com offers 3 unique weekly commentaries that all further
our mission to help you Profit from the Pros. Today is the
latest installment of Experts Watch from Trace Johnson. Each
week Trace shares winning strategies from leading investment
experts to outperform in any market environment. Homeland & Energy Security There are two stories going on in Washington, D.C. regarding the second inauguration of George W. Bush: the amount of money being spent on lavish parties and the significant expenditures related to ensuring that the city is secure from terrorists. Securing the United States in the 21st century involves more than our activities abroad. It involves new capabilities and technologies being deployed at home. It also involves maintaining access to cheap oil and energy. While both security and oil stock have received a great deal of attention over the last several years, the centrality of their role in the overall security of the US creates profitable investment opportunities that are also tantamount to contributing to the cause. Read on for Experts hot picks and security insights for '05. In the run-up to the US elections in November, the price of a barrel of oil busted the $50 mark and set all-time highs. Expectations for an attack on the homeland and intensified complications in the conflicts with al Qaeda and in Iraq combined with falling inventories to send the speculators into frenzied states. After the election passed without significant or spectacular terror events, oil began backing off significantly and spurred a rally that stretched through most of the rest of the year. Dennis Slothower, editor of Stealth Stocks sees a very similar pattern forming as the Iraqi elections are fast approaching.
And More... Click here to read the full article with commentary and
recommendations from leading market experts. http://at.zacks.com/?id=14 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SCREEN OF THE WEEK Kevin Matras looks at Cash Flows (and increasing Cash Flows) for a winning stock picking strategy. Find out how it’s consistently beaten the market year after year and get 3 of its latest picks for 2005. More... ALL STAR TOP PICKS The machinery industry is experiencing broad-based strength and the All Stars have 5 recommendations so you can take advantage of pent-up demand in this expanding space. More... 3. BEST OF ZACKS INDEPENDENT RESEARCH The analysts from Zacks Independent Research create a mountain of insightful equity research everyday of the week. Here you will find the best of that information recently published on Zacks.com. BULL OF THE DAY Intel Corp. (INTC) - Stronger Sales, Lower Inventory Rent-a-Center (RCII) - Same-Store Sales Growth Declining Non-U.S. Telecom Still Has Room to Grow Trucking Profits to Shift Up Fourth Quarter Earnings Kick Into High Gear
4. TRADING STRATEGIES: 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… This Profit Track strategy uses Return on Equity (ROE) to discover solid stocks. ROE is one of the quickest ways to gauge whether a company is creating assets or gobbling up investors’ cash. One of the quickest ways to gauge whether a company is creating assets or gobbling up investor`s cash is to look at their ROE. This fast moving Profit Track returned a respectable +70.4% in 2003 and is up over 23% YTD for 2004 (thru 12/3/04). D.R. Horton, Inc. (NYSE: DHI) , one of the largest homebuilders in the United States, builds high quality, single-family homes designed principally for the entry-level and move-up markets. D.R. Horton has a ROE of 27.49%, which places it well above the 10% requirement for this profit track. The company will report its fiscal first quarter numbers on January 20th, 2005, but we already know that net sales orders for the quarter increased +31% to $2.7 billion, or 9,901 homes, compared to last year’s $2 billion, or 8,234 homes. With increased sales in every region, and a ROE that shows this company is creating assets, it’s easy to see how D.R. Horton made this Profit Track. To continue your research on DHI, click here. Nordstrom, Inc. (NYSE: JWN) is one of the nation's leading fashion specialty retailers. Earlier this month, Nordstrom reported that same-store sales for December increased +9.3%. Given its strong sales performance, an ROE of 20.14 is an added benefit for investors. In addition, the company price to sales ratio of .98, meeting the parameter for this Profit Track. In its fiscal third quarter, Nordstrom posted earnings per share that topped the consensus by approximately +20%. To continue your research on JWN, click here. Tenneco Automotive (NYSE: TEN) is one of the world's largest producers and marketers of ride control and exhaust systems and products. Tenneco Automotive enjoys the highest ROE on this Profit Track at 64.41%. It also has a price to sales ratio of well under 1 at .17. The company continues to build its book of business, and recently announced that Toyota chose Tenneco to supply exhaust components on the next-generation Toyota Tundra, which will launch in the fall of 2006. To continue your research on TEN, click here. All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this Upgrades and Revisions strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to the this powerful stock picking tool. Learn more about the Research Wizard and Free Trial offer at : http://at.zacks.com/?id=1370 5. ZacksAdvisor.com TIMELY BUY of the WEEK The Children’s Place Retail Stores (PLCE) The Children’s Place Retail Stores, Inc. is a specialty apparel retailer offering value-priced apparel and accessories for newborns and children up to age 10. The company designs, sources, and retails exclusive, private-label merchandise under The Children’s Place brand. As of May 1, 2004, PLCE operated 700 stores situated in strip centers, enclosed shopping malls, and street locations in both urban and suburban communities across North America. About 657 outlets are located in the U.S., while the remaining 43 are in Canada. Additionally, the company operates online.
Children's Place Retail Stores Inc. has agreed to buy Walt Disney Co.'s ailing chain of Disney Store in North America, giving Children's Place added presence in the newborn to 10-year-old market. A Children's Place subsidiary will hold the 313 Disney Stores and will have the exclusive right to operate the chain in the United States and Canada under a long-term license agreement. Disney Store North America will continue making toys and apparel with Mickey Mouse and other Disney icons, and will begin paying royalties to Disney on the second anniversary of the deal's close. "By combining the Disney brand with our retail expertise, we believe we can increase sales, produce significant margin expansion and leverage operating expenses, resulting in increased earnings power for our shareholders," Children's Place CEO Ezra Dabah said in a statement.
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, our #5 Ranked stocks (Strong Sells) have 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 at: http://at.zacks.com/?id=1424. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=1423. 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 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, Stephen Reitmeister 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% |
| 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.