Friday - February 24, 2006
 Want to view the archive of past issues? Go to: http://at.zacks.com/?id=2283. Manage Profit from the Pros subscription: 1. ZACKS EQUITY RESEARCH Covering a number of different industries in Europe - particularly the U.K. - is senior analyst Duong Vuong, CFA. We wanted to take the opportunity to ask him a few questions about the state of the European markets at this time. A decent portion of your coverage trades on the London Exchange. How has the market been performing lately? The market has been performing very well, up 7% in the last three months and up 15% in one year. This compares with 2% and 7% for S&P, respectively. In the U.S., insurance companies have begun a cyclical market decline. Do you see the same thing for the European insurance companies you cover? No, in fact I do not. European insurers are very strong as a sector, with many companies posting positive results, with good price performances to match. Obviously, it has to be said that the European stock markets have performed better than U.S. market in the last year. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Your coverage is quite vast - from retail to public utilities. Which groups do you see performing strongest in 2006? Which do you feel will perform weakest? I think Financials will be strong this year. Markets are now all at multi-year highs, and M&A activity is starting to heat up. Financials, at this time, are more geared up to be stronger plays than other sectors. In my opinion, Retail will be the weakest European sector in my coverage. Fundamentally, Retail is a low-growth sector; it has GDP growth in Europe not being very strong at the present time. Also consider the fact that there is high unemployment in the region, which affects consumer spending, especially in countries such as Germany. What would you consider to be your top Buy recommendation at this time? I have a Buy on Aegon (AEG), which is turning around its U.S. Business, with U.S. earnings showing a 42% year-over-year increase in its third quarter. We have increased our earnings estimates from $1.45 in 2005 and $1.48 in 2006 to $1.75 and $1.78, respectively. Late last year, AEG agreed to sell its American maritime container leasing business for $1.2 billion, and its Spanish general insurance business for $350 million. We view these moves as positives, which should let management focus on the core business: selling life insurance, pensions, savings, and investment products. Finally, for investors looking to diversify into European markets, particularly the U.K., what advice would you give them? What developments might be expected? I think the currency effect from 2005 won't be repeated this year, as the U.S. dollar has gained ground versus the British pound. Therefore, any added performance one might expect due to currency this year can be forgotten. The U.K. is fundamentally sound in terms of its economy, and the stock market, while it performed quite well in 2005, is still not too relatively expensive. As such, I still expect it to do well again this year, perhaps with gains around the 10% mark. Duong Vuong, CFA is a Zacks senior analyst covering a variety of sectors in the U.K. and elsewhere in Europe. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog - NEW! Get real-time market insights from Zacks Equity Research Analysts. To see the latest posts, click here. Lexicon Genetics (LEXG) - Progress in New Technology. For full Zacks research report, click here. Ferro Corp. (FOE) - No Forward Visibility. For full Zacks research report, click here. A Positive Story in 2006 Growth Expected to Slow Sharply in the First Quarter
2. PROFIT TRACKS Zacks.com is proud to share with you some of the best trading
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we highlight... Profit Tracks: Low Price Stocks Many investors prefer stocks priced below $20 because the low prices allow them to accumulate more shares. Fortunately, lower prices do not necessarily mean lower quality. This strategy identifies stocks priced below $20 that are trading at discount valuations and have a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy"). The stocks identified by this search strategy trade at price-to-sales (P/S) multiples of 1.0 or below. The strong Zacks Rank is indicative of positive revisions in earnings estimates. Combining these characteristics can result in high-dollar returns. In 2005, this strategy generated a stellar +51.9% return. Here are four stocks that make the grade for the Low Price Stocks Profit Track: AK Steel Holding Corp. (AKS) is a Zacks #1 Rank (Strong Buy) name. The company reported fourth quarter results in late January, stating that it achieved outstanding operating and sales performances in 2005. AKS shares are trading around $11.30 per share, with a price-to-sales ratio of 0.22. Continue your research on AKS at: http://at.zacks.com/?id=2290. FelCor Lodging Trust Inc. (FCH), one of the nation's largest hotel real estate investment trusts (REITs) and another Zacks #1 Rank (Strong Buy) company, is currently trading around $19.80 per share, with a price-to-sales ratio of 0.96. FCH has earned $1.34 per share over the past 12 months. The company recently announced fourth-quarter adjusted funds from operations ("FFO") of 21 cents per share versus last year's eight cents. The result also topped the consensus estimate of 16 cents. Continue your research on FCH at: http://at.zacks.com/?id=2291. I2 Technologies, Inc. (ITWO) recently posted fourth-quarter earnings per share from continuing operations, excluding an item, of 46 cents. The result was ahead of analysts' expectations by about 70%. The Zacks #1 Rank (Strong Buy) company is trading around the $15.90 level and has realized earnings of $1.54 per share over the past 12 months. Continue your research on ITWO at: http://at.zacks.com/?id=2292.Skechers USA, Inc. (SKX) designs and markets branded contemporary casual, active, rugged and lifestyle footwear for men, women and children. The company recently released fourth- quarter results, noting that its record sales and improved margins are the result of its dedicated efforts to consistently deliver trend-right styles, which has led to an increased demand for its in-season product and continued growth in its fashion and street lines. The company offers a price-to-sales ratio of 0.79. Continue your research on SKX at: http://at.zacks.com/?id=2293. To see the full list of stocks that currently pass this winning screen, go to: http://at.zacks.com/?id=2294. 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” at: http://at.zacks.com/?id=2295. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Using Common Sense to Manage your Portfolio Kevin Matras shows why monitoring stocks is as important as
picking them. It's simple common sense but it can make all the
difference: http://at.zacks.com/?id=2289. 3. ZACKS RANK BUY STOCKS Every day on Zacks.com we highlight four 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 - Weatherford International, Ltd. (WFT) Growth & Income - Smith International, Inc. (SII) More...
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4. 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.
Between January 3rd and January 11th, the S&P 500 established what has so far been the trading range for the entire year: 1245.74 to 1294.90. Within this narrow band of less than 50 points, the index has careened from one end of the range to the other without breaking out to either the upside or the downside. This past week's trading was no exception. From tip to toe, the S&P covered more than two-thirds of the band and tested its upper limits, but was unable to punch through. The S&P remains within striking distance of an upside breakout. However, Dr. Melvin Pasternak thinks it will have a very tough time making a meaningful new high. On the weekly chart, the 1295 area has emerged as formidable resistance from three separate sources. First, and most powerful, the upper channel line drawn from the October 2004 peak intersects at this level. Second, the broken Intermediate uptrend line from the 1168.20 low of last October intersects here as well. Finally, there is resistance created by the mid- January 1294.90 high. Over time, the channel line and broken trendline will continue to rise, so an upside expansion of the present trading range is possible. However, Dr. Pasternak regards the possibility of an accelerated uptrend necessary to break the S&P free from its channel as very remote. On the other hand, the S&P shows no inclination to break major support at 1245, the early-January low. Over the past two weeks, it has twice found buying interest just above that level at 1253. The index has also climbed back above the 10- week moving average, which is currently at 1272. The 30- and 40-week moving averages at 1241 and 1232, respectively, continue to rise and should provide additional support. Nam Tai Electronics Inc. (NTE) makes electronic components used in products such as cell phones and laptop computers. Dr. Pasternak highlighted the shares in the December 19th newsletter at $22.50. The stock has since rallied as high as $24.48. Harmonic (HLIT) sells digital video and fiber optic systems to cable and satellite companies. Dr. Pasternak flagged the stock in the February 6th newsletter at $5.85. The shares then advanced to a peak of $6.42 before retreating. Ceragon Networks (CRNT) manufactures broadband network equipment for wireless companies. The stock has broken a major downtrend line that began near $7 in January 2005. If CRNT can break through $5, then it should be able to test $6. Intevac (IVAC) provides equipment for film coatings used in computer hard drives. The stock has been extremely strong over the last few months, nearly doubling from its December low of $11.37. IVAC appears to have found support above round number resistance at $20. With the recent retreat in the price of crude oil, oil service stocks have been hit hard. BJ Services (BJS) has retreated from a late-January peak of $42.85 to a low of $32.39 on Wednesday. The rising 200-day moving average at $32.34 is likely to provide good support. RSI has retreated to below 30, so the shares are deeply oversold. With just a few short-term trades each month, using a small
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Done Right: The Secrets to Putting the Odds in Your Favor." http://at.zacks.com/?id=2428. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Vivian Lewis says collecting gold bars for The Year of the Dog is the new hobby of the Chinese. More... c) The Hot List is Still Outpacing the S&P John Reese's Hot List continues to produce favorable results.
Receive recent performance figures and check out some stocks. 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, by visiting: http://at.zacks.com/?id=2296. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=2297. 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, 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 Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. 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. | |||||||||
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Zacks #1 Stocks on the Move 05/21/2013
| Company Name | Symbol | %Change |
|---|---|---|
| SCIENTIFIC L | SCIL | 8.00% |
| NATUS MEDICA | BABY | 6.11% |
| SUMMER INFAN | SUMR | 6.02% |
| RADIANT LOGI | RLGT | 5.32% |
| NEW ORIENTAL | EDU | 4.51% |
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