Friday - April 14, 2005
 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 The first quarter earnings season is underway, and is off to a spectacular start. While it is still very early, with just 37, or 7.4% of the reports in, the reports so far have been very strong. Positive surprises are leading disappointments by a staggering 26 to 2, or a 13:1 ratio. I think it is extremely unlikely that such a ratio will hold as the reporting season wears on. In the fourth quarter, the ratio of positive surprises to disappointments was just a hair under 3:1. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - There are three sectors which have yet to have any firms report, including Energy, which is expected to have the highest overall year over year growth. Among the firms that have reported, the median year over year growth rate is 18.8%. Again that is expected to decline as more firms report. The firms which have reported so far are not necessarily representative of their sectors. For example, most of the firms that have reported in the Financial Services sector are investment bankers, not traditional banks or insurance companies. Going into the reporting season, the median expectation is for 10.4% growth. In the fourth quarter, median earnings growth was 14.9%.There are three sectors which have yet to have any firms report, including Energy, which is expected to have the highest overall year over year growth. Among the firms that have reported, the median year over year growth rate is 18.8%. Again that is expected to decline as more firms report. The firms which have reported so far are not necessarily representative of their sectors. For example, most of the firms that have reported in the Financial Services sector are investment bankers, not traditional banks or insurance companies. Going into the reporting season, the median expectation is for 10.4% growth. In the fourth quarter, median earnings growth was 14.9%. I still expect the final showing for the first quarter to be below the fourth quarter, but if the reports continue at the pace they have started at, I will be forced to reconsider. However, given the strong reports so far, it is very likely that the final result will be well north of that number. We will keep you posted as the numbers roll in, but for now it looks like earnings are still on a roll. I still expect the final showing for the first quarter to be below the fourth quarter, but if the reports continue at the pace they have started at, I will be forced to reconsider. However, given the strong reports so far, it is very likely that the final result will be well north of that number. We will keep you posted as the numbers roll in, but for now it looks like earnings are still on a roll. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - BULL OF THE DAY Amphenol, Inc. (APH) - Growth in Industrials. For full Zacks research report, click here. Evergreen Solar (ESLR) - Still Overvalued. For full Zacks research report, click here. Spending Growth Helping Business Services Utilities Continue Growth Through Acquisitions
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 Tracks: 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. This screen focuses on EPS Revisions, along with Broker Ratings and Rating Changes. According to Zacks Investment Research "earnings estimate revisions are the most powerful force impacting stock prices". Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy that delivered a +27% return in 2005. Here are four stocks that make the grade for the Upgrades and Revisions Profit Track: Amcol International Corp. (ACO) will announce first-quarter earnings on April 21, 2006. The company reported fourth-quarter earnings of 28 cents per share in mid-January. The result topped the consensus estimate by about 27% and outperformed last year's 20 cents. ACO stated that its 2005 performance was strong as it continued to advance towards global leadership in specialty minerals. The company has also seen favorable earnings growth of 30% during the past five years. Continue your research on ACO at click here. Core Laboratories NV (CLB) is a Zacks #1 Rank (Strong Buy) company that recently raised its earnings guidance for the first quarter to a range between 49 and 51 cents from a previous range of 44 to 45 cents. Analysts followed suit and brought earnings estimates up to 50 cents per share. One month ago analysts were forecasting 46 cents. The company, which has seen earnings growth of 18% during the past five years, will release first-quarter results in a couple weeks. Continue your research on CLB at click here. Energizer Holdings, Inc. (ENR) posted fiscal first-quarter earnings that topped the consensus estimate by about 11% and outpaced the year-prior result. Financial results for the second quarter will be available on April 25, 2006. The company satisfies the criteria for this Profit Track as evidenced by its earnings per share growth of 34% over the past five years. Continue your research on ENR at click here. Polyone Corp. (POL) experienced solid earnings growth of 124% over the past five years. The international polymer services company updated its first-quarter outlook in late March. The company stated that it expects its financial results to be better than anticipated at the end of 2005, exceeding first-quarter 2005 results. Continue your research on POL at click here. 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. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Great Stocks often have Great Peers Kevin Matras looks at how to find winning stocks in the winningest Sectors: 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 – Matsushita Electric Industrial Co., Ltd. (MC) Growth & Income – Burlington Northern Santa Fe Corporation (BNI) More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Cryptologic, Inc. (CRYP) Value - NewMarket Corporation (NEU) Zacks Rank Resources
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.
The expected bounce began right on schedule and it is almost certain to last through the low volume pre-holiday trading today. It takes volume and emotion to drive the market lower and that is likely to be in short supply as many traders try to stretch out a 3-day weekend into four. Wednesday’s flatish trading prefigured such doldrums. For now, quietude is a blessing. The market has not yet started a downtrend on a daily timefame (that’s right, the S&P 500 is still quite congested), and it may not start trending until it has had an opportunity to take the emerging earnings picture into account. Despite the headline issues with Iran, Gregory Spear and his team do not believe that geopolitical concerns are high priority factors for the market at this time. The question on Wall Street’s mind is simply, “Is this as good as it gets” for the U.S. economy? If so, institutional money managers will continue to sell Main Street U.S.A. and deploy capital elsewhere around the world. PRO PROFILE Encore Wire (WIRE) Would you be interested in a company that increased revenues 17% in the fourth quarter of 2005, while boosting quarterly earnings 216% on a sequential quarter comparison? Spear and his team are not talking Chinese Internet here, They are talking copper. Due to pricing power, WIRE brought in $1.50 per share in Q4 of 2005 compared with $0.48 in the third quarter of 2005. The nation’s second-largest manufacturer of building wire generated sales of $758 million over the past year, a 26% increase year over year, by selling wire and cable primarily into the residential and commercial construction market. Raw copper has been surging to record high levels due to Chinese industrial demand, but Encore has been able to pass along rising material costs, allowing the company to improve margins by 50 basis points last year. Like BHP Billiton (BHP), which Spear and his team profiled earlier in the week, the increase in net sales in 2005 was primarily the result of a 28% increase in the average selling price of product. Sales for the fourth quarter of 2005 increased 65% to a record $244 million, year over year. As a result of strong cash flow that quarter, WIRE was able to pay down $13 million of debt, leaving $71 million on the books. Active traders need PROVEN professional-level tools! The Spear Report Professional Edition is a premium DAILY trading service. The TSR Pro trading strategy incorporates both fundamental and technical analysis. Gold, index proxies, shorts, longs…Pro covers it all EVERY SINGLE DAY! Sign-up now and find out how to make money in ANY market, up or down. With TSR Pro, it’s like having your own personal research assistant. http://at.zacks.com/?id=2347. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Jeff Carter is leaning bullish, but his indicators remain in the neutral camp. Learn why and discover an option play. More... c) Building Mutual fund expert Steve McKee says we’re rebuilding the Goldilocks economy of the Nineties. 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 06/19/2013
| Company Name | Symbol | %Change |
|---|---|---|
| LUMOS NETWOR | LMOS | 5.95% |
| SUPPORTCOM I | SPRT | 4.42% |
| SONIC FOUNDR | SOFO | 4.69% |
| GREEN MOUNTA | GMCR | 3.75% |
| SUMITOMO MIT | SMFG | 3.50% |
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