Friday - May 26, 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 While the U.S. markets take a breather from their accelerated gains accrued during the first quarter of this year, we thought we would find out how things are transpiring in Europe – particularly the U.K. – these days. For his perspective, we spoke with senior analyst Duong Vuong, CFA, who covers a variety of industries in Europe. Through the first quarter of 2006, are European markets providing the same amount of positive surprises as the U.S. markets? European markets in general have provided more positive surprises in the first quarter than the U.S. market (as measured by the S&P 500). The S&P rose approximately 3% in Q1, while major European markets such as the U.K., Germany and France averaged 8%. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The last interview you did with us, you were expecting financials to perform strongly. What are some examples of financial companies that are doing well? In the last six months, financial companies such as AXA (AXA), Aegon (AEG) and Allianz (AZ) have outperformed the European market by 5%. One explanation for this could be that when the market is rising (as it did since late autumn last year), financials are more "geared" plays and hence rise more than the market. I would expect financials to under-perform the general market, however, if we do have a prolong period of declines in equity markets worldwide. Are unemployment concerns still a hindrance on the Euro markets? I don’t think unemployment is a hindrance to the market, as the problem in Euroland (especially Germany) is already well known, and it's not going to get any worse. Besides, the market has already factored in sluggish economic growth if this were to occur. If anything, a sluggish economy as evidenced by high unemployment can be a good thing for the market going forward, as interest rates would need to be cut to spur growth. For investors looking to diversify into Europe, what areas do you feel would make the smartest plays? Personally, I think there is little upside, relatively speaking, to chase commodities and oil stocks, as these had huge runs in the last two years. Financials and consumer good companies are still at modest valuations, and so I would think these would be areas where it is probably wiser in the long run. So in relative terms, these are better plays. Please name your top Buy and Sell recommendations at this time, and why you feel strongly about these companies. I don’t have any Sell recommendations but I have several Buys in the financial area. I have Buy on Aegon (AEG) for sometime now as there is an upturn in U.S. business. I have also recently upgraded Allianz (AZ) to a Buy due to improvement on its Banking business. Both are trading at a significant discount to the sector in terms of valuation. Duong Vuong, CFA is a senior analyst covering a range of industries in the United Kingdom and elsewhere in Europe. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog - NEW! Get real-time market insights from Zacks Equity Research Analysts. To see the latest posts, click here. Sempra Energy (SRE) - Stable Pipeline Earnings. For full Zacks research report, click here. Saks, Inc. (SKS) - Expect Weak Sales Trends. For full Zacks research report, click here. Strong Connections for Wire & Cable Products Outlook for 2006 Remains Bullish
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: Recent Price Strength This screen looks for stocks trading in the upper range of their 52-week highs along with attractive Zacks Rank and Broker Ratings. This strategy proves that the "trend is your friend" with a +35.5% return versus +4.9% for the S&P 500 in 2005. Here are four stocks that make the grade for the Recent Price Strength Profit Track: Actions Semiconductor Co. (ACTS) posted first-quarter earnings of 17 cents per share in late April. The result was ahead of the consensus estimate by 6%. The company noted that during the first quarter, it continued to execute its unique business model and strengthened its technology platform. ACTS expanded its product offerings and further penetrated many existing and new markets. At the same time, the company maintained its high operating margins by leveraging its advantages in lower manufacturing costs and higher operating efficiencies. The company’s shares are trading near at a 52-week high and have increased in price by 15% over the past four weeks. Continue your research on ACTS at: http://at.zacks.com/?id=2290. Corrections Corp. of America (CXW) recently reported first-quarter earnings of 54 cents per share, excluding special items. The result outpaced the consensus estimate by 12.5% and topped last year’s 35 cents. The company stated that the environment for its business continues to improve, with demand for prison beds exceeding supply on behalf of many of its customers. CXW is trading close to its 52-week high and has advanced in share price by nearly 13% over the past four weeks. Continue your research on CXW at: http://at.zacks.com/?id=2291. Hercules Inc. (HPC), which is trading close to its 52-week high, released first-quarter earnings of 24 cents per share late April. The result was ahead of last year’s 19 cents and matched the consensus estimate. The company mentioned that it is optimistic about both earnings and cash flow growth as it looks forward into 2006 and beyond, in spite of the continuing challenges the company and its industry face related to elevated energy prices. Continue your research on HPC at: http://at.zacks.com/?id=2292. World Acceptance Corp. (WRLD) announced fiscal fourth-quarter earnings of 96 cents per share, surpassing the year-prior total of 73 cents and beating the consensus estimate by almost 16%. The company meets the criteria of this Profit Track with a share price that has experienced nearly 11% growth over the past four weeks and recently established a new 52-week high. Continue your research on WRLD 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. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - A Relative Price Strength Screen Kevin Matras goes over a Relative Price Strength strategy for finding winning stocks in both up markets and down: 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 – P.T. Telekomunikasi Indonesia Tbk (TLK) Growth & Income – Harsco Corporation (HSC) More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Oceaneering International (OII) Value - ING Group (ING)
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.
Renewed interest rate and inflation concerns resulted in stocks turning in their worst two-week performance in three years. The S&P 500 led in terms of performance despite a 1.9% decline. The Dow Jones Industrial Average fell 2.1%, while the Nasdaq Composite fell a similar 2.2%. The government's report last week on consumer price inflation has many investors contemplating another interest rate increase. The report indicated only minimally higher inflation than economists had expected. However, investors are hyper-sensitive to inflation following recent Federal Reserve comments regarding inflation and the continued high price of energy. The important thing to note is that the Fed would have already discounted this information when they raised interest rates during their May meeting. The move down in stock prices is nothing more than a pricing in of another interest rate increase. Insight is highly skeptical there will be another increase. Instead, there is a high probability the Fed will pause until this fall, at which time they will have had time to see the effects of past increases. One thing that is certain is the economy remains robust. A strong economy will help propel corporate earnings in the months ahead. With the recent downturn in prices, stock valuations have become quite attractive. This should be viewed as a buying opportunity, and overweighting a portfolio in the type of growth stocks recommended by Insight is advisable. A sampling of company news: Trident Microsystems (TRID) was down after an article in the Wall Street Journal questioned the company's previous stock option grants from 1995 to 2001. The company noted that its executive officers did not exercise the specific stock options being discussed in the article for an average of approximately seven years after the date on which they were granted and during certain portions of the intervening period, these options were worthless. The article does not offer any evidence of wrongdoing. The company has referred this matter to its Audit Committee for review. Netflix (NFLX) reaffirmed the company's expectations for net income and subscriber growth in fiscal 2006. Netflix anticipates it will earn a $32.5 million profit, which is bracketed by the company's statement last month that it expected to earn between $29.5 million to $35.4 million. Stock Picks include: Redback Networks (RBAK) is one of the leading providers of advanced networking systems that enable carriers, cable operators and service providers to rapidly deploy high-speed access to the Internet and corporate networks. Its products combine networking hardware with sophisticated software. The company's products connect and manage large numbers of subscribers using any of the major high-speed access technologies, including digital subscriber line, cable and wireless. Nuance (NUAN) is the leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. OTC Insight® specializes in growth stocks, particularly in the small to mid-cap range. This monthly publication, which focuses on Nasdaq listed stocks, is a by-product of the research we use to select stocks for our managed client portfolios through Insight Capital Research and Management, Inc.® http://at.zacks.com/?id=2477. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gregory Spear says this is not the time to make heavy overnight bets that an advance from one day's action will continue. More... c) A Positive Outcome for GM and Ford? Richard Lehmann sees a positive outcome for GM and Ford. Learn his investment themes and check out a corporate bond recommendation. 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. | |||||||||
- Latest News
- Most Popular
- Roundtable Top Picks of the Week
- FED Front & Center Again
- RTI: Sector Strength Charts - Where's the Opportunity Now?
- Surging Financial ETFs Beating the Market
- Utility Industry Stock Outlook - June 2013
- 3 Japanese Stocks to Buy Now
- Your Next Stock Should Be Making New Highs
- Anatomy of Success: Stoneridge (SRI)
- RTI: What Will the Fed Do Wednesday?
- AWS 6/18: Can the Fed Afford to Keep the Suspense?
- PFP 6/18: Wednesday Fed Watch
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 06/18/2013
| Company Name | Symbol | %Change |
|---|---|---|
| STAAR SURGIC | STAA | 10.98% |
| DTS INC | DTSI | 6.89% |
| ANIKA THERAP | ANIK | 6.04% |
| LUMOS NETWOR | LMOS | 5.70% |
| INSTEEL IND | IIIN | 5.28% |
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.