Friday - August 25, 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 RANK BUY STOCKS Zacks #1 Ranked stocks average a 32.4% annual return. Every day on Zacks.com we highlight four new 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 – CBOT Holdings (BOT) CBOT Holdings (BOT) is benefiting from increasing trading volume in derivatives. The company has exceeded earnings estimates by an average of about 12% over the past two quarters. Over the past two months, estimates have been rising for this year and next. This year's projections have jumped 12.6% to $2.94 per share, while next year's numbers have increased 11.6% to $3.65 per share during that time period. Read the full analysis on BOT at: http://at.zacks.com/?id=2505. CapitalSource, Inc. (CSE), which was first featured as a Growth and Income pick back in mid December, continues to perform quite well. The company met or topped analysts’ earnings expectations for the past 16 quarters. After posting solid results for the second quarter, PX upped its 2006 earnings per share guidance. The company is currently yielding 1.8%, with a five-year average dividend yield of 1.5%. Read the full analysis on PX at: http://at.zacks.com/?id=2506. More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Ship Finance International Limited (SFL) On Tuesday, Aug 22, Ship Finance International Limited (SFL) achieved a 25% positive earnings surprise, reporting EPS of 60 cents per share compared to 42 cents in the same period last year. Revenues were reported at $90.9 million while net income was reported at $43.4 million. Read the full analysis on SFL at: http://at.zacks.com/?id=2507. Corus Bankshares, Inc. (CORS), first presented as a Value stock on Dec 12, 2005, exceeded analysts’ earnings estimates in nine consecutive quarters by an average margin of 20.4%. This Zacks #1 Rank stock has a price-to-book ratio of 1.6, compared to 5.1 for the market. The company’s return on equity nearly doubles that of the industry average—23% compared to 12%. Read the full analysis on CORS at: http://at.zacks.com/?id=2508.
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: Discounted Fundamental Strength Fundamental strength is often a key criterion for many investors. A strong balance sheet and a history of profitability indicate that a company has the ability to meet its obligations and the flexibility to pursue opportunities for growth. Therefore, such stocks are often perceived as having a lower level of risk. The lower level of risk often results in higher valuations. Occasionally, however, the markets undervalue a stock relative to its company's fundamental strength. When this occurs, opportunities for profits are created. This Profit Track identifies such opportunities. Backtesting results show just how successful this Profit Track has been. Double-digit returns have been achieved during each of the past four years. In 2005, this strategy continued to handedly beat the S&P 500. Here are four stocks that make the grade for the Discounted Fundamental Strength Profit Track: Arrow Electronics, Inc. (ARW) reported second-quarter earnings of 77 cents per share, excluding items. The result topped the consensus estimate by about 5% and surpassed last year’s 54 cents. Arrow Electronics said its ongoing initiatives, coupled with favorable conditions in the marketplace, led to record second quarter sales and earnings in excess of the company’s expectations. ARW offers a PEG ratio of 0.70 and a price/sales multiple of 0.27. Continue your research on ARW at: http://at.zacks.com/?id=2290. Barrett Business Services, Inc. (BBSI) has a current ratio of 2.12 and a debt/equity level of 0.12. In late July, the company posted second-quarter earnings of 36 cents per share, outperforming the previous year’s 31 cents and beating the consensus estimate of 35 cents. BBSI noted that it expects third-quarter earnings to range between 47 cents and 49 cents per share. Wall Street currently has the third-quarter earnings pegged at 48 cents, which up a penny from estimates of one month ago. Continue your research on BBSI at: http://at.zacks.com/?id=2291. Parker-Hannifin Corp. (PH) satisfies the criteria of this Profit Track with a current ratio of 1.87 and a debt/equity level of 0.25. The company’s PEG ratio stands at 0.72 and its price/sales multiple is 0.96. Parker-Hannifin recently announced fourth-quarter earnings per share from continuing operations of $1.55. The result was ahead of the year-prior total and eclipsed the consensus estimate by approximately 3%. Continue your research on PH at: http://at.zacks.com/?id=2292. Shoe Pavilion, Inc. (SHOE) recently released its financial results for the second quarter. Adjusted earnings per share, excluding a legal settlement expense, totaled 11 cents. The result edged past last year’s 10 cents. The company stated that its net sales and adjusted net income were in line with its expectations. SHOE sports a current ratio of 2.36 and has no debt. Continue your research on SHOE 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. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Price Targets and 'Multiple' Expansion Kevin Matras goes over a screening strategy for finding cheap stocks with big returns: http://at.zacks.com/?id=2289. 3. ZACKS EQUITY RESEARCH We recently sat down with senior market analyst Charles Rotblut, CFA, in order to get his perspective on a wide variety of subjects – recent economic data, geopolitical concerns, etc. – and how these may affect the overall market during in this second half of 2006. A couple of months ago you predicted that the markets would be volatile throughout the summer. Do you expect this volatility to continue? A data-dependent psychology continues to grip the market, preventing a clear direction from emerging. Last week, there was quite a bit of positive news-flow, such as the inflation data, falling oil prices and Britain’s success in thwarting a terrorist attack. This week, volume has been light and the news has been more mixed. The rising existing home inventories raised eyebrows, and the Iranian nuclear issue is back in the headlines. Plus, we have had one Fed Governor reminding everyone that the FOMC remains on inflation watch. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Iran is a big wildcard, and we’ll have to see how the politics play out. North America is in the middle of hurricane season and while it has been light so far, one storm could change everything. Severe typhoons have hit Australia and China this year, so it is too early to be complacent. If we can get into late September without any external shocks to the market and a clearer sign that interest rates will hold at current levels, it would not be surprising to see an upward trend in prices emerge. You mentioned the contraction in housing. What are your thoughts about the economy? The contraction in housing is getting headlines, but what is happening is partially a case of missing the forest for all of the trees. Existing homes sold at an annualized rate of 6.3 million in July; two years ago, we’d have considered that to be a good number. We’re seeing a decline from a high peak; while the numbers are falling, they remain impressive. As for inventories being at the highest level since 1993, this is simply a precursor to a price adjustment. Selling a house is emotional and sellers are reluctant to admit that their house is worth less than a similar home down the block that sold for a certain price six months ago. Sooner or later, sellers will cut their prices, and this will cause inventories to fall. Outside of housing, the economy remains in good shape. As I said in our blog yesterday, analysts expect double-digit earnings growth for the next four quarters. Corporations are sitting on a lot of cash and are investing some of it in capital projects. Spending by corporations should make up for some of the slack caused by a contraction in housing. Any thoughts on consumer spending? Consumer confidence fell this month, but what consumers say and what they do are not necessarily the same thing. For instance, retail sales advanced 1% in July. Second-quarter results out of the retail sector are running above expectations. Approximately two retailers have given positive earnings surprises for every company that has missed – inline with what we’re seeing across the board for companies within the Zacks Rank universe. Second-quarter growth for the retail sector is 6.2%. Although down from the 13.7% growth achieved in the first-quarter, analysts expected a rebound in the third and fourth quarter. More importantly, full-year estimates really aren’t changing in response to second-quarter results. The average change is a very modest -0.1%. Brokerage analysts are expecting retailers, within the Zacks Rank universe, to achieve 8.5% growth in the third-quarter and 12.4% growth in the fourth-quarter. To read the complete Analysts Interview, click here. Charles Rotblut, CFA is the senior market analyst for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include AXIS Cap Holdings (AXS), Smith Micro (SMSI), Eli Lilly (LLY) and AIMCO (AIV). To see their latest posts, click here. FactSet Research Systems (FDS) - Healthy Growth. For full Zacks research report, click here. iPass, Inc. (IPAS) - Revenues Expected Lower. For full Zacks research report, click here. The Week of Aug 21 Estimates Still Rising Find out which stocks have been recently upgraded by Zacks Equity Research: click here. Read the reports on all of the stocks on the Zacks Equity Research Buy List: click here.
4. FEATURED EXPERTS Here we cast the spotlight on timely Featured Expert commentaries that recently appeared on Zacks.com.
Joseph Parnes says uncertainty in the marketplace has created worries that may linger into the coming months. http://at.zacks.com/?id=2483.
Gregory Spear is concerned about the possibility of a tired market. Learn what that means and discover some Watchlist stocks. http://at.zacks.com/?id=2968.
Jack Colombo says volatility makes a certain subclass of closed end funds fashionable. Learn about buy-writes. http://at.zacks.com/?id=2905. 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 05/17/2013
| Company Name | Symbol | %Change |
|---|---|---|
| VIASAT INC | VSAT | 19.35% |
| OLD SECOND B | OSBC | 5.76% |
| GAMCO INVEST | GBL | 4.61% |
| CORNING INC | GLW | 4.47% |
| SYNCHRONOSS | SNCR | 4.23% |
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