Tuesday - September 12, 2006
 Want to view the archive of past issues? Go to: http://at.zacks.com/?id=2372. 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 - Apple Computer (AAPL) More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum - Intervest Bancshares Corp (IBCA) Intervest Bancshares Corp (IBCA) is up more than 44% since being a Zacks Momentum Stock of the Day on Jan 25. Its been nearly two months since IBCA last reported earnings, a 5.5% positive surprise. This stock still has positive momentum. Read the full analysis on IBCA at : http://at.zacks.com/?id=2496. Since we first featured Volvo AB (VOLV) back on Jun 8, the company is up 27%. Profit forecasts for this quarter and next, as well as for the full years of 2006 and 2007, have been trending higher. In late July the company beat the Street's second-quarter earnings estimate by 9.0% and surpassed earnings in the prior-year period by a solid 18.8%. Read the full analysis on VOLV at: http://at.zacks.com/?id=2497.
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: Discount Fundamental Strength This Profit Track identifies stocks with strong underlying fundamentals and low valuations. These are companies with solid balance sheets and a history of profitability that are reasonably priced. Although conservative in approach, this strategy has generated double-digit returns for five consecutive years, including a 23.5% gain in 2005. For the first five months of 2006, this Profit Track has returned 18.6% Craftmade International Inc. (CRFT) will announce fiscal year 2006 fourth quarter and year-end financial results on September 13, 2006. The company’s third-quarter earnings per share outperformed the consensus estimate by about 10% and surpassed the year-prior result. CRFT offers a PEG ratio of 0.59 and a price/sales multiple of 0.79. Continue your research on CRFT at: http://at.zacks.com/?id=2389. Drew Industries, Inc. (DW) reported second-quarter earnings of 47 cents per share in early August. The result was ahead of the previous year’s total. The company noted that it continued to achieve market share gains in many of its established product lines during the quarter, as well as in several of its new product categories, particularly RV axles. DW has a PEG ratio of 0.80 and a price/sales multiple of 0.71. Continue your research on DW at: http://at.zacks.com/?id=2390. Kforce Inc. (KFRC) satisfies the criteria of this Profit Track with a current ratio of 2.05 and a debt/equity level of 0.21. The company posted second-quarter earnings of 20 cents per share in early August, eclipsing the previous year’s 14 cents and matching analysts’ expectations. KFRC stated that its quarterly revenue of $234.4 million is a record for the Firm. Last year’s revenue totaled $198.5. Continue your research on KFRC at: http://at.zacks.com/?id=2391. Quanex Corp. (NX) recently released fiscal third-quarter earnings per share from continuing operations of $1.14, matching both the year-ago total and the consensus estimate. During the previous four consecutive quarters that led up to this third quarter, NX exceeded Wall Street expectations each time. Quanex Corp. has a current ratio of 1.79 and a debt/equity level of 0.18. The company sports a PEG ratio of 0.52 and a price/sales multiple of 0.62. Continue your research on NX at: http://at.zacks.com/?id=2392. To see the full list of stocks that currently pass this winning screen, go to: http://at.zacks.com/?id=2393. 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=2394 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kevin Matras combines some of his winningest strategies to create a Custom Consensus screen: http://at.zacks.com/?id=2395. 3. ZACKS EQUITY RESEARCH September is a bit early to talk about the holiday shopping season, but investors may want to smile when they see retailers put out those decorations the second Halloween ends. Retailers operating on February-January fiscal years will have an extra week in their fiscal-year calendars (53 weeks versus 52 weeks) this year, which should help earnings. Analysts are anticipating a strong fourth quarter. Excluding OfficeMax (OMX), profits for companies within Retail/Miscellaneous are projected to increase 22.1%. If achieved, this would mark a material rebound in growth rates. Adding OMX, a Zacks #1 Rank stock, skews the projected growth rate materially higher because of the company’s comps. Last year, OfficeMax generated fourth-quarter earnings of seven cents per share. This year, the office supply retailer is projected to earn 40 cents per share. More impressively, analysts have been raising their full-year forecasts for both 2006 and 2007. OMX appears to be having initial success with its turnaround plan, which is containing costs and shrinkage as well as limiting inventory clearance activity. The company is projected to earn $2.01 this year and $2.49 next year. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Investors may want to note that OMX competitor Office Depot (ODP) is also expected to achieved double-digit growth rates this year and next year. Analysts have raised their 2006 and 2007 profit forecasts over the past 60 days on this Zacks #2 Rank stock. Speaking of retailers, I highlighted Ann Taylor Stores (ANN) two weeks ago. A few days after the Aug 28 commentary was published, ANN reported August same-store sales growth of 1.9%. The reaction by analysts was generally muted, though one analyst did raise his full-year forecasts for both this year and next year. The impact of the revisions was a one-cent increase in the 2006 consensus estimate (now $2.15 per share) and a three-cent increase in the 2007 consensus estimate (now $2.44 per share). Fears about a slowdown in economic growth have not had any impact on the outlook for stocks within Machinery-Construction/Mining. To the contrary, analysts have raised their expectations for several stocks within the group, including Zacks #1 Rank stocks H&E Equipment Services (HEES) and Terex (TEX). One of the two analysts covering HEES raised his forecast within the past 30 days, causing the consensus estimate for full-year earnings to rise to $1.63 per share from $1.48 per share. The consensus estimate for TEX has risen slightly over the past 30 days to $3.79. Forecasts for 2007 are showing a more bullish trend, however, with the consensus estimate rising seven cents to $4.64 per share. The revised projections show a 22% growth rate for next year for Terex. Both companies are enjoying strong demand and pricing power. HEES is seeing strength in commercial construction. The company generated an 11% increase in rental rates last quarter. TEX has good exposure to mining, where high commodity prices are giving companies reason to spend on capital projects. (This is a similar story to what is happening with oil service and oilfield equipment companies). Both HEES and TEX are also getting strong order flow for ariel work platforms. Read the complete INDUSTRY RANK at: http://at.zacks.com/?id=2379. Charles Rotblut, CFA is a senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Agnico-Eagle Mines, Limited (AEM), China Unicom (CHU), Cadbury Schweppes (CSG) and Verint Systems (VRNT). To see their latest posts, click here. Cadbury-Schweppes (CSG) - Improving Performance. For full Zacks research report, click here. H&R Block (HRB) - Overexposure to Mortgages. For full Zacks research report, click here. Housing Market Links to Banking Earnings Growth Still Solid 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. OPTIONS CENTER Zacks has partnered with the leading options experts, Schaeffer's Investment Research, to provide you the best options commentary, research, and trading tools on the market today. Free Online Options Research at: http://at.zacks.com/?id=2664. Zacks/Schaeffer’s Options Trading service at: http://at.zacks.com/?id=2665. Although it’s only been a week, last week’s bearish play, Intel (INTC), is off to a good start. Shares of the chip leader fell over three percent on Wednesday after it announced a restructuring plan that wasn’t well received by the Street. And as we discussed last week, the critical $20 held as resistance. So far so good, now let’s try to find another potential winning trade idea. Last week we looked at the High Open Interest Call filter and found INTC. This week we’ll take a look at the other side of this filter, the High Open Interest Put filter, and try to find a nice looking bullish play. Now let’s get some basic info out of the way. What exactly is this filter you ask? First off, let's look at what a put is. Puts are simply a bet that the underlying stock is going to move lower. From our contrarian point of view, a large number of puts accumulated at a certain strike just below the stock's current level is a sign of potential options-related support. I won't get into too much detail on this, but the reasoning is based on how the market makers are hedged. The bottom line is this: large numbers of puts at a certain strike have the potential to serve as a solid level of support. Before we can go any further, we want to talk briefly about our methodology here at Schaeffer's. We are contrarian-based investors, meaning that we want to see skepticism toward an outperformer as a sign that money is still on the sidelines. Conversely, we want to see optimism toward an underperformer. We view too much optimism as a potential sign that nearly everyone who wants to invest in a particular stock already has. Now, just because a stock sees substantial optimism doesn't mean that we will blindly short a particular security; we need to see some negative price action or a major catalyst for a downside move in order to pull the trigger in most cases. Other indicators that we tend to utilize in measuring overall sentiment include put/call ratios, short interest, magazine cover stories, media comments, and analyst ratings. Turning to the list on Thursday afternoon one name that looks intriguing is drug giant Pfizer (PFE). PFE made the list thanks to a large build up of puts at the September 25 and 22.50 strikes. With PFE trading up around $27.50, the puts below it should act as a nice level of support. Technically speaking, PFE has been in a great uptrend since July, gaining over 24 percent the July bottom. Also drugs have been a strong group the past few months as money continues to move into more defensive names. Now let’s look at the overall sentiment. Remember we want to see skepticism towards an outperformer as a sign there’s still cash left on the sidelines. One such indicator we like to use is the Schaeffer's put/call open interest ratio (SOIR). This ratio shows how many bearish puts there are compared with bullish calls among near-term options. Currently, PFE’s SOIR checks in at 0.78. That doesn't mean much unless you compare it to the other readings over the past year. Doing this shows that the current reading is higher than 75 percent of those taken during this timeframe, proving that short-term option players continue to beat against this company. Short selling is a stock-trading strategy in which an investor borrows and sells a stock with the intention of buying it back later at a lower cost. In other words, this strategy is a bet that the shares will go down. We like to see a big build up of shorts for a bullish play, as this could provide for a short covering rally on any good news. When it comes to PFE, unfortunately there aren’t that many shorts betting against it – reducing the chances of a short covering rally. Another good way to get a gauge of sentiment is to look at what the analysts think. Given that the shares have been soaring recently, pessimistic analysts leave the door open to some upgrades. According to Zacks, there are 11 "buys," seven "holds," and one "sell." Should the shares continue to outperform, this configuration leaves room for some upgrades. So other than a lack of shorts, this one looks pretty good. With that, the prudent way to play this one would be to buy an intermediate-term call. Please continue to use all of the filters on these pages for more money-making ideas and don't be afraid to make a few paper trades to see what strategy works best for you. But remember that when it comes to options, the majority of your trades are going to be losers. Don't get discouraged, because that's the beauty of the leverage that options provide. It takes only a few winners out of every 10 trades to make you a very happy investor. Good luck! To learn more about the High Open Interest filter, click here. Discover all the tools and commentary available from the Zacks.com Options Center at: http://at.zacks.com/?id=2382. Leverage the timeliness of Zacks #1 Ranked stocks with options trades that maximize profits and minimize risks. Learn more about our new Options Trading service at: http://at.zacks.com/?id=2666. 5. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentaries that recently appeared on Zacks.com. Richard Rhodes says Asia and Europe are selling aggressively. Read his commentary on world markets and discover a few stocks. http://at.zacks.com/?id=2462. Gregory Spear says a sustainable party depends on the health of the U.S. consumer and the housing sector. Benefit from his insight. http://at.zacks.com/?id=2537. 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=2385. Or view the full list of Zacks #1 Ranked stocks at: http://at.zacks.com/?id=2383. 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 and improve your portfolio's performance. Did we mention it's free? Get started now by going to: http://at.zacks.com/?id=2386. 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 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.