Friday - September 29, 2006
![]() Want to view the archive of past issues? Click here. 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 - SimpleTech, Inc. (STEC) SimpleTech, Inc. (STEC) has exceeded earnings estimates in two out of the past three quarters, with two analysts raising their estimates for this year. Over the past 60 days, this year's estimates have increased 10 cents to $4.74 per share, while next year's numbers have jumped 13 cents to $5.54 per share. Read the full analysis on STEC now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sotheby's (BID), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for the past six quarters by an average margin of 19.5%. The company recently reported record revenues and income from continuing operations in the second quarter. Consensus estimates for both this year and next year have been on the rise. Earnings per share are projected to grow 18% over the next 3-5 years. BID has a current dividend yield of 1.3%. Read the full analysis on BID now! Momentum - Herman Miller (MLHR) Herman Miller (MLHR) delivered a 7.5% positive earnings surprise on Sep 20 by reporting EPS of 43 cents per share. This amounted to a 26.5% improvement over the prior-period’s 34 cents. Sales grew 4.4% to $449.7 million while income rose 20.3% to $28.5 million. That MLHR delivered a positive earnings surprise should not come as a shock, since the company has missed earnings only once in the last 16 quarters. Read the full analysis on MLHR now! ProAssurance Corporation (PRA), a Zacks #1 Rank stock, beat analysts’ earnings expectations in seven out of the past nine quarters by an average margin of 13.4%. The company completed its merger with Physicians Insurance Company of Wisconsin, Inc. on Jul 31 and it is expected to fuel premium growth going forward. Profit forecasts have been on the rise. PRA has a price-to-book ratio of 1.7, compared to 5.2 for the market. Read the full analysis on PRA now!
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: Compass Minerals International, Inc. (CMP), a Zacks #1 Rank (Strong Buy) name, is currently trading very close to its 52- week high. In late July, the company posted a second-quarter loss of seven cents per share. However, the result beat analysts' expectations of a 14 cent loss. In fact, CMP has been ahead of analyst forecasts for the past four consecutive quarters. The company experienced 6% growth in its share price over the past four weeks. Continue your research on CMP now! Jacuzzi Brands, Inc. (JJZ) announced fiscal third-quarter adjusted earnings from continuing operations of 21 cents per share in early August. The result improved on the year-prior total of 13 cents and outperformed the consensus estimate by about 31%. The company noted that its Bath segment continued to improve its profitability, while its Plumbing segment continues its outstanding record of increased sales and profits. JJZ is currently trading near its 52-week high and has advanced in price by 4% over the past four weeks. Continue your research on JJZ now! Pericom Semiconductor Corp. (PSEM) is trading close to its 52- week high. In mid-August, the company reported fiscal fourth- quarter earnings of eight cents per share, doubling the previous year's four cents and eclipsing the consensus estimate by roughly 14%. PSEM said fiscal 2006 was a year of key accomplishments, adding that it successfully acquired and integrated eCera, a leading Taiwanese FCP Company; significantly improved the operating performance of its Chinese sister Company, PTI; and emerged as a strong player in the fast-growing PCI Express market. Continue your research on PSEM now! World Acceptance Corp. (WRLD) released fiscal first-quarter earnings of 53 cents per share in late July. The result topped the year-ago total of 38 cents and surpassed the consensus estimate by 23%. The company mentioned that loan demand accelerated over the last three quarters. WRLD meets the criteria of this Profit Track with a share price that has experienced 14% growth over the past four weeks and is currently near its 52-week high. Continue your research on WRLD now! To see the full list of stocks that currently pass this winning screen, click here. 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.” - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Using Common Sense to Manage Your Portfolio Kevin Matras goes over a Relative Price Strength strategy for finding winning stocks in both up markets and down. More... 3. ZACKS EQUITY RESEARCH Only days before the Brazilian Presidential election on Sunday – which itself has yielded a scandal reminiscent of Watergate – we spoke with senior Latin American analyst Claudio Freitas, CFA to see how this might affect the growth and recent positivity within the Latin American markets. Now that U.S. interest rates have been holding steady, are Latin markets breathing a sigh of relief? Yes, there are some signs of relief, but the great optimism of some months ago has not come back to the market. The main reason for this is that most Latin American countries are commodities exporters, and the lower expected growth in U.S. has been undermining commodities prices. In fact, the fear of higher interest rates was replaced by the fear of the hard landing. Even though there was some improvements in the market in the last two months, volatility is still high and I expect it to remain high for the very short-term. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Is this a concern of yours for the companies in your coverage? Do you believe Brazilian Presidential election this Sunday might contribute to even higher volatility? The volatility will remain high in the very short term. As I explained above, Latin American countries are very dependent on international commodities prices – not only the stocks, but also local currencies can become very volatile. I believe it will take some time for this situation to improve; maybe by the end of this year we will have a clearer picture of the U.S. economic landing, whether it will be hard or soft. Thus Latin American stocks can become much more attractive. In the very short term, the Brazilian Presidential election is a concern. Even though the two candidates with real chances are not considered to be threats to the market, the political climate remains very difficult, mainly after the most recent political scandal. Last week, some members of the PT (political party of President Lula) were caught by the Brazilian federal policy dealing with some guys accused of corruption in order to produce a report to incriminate politicians from PSDB – the biggest opposition party – including Mr. Geraldo Alckmin, PSDB's presidential candidate. In general, the case is not that much different from the 1970’s Watergate scandal in the U.S. I believe this might have a meaningful impact in the Presidential election, and also can create a difficult political climate if President Lula is reelected. For investors looking to increase their holdings in Latin America, where do you believe the least-volatile areas might be? I believe that companies focused in the local consumer market can outperform. In countries like Argentina and Chile, economic growth remains high and the outlook is still positive. In Brazil, I remain encouraged by the declining interest rates coupled with well-behaved inflation. I believe there is room for continued interest rate cuts in Brazil for the rest of 2006 and at least for the first half of 2007. In this sense, I guess that utilities and consumer products would make interesting investments, including electric utilities, the beverage industry and telecom companies. Click here to read the complete Analysts Interview. Claudio Freitas, CFA is a senior analyst covering the Latin American markets for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Slow Growth Through Remainder of the Year Critical Therapeutics (CRTX) - Positive on New Approval. For full Zacks research report, click here. Jabil Circuit (JBL) - Estimates Being Reduced. For full Zacks research report, click here. Health Insurers Could Benefit from Generic Drugs Growth Still Strong, but Revisions are Weakening 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.
Kelley Wright is sticking to his stock-picking criteria. Read about his plan for staying on path.. More...
Gregory Spear highlights a couple of micro-cap gems. Discover a software company and a storage whiz. More...
David Fried profiles a few companies that he believes will outperform the market. Read his mid-September update. 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. Or view the full list of Zacks #1 Ranked stocks. 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. | |||||||||


