Friday - October 27, 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 – Illumina (ILMN) Illumina (ILMN) has exceeded earnings estimates in 11 out of the past 12 quarters. Four of them had positive surprises over 100%. Six analysts have raised their forecasts for this year, while five have done so for next year. Over the past 30 days, this year's estimates have soared 55% to 76 cents per share. Read the full analysis on ILMN now! PACCAR, Inc. (PCAR), which was first presented as a Growth and Income pick on Jul 25, exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. The company recently reported record profits and revenues for the third quarter and for the first nine months of 2006. Consensus estimates for both 2006 and 2007 have been trending higher. This Zacks #1 Rank stock is currently yielding 1.3% and its return on equity of 32% crushes the industry average of 6%. Read the full analysis on PCAR now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Snap-On Inc. (SNA) On Oct 23, Snap-On Inc. (SNA) announced earnings for the Sep 2006 quarter. EPS was reported at 48 cents, compared to 41 cents in the prior-year period. In addition, the result was 14% above the analysts’ consensus estimate, and represented SNA’s ninth consecutive positive quarterly earnings surprise. Read the full analysis on SNA now! Reliance Steel & Aluminum Co. (RS), which has already been highlighted twice in the past, is still a Zacks #1 Rank stock. The company exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. RS recently reported record profits and revenues for the third quarter and for the first nine months of the year. Consensus estimates for this quarter and for the full year have risen over the past 60 days. The company has a price-to-book ratio of 1.6, compared to 5.4 for the market. Read the full analysis on RS 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: Low Price Stocks Many investors prefer stocks priced below $20 because the low prices allow them to accumulate more shares. Fortunately, lower prices do not necessarily mean lower quality. This strategy identifies stocks priced below $20 that are trading at discount valuations and have a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy"). The stocks identified by this search strategy trade at price-to-sales (P/S) multiples of 1.0 or below. The strong Zacks Rank is indicative of positive revisions in earnings estimates. Combining these characteristics can result in high-dollar returns. In 2005, this strategy generated a stellar +51.9% return. Here are four stocks that make the grade for the Low Price Stocks Profit Track: Kulicke & Soffa Industries Inc. (KLIC) satisfies the criteria for this Profit Track with a price-to-sales ratio of 0.68 and earnings per share profitability of $1.00 over the past 12 months. The company will announce financial results for the fiscal fourth quarter on November 16, 2006. In early September, KLIC raised its fourth-quarter revenue guidance, stating that the increase is primarily the result of greater demand for its wire bonder equipment, with packaging materials' revenue slightly above its original forecast range. Continue your research on ADVS now! REX Stores Corp. (RSC) posted fiscal second-quarter earnings in late August. The earnings per share result soared past the consensus estimate by 300%. During the past five consecutive quarters, RSC missed analysts’ expectations only once. RSC is currently trading around $16.30. The company has seen earnings per share growth of $1.35 over the past 12 months and sports a price-to-sales ratio of 0.43. Continue your research on RSC now! ExpressJet Holdings Inc. (XJT) announced second-quarter earnings in early August, noting that operating revenue increased 7.9% to $419.4 million from the year-ago total of $388.7 million. Results for the third quarter will be released on November 8, 2006. ExpressJet Holdings earned $1.64 per share during the past 12 months, and it offers a price-to-sales ratio of 0.26. The company’s shares are trading around the $8.00 level. Continue your research on XJT now! Rush Enterprises Inc. (RUSHA) earned $1.94 per share over the past 12 months and has a price-to-sales ratio of 0.14. The company recently reported third-quarter financial results, stating it delivered more trucks this quarter than any quarter in the history of the company. Rush Enterprises’ shares are currently trading around $18.75. Continue your research on RUSHA 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.” - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kevin Matras shows how to find great growth stocks at an excellent value. More... 3. ZACKS EQUITY RESEARCH With oil prices having come down and staying down, we wanted to get the viewpoint of how this may be affecting the automotive industry. We sat down with senior auto-industry analyst Paul Raman, CFA to find out what, if any, affect the falling prices might have on future U.S. car and truck sales. Do you see falling oil prices as a positive for U.S. automakers? Why or why not? Falling oil prices are not necessarily a positive for U.S. automakers, actually. At the same time, however, it hurts the competitiveness of their key competitors: Nissan (NSANY), Honda (HMC) and Hyundai. These foreign automakers make fuel-efficient cars that are popular at times when gas prices are high. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Japanese and some European auto companies still seem to be gaining market share. Are these still good buys in your view, or are their valuations getting too high? Most of these companies are still gaining market share, but not at the rate they were before. Their valuations are becoming high, though, as the trends have been ongoing for quite some time. Also, a general upswing in the market recently may have something to do with this. In any case, as a result we have recently downgraded many of the foreign automakers from Buys to Holds. How do you expect fiscal year 2006 to perform compared to recent years of the automotive down-cycle? It likely won’t come as much of a surprise, but 2006 earnings remain depressed. Car sales have been weak for some of the same reasons they have been in other retail sectors – because of higher interest rates and weakening real estate markets. Both of these things slow consumer spending, and if they continue, we expect to see a further slowing in this market. Are U.S. companies doing much these days to spur new business? If so, how? U.S. companies are using the traditional incentive packages – such as cash rebates, financing offers and leasing deals – to try to lure buyers away from foreign cars and toward General Motors (GM) and Ford (F) products. However, as noted above, these have been met with limited success. Market share continues to be flowing toward Japanese and European – mostly German – car makers. What are your top Buy and Sell recommendations at this time? Within the companies in my coverage, I have only one Buy in the auto industry at this time: Honda (HMC). Capacity expansion plans in Asia, a new sales strategy in Japan, and a proposed launch of Acura in Japan make us optimistic about Honda’s future prospects. There are no Sells in my coverage, although I did have several until relatively recently. At this point, the way I see it is that valuations are washed out and the cycle will eventually turn at some point. Paul Raman, CFA is a senior Zacks analyst covering the automotive and chemical industries. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Select Comfort (SCSS), Comstock Resources (CRK), Lucent Technologies (LU) and ATS Medical (ATSI). To see their latest posts, click here. Crown Castle Int’l - Becoming Bigger Player. For full Zacks research report, click here. Amazon.com. - Good Selling Point. For full Zacks research report, click here. A Good Start for Health Insurers Earnings are Looking Good 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.
Ian Wyatt highlights three companies – one of which likes the new law signed by President Bush. Read this expert’s portfolio update. More...
David Fried notes that, since its inception, the Buyback Premium Portfolio is beating the S&P 500. Discover by how much. More...
Mutual fund expert Dennis Slothower discusses the FOMC meeting and why the Fed’s actions, or lack thereof, amount to a catch-22. 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. | |||||||||
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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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