Friday - December 1, 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 31.8% 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 – The First Marblehead Corporation (FMD) The First Marblehead Corporation (FMD), first highlighted as an Aggressive Growth stock on Aug 22, is up over 41%. The company exceeded analysts’ earnings expectations in nine out of the past 10 quarters, most recently by 52.7%. Consensus estimates have been shooting upward. FMD is trading at 13.95x this year's estimate of $5.30 per share, well below the projected long-term growth rate of 43.33%, giving the stock a PEG ratio of 0.32. Read the full analysis on FMD now! Limited Brands, Inc. (LTD), a Zacks #1 Rank stock, beat or matched analysts’ earnings expectations for the past six quarters. The company is up nearly 23% since it was first featured on Jul 11. Consensus estimates for both this quarter and the full year have increased over the past month. On Nov 13, the company’s 128th consecutive quarterly dividend was declared by its Board of Directors. LTD has a current dividend yield of 2.0% and a five-year average dividend yield of 2.3%. Read the full analysis on LTD now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dawson Geophysical (DWSN) reported fourth-quarter fiscal 2006 earnings of 66 cents per share, up 78% from the same quarter last year. Moreover, the result represented a 4.8% positive surprise over analysts’ consensus estimates. DWSN has a somewhat spotty record when it comes to beating analysts’ expectations, having missed in three of the last five quarters. So, clearly expecting DWSN to beat in the coming quarter is no certainty. Read the full analysis on DWSN now! Aspen Insurance Holdings Limited (AHL) exceeded analysts’ earnings expectations in eight out of the past 11 quarters. The company recently beat the third-quarter consensus estimate by 15.0%. On Nov 8, the Board of Directors authorized the repurchase of up to $300 million of its common stock over the next two years. This Zacks #1 Rank stock has a price-to-book ratio of 1.3, compared to 4.9 for the market. Read the full analysis on AHL 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: Growth and Income This Profit Track looks for stocks that are paying dividend yields of greater than 8% along with other attractive fundamental attributes. Although this screen is based on a long-term and lower risk approach to investing, it has consistently beaten the S&P 500. American Home Mortgage Investment Corp. (AHM) offers a current dividend yield of 11.62%. The company recently declared a quarterly dividend of $1.06 per share. In late October, AHM reported third-quarter earnings per share of $1.36, versus the previous year's $1.09. Third-quarter earnings also topped the consensus estimate of $1.35 per share. Continue your research on AHM now! Diana Shipping Inc. (DSX) recently released its report for the third quarter, stating that its successful strategies to grow its fleet, while maintaining a flexible chartering policy that permits it to benefit from the dynamic of its marketplace, also have resulted in Diana Shipping being able to increase its dividend for the third quarter of 2006 to 40 cents per share. DSX has a current dividend yield of 10.47%. Continue your research on DSX now! Nam Tai Electronics, Inc. (NTE), a Zacks #1 Rank (Strong Buy) company, posted non-GAAP third-quarter earnings of 28 cents per share in late October. The result was nearly 22% ahead of the consensus estimate. Nam Tai Electronics has topped analyst estimates four times out of the past five consecutive quarters. The company satisfies the criteria for this Profit Track with a current dividend yield of 8.81%. Continue your research on NTE now! Trustreet Properties, Inc. (TSY) offers a current dividend yield of 23.53%. The company recently announced its financial results for the third quarter, which included revenues of $54.6 million. The result was a year-over-year increase of 6.6% from last year’s revenues of $51.5 million. TSY also recently declared a dividend of 33 cents per share. Continue your research on TSY 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Great Stocks often have Great Peers Kevin Matras looks at how to find winning stocks in the winningest sectors. More... 3. ZACKS EQUITY RESEARCH New numbers on the housing market have been released this week, but with fairly different conclusions being reached. To help clarify what these numbers mean, we spoke briefly with Mario Ricchio, senior housing analyst for Zacks Equity Research. New home sales showed signs of a turn-down, but this seems to be a mixed figure. Earlier this week existing home sales figures showed a bit of a kick-up. What do you make of these numbers? Basically, existing home sales were up a half of a percent in the report you’re referring to. This was largely due to comparisons being a little bit easier on a year-over-year basis. However, the reverse was true of new home sales – those numbers were a bit weaker year-over-year, and this made the comparisons more challenging, as well. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - What’s the reason behind all of this? We believe the housing market – particularly the new home market – was driven by speculation, at least at the margins. As speculators continue to pull themselves out of the market, this causes a decline in both existing and new home sales. What are we looking at for the rest of 2006 and into 2007? We continue to look for double-digit declines in new and existing home sales. Inventory should be up roughly 20-25%, and this would then put the inventory of homes unsold at about 11 months. How long until this picture begins to look markedly better? We would not be looking for positive year-over-year comparisons until fiscal year 2008. We put a true bottom in at 2007. It looks like we need to go through two consecutive years of double-digit declines, work off currently high inventory levels, and may even need prices to come down 5-7% to attract new buyers. So we’re thinking 12-15 months out before we see any kind of true turnaround in new home sales and existing home sales. Mario Ricchio is a senior analyst covering the housing market for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include ManTech International (MANT), Opsware (OPSW), Diamond Offshore (DO) and Ingersoll Rand (IR). To see their latest posts, click here. Center Financial (CLFC) - Attractive Valuation. For full Zacks research report, click here. Liberty Property Trust (LRY) - Disappointing Numbers. For full Zacks research report, click here. Number of Estimate Revisions Falling Seasonal Lull 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.
Richard Moroney highlights defense companies that also do non-defense government work and sell into commercial markets. More...
Bill Martin profiles a company that he believes will see significant growth over the next couple of years. More...
Charles Carlson highlights big companies that are implementing big dividend increases. Learn about the trends behind the jumbo dividend hikes. 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. | |||||||||


