Wednesday - December 13, 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 – Dawson Geophysical Company (DWSN) Dawson Geophysical Company (DWSN) has beaten earnings estimates in two out of the past three quarters by an average margin of 22%. Year-over-year growth has accelerated meaningfully as well. Both analysts have raised their numbers for this year. Over the past month, this year's numbers have increased 16 cents to $2.71 per share. Read the full analysis on DWSN now! Growth & Income – Chicago Bridge & Iron Company N.V. (CBI) Chicago Bridge & Iron Company N.V. (CBI) recently raised its full-year 2006 guidance for earnings and revenues. Consensus earnings estimates have been on the rise for both this year and next. Earnings per share are projected to grow 21% over the next 3-5 years for this Zacks #1 Rank stock. The company’s return on equity, a common measure of profitability, easily surpasses the industry average—18% compared to 12%. Read the full analysis on CBI now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Buffalo Wild Wings (BWLD) Buffalo Wild Wings (BWLD) shocked Wall Street with its third-quarter earnings report issued on Oct 24, and the ripple effect hasn’t ended yet. Profits came in at 40 cents per share, up 43% from the same quarter last year. More importantly, the estimate was 29% above analysts’ expectations. Sales grew 32% to $68.3 million and income grew 85.8% to $3.53 million. Read the analysis of BWLD now! Value – The Greenbrier Companies, Inc. (GBX) The Greenbrier Companies, Inc. (GBX) recently reported record profits for fiscal 2006. Consensus estimates for this year and next have shot upward over the past 60 days. Earnings per share are projected to grow 15.2% over the next 3-5 years. The company has a price-to-book ratio of 2.7, compared to 4.9 for the market. GBX’s return on equity betters that of the industry average—19% compared to 14%. Read the full analysis on GBX now!
2. SCREEN OF THE WEEK Zacks.com offers three unique weekly commentaries that all
further our mission to help you Profit from the Pros. Today is
the latest installment of Screen of the Week from Kevin Matras.
Each week, Kevin shares with you another winning screen he has
discovered using the Research Wizard software from Zacks
Investment Research. Click here to learn more about the Research Wizard. ’Three Days Up: Price and Volume’ Here’s a simple screen for finding stocks on the move, NOW!!! I use this screen regularly to find which stocks are hot and which stocks are not. This screen looks for stocks that have shown three days worth of increasing prices accompanied by three days worth of increasing volume. I have found that stocks meeting these criteria have a tendency to keep on moving in that same direction. Why? Because price has a tendency to follow volume. For instance, if a stock’s falling on increasing volume, it could be a sign that people are getting out and that new shorts (bets that a stock will go down) are being put on. Likewise, if a stock is moving higher on increased volume, it can be a sign that new buyers are coming in (and maybe with more conviction) and some short sellers may be giving up (buying back their bets for lower prices). The parameters for this are easy.
And it’s applied to stocks that are trading within 20% of their 52-week high. Additionally, they’re >= $5 and have a minimum of at least 50,000 shares traded daily. I love this one. Largely because, instead of focusing on just the biggest gainers (which often are one day events that have been missed), this spots price momentum AND accumulation. Very bullish signs. Here are a few of the stocks it picked for Tuesday, 12/12/06:
This screen is available in the Research Wizard by going to: Screen
Use the Research Wizard to run this screen on your own. Or any of the other proven, profitable strategies that come with the program. And learn how to create and test your own winning trading strategies that tell you when to buy and when to sell. It’s easy to do. Sign up now for your two-week FREE trial to the Research Wizard and start making better decisions today. So sign up now for your free trial to the Research Wizard and pick and choose from some of our profitable strategies or put your own ideas to the test and start making better decisions today. Discover all the Free Screening Tools on Zacks.com now! Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. 3. ZACKS EQUITY RESEARCH Not wanting to get too far away from our updates on high-growth regions around the world, we thought it would be wise to check in with senior analyst Rama Reddy, who covers a variety of small-cap companies in India. Is the high growth in India over the past few years being sustained? How do things look year-over-year? Since the reforms of 1991, India registered its fastest rate of growth of 9.1% in the first half of fiscal year 2006-07. In the second quarter – July through September – the rate was 9.2% compared with 8.4% in the same period last year. According to India's Finance Minister Mr. Chidambaram, 1% of India's growth rate was being robbed by speculative oil prices. With the oil prices going as high as $78 a barrel from under $50 a barrel, the growth rate has been diminished from the projected 9.5%. During the second quarter, the manufacturing sector posted the highest growth rate of 11.9%. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - What is expected growth-wise from the Indian economy in 2007? With the oil prices falling to $55 a barrel, India should resume its robust growth rate. The Finance Minister is projecting 10% for the next decade. It is my opinion that a growth rate of over 9% is reasonable projection for fiscal year 2006-07. If the oil prices remain stable, the growth rate should be closer to 9.5% next year. How are valuations for the companies in your coverage? Are stocks getting expensive, or are they still reasonable? With the high demand for outsourcing primarily from American and European companies who want to cut costs, the year has been a good one for the Indian technology companies. The valuations for these companies are near their all-time highs. With these companies experiencing growth pains such as competing for a dwindling pool of skilled professionals and high attrition rates, it is my opinion that these stocks are expensive. Among non-technology companies – including banks, pharmaceuticals and automobiles – there may be some more room for higher valuations. What would be your top one or two Buy recommendations at this time? The one stock I would recommend at this time is Tata Motors (TTM). Unlike the technology companies that mostly depend on the overseas markets, the growth of the company is primarily dependent on the domestic market. It has a dominant market share in the truck, bus and other commercial vehicle market, and has a number two position in the passenger car market. It will be introducing an ultra small car priced at $2000 in 2008 that is expected to help the company capture an entirely new market and improve its overall market share. With the high growth rates projected for the Indian economy over the next decade, Tata Motors should do well. For those investors looking to diversify into Indian stocks, what advice would you give them going forward? With the technology companies at high valuations – many of whom are experiencing a shortage of skilled professionals and high attrition rates – a wait-and-see attitude is recommended for investors wanting to diversify in to Indian technology companies. Selected non-technology companies like Tata Motors are a better choice for these investors. Rama Reddy is a senior small-cap analyst covering various industries within India. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Yahoo! (YHOO), Royal Dutch Shell (RDS.A), Principal Financial (PFG) and Talisman (TLM). To see their latest posts, click here. Acusphere, Inc. (ACUS) - Promising Platform. For full Zacks research report, click here. Auxilium Pharmaceuticals (AUXL) - Deal Terminated. For full Zacks research report, click here. The Week of Dec 11 – Dec 15 Forecasts Still Good, Despite Drop in Estimates 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. ZACKS WEALTH MANAGEMENT Every week, Zacks Wealth Management provides informative articles on how to build and protect wealth. Today’s topic is:
Last week we discussed the differences between non qualified stock options (NQSO) and incentive stock options (ISO). Today we will focus on stock options basics that you need to know and understand. The following is a checklist that will make life a little easier as you ponder what to do with your company stock:
When should you exercise? You should exercise your options if you want to qualify for long-term capital gains treatment sooner rather than later. The later you exercise, the later the clock starts ticking to get to the one year holding period. Of course if you need the cash right away, you could sell regardless of the holding period and pay higher short-term capital gains tax. Some companies may also require you to hold a certain amount of stock. In this case, you should exercise the options. Of course, you’ll also want to exercise and hold on to them if they are about to expire and you expect appreciation in the stock’s value. Keep in mind that selling after exercise is a good decision if you need to diversify your portfolio; you think the stock may go down, or you need cash to exercise your options. When should you defer exercise? One of the major reasons to defer exercise is to put off tax liabilities in the case of stock appreciation. If you have ISO’s, you should hold off on the exercise to avoid AMT if expiration is farther in the future. Another reason to defer is if the stock is doing well and you are confident in your company’s prospects. If the stock is underwater from the exercise price and you are afraid it could go down more, it will be better to sit on those options as well. There are many variables when it comes to stock options, whether they are ISO’s or NQSO’s. Before you go to your consultant, follow the checklist. Once you have that, you may discuss your next move with your financial advisors who have knowledge in this field. Jonas Zamora is a Certified Financial Planner™ professional This article is provided for informational purposes only and does not constitute legal or tax advice. Zacks Investment Management, Inc. is not engaged in rendering legal, tax, accounting or other professional services. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. CFP Board, a nonprofit regulatory organization, fosters professional standards in personal financial planning so that the public values, has access to and benefits from competent and ethical financial planning. CFP Board owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements. CFP Board currently authorizes more than 50,000 individuals to use these marks in the United States. For more about CFP Board, visit www.CFP.net. Learn more about Zacks Wealth Management now! - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - MITCH ZACKS ON THE MARKETS The stock market should begin to benefit from flows of assets out of other investment classes. More... 5. FEATURED EXPERTS Here we cast the spotlight on a timely Featured Expert commentaries that recently appeared on Zacks.com. Jim Oberweis says high-growth stocks are at the top of wish lists, and continues his discussion of the Oberweis Octagon. More... Richard Rhodes sees possible dollar strength from here. Find out why and discover a few stocks. More... Steve McKee sees the shift to income as a market trend that may be around for the next few years. 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 (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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