Thursday - December 14, 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 Manitowoc Company, Inc. (MTW) The Manitowoc Company, Inc. (MTW) has exceeded earnings estimates in seven straight quarters, with year-over-year growth surpassing 100% in each of the past four. Over the past two months, this year's estimates have increased 14 cents to $2.76 per share. Next year's numbers have made an even more impressive jump of 49 cents. Read the full analysis on MTW now! Manpower, Inc. (MAN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 13.5%. Consensus estimates have been on the rise for this quarter as well as for the full year. On Nov 1, the Board of Directors authorized an 18.5% increase in its semi-annual dividend to 32 cents per share. The company’s return on equity of 14% betters the industry average of 11%. Read the full analysis on MAN now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum – Perini Corporation (PCR) It’s been more than a month since Perini Corporation (PCR) reported earnings of 36 cents per share. That number was a 64% increase over the same quarter last year and a 20% positive surprise above analysts’ expectations. Read the full analysis on PCR now! Consumer Portfolio Services, Inc. (CPSS), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for five consecutive quarters by an average margin of 154.0%. Earnings per share are projected to grow 15.0% over the next 3-5 years. Consensus estimates for both this year and next have risen over the past two months. The company has a price-to-book ratio of 1.7, compared to 4.9 for the market. Its PEG ratio currently sits at 0.92. Read the full analysis on CPSS now!
2. ZACKS CHALLENGE: TOP PLAYER INTERVIEW Zacks.com features a free investment simulator where our customers can prove their stock picking skills to the rest of the world. In these articles we will share with you the insights and recommendations from Top Simulator Players. Learn more about the current Zacks Challenge. Channelingzone Berislav Vidovic (aka: Channelingzone) is an aggressive trader who researches both the fundamentals and technicals. This simulator player credits Zacks as the main influence for his switch to a more successful, long-term investment style. The Zacks Fourth Quarter Stock Challenge player said,” My first investments were pretty much disasters. I took extremely high risks on extremely speculative stocks that were hyped in news, media, investment communities, etc. That attributed to large losses. Now I am wiser, and I do my homework before I invest. My style of investing is influenced largely by reading a lot about different investment opportunities, and by following leading investing sites and recommendations. In other words doing detailed homework and analysis (a thing not done so often in the past). I must say, and it’s not because this is a Zack’s interview, that Zacks was, and is, the main influence in changing my investment style and succeeding in it. Zacks research and understanding Zacks interpretation served as an explanation on how the markets work and how and when the stocks are selected. Obviously, Zacks is not the only influence, but surely one of the larger ones. I traded very often, and I was in and out of stocks too quickly, often day trading or swinging, thus missing on large opportunities. I am more focused now, holding for longer periods of time, and eliminating a lot of noise from media. I focus on fundamentals and technicals.” This contestant’s aversion to risk has landed his Simulator portfolio among some of the top Stock Challenge players with a current overall return of approximately 46%. Some of the stocks that Berislav has been trading include: Expedia Inc. (EXPE), TASER International Inc. (TASR), Shanda Interactive Entertainment Ltd. (SNDA), AK Steel Holding Corp. (AKS) and FX Energy Inc. (FXEN). Click here to check out this participant’s complete trading history. How does he do it ? This market watcher uses a combination of fundamental and technical analysis to find attractive entry points. Berislav explained that some of the main things he looks for are earnings growth, a solid P/E ratio, strong earnings per share and a great industry. He added, “I also like stocks that were sold although their fundamentals are still strong and solid. However, that is not enough. Technical analysis then plays a key role in selecting a stock. Fundamentals are a great tool to pick a good and solid company, but fundamentals alone without technical analysis could be a cause of stock selection that doesn’t move for months or years. Therefore, selecting a good, solid, safe company is a first step, and then applying a technical analysis is a second step, as you can pinpoint a great entry or a trigger point where the stock is poised to move higher or lower.” What does this competitor like right now? “Stocks from my portfolio performing really well are: Expedia Inc. (EXPE), FX Energy Inc. (FXEN) and Shanda Interactive Entertainment Ltd. (SNDA),” replied Berislav. He went on to explain that these stocks were beaten down and at their lows, showing signs of potential bottoms. So while many investors were selling the aforementioned names, this astute trader checked out the analysis that is available on Zacks.com. He liked what he saw including the fact that, at the time of his research, all three stocks had either a Zacks #1 Rank or Zacks #2 Rank (Strong Buy or Buy). How does he know when to sell? “Change in fundamentals and/or industry/sector rotations or loss in strength or valuations of companies (or sectors/industries themselves) would be one reason,” commented Berislav. “The same rule applies to exiting stock as to entering a stock. Technical analysis plays a crucial role for me in addition to fundamentals. You can’t trade successfully without a combination of both. I look if the stock is overbought, and if there are certain indicators in place that would point out that the stock is due for a correction or a permanent disregard.” What’s his outlook for the Dow and any advice for the newbies out there? Berislav is a bull right now as he has been seeing upward earnings revisions and does not anticipate a slow down in the economy’s rate of growth, especially if the traditional Santa rally makes an appearance. Staying true to his investment philosophy, the savvy investor was also quick to add his technical vision of where the market is headed. “Momentum on the Dow is strong as ever, not diminishing yet and it keeps building up. There are some immediate resistances to be taken care off, but definitely higher from here. 12400 is the first area to be taken out. Considering that there are only three weeks left in December, I believe that Dow will finish around 12500,” stated Berislav. For those who are just starting out in the market, this contender’s advice is simple and to the point. He suggests avoiding all the “market noise” and maintaining a well-diversified portfolio. It's free. Its fun. It's the place to show your investing prowess. The best stock pickers will be rewarded with thousands of dollars in prizes. Learn more. Trade Options? Then sign up for the Zacks Options Challenge. 3. ZACKS EQUITY RESEARCH OPEC ministers are scheduled to meet on Thursday for a key policy-setting meeting. They are currently mulling a production cut, which would represent the second in two months. The falling dollar has hurt the purchasing power of oil producing countries, leading to concern about prices. In addition, meteorologists are calling for a comparatively mild winter in the U.S. The National Weather Service predicted on Monday that heating demand would be 27% below normal this week. Such weather creates negative sentiment towards crude prices. OPEC members often say one thing and do another. Nonetheless, the factors supporting elevated crude prices remain in place. The Nigerian delta is still unstable. Iran continues to seek nuclear power. Iraqi production remains down. And China’s demand continues to grow. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - This is why, regardless of what OPEC does, brokerage analysts remain bullish on oil field machinery and equipment stocks. Two Zacks #1 Rank (“strong buy”) stocks within this group are Gulf Island Fabrication (GIFI) and McDermott International (MDR). GIFI focuses on offshore and floating production platforms. The company exceeded third-quarter expectations by a margin of 87.5% with profits of 75 cents per share. Revenues more than doubled to $90.5 million. One analyst raised his forecast right after the company reported in early November and a second analyst raised his forecast about two weeks ago. The two revisions resulted in a cumulative 50-cent increase in 2006 full-year forecasts (to $1.88 per share) and a cumulative 42-cent increase in 2007 full-year forecasts (to $2.67 per share). MDR is more diversified, with revenues generated by offshore construction, power generation systems and government operation segments. Like GIFI, MDR surpassed third-quarter expectations by a wide margin. Profits totaled 89 cents per share versus forecasts for 60 cents per share. Revenues more than doubled to $1.12 billion. Analysts responded to the early November report by hiking their forecasts for this year and next. The current 2006 forecast calls for earnings to total $2.77 per share, 53 cents higher than the 60-day old estimate. The current 2007 forecasts call for earnings to total $3.19 per share, 28 cents higher the 60-day old estimate. To read the complete Analysts Interview, click here. Charles Rotblut, CFA is the senior market analyst for Zacks Equity Research. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Cognos (COGN), Petroleum Development (PETD), RenaissanceRe (RNR) and 3Com Corporation (COMS). To see their latest posts, click here. RenaissanceRe (RNR) - Discipline Paying Off. For full Zacks research report, click here. Mills Corp. (MLS) - Accounting a Big Issue. For full Zacks research report, click here. Forecasts Still Good, Despite Drop in Estimates Falling Dollar Impact Minor in Europe 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. 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: Upgrades and Revisions This strategy focuses primarily on Positive EPS Estimate Revisions and Brokerage Rating Upgrades. Over the last 20 years Zacks Investment Research has proven that earnings estimate revisions are the most powerful force driving stock prices. Studies have also shown that stocks receiving upward EPS revisions tend to receive additional upward revisions in the future. Then consider that stocks receiving these upward revisions generally have brokers upgrading their Ratings, which is also a proven mover of stock prices. There are other parameters to this strategy, but the Rating Upgrades and positive EPS Revisions are the two powerful active ingredients. Actuate Corp. (ACTU) released its third-quarter report in late October. The GAAP earnings per share result was four cents, which was approximately 33% above the consensus estimate. Revenues increased 20% on a year-over-year basis. Actuate Corp. satisfies the criteria for this Profit Track as evidenced by its earnings per share growth of 21% over the past five years. Continue your research on ACTU now! Aspen Insurance Holdings Ltd. (AHL) may be what value investors are looking for as evidenced by its price-to-earnings (P/E) multiple is 9.15 and a price-to-book (P/B) multiple of 1.32. The Zacks #1 Rank (Strong Buy) company recently provided an outlook for 2007, stating that while it expects market conditions to remain generally attractive in 2007, it anticipates that rates will decline in some of its product lines. Wall Street is bullish on AHL’s full-year 2007 earnings. Current 2007 estimates of $3.72 per share are three cents above one week-ago forecasts. Continue your research on AHL now! Covanta Holding Corporation (CVA) announced third-quarter earnings of 21 cents per share in late October. The result outpaced the consensus estimate by nearly 24%. The company noted that its relentless focus on client service and operational excellence throughout the organization underpins its commitment to drive long-term shareowner value. During the past five years, the company’s earnings per share grew by 140%. Continue your research on CVA now! IPSCO Inc. (IPS), a Zacks #1 Rank (Strong Buy) company, continues to garner the highest five-year growth rate under this Profit Track. The company's earnings per share grew nearly 590% over the past five years. IPS posted third-quarter earnings of $4.15 per share, eclipsing analysts’ expectations by about 16% and improving on the year-ago result. IPS commented that record sales volume and higher margins driven by record average product pricing pushed earnings above the high end of the company's guidance for the quarter. Continue your research on IPS 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Three Days Up: Price and Volume Kevin Matras goes over a price and volume screen for finding stocks on the move, NOW!!!: Click here. 5. ZacksElite.com TIMELY BUY of the WEEK Here you'll discover a Zacks #1 Rank stock hand selected by Ben Zacks to outperform the market over the next 30 to 90 days. This week's Timely Buy is...
Genentech, Inc. (DNA) is one of the world s largest biotechnology companies. It currently manufactures and sells over a dozen biotechnology products in the U.S., and licenses additional products to other companies to earn royalties. The company's leading products are Rituxan (for non-Hodgkin's lymphoma, or NHL), Avastin (for colorectal cancer) and Herceptin (for breast cancer). The company possesses an impressive oncology pipeline, with additional label potential for both Avastin and Tarceva. Additionally, Lucentis (macular degeneration) is expected to reach the market in 2006. New product growth, primarily driven by the launches of Avastin and Tarceva, should lead to impressive revenue growth the next several years. According to Zacks Equity Research Analyst Jason Napodano, CFA, the successful introduction of new products, along with the strength of existing products, should drive Genentech's topline up roughly 21% CAGR through 2009. The company received two high-profile approvals in 2003 for Raptiva and Xolair, and another two in 2004 for cancer drugs Avastin and Tarceva. Raptiva, a niche player in the psoriasis market, generated sales of roughly $94 million in 2005. The true growth driver for DNA is blockbuster Avastin (bevacizumab). The drug received approval in early 2004 for the treatment of first-line metastatic colorectal cancer (CRC) in combination with intravenous 5-FU chemotherapy. Penetration in the first-line use is probably at or above 75%. Over the next few quarters Napodano believes Avastin can achieve near 80% penetration in this indication, allowing for only modest upside. Genentech and Tanox, Inc. announced plans for Genentech to acquire Tanox, a biotechnology company specializing in the discovery and development of biotherapeutics based on monoclonal antibody technology, for $20 per share for a total cash value of approximately $919 million. Genentech and Tanox have been working together in collaboration with Novartis since 1996 to develop and commercialize Xolair, an anti-IgE monoclonal antibody approved by the FDA in 2003 as a treatment for patients with moderate-to-severe allergic asthma. DNA routinely exceeds earnings estimates. The company has met or exceeded estimates in 16 consecutive quarters, posting robust year-over-year growth in the process. Three analysts have raised their forecasts for this year, while four have done so for next year. DNA is the fastest growing stock on the Focus List with a long-term growth rate of 29.46%.
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 Rank (Strong Buy) List has produced the following results for investors:
And just as importantly, our #5 Ranked stocks (Strong Sells) have alerted investors as to which stocks to dump from their portfolios to avoid unnecessary losses. 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 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 06/19/2013
| Company Name | Symbol | %Change |
|---|---|---|
| SONIC FOUNDR | SOFO | 4.40% |
| SUPPORTCOM I | SPRT | 3.75% |
| UNISYS CORP | UIS | 3.31% |
| SHORETEL INC | SHOR | 3.22% |
| GREEN MOUNTA | GMCR | 3.13% |
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