Monday - January 15, 2007
 Want to view the archive of past issues? Click here. Manage your Profit from the Pros subscription: 1. ZACKS RANK BUY STOCKS Zacks #1 Rank 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 - SunPower Corporation (SPWR) SunPower Corporation (SPWR) has blown away earnings estimates in each of the four quarters in which it has been public. The average surprise has exceeded 80%. Four analysts have raised their forecasts for both this year and next. 2007 earnings estimates have increased 12 cents to 78 cents per share. The stock is trading at 56x 2007 estimates, compared to its long-term growth rate of 35.20%. Read the full analysis on SPWR now! Growth & Income - The Thomson Corporation (TOC) The Thomson Corporation (TOC) exceeded analysts’ earnings expectations for the past four quarters by an average margin of 19.4%. The company has been returning value to shareholders in the form of dividends and share buybacks. This Zacks #1 Rank stock has a current dividend yield of 2.2% and a five-year average dividend yield of 2.4%. Read the full analysis on TOC now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum - Internet Gold (IGLD) Internet Gold (IGLD) is expected to report earnings for the November 2006 quarter of 11 cents, up 450% from the same quarter in 2005. On Jan 1, IGLD announced the increase of its ownership of 012 Golden Lines Ltd. from 60% to 100%. The acquisition received approval from the Israeli Anti-Trust Commissioner on Dec 14. Read the full analysis on IGLD now! Value - The Bear Stearns Companies, Inc. (BSC) The Bear Stearns Companies, Inc. (BSC) returned nearly 29% since it was last featured as a Value pick on Jun 20. BSC exceeded analysts’ earnings expectations for 16 consecutive quarters, underscoring its status as a Zacks #1 Rank (Strong Buy) stock. In addition to solid fourth-quarter and full-year results, the brokerage giant raised both its dividend and share repurchase authorization. BSC has a price-to-book ratio of 1.8, compared to 4.8 for the market. Read the full analysis on BSC now! Zacks Rank Resources
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: High Rank Value High Rank Value is a strategy designed to find the true bargains among value stocks. By requiring a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy"), this strategy restricts the pool of value stocks to only those with positive revisions in earnings estimates. In other words, profits are expected to improve in the future at a faster pace than originally anticipated. The combination of a low valuation and a high Zacks Rank is very profitable. This Profit Track has consistently topped the S&P 500 during the past five years. In 2005, High Rank Value generated an annualized return of +13.7%, more than double the 6.5% return for the S&P 500 (return data is through Dec 2). Asbury Automotive Group, Inc. (ABG) offers a price-to-earnings (P/E) multiple is 12.19 and a price-to-book (P/B) multiple of 1.28. In late October, the company announced third-quarter earnings per share that topped the consensus estimate by nearly 4% and outperformed the year-ago result. Asbury Automotive Group noted that its earnings for the third quarter, adjusted for non-operating items, were the highest in its history. Fourth-quarter results will be available in mid-February. Continue your research on ABG now! Endurance Specialty Holdings Ltd. (ENH) is scheduled to report fourth-quarter results in early February. In late October, the company posted third-quarter earnings of $1.87 per share, excluding items. The result outperformed the consensus estimate by almost 36%. ENH stated that its results benefited from strong pricing and lower than expected losses in its catastrophe exposed businesses. ENH’s price-to-earnings (P/E) multiple is 10.32 and its price-to-book (P/B) multiple is 1.10. Continue your research on ENH now! IPC Holdings Ltd. (IPCR) has a price-to-earnings (P/E) multiple of 11.47 and a price-to-book (P/B) multiple of 1.05. In late October, the company reported third-quarter earnings of 1.47 per share, reversing the year-ago quarter that saw a loss of $13.53 per share. The earnings result also topped the consensus estimate by 31%. Wall Street has been issuing upward revisions of fourth-quarter forecasts. Current estimates of $1.27 per share are above last week estimates of $1.25. Continue your research on IPCR now! Westar Energy Inc. (WR), a Zacks #1 Rank (Strong Buy) company, released third-quarter earnings of $1.03 per share in early November. The result outperformed the consensus estimate by 34% and exceeded the year-prior result. Westar Energy satisfies the criteria for this Profit Track as evidenced by its price-to-earnings (P/E) multiple of 14.6 and a price-to-book (P/B) multiple of 1.49. Continue your research on WR 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. Get four top picks from the top four sectors Read more... 3. ZACKS EQUITY RESEARCH This week will be the second short week in three for the financial markets. Exchanges will be closed on Monday in observance of the Martin Luther King, Jr. holiday. Starting Tuesday, earnings season will start to heat up with 110 companies within Zacks Rank universe scheduled to report fourth-quarter results. To date, approximately 120 companies have reported fourth-quarter results. Positive surprises are outnumbering negative surprises by a ratio of 1.7:1. January stock options will expire on Friday. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - On the economic front, the New York Fed will release its manufacturing index on Tuesday. Wednesday morning brings December producer price, industrial production and capacity utilization data. December CPI, the January Conference Board Consumer Confidence Index and the January Philadelphia Fed survey will be issued on Thursday. Friday will feature the January University of Michigan Index. Those of you who follow the Super Bowl Indicator may want to note that the San Diego Chargers and the New England Patriots are former AFL teams. The Chargers will host the Pats this weekend. The other NFL playoff games are Indianapolis at Baltimore, Philadelphia at New Orleans and Seattle at Chicago. Go Bears!Companies That Could Surprise During the Week of Jan 15-19 Three brokerage analysts have positively revised their forecasts on Apple (AAPL) within the past 30 days. The current consensus estimate calls for the recently renamed company to report profits of 78 cents per share, a penny above the month-old projection. The Most Recent Consensus is more bullish at 80 cents per share. AAPL has topped expectations by a margin of 10 cents or better during three out of the past four quarters. The stock rose notably this week following the unveiling of the iPhone, but federal authorities are investigating a back-dated option grant awarded to CEO Steve Jobs and Cisco (CSCO) is suing over the “iPhone” name, so there are factors outside of earnings that could affect the stock price. Apple will report on Wednesday, Jan 17, after the close of trading. ICOS (ICOS) preannouned fourth-quarter profits of 17 to 22 cents per share last month. Brokerage analysts had been projecting earnings of nine cents per share, but have since revised their forecasts to 23 cents per share. The Most Recent Consensus is more bullish at 26 cents per share. The company will hold a shareholder’s meeting on Jan 25 to discuss an offer from Eli Lilly to acquire ICOS at a price of $34 per share. ICOS will report fourth-quarter earnings on Thursday, Jan 18, after the close of trading. Following the release of strong fiscal fourth-quarter results from three investment banking firms last month, earnings estimates for Merrill Lynch (MER) have been rising. Investment banking firms have been benefiting from merger and acquisition activity, favorable market conditions (especially for corporate debt) and growth in asset management. The current consensus estimate calls for MER to report profits of $1.87 per share – an increase of five cents from the 30-day old forecast. The Most Recent Consensus is even more bullish at $1.93 per share. Merrill Lynch will report on Thursday, Jan 18, before the start of trading. Southwest Airlines (LUV) missed third-quarter expectations by three cents with profits of 19 cents per share. Heading into the company’s fourth-quarter report, analysts are lowering their forecasts. Three brokerage analysts have cut their projections within the last 30 days, causing the consensus estimate to fall by a penny to 13 cents per share. The most recent consensus is more bearish at 12 cents per share. Southwest Airlines will report on Wednesday, Jan 17, before the start of trading. LUV is not the only airline that could report lower than expected earnings next week. Forecasts were slashed on AMR Corporation (AMR) after American Airlines reported a drop in December traffic. Estimates on Continental Airlines (CAL) have also been falling. High fuel costs and price competition are putting pressure on the bottom line for the industry as a whole. AMR is expected to report a profit of 16 cents per share on Wednesday, Jan 17. CAL is projected to report a loss of 14 cents per share on Thursday, Jan 18, before the start of trading. Read the complete Earnings Preview now! Charles Rotblut, CFA is the Senior Market Analyst for Zacks.com. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Analyst Blog Real-time market insights from Zacks Equity Research Analysts. Stocks featured recently include Smith Micro (SMSI), Volcom, Inc. (VLCM), PetMed Express (PETS) and Merck (MRK). To see their latest posts, click here. Linear Technology (LLTC) - Good Value Play. For full Zacks research report, click here. Sanmina-SCI (SANM) - Industry & Internal Weakness. For full Zacks research report, click here. Improvements Forecasted in Orthopedics 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. RESEARCH DIGEST What is Wall Street saying about your stocks? You'll find the answer in our exclusive Research Digest reports. Here is a synopsis of stocks with recent broker upgrades: T. Rowe Price Group, Inc. (TROW): According to Zacks Research Digest, analysts like several things about this investment management organization’s fundamentals, including its diversified business model; its strong and consistent investment track record; its strong organic growth; and its ability to drive earnings growth. As for its growth opportunities, T. Rowe Price Group is expected to benefit from ongoing market share gains, low-cost structure, and industry consolidation. Meanwhile, the retirement market is expected to drive organic growth. Read the Research Digest report on TROW Norfolk Southern Corporation (NSC) possesses industry-leading operating fundamentals, a solid reputation for customer service, and an increasing labor force to meet the demands of the company’s vast railroad network. Analysts believe that execution and cost vigilance will be the main factors in determining whether the company will live up to the industry-high growth targets set by the Street. Read the Research Digest report on NSC Genzyme Corporation (GENZ) has made several significant acquisitions recently and, according to Zacks Research Digest, analysts expect this pattern of acquisitions to continue as the company looks to strengthen its position in key therapeutic areas or to broaden its product pipeline to include new disease areas. Analysts also like the company’s robust pipeline with many late-stage products in development. Firms expect consistent and sustainable growth based on its diversified revenue stream and strategic acquisitions. Read the Research Digest report on GENZ Amgen (AMGN): According to Zacks Research Digest, many analysts comment that Amgen’s pipeline breadth is impressive. Double-digit growth in sales and the breadth and quality of its pipeline are going to be the key drivers of its long-term growth. Firms believe that there may be significant upside from Amgen’s later-stage pipeline. Read the Research Digest report on AMGN Click here to see all Research Digest Reports All Star Analyst Portfolio Broker Rating Upgrades 5. FEATURED EXPERTS Here we cast the spotlight on timely Featured Expert commentaries that recently appeared on Zacks.com. Stock/Futures Exchanges Paul Tracy offers information on one of the most profitable industries on the planet. Benefit from his insight. More... Gregory Spear discusses the NASDAQ’s recent attainment of a new 52-week high, and highlights additions to his Buy List. More... Dr. Edward Olmstead highlights a play on a company in the aerospace/defense industry, along with one from the computer systems sector. 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 at. 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 and 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 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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