Monday - January 29, 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 - THQ, Inc. (THQI) THQ, Inc. (THQI) has exceeded earnings estimates in nine consecutive quarters, with eight of them posting double-digit surprises. Six analysts have raised their 2006 forecasts, while three have lifted their 2007 views. Over the past month, this year's estimates have increased 14 cents to $1.02 per share. Read the full analysis on THQI now! Growth & Income - Greif, Inc. (GEF) Greif, Inc. (GEF), which was last presented as a Growth and Income pick on Sep 14, is still a Zacks #1 Rank stock. Furthermore, the company is up over 37% since mid September. GEF exceeded analysts’ earnings expectations for five consecutive quarters by an average margin of 51.1%. The company reported record profits and net sales in 2006. GEF is currently yielding 1.3%, with a five-year average dividend yield of 1.7%. Read the full analysis on GEF now! More...
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Momentum - Sun Microsystems (SUNW) On Jan 23, Sun Microsystems (SUNW) delivered a 300% positive earnings surprise when it reported fourth-quarter 2006 results. SUNW posted profits of four cents per share, compared to the consensus estimate of one cent. This was SUNW’s second consecutive positive earnings surprise in a row. Read the full analysis on SUNW now! Value - Royal Bank of Canada (RY) Royal Bank of Canada (RY), a Zacks #1 Rank stock, reported record profits for the full year of 2006. The Board of Directors recently declared a quarterly dividend of 40 cents per common share of stock, leading to a current dividend yield of 2.96%. Consensus estimates for this year are up over the past two months. The company has a price-to-book ratio of 2.7. Read the full analysis on RY 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: Recent Price Strength This screen looks for stocks trading in the upper range of their 52-week highs along with attractive Zacks Rank and Broker Ratings. This strategy proves that the "trend is your friend" with a +35.5% return versus +4.9% for the S&P 500 in 2005. CECO Environmental Corp. (CECE) is trading near its 52-week high and experienced 45% growth over the past four weeks. In early November, the company reported third-quarter earnings of eight cents per share, which topped the year-ago result of three cents. The company mentioned that its order flow this year has remained consistently strong with bookings through October of over $126 million compared to $69.5 million through October of 2005. Continue your research on CECE now! Genesis Energy LP (GEL) is within reach of its 52-week high. In early November, the company released its financial results for the third quarter. Earning per share increased on a year-over-year basis and GEL stated that all segments reported improved performance from the prior year period. Continue your research on GEL now! Partner Communications Company Ltd. (PTNR) has advanced in share price by 8% over the past four weeks and is trading close to its 52-week high. The company will release financial results for the fourth quarter on January 31, 2007. In late October, Partner Communications Company reported solid third-quarter results, which included revenues that increased by 8.1% year-over-year. Continue your research on PTNR now! Universal Stainless & Alloy Products, Inc. (USAP), a Zacks #1 Rank (Strong Buy) company, recently reported fourth-quarter earnings per share that surpassed the consensus estimate by 21% and outperformed the year-ago total. The company noted that it achieved record results in the fourth quarter as it has each quarter this year due to the strength of its niche markets coupled with its targeted investments in capital equipment and personnel. USAP’s share price increased by 30% over the past four weeks and is currently near its 52-week high. Continue your research on USAP 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. Read more... 3. ZACKS EQUITY RESEARCH Recently, I expressed concern that the ratio of positive earnings surprises to negative surprises was not as good as it has been over the past few quarters. Last week (Monday through Thursday), 108 companies within the S&P 500 reported fourth-quarter earnings and the numbers were decidedly more bullish: 80 positive earnings surprises and 15 negative surprises (13 matched expectations). This is a positive to negative surprise ratio of 5.3:1. Tech led the wave, accounting for a quarter of all positive surprises. Only Advanced Micro Devices (AMD) and Sanmina (SANM) missed. Financial companies accounted for nine of the positive surprises with just National City (NCC) disappointing. The Basic Materials and Healthcare sectors added seven positive surprises each. Overall, 188 S&P 500 companies have reported fourth-quarter results. The ratio of positive to negative surprises is running at 3.3:1, which is still below what we have seen in previous quarters. Financial companies account for 11 of the 38 negative earnings misses, though the reasons for the negative surprises have been company-specific. Average growth among S&P 500 companies that have reported is running at 13.2%. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - We will get more fourth-quarter earnings data this week with 404 companies confirmed to report. About a quarter of these are members of the S&P 500. The Federal Reserve will hold its first meeting of the year on Tuesday and Wednesday. The vote should follow the recent trend with no change on interest rates. In terms of economic data, December personal income and spending will be released on Tuesday. Fourth-quarter advance GDP, December construction spending and the January Chicago PMI will be all be released on Wednesday. Initial jobless claims will be released on Thursday. Companies That Could Surprise During the Week of Jan 29-Feb 2 ACE Limited (ACE) topped third-quarter expectations by a margin of 32 cents – the fourth consecutive time the company has topped expectations. The company is benefiting from favorable weather (meaning fewer catastrophic storms) and bullish financial market conditions. The current consensus estimate for fourth-quarter profits of $1.73 per share is three cents above the forecast of a month ago and reflects positive revisions from four brokerage analysts. (Two analysts raised their forecasts within the last seven days.) The Most Recent Consensus is more bullish at $1.81 per share. ACE Limited is scheduled to report on Tuesday, Jan 30, after the close of trading. Allstate (ALL) has topped expectations by double-digit margins for three consecutive quarters. A reduction in risk exposure and favorable weather patterns has helped the company’s bottom line. Four brokerage analysts have raised their fourth-quarter forecasts over the past 30 days, including one within the last seven days. The current consensus estimate calls for ALL to report profits of $1.82 per share, though the Most Recent Consensus is considerably more bullish at $1.88 per share. Allstate is scheduled to report on Tuesday, Jan 30, after the close of trading. Fiscal first-quarter earnings estimates on Pilgrim’s Pride (PPC) have been revised upwards from breakeven results to a profit of five cents. Chicken prices are rising and this could be impacting the more positive view that analysts are taking. PPC beat fiscal fourth-quarter results by six cents after missing expectations during each of the two previous quarters. Pilgrim’s Pride is scheduled to report on Tuesday, Jan 30, before the start of trading. Citing “stronger than expected” holiday sales, THQ (THQI) recently raised its fiscal third-quarter guidance. The company expects profits to have totaled 91 cents per share on a GAAP basis versus previous guidance for profits of 65 to 70 cents per share. Brokerage analysts are more bullish and expect the videogame maker to report profits of 92 cents per share. The company has topped expectations for nine consecutive quarters. THQ is scheduled to report on Friday, Feb 2, before the start of trading. Spansion (SPSN) warned a few weeks ago that it would not meet its previous guidance for breakeven results. A decline in customer demand for certain flash memory devices in late December caused the company to adjust its internal forecasts. Nearly all of the covering brokerage analysts cut their forecasts in response, causing the consensus estimate to drop nine cents to a projected fourth-quarter loss of five cents per share. The Most Recent Consensus Estimate is more bearish at a loss of six cents per share. SPSN has missed estimates for two consecutive quarters. Spansion is scheduled to report on Monday, Jan 29, after the close 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 Charlotte Russe (CHIC), Komag (KOMG), MoneyGram Int’l (MGI) and Harman Int’l (HAR). To see their latest posts, click here. Enersis S.A. (ENI) - Promising Industry. For full Zacks research report, click here. AMCORE Financial (AMFI) - More Pessimism. For full Zacks research report, click here. Short-Term. Service Providers Lead Telecom Not as Positive as in the Past 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: D.R. Horton’s (DHI) Average Broker Recommendation recently advanced to 2.33. Analysts highlight several positive factors for DHI in the Zacks Research Digest, including the company’s status as the largest homebuilder in certain states with large populations; its competitive advantages over small private and mid-tiered public builders; its market leading position and diversified footprint; and its expansion into Florida. Furthermore, analysts believe DHI’s commitment to a low-cost structure enables it to build homes in satellite markets. Read the Research Digest report on DHI Southwest Airlines (LUV) has been one of the better-performing companies in a tough industry for several years now, and that momentum continued in 2006. The company’s Average Broker Recommendation has advanced to 2.33. According to Zacks Research Digest, analysts appreciate the company’s competitive position, which includes its status as the best low-cost carrier; the best fuel hedges among domestic carriers; its geographic diversity in routes; its strong financial position compared to peers; and its opportunity to take market share. Read the Research Digest report on LUV Lincoln National Corporation (LNC) is strategically positioned with its strong life insurance, annuities and asset management businesses, according to Zacks Research Digest. Analysts believe its recent success in expanding its distribution reach and introducing unique products suggests it has the capability to execute effectively. Its Average Broker Recommendation advanced to 2.25. Read the Research Digest report on LNC Abbott’s (ABT): Average Broker Recommendation is up to 1.79. According to Zacks Research Digest, analysts like Abbott’s acquisition of Kos Pharmaceuticals. Analysts believe that the deal adds strength to the company’s late stage pharma pipeline. Read the Research Digest report on ABT 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. A Niche Player in a Rapid Growth Area Ian Wyatt highlights a developer of semiconductor controllers for digital media storage and mobile multimedia devices. Discover why he likes this company. More... Jim Collins suggests taking advantage of small downturns. Read his latest market outlook and benefit from his insight . More... Richard Moroney finds stocks with both high growth potential and the ability to reach that potential . 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 06/19/2013
| Company Name | Symbol | %Change |
|---|---|---|
| LUMOS NETWOR | LMOS | 6.01% |
| SONIC FOUNDR | SOFO | 4.69% |
| SUPPORTCOM I | SPRT | 4.19% |
| GREEN MOUNTA | GMCR | 3.97% |
| SUMITOMO MIT | SMFG | 3.61% |
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.
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