Monday - February 26, 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 - Varian Semiconductor Equipment Associates, Inc. (VSEA) Varian Semiconductor Equipment Associates, Inc. (VSEA), which was last presented as an Aggressive Growth pick on Nov 28, is up over 21%. The company has exceeded analysts’ earnings estimates in each of the past eight quarters. VSEA recently announced solid first-quarter fiscal 2007 results. Over the past month, this year's estimates have increased 12.6%, representing upward revisions by nine analysts. The stock is cheap given the company's growth prospects. VSEA is trading at 18.6x this year's estimates, below the projected long-term growth rate of 23.3%, giving the stock a PEG ratio of 0.80. Read the full analysis on VSEA now! Growth & Income - Deere & Company (DE) Deere & Company (DE) exceeded analysts’ earnings expectations for six consecutive quarters by an average margin of 15.3%. DE increased revenues for the past seven years and expanded gross margins and grew profits for five years running. On Nov 29, the Board of Directors at DE announced a 12.8% increase in the company’s quarterly cash dividend to 44 cents per share from 39 cents. This Zacks #1 Rank stock has a current dividend yield of 1.5% and a five-year average dividend yield of 1.8%. Read the full analysis on DE now! Momentum - Diana Shipping (DSX) On Feb 21, Diana Shipping (DSX) reported earnings of 37 cents for the December 2006 quarter, up 8.8% from last year and a positive 2.8% surprise above analysts’ consensus estimates. Sales grew 46.6% to $35.18 million and income rose 39.8% to $19.43 million. Read the full analysis on DSX now! Value - Siliconware Precision Industries Co., Ltd. ADR (SPIL) Siliconware Precision Industries Co., Ltd. ADR (SPIL) has returned 51% since first highlighted as a Value pick on Oct 11. The company topped analysts’ earnings expectations for the past seven quarters. SPIL has a price-to-book ratio of 2.5 and its PEG ratio currently sits at 0.61. The company’s return on equity more than doubles that of the industry average, and it is currently yielding 2.7%. Read the full analysis on SPIL 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: PEG Ratio This strategy uses the PEG Ratio to find attractively priced stocks poised for price appreciation. The PEG Ratio is simply the P/E (Price divided by Earnings) of a stock divided by its 5-year projected growth rate. Too often investors think of value investing being the antithesis of growth investing. The beauty of using PEG is that you can find value stocks even amongst hot growth stocks. Let's take a closer look. A company with a P/E Ratio of 20 and a Growth Rate of 10% will have a PEG Ratio of 2.0 (20 / 10 = 2.0). While a company with a P/E Ratio of 40 and a Growth Rate of 50% will have a PEG Ratio of only 0.8 ( 40 / 50 = 0.8) The stock with the P/E of 40 is actually the better bargain since its PEG Ratio is lower (0.8) implying it's undervalued with more upside potential. In general, a PEG value of less than 1 is considered undervalued while greater than 1 is thought to be fully valued to overvalued. The lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth. Arch Capital Group Ltd. (ACGL) offers a PEG ratio of 0.48. The company recently announced fourth-quarter earnings of $2.88 per share, topping the consensus estimate by 19% and exceeding the year-ago earnings. ACGL's earnings per share have come in above Wall Street expectations each time over the past five consecutive quarters. Continue your research on ACGL now! National Oilwell Varco, Incorporated (NOV), a Zacks #1 Rank (Strong Buy) company, recently reported fourth-quarter earnings of $1.35 per share, surpassing the consensus estimate by 29% and outperforming the year-prior period. The company mentioned that each of its three segments reported higher year-over-year sales and profits for the year. NOV's PEG ratio currently stands at 0.46. Continue your research on NOV now! Schering-Plough Corp. (SGP) recently announced fourth-quarter results, stating that over the past three years, its adjusted sales have grown more than twice as fast as its U.S. peer group average sales. Quarterly earnings improved on a year-over-year basis and eclipsed the consensus estimate by 6.25%. SGP satisfies the criteria of this Profit Track as evidenced by its PEG ratio of 0.50. Continue your research on SGP now! Warner Chilcott Limited (WCRX) issued its third-quarter report in mid-November. The report stated that WCRX’s recently launched products, LOESTRIN(R) 24 FE and TACLONEX(R), contributed to its strong revenue growth. Total revenue in the fourth quarter climbed to $194.7 million from the previous year’s $129.0 million. Warner Chilcott Limited has a PEG ratio of 0.52. Continue your research on WCRX 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Kevin Matras goes over a new screening strategy. Read more... 3. ZACKS EQUITY RESEARCH This week will be another busy week for retailers, who operate on a February-January calendar year. Retailers will account for about one out of every 10 reports, with the likes of Federated (FD), Gap (GPS), and Target (TGT) reporting. Outside of the retail sector, most reports will come from small- and mid-cap companies. As I have said previously, fourth-quarter earnings season is good – not great, but good. More than 1,100 companies within the S&P 1500 have reported and positive surprises are leading negative surprises by a margin of 2.5:1. Average growth, excluding outliers, is 14.1% among those that have reported. The Zacks Rank universe shows a similar story. Among reports from more than 2,500 companies, positive surprises have outnumbered negative surprises by a margin of 1.8:1. Average growth, again excluding outliers, is 14.4%. As fourth-quarter earnings season wraps up, the markets will be left to a combination of profit forecasts, economic data, M&A activity and sentiment to determine price direction. The economic data has been mixed, though implying sustained growth overall. Companies continue to partner up. This said, Chrysler seems to have about as much appeal as Sadie Hawkins, according to media reports. Sentiment is downright bullish, despite its recent pullback. Forecasts, however, are a legitimate reason to complain. There continues to be a downward drift in 2007 earnings estimates, regardless of market cap. Furthermore, if recent trends hold true, we should see a material drop in the number of estimate revisions over the next six or so weeks. It is likely that the decline in the number of estimate revisions will be accompanied by a more negative tint to the Zacks Revision ratio (the ratio of upward to downward earnings estimate revisions), which has already has been staying below 1.0 for several weeks. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The economic calendar is packed this week. January durable goods orders, January existing home sales and the Conference Board’s February consumer confidence index will be released on Tuesday. Wednesday brings revised fourth-quarter GDP data, January new home sales and February Chicago PMI. January personal spending and income, January construction spending and the February ISM manufacturing index will be published on Thursday. The week ends with the final February University of Michigan consumer confidence index. Yes, it will be a busy week. Companies That Could Surprise During the Week of Feb 26 - Mar 2 Foster Wheeler (FWLT) beat earnings expectations in its second and third quarters by margins of 17 cents and 27 cents per share, respectively. The Most Recent Consensus is suggesting the possibility of another upside surprise. The Most Recent Consensus, which calls for earnings per share of 77 cents, is six cents above the consensus estimate of 71 cents per share. Foster Wheeler is scheduled to report on Tuesday, Feb 27, after the close of trading. GAP Inc. (GPS) surprised the financial community a few weeks ago by saying overall same-store sales were flat in January; many broker analysts were anticipating a decline in same-store sales. The operator of casual clothing chains also preannounced 2006 full-year profits of 89 to 91 cents per share. As result, analysts revised their projections and pushed the consensus estimate for fourth-quarter earnings higher by three cents to 22 cents per share. The Most Recent Consensus is even more bullish at 24 cents per share. GPS has delivered four consecutive positive surprises. GAP is scheduled to report on Thursday, Mar 1, after the close of trading. Warmer-than-usual weather in November and December did not cast a cloud on analysts’ expectations for Reliant Energy (RRI). Over the past 30 days, the consensus estimate for fourth-quarter results has improved by a penny to a loss of 17 cents per share. The Most Recent Consensus is even more bullish, calling for a profit of six cents per share. The electric company has topped expectations for two consecutive quarters, most recently by nine cents per share. Reliant Energy is scheduled to report on Tuesday, Feb 27, before the start of trading. Vornado Realty (VNO) may have lost on its bid to acquire Equity Office Properties (EOP), but VNO could please its own shareholders next week. During the past 30 days, brokerage analysts have raised their forecasts. The consensus estimate calls for profits to have totaled $1.40 per share in the fourth quarter, five cents above the forecast of a month ago. The Most Recent Consensus is more bullish at $1.50 per share. VNO has topped expectations during three out of the past four quarters. Vornado Realty is scheduled to report on Tuesday, Feb 27, before the start of trading. Cablevision Systems (CVC) missed third-quarter forecasts by four cents with a loss of 21 cents. Although the fourth-quarter consensus estimate has been holding relatively steady over the past two months at a loss of five cents per share, the Most Recent Consensus is pointing towards the possibility of another negative surprise. The Most Recent Consensus calls for a loss of six cents per share. Cablevision is scheduled to report on Tuesday, Feb 27, 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 Whole Foods Market (WFMI), New Century Financial (NEW), Pixelworks (PXLW) and Alberto-Culver (ACV). To see their latest posts, click here. Sonic Innovations (SNCI) - Gaining Market Share. For full Zacks research report, click here. Pharmion Corp (PHRM) - Sales Are Stalling. For full Zacks research report, click here. Brazil to Continue Cutting Interest Rates 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: Nordstrom, Inc. (JWN) reached 52-week highs on Feb 15, Feb 20 and Feb 21. The company’s Average Broker Recommendation is up to 2.25. According to Zacks Research Digest, Nordstrom has developed a differentiated business model that focuses on customer service and its large footwear department. Analysts also believe that the factors making up Nordstrom’s bullish case include its smart merchandising efforts and opportunities for profit margin expansion. Read the Research Digest report on JWN Avon Products, Inc. (AVP) watched its Average Broker Recommendation rise to 2.1 of late. The global beauty company also reached 52-week highs on Feb 9, Feb 16 and Feb 20. Analysts like the company’s strong international growth, which keeps revenue expanding at an impressive pace. Zacks Research Digest also cites Avon Products’ healthy tradition of continuous product innovation, which analysts believe distinguishes it from peers. In addition, its robust new product pipeline and motivated sales force are also seen as advantages. Read the Research Digest report on AVP Southwest Airlines (LUV) Average Broker Recommendation has risen to 2.07 of late. Analysts believe the company is positioned to benefit from macro trends, should continue to win its share of new business, and is well positioned in Asia Pacific and Europe. The company is focused on its strategic objectives, its customers and on execution. Read the Research Digest report on LUV Colgate-Palmolive Company (CL) Average Broker Recommendation rose to 1.76 of late. According to brokerage analysts polled at Zacks Research Digest, growth in Internet traffic has increased storage demand. Strengthened by its innovative new products, EMC is expected to continue dominating the total networked storage market. Other positive arguments include its broad portfolio of data storage products; its domination of the data center; and new product launches. Read the Research Digest report on CL 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. Stay Fully Invested Donald Rowe says investors should focus on capturing profits from 2007-2010. Read his commentary and recommendations. More... Gregory Spear says a market where small-caps take the lead can be lucrative. Benefit from his insight. More... Bill Martin highlights a company that saw revenues grow more than 80% over last quarter. 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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