Monday - March 5, 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 - Telephone and Data Systems (TDS) Telephone and Data Systems (TDS) has a mixture of high-growth and stable businesses. TDS Telecom's main focus is on the rural and suburban markets, where competition is less intense than in metropolitan and urban areas. Additionally, the broadband Internet (DSL) business is generating strong growth, partially offsetting recurring declines of local phone access lines and associated revenues. Read the full analysis on TDS now! Growth & Income - Prudential Financial, Inc. (PRU) Prudential Financial, Inc. (PRU) exceeded analysts' earnings expectations in nine out of the past 11 quarters by an average margin of 15.3%. The company recently raised its full-year earnings per share guidance to between $6.80 and $7.00. PRU has returned value to shareholders in the form of share buybacks and dividend payments. The company has a current dividend yield of 1.0% and a five-year average dividend yield of 0.75%. Read the full analysis on PRU now! Momentum - AK Steel (AKS) On Jan 23, AK Steel (AKS) reported fourth quarter 2006 EPS of 20 cents, which was about in line with analysts' expectations. Sales grew 10.2% to $1,582.2 million while income rose 261.7% to $22.43 million. The company is scheduled to report its March 2007 quarter on Apr 23. The current Zacks consensus estimate is for EPS of 46 cents, well above the six cents earned in the March 2006 quarter. Read the full analysis on AKS now! Value - EnPro Industries, Inc. (NPO) EnPro Industries, Inc. (NPO), a Zacks #1 Rank stock, has benefited from acquisitions made throughout the year. The consensus earnings estimate for this year has risen dramatically over the past 30 days. NPO has a price-to-book ratio of 2.0, compared to 4.8 for the market. Read the full analysis on NPO 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: Low Price Stocks Many investors prefer stocks priced below $20 because the low prices allow them to accumulate more shares. Fortunately, lower prices do not necessarily mean lower quality. This strategy identifies stocks priced below $20 that are trading at discount valuations and have a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy"). The stocks identified by this search strategy trade at price-to-sales (P/S) multiples of 1.0 or below. The strong Zacks Rank is indicative of positive revisions in earnings estimates. Combining these characteristics can result in high-dollar returns. Amerisafe, Inc. (AMSF), a Zacks #1 Rank (Strong Buy) company, recently reported fourth-quarter and year-end results. The company noted that strong top line growth combined with excellent underwriting results and steady returns on its growing invested asset base contributed to record earnings in 2006. Amerisafe's price-to-sales ratio stands at 0.95, and the company experienced earnings per share profitability of $1.61 over the past 12 months. Continue your research on AMSF now! Hooker Furniture Corp. (HOFT) earned $1.53 per share during the past 12 months and sports a price-to-sales ratio of 0.78. The company will announce fiscal first-quarter results in mid-March. The fourth-quarter and full-year report was released in early February, citing record annual net sales of $350.0 million. Continue your research on HOFT now! Pinnacle Airlines Corp. (PNCL), another Zacks #1 Rank (Strong Buy) company, recently released results for the fourth quarter. Earnings per share of 56 cents, excluding items, eclipsed the consensus estimate by 4%. PNCL's quarterly earnings per share came in above Wall Street expectations each time over the past five consecutive quarter. The company meets the criteria for this Profit Track with a price-to-sales ratio of 0.48 and earnings per share profitability of $2.41 over the past 12 months. Continue your research on PNCL now! Rush Enterprises, Inc (RUSHA) reported its fourth-quarter and year-end results in mid-February. The company mentioned that this was another record year, for the third year running. Gross revenue well exceeded the $2 billion mark for the first time in the company's history, and net income reached record levels as well. Value investors may want to take a look at RUSHA as it currently offers a price-to-sales ratio of 0.13. During the past 12 months, Rush Enterprises earned $1.94 per share. Continue your research on RUSHA 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Price Targets and Multiple Expansion Kevin Matras shows how to create your own price targets and how to estimate your stocks' future earnings multiples. Read more... 3. ZACKS EQUITY RESEARCH This week will be one with few catalysts. Fourth-quarter earnings season is mostly over. Fiscal first-quarter reports from investment bankers will not be released for another 10 days. The number of earnings estimate revisions will likely drop in aggregate. Outside of February employment numbers, there will not be much economic data to influence market direction. Given the lack of catalysts, the most likely scenario would be for the markets to fluctuate on a daily basis. Placing downward pressures on the markets are the downward drift in full-year forecasts, the below-trend growth of the economy, the break of the major indexes' upward trend and the fact that the speculators were given a jolt on Tuesday. Bullish factors include sustained profit and economic growth, private equity and M&A activity, stock repurchase programs and historical trends. After sharp declines such as Tuesday's, the markets have generally been higher 30 and 60 days later. In addition, the Stock Trader's Almanac states that pre-election year Marches are riding a streak of 11 consecutive gains. More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Nonetheless, stocks never continuously rise in a straight line. Given the lack of short-term catalysts, I would expect the markets to fluctuate on a daily basis. For investors, this type of environment will provide buying opportunities to those who are selective and patient. For traders, the environment will reward quick decisions, the ability to go both long and short and plain luck. There are only 150 companies confirmed to report this week. Out of this small group, just two are members of the S&P 500: ADC Telecom (ADCT) and National Semiconductor (NSM). On the economic front, the ISM will release its February services index on Monday morning. Tuesday brings revised fourth-quarter productivity and January factory orders. January consumer credit data will be published on Wednesday afternoon. Thursday has its weekly initial jobless claims. February employment data, January trade gap and January wholesale inventory numbers will be released on Friday. Companies That Could Issue Positive Earnings Surprises During the Week of Mar 5 - 9 A few weeks ago, Big Lots (BIG) reported fourth-quarter same- store sales growth of 4.9%. The increase was at the high-end of the discount retailer's guidance and reflected a strong holiday shopping season. Two of the four covering brokerage analysts promptly adjusted their forecasts, causing the fourth- quarter consensus estimate to rise three cents to 71 cents per share. The Most Recent Consensus is more bullish at 72 cents per share. BIG has topped expectations for three consecutive quarters by an average margin of 10 cents per share. Big Lots is scheduled to report on Friday, Mar 9. Fourth-quarter forecasts have been rising on Esterline Technologies (ESL). Within the past 30 days, the consensus estimate has jumped from 33 cents to 39 cents per share. The Most Recent Consensus is even more bullish at 41 cents per share. Aerospace profits have been very strong this earnings season, as I stated in the Jan 31 Industry Rank Analysis, and this could be a reason for the optimism. (ESL is a supplier to aerospace and defense companies.) Esterline Technologies is scheduled to report on Monday, Mar 5, 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 Altera (ALTR), PetSmart (PETM), Fifth Third Bank (FITB) and Xoma, Ltd. (XOMA). To see their latest posts, click here. EnCana Corp. (ECA) - Strong in Oil Sands. For full Zacks research report, click here. OSI Pharmaceuticals (OSIP) - Paying for Mistakes. For full Zacks research report, click here. The Latest & Greatest Utility Buyout First-Quarter Growth Expected to be Slower 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: The Coca-Cola Company's (KO) Average Broker Recommendation is
up to 1.63 of late. The world's largest beverage company faces
its fair share of challenges, but analysts at Zacks Research
Digest also have a good deal of positive arguments. They are
encouraged by its long-term focus on pricing and
profitability, which is preferable to a focus on volume.
Furthermore, the company's focus on growth products is
beneficial, including non-carbonated beverages and mid-calorie
soft drinks. Additional strengths come from its geographic
mix, especially the growth markets of Eurasia and Africa, and
its history of innovation through a strong product pipeline. Read the Research Digest report on KO Analog Devices, Inc. (ADI) watched its Average Broker
Recommendation rise to 2.46. According to Zacks Research
Digest, analysts believe ADI's diversified business mix will
allow it to take greater advantage of market opportunities as
they emerge. The company has a diverse and complementary
product portfolio, which has enabled it to combine the
functionality of individual components. It also provides the
development platform and software tools that make it easier
for customers to differentiate products. Read the Research Digest report on ADI General Electric's (GE) Average Broker Recommendation advanced
to 1.54 recently. The majority of analysts believe GE is well-
positioned to record strong growth in the coming years,
according to Zacks Research Digest. The company has adopted
strategic imperatives to strengthen its portfolio by building
strong growth platforms and generating cash from low-return
businesses. Its focus remains on accelerating organic growth
and achieving technical and service excellence, building
enduring customer relationships around the world and driving
innovation through imaginative breakthroughs. Management has
also highlighted its expansion efforts in the developing world,
such as China, Russia, Eastern Europe and the Middle East,
which could serve as a catalyst for growth in the next decade. Read the Research Digest report on GE JPMorgan Chase & Co. (JPM) reached 52-week highs on Feb 20,
Feb 21 and Feb 22. The global financial services firm has also
enjoyed a rise in its Average Broker Recommendation to 2.04.
According to Zacks Research Digest, analysts like the
company's continued merger-related savings and its tight
expense control. Furthermore, capital markets activity is
expected to remain strong and merger benefit should provide
revenue synergies. Furthermore, analysts believe that organic
growth prospects appear strong, especially beyond the near-
term headwind from declining rate-sensitive businesses, as
stronger commercial loan demand begins to benefit the topline. Read the Research Digest report on JPM 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. Price is Right Nadine Wong sees a strong year for one biotech. Learn about the company by reading Wong's latest stock update. More... Bill Martin says TRBM continues to work to position itself for improved growth by more tightly focusing its product line and by rolling out new offerings. More... Richard Rhodes notes today that this could very well be the beginning of the long-awaited -5% to -10% correction he has been looking for. 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 05/22/2013
| Company Name | Symbol | %Change |
|---|---|---|
| ALLIANCE FIB | AFOP | 9.31% |
| SONIC FOUNDR | SOFO | 7.77% |
| TRI TECH HOL | TRIT | 6.62% |
| A M R CP | AAMRQ | 4.52% |
| FLOWERS FOOD | FLO | 4.31% |
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