Monday - March 12, 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 - Global Industries, Ltd. (GLBL) Global Industries, Ltd. (GLBL) has dramatically exceeded earnings estimates in each of the past four quarters by an average margin of 60%. Not surprisingly, earnings estimates have been moving up for this year and next. Over the past week, this year's estimates have jumped 11 cents to $1.37 per share, while next year's numbers have risen 27 cents to $1.65 per share. The stock is cheap at 9.9x next year's estimates, well below the growth rate of 20%. Read the full analysis on GLBL now! Growth & Income - Safeway, Inc. (SWY) Safeway, Inc. (SWY) exceeded analysts’ earnings estimates in 12 out of the past 16 quarters by an average margin of 15.3%. The company met or topped expectations for 16 consecutive quarters. Shareholder value has been enhanced though both share purchases and dividend payments. SWY has a current dividend yield of 0.68%. Read the full analysis on SWY now! Momentum - Anixter International Inc. (AXE) On Jan 23, Anixter International Inc. (AXE) is beating the market by 14.3% and the best may be yet to come. The Zacks #1 Rank stock has consistently delivered positive quarterly earnings surprises and the company has reaffirmed its ability to generate solid sales growth in the face of fluctuating commodity prices. This strong earnings momentum has allowed the stock to generate a year-to-date return of 12.4%. Read the full analysis on AXE now! Value - Universal Corporation (UVV) Universal Corporation (UVV)recently reported strong results for the third quarter of fiscal 2007. Consensus earnings estimates for this Zacks #1 Rank stock have been on the rise for both this year and next over the past 30 days. UVV has a price-to-book ratio of 1.8, compared to 4.2 for the market. The company is currently yielding 3.3% and has a five-year average dividend yield of 3.7%. Read the full analysis on UVV 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: Earnings and Margins This Profit Track goes to the heart of fundamental investing by finding companies with healthy earnings. The main ingredients are the search for Earnings Growth and Net Profit Margins. Then for good measure we make sure earnings estimates are moving higher which is a strong indicator of future performance and that brokerage firms are positively rating the stock. Amerisafe, Inc. (AMSF), a Zacks #1 Rank (Strong Buy) company, offers a net margin of 0.11. The company’s annual earnings showed a 248% improvement over the year-prior performance. AMSF 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. Continue your research on AMSF now! Corrections Corp. of America (CXW), another Zacks #1 Rank (Strong Buy) name, announced fourth-quarter earnings of 52 cents per share in early February. The result beat the consensus estimate by 18% and topped the year-ago total. The company stated that financial results for the fourth quarter cap a very strong year. CXW's revenues and operating margins improved significantly as a result of continued growth in inmate populations, both at the federal and state levels. The company’s full-year earnings experienced growth of 38% on a year-over-year basis. Continue your research on CXW now! First United Corporation (FUNC) meets the criteria of this Profit Track as evidenced by its year-over-year earnings growth of 3% for the full year. First United Corporation’s net margin stands at 0.13. The company recently posted full-year and fourth-quarter results. Earnings per share for 2006 totaled $2.05, versus $1.99 for 2005. Quarterly earnings of 56 cents per share exceeded the consensus estimate by 8%. Continue your research on FUNC now! Globecomm Systems Inc. (GCOM) sports year-over-year earnings per share growth of 69% for the full fiscal year. In early February, the company released fiscal second-quarter earnings of 11 cents per share, improving on last year's six cents and surpassing analysts' estimates by 10%. Revenues for the second quarter increased 22.8% to a record $36.7 million, versus $29.9 million in the year-prior period. Continue your research on GCOM 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”. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Beating the Market in Good Times and Bad 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 March Madness starts on Tuesday with the 64/65 game. For the overwhelming majority of bracket pools, the deadline is Thursday. As a result, productivity will definitely be lower on Thursday and Friday as college basketball fans everywhere watch their brackets get blown, potentially by schools such as Creighton, Vermont, VCU and Winthrop. Look for Big 12 schools to go deep in the tourney this year. (In the interest of full disclosure, I am a Kansas alum, my wife went to Texas and my grandfather was an Aggie, but I’m not biased...) Adding to the fun, Friday will be a triple witching day. Triple witching occurs when stock options, index options and futures contracts expire on the same day. These multiple expirations can lead to volatility, though the Stock Trader’s Almanac says when triple witching occurs right before St. Patrick’s Day, the markets are usually up. Call it the luck of the Irish. This Friday’s performance is certainly being helped by the employment data. Nonfarm payroll growth came in about as expected. I still expect daily fluctuations to continue though. The reason is the continued downward drift in full-year forecasts combined with a diminished number of earnings reports (less than 150 confirmed for next week). The average S&P 1500 company is currently projected to generate profit growth of 15.3% versus the four-week old projections of 16.3% growth. (The numbers are adjusted to exclude the impact of outliers.) More. . .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Nonetheless, we could get some type of catalyst from Goldman Sachs (GS), Lehman Brothers (LEH) and Bear Stearns (BSC). Both fiscal first-quarter and full-year earnings estimates have been revised up on all three companies within the past 30 days, a bullish sign (and in contrast to what we have seen for the broader universe of stocks). Economic data could also have some influence, particularly late in the week. February retail sales and January business inventory data will be released on Tuesday. Wednesday brings February import prices and fourth-quarter current account reports. Thursday gets more interesting with February PPI and March New York and Philadelphia Fed indexes. The week ends with February CPI and industrial production/capacity utilization data being published along with the preliminary March University of Michigan consumer confidence index. Companies That Could Issue Positive Earnings Surprises During the Week of Mar 12 - 16 Networking and Internet company Cogent Communications (CCOI) has delivered a positive earnings surprise for three consecutive quarters. Brokerage analysts currently expect the company to report a loss of 23 cents per share for its fourth quarter, a penny better than they had forecast a week ago. Notably, forecasts for 2007 have also been improving and now call for a loss of 69 cents per share (versus 70 cents a month ago and 73 cents two months ago). Cogent Communications is scheduled to report on Monday, Mar 12, before the start of trading. And now, onto those investment bankers….Goldman Sachs (GS) is viewed by some as a bellwether for the financial industry. The firm has generated six consecutive positive earnings surprises, most recently topping fiscal fourth-quarter estimates by 78 cents per share. Within the past week, the consensus estimate for fiscal first-quarter profits has edged up by a penny to $4.94 per share. Full-year forecasts have also been rising, even during the past seven days. Investors should be aware, however, that the Most Recent Consensus is more bearish at $4.89 per share, suggesting a more conservative outlook on the part of at least one of the covering analysts. Keep in mind that the drop in the Asian markets occurred very late in the quarter for all three of the investment banking firms reporting this week. Goldman Sachs is scheduled to report on Tuesday, March 13, before the start of trading. Lehman Brothers (LEH) has not missed earnings expectations in more than four years. The Most Recent Consensus of $2.06 per share suggests the streak could continue. During the past 30 days, brokerage analysts have raised their projections for both fiscal first-quarter and full-year profits. Lehman is scheduled to report on Wednesday, Mar 14, before the start of trading. Bear Stearns (BSC) is also riding a streak of consecutive earnings surprises that is more than four years old. During the past 30 days, the consensus estimate for fiscal first-quarter profits has improved by four cents to $3.82 per share. The Most Recent Consensus is more bullish at $3.97 per share. Bear Stearns will report on Thursday, Mar 15, 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 Countrywide Financial (CFC), Xoma (XOMA), Cameron Int’l (CAM) and SABESP (SBS). To see their latest posts, click here. POZEN, Inc. (POZN) - High-Profile Collaborations. For full Zacks research report, click here. Tech Data Corp. (TECD) - Inflated Valuation. For full Zacks research report, click here. Biotech M&A Activity to Continue Earnings Season Over, Estimates Trend Higher 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: Moody’s Corporation (MCO) is a Zacks #2 Rank company with an Average Broker Recommendation that has risen to 2.33. According to Zacks Research Digest, the company’s positive factors include its dominant position in credit rating services; its highly profitable, self-funding, conservatively financed enterprise; and its attractive growth prospects. Other encouraging aspects include its experienced management team and its consistent performance. Read the Research Digest report on MCO Fluor Corporation (FLR) is a Zacks #2 Rank company that has watched its Average Broker Recommendation rise to 1.88 of late. Earnings estimates for this year are up approximately 2.6% over the past month, including a rise of 1.6% in the past seven days. Analysts appreciate the company’s compelling fundamentals, especially its leadership position in providing engineering, procurement, construction and maintenance services to clients. Zacks Research Digest also highlights Fluor’s steps to improve its risk management processes and procedures, and its growth opportunities. Read the Research Digest report on FLR Avon Products, Inc. (AVP) was highlighted in the broker upgrades commentary on Feb 22 when its Average Broker Recommendation rose to 2.1. Its ABR has increased even further since and now rests at 1.9. According to Zacks Research Digest, analysts like Avon Products’ international growth, its tradition of continuous innovation and its robust new product pipeline. Furthermore, the company’s sales representative motivation includes new incentives, reward programs and emphasis on sales leadership. Read the Research Digest report on AVP Office Depot’s (ODP) Average Broker Recommendation is up to 2.60. Zacks Research Digest highlights several positive factors for the office products and supplies giant, including higher-than-expected operating profits at both the North American Retail (NAR) and the Business Services Group (BSG) segments. Other positive aspects include its major cost-cutting initiative and its strong free cash flow. Read the Research Digest report on ODP 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. Still Undervalued Donald Rowe says the market is still substantially undervalued and recommends being fully invested. More... Always on the lookout for high-growth investment opportunities, Ian Wyatt has recently updated his Growth Report with a couple new entries. 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... 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 05/20/2013
| Company Name | Symbol | %Change |
|---|---|---|
| EAGLE BULK S | EGLE | 12.55% |
| NOAH HOLDING | NOAH | 12.29% |
| SONIC FOUNDR | SOFO | 9.12% |
| ORBOTECH LTD | ORBK | 8.42% |
| VIPSHOP HOLD | VIPS | 7.36% |
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