Friday - January 4, 2008
Fourth-quarter earnings season will "officially" start on Wednesday, Jan 9, with Alcoa's (AA) report. Despite the ongoing economic uncertainty, I expect the majority of non- financial companies to issue positive surprises.
A common misconception about earnings surprises is if a stock jumps significantly higher following better-than-expected earnings, then it is too late for investors to take advantage of the good news. In reality, we often see stocks continue to rise even higher during the weeks following a surprisingly strong earnings report.
I explain why in this week's Investment Ideas article, along with how the Zacks Surprise Trader can help you identify the stocks most likely to rise in reaction to an earnings surprise: http://at.zacks.com/?id=3548
Wishing you prosperity,
1. ZACKS RANK BUY STOCKS
Zacks #1 Rank stocks average a 32% annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the four main schools of investing: Aggressive Growth, Momentum, Growth & Income and Value.
NightHawk Radiology Holdings, Inc. (NHWK) is growing both organically and by acquisition. Even during this period of investment, revenues and earnings are at record levels. Read the full analysis on NHWK now!
Accenture Ltd. (ACN) released strong fiscal first-quarter results in mid-December, causing its share price to spike. The company noted that it achieved the highest quarterly net revenues in its history. Read the full analysis on ACN now!
Chicago Bridge & Iron Company N.V. (CBI) had a very strong year, as its stock price more than doubled in value. Within the last seven days, two analysts increased their current-year estimates. Read the full analysis on CBI now!
2. BEST OF EQUITY RESEARCH
The Zacks Equity Research team of 50 analysts generates a mountain of timely research every day that is geared towards long term stock investing. Here we turn the spotlight on some of their hottest insights.
New Coverage in Medical Technology
Stocks featured recently include Procter & Gamble (PG), Ford (F), Host Hotels and Resorts (HST) and CONMED (CNMD). To see the latest analyst posts, click here.
VeriSign, Inc. (VRSN) - Well Positioned. For the full Zacks research report, click here.
MannKind (MNKD) - Technosphere Risks. For the full Zacks research report, click here.
Perfect Score for Fertilizer
3. STRATEGIES & IDEAS
Here you will find fresh articles loaded with profitable investment strategies and ideas to help you beat the market. Today we highlight...
This strategy helps investors pinpoint stocks that are creating assets for shareholders. Four stocks meeting this screen's exclusive criteria include ACN, BKS, GPS and MLHR. More...
Stretching the Tax Deferred or Tax Free Growth of an IRA
Most of the strategies highlighted in the articles above were created using the Zacks Research Wizard screening and backtesting software. Learn more about this powerful tool and get your free copy of our special report "Top 10 Stock Screening Strategies". More...
4. ZACKS EXTRA
MGM Mirage (MGM)
Find out why this hotels and casinos company is an attractive contrarian play. Read the complete commentary.
Options homepage: Go there now.
here's a lot of negative sentiment heading into 2008, which Mitch Zacks, Portfolio Manager at Zacks Investment Management, says is good for the market. Listen to his audio here.
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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 performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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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.
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