Tuesday - February 12, 2008
![]() Dear Subscriber, Dow Jones announced yesterday that it will be replacing two stocks in its Dow Jones Industrial Average effective Feb 19. Altria Group (MO) and Honeywell International (HON) will be replaced with Bank of America (BAC) and Chevron (CVX). This is the first change in the average since April 2004. The move reflects the desire of Dow Jones to increase the concentration of financial service and energy in its benchmark. In addition, Altria is spinning off its international operations next month. Though the change could impact the Dow's performance in the future, it is essentially a non-event for most investors. The average remains comprised of just 30 stocks with about 99% of all companies excluded from the Dow. Nonetheless, the average remains a useful benchmark for gauging the performance of America's leading companies. Chevron is a Zacks #2 Rank ("buy") stock and Bank of America is currently a Zacks #5 Rank ("strong sell"). Shares of CVX closed up yesterday, while BAC closed down slightly. 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. Perrigo (PRGO) boosted its fiscal 2008 earnings guidance last week. It now expects full-year earnings between $1.50 and $1.60 per share, representing a 69% to 80% increase. Read the full analysis on PRGO now! Frontier Oil (FTO). is scheduled to announce fourth-quarter results on Feb 26. FTO offers a healthy return on equity (ROE) of 54%, soaring past the industry average. Read the full analysis on FTO now! Coca-Cola FEMSA (KOF) broke out of a long-standing trading range recently and tacked on an additional $6. It is set to report its fourth quarter results on Feb 22. Read the full analysis on KOF now! Murphy Oil (MUR) is rolling in profit as crude oil continues to trade near record highs. After its fourth-quarter report, covering analysts aggressively raised estimates. Read the full analysis on MUR 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. Median EPS Growth Okay Stocks featured recently include Novatel Wireless (NVTL), CACI International (CACI), B/E Aerospace (BEAV) and Sohu.com (SOHU). To see the latest analyst posts, click here. Millennium Pharma (MLNM) - Positive on Pipeline. For the full Zacks research report, click here. Embraer Air (ERJ) - Problematic Brazilian Airports. For the full Zacks research report, click here. Rail Outperforming Other Freight Transportation The Week of Feb 11 - Feb 15 Fret About Credit Cards; Find Haven in 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... "Gut Check" Time This strategy finds stocks at discount valuations with a positive trend in earnings estimates. Four stocks that pass this screen's test include RCII, GNA, VOLVY and AUO. More... Graphical Eye Candy Western Digital Corporation (WDC) Upgraded Broker Ratings 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 Kevin Matras, Steve Reitmeister and Charles Rotblut discuss the economic stimulus package and take a look at the stock market. Listen to the audio here: For more Zacks audio, click here.
Value: What is a "Margin of Safety"? Aggressive Growth: How to Gauge Earnings Quality Growth & Income: Pay Attention to Free Cash Flow Momentum: Support and Resistance Education Home: Click Here
Steve Reitmeister, Editor-At-Large for Zacks.com, shares his investing philosophy and various other thoughts. Listen to his audio here. For more Zacks audio, click here.
Tween Brands (TWB) As identified by the Zacks Custom Screener, this retailer has rising price action but negative sentiment, making it interesting from a contrarian standpoint. Read the entire commentary. To visit the Options homepage: click here.
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. THANKS! http://at.zacks.com/?id=2373 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 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 January 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. These performance numbers have been audited from 1995 through 2003 by Virchow, Krause & Company, LLP. 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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