Monday - March 3, 2008
![]() Dear Subscriber, Just as earnings estimate revisions can help you make money, they can also alert you about stocks to avoid. For example, let's look at American International Group (AIG) and Dell (DELL) - two of the primary reasons the stock market dropped on Friday. Estimates had been falling on AIG for nearly two months, because of worries about bad debt. These worries proved to be correct as AIG had bigger write-downs than were expected. Just a week ago, I wrote in the weekly Earnings Preview column that the insurer could miss. The full-year consensus earnings estimate on Dell had been lowered over the past 30 days, a sign that brokerage analysts had concerns about how the company was performing. After the bell on Thursday, the computer maker missed expectations and made cautious statements about its outlook. As for the markets, the major indexes remain in their trading range despite Friday's drop. Even though the Nasdaq did set a new closing low for the year, it did not retest the intraday lows set in late January and early February. The fact that the trading ranges held up is a bit of sunshine on an otherwise rainy day. More importantly, there were stocks that closed up on Friday, such as Gap (GPS). The apparel retailer rose by 3.7% on positive earnings news. Again, the trend in earnings estimate revisions suggested good news. Keep researching, because even in the current market environment, there are still plenty of ways to make money in the stock markets. Wishing you prosperity, Charles Rotblut, CFA 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. Tekelec (TKLC) is winning business from large telecom carriers. This has boosted the bottom line to the tune of a 100% average surprise over the past four quarters. Read the full analysis on TKLC now! Hewlett-Packard (HPQ) set its non-GAAP full-year 2008 guidance at a range of $3.50 to $3.54, adding that it feels good about the outlook. Analysts agreed, lifting forecasts higher. Read the full analysis on HPQ now! MEMC Electronic Materials (WFR) benefited from the global shortage in silicon. The company reported excellent Q4 results with a very nice jump in both revenue and income. Read the full analysis on WFR now! Oil States (OIS) is finding it lucrative to supply tools to oil producers during record oil prices. The company has a P/E of only 10.20 and a P/B of 2.04, both under industry averages. Read the full analysis on OIS 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. EARNINGS PREVIEW for Mar 3 - Mar 7 with Charles Rotblut Fourth-quarter earnings season wraps up this week with reports from AES, BIG, CIEN, COST, DDS, HRB, NSM and SPLS. More... Stocks featured recently include Regeneron Pharmaceuticals (REGN), Dell (DELL), FTI Consulting (FCN) and Sycamore Networks (SCMR). To see the latest analyst posts, click here. Rockwell Automation (ROK) - Healthy Outlook. For the full Zacks research report, click here. Avici Systems (AVCI) - Not Out of the Woods. For the full Zacks research report, click here. Sell-Off in Alt-Energy an Opportunity Finding Strength in Equipment Makers and PBMs Except for Financials, Q4 Earnings Were Strong
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... A Nation of Jailbirds This strategy identifies stocks with strong underlying fundamentals and low valuations. Four stocks that pass this screen's test include CMI, MAN, HUM and PVH. More... Bally Technologies, Inc. (BYI) Great New Screen Diversifying Your Tax Risk 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 Aggressive Growth: Importance of Gross Margins and Cash Flow Momentum: Support and Resistance Growth & Income: The Risk of High Dividend Yields Value: The Parable of "Mr. Market" Education Home: Click here.
Steve Reitmeister, Editor-At-Large for Zacks.com, explains why investors seldom know when to sell stocks. He also discusses the "Constant State of Breakeven".. Listen to his audio here. Mitch Zacks, Portfolio Manager at Zacks Investment Management, says the stock market will not be retesting January lows. Listen to his audio here. Click here for more Zacks audio.
Cree (CREE) This semiconductor manufacturer seems to be a contrarian bullish play, given its soaring price action in the face of pessimistic sentiment. Read the entire commentary. Options homepage: Go there now.
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=2311 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. Visit /performance for information about the performance numbers displayed in this newsletter. 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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