Dear Subscriber,

Given that the economy stabilized during the third quarter, some companies should have swung back to profitability.

However, a return to profitability is not enough to ensure a higher stock price. What you want are companies whose new profits reflect the latest chapter in a story of ongoing improvement.

Kevin Matras found 5 such stocks and names them in the Screen of the Week.

Read: First Profit


Though the economy is improving, small businesses continue to have problems accessing credit.

This a problem because small business is a growth driver for the U.S. economy. It also suggests that the labor market could stay weak for some time to come. Dirk van Dijk explains in our Analyst Blog.

Read: A Rarity: The Small Business Loan

Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst & Editor

Today's Top Stories: Wednesday- October 14, 2009

ZACKS RANK BUY STOCKS

• Aggressive Growth - Linn Energy LLC (LINE) reported net income of 45 cents per unit, 4 cents higher than the Zacks Consensus Estimate for a second consecutive earnings surprise. Following the report the full-year Zacks Consensus Estimate has jumped. Forecasts for this year average $2.07, up from $1.73. The consensus for next year is $2.04, up from $1.49. Read More...
   
• Growth & Income - Pall Corporation (PLL) fiscal first quarter Zacks Consensus Estimate rose 3 cents to 42 cents in the last 30 days. For fiscal 2010, estimates jumped 7 cents to $1.94. 5-year earnings growth is expected to be 14.67%. Analysts forecast year over year earnings growth in fiscal 2010 of 8.92%. Read More...
   
• Momentum - E-House China Holdings Ltd. (EJ) has beat in each of the last 4 quarters by an average of 46% and recently projected 100% Q3 sales growth from last year. With the recent nice quarter in hand, estimates have moved higher, with the current year advancing 30 cents to 92 cents per share. The next-year estimate is up 32 cents to $1.15, a bullish 26% growth projection. Read More...
   
• Value - SYNNEX Corporation (SNX) reported third quarter results that easily surprised on the Zacks Consensus Estimate by 9.84%. Earnings per share were 67 cents compared to the Zacks Consensus of 61 cents. This was also 1 cent better than the year ago period. The company saw revenue growth quarter over quarter of 10.8%. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Best of Funds: Top European Equity Funds
  Henderson European Focus A (HFEAX), Eastern Europe Equity Fund A (VEEEX) and T. Rowe Price European Stock (PRESX) are all Zacks #1 Rank funds that invest primarily in European companies. Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: VimpelCom (VIP)
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Rite Aid Corp. (RAD)
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: U.S. Banks
  The banking system is not yet out of the woods, as there are persistent problems that need to be addressed by the government before shifting the strategy to growth. Read More...
  
  
• Barrick (ABX) to Acquire Chilean Mine
• Subpoena for Elan (ELN)
• PetroChina's (PTR) Volumes Assured

• Some Medicare Rates to Rise
• Investor Psychology Glossary

EDUCATION: Aggressive Growth

Earnings Manipulation Read More...

PeopleAndPicks.com:

VIP "Clark2005" locates strong stocks with BUY calls in (CBOU), (NTAP), (PIR) and (STX). Read More...

• Aggressive Growth Stock Picks-Oct. 13, 2009
• First Profit
• Value Stock Picks-Oct.12, 2009

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Regards and Happy Investing,

Charles Rotblut, CFA
Senior Market Analyst
Zacks.com

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