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Zacks #1 Stocks on the Move 06/18/2013

Company Name Symbol %Change
STAAR SURGIC STAA
10.98%
DTS INC DTSI
6.89%
ANIKA THERAP ANIK
6.04%
LUMOS NETWOR LMOS
5.70%
INSTEEL IND IIIN
5.28%
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Dear Subscribers,

Earnings season officially started last week, but really there were only 3 reports of note (Alcoa, JP Morgan & Intel). This week things really will heat up with a slew of other important reports including; Apple, Citigroup, IBM, eBay, Goldman Sachs, Google, Wells Fargo and handful of other industrials and healthcare firms. Long story short, the reaction to this initial round of earnings reports will set the tone for the next few weeks.

If you stuck a gun to head and demanded that I give a prediction, then I would say this...the market is running pretty hot as it makes new highs coming into this earnings season. That means that expectations are lofty...maybe too lofty. That would make for a situation not unlike the last earnings season in October. There we had a 10% run up in stocks the month beforehand. Earnings were great, yet not great enough for many investors. So stocks churned sideways for a while.

The good news is that this fundamental strength was the main driver of stocks forging ahead to the highs we now find ourselves at. Meaning I expect a strong earnings season. I expect stocks to go sideways on the news in the short run. And then I expect them to head higher as people realize that improving corporate profits makes stocks a better place for their money than any other investment vehicle at this time.

Featured Commentaries on Zacks.com
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•  Ahead of Wall Street for Friday Jan. 18th: Made fresh every morning with timely insights and top picks.

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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Today's Top Stories: Tuesday- January 18, 2011

ZACKS RANK BUY STOCKS

  • Aggressive Growth - PolyOne Corp. (POL) Q3 earnings per share came in at 28 cents, a nickel ahead of the Zacks Consensus Estimate. This was the fifth earnings surprise in a row. Read More...
     
  • Growth & Income - Expedia, Inc. (EXPE) reported third quarter earnings per share of 63 cents, beating the Zacks Consensus Estimate by 15%. Revenue growth was a stellar 16%. Read More...
     
  • Momentum - Souther Copper Corp. (SCCO) is worth its weight in copper, fresh off a new all-time high above $50 as copper prices continue to surge. Read More...
     
  • Value - Barrick Gold Corporation (ABX) analysts are still bullish on the company as gold prices hover near all-time highs. 1 estimate for 2010 was revised higher in just the last week. Read More...
     

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

p.s. What is the mission for Zacks Profit from the Pros? To find out how we will help you become a more successful investor, click here.

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