Job Ideals vs. Job Realities vs. European Fears

The President is getting mixed reviews on his proposed job growth initiatives. It is considered a fairly centrist plan with parts that appeal to both sides of the aisle in Washington. However, much of it does not pass mustard with Republicans and they are likely to dig in their heels with a major election only a year away.

More importantly, under further scrutiny, many of the plans simply don't offer that much real economic benefit. Net-net investors were not overly impressed and that is why stocks started off in the red on Friday.

Then things got worse in a hurry as word came out that a leading European Central Bank economist, Jurgen Starks, was resigning over differences on recent bond buying activities from weaker nations. This only adds to investor fears that we are on the verge of a Lehman Brothers type event in Europe which will send shockwaves to other major economies including the US. And that fear makes it nearly impossible to see anything positive taking place in the US even though many economists recently raised (yes, raised) their Q3 GDP estimates for the states.

Volatility will be the name of the game until the European mess is fully understood and hopefully contained.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Monday- September 12, 2011

ZACKS RANK BUY STOCKS

• Aggressive Growth - Roadrunner Transportation Services (RRTS) full-year Zacks Consensus Estimate for this year is up 4 cents, to $0.87. Next year's average forecast is up 17 cents. This is growth rates of 63% and 37%, respectively. Read More...
   
• Growth & Income - The Hershey Company (HSY) earnings per share came in at 56 cents, beating the Zacks Consensus Estimate. It was a 10% increase over the same quarter in 2010. Net sales rose 7% to $1.325 billion. Read More...
   
• Momentum - Verifone Systems, Inc. (PAY) saw some decent movement in estimates off a good quarter, with the current year adding 5 cents to $1.60 while the next-year estimate is up to $2.15, a bullish 35% growth projection. Read More...
   
• Value - KBR (KBR) has a price-to-sales ratio of only 0.5. A P/S ratio under 1.0 usually means a company is undervalued. Its price-to-book ratio of 1.9 also indicates value as a P/B ratio under 3.0 more often than not indicates "value." Read More...
   

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

• Top 5 International Bond Mutual Funds Read More...
• Mutual Fund Homepage

• Bull Of The Day: Valero Energy
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: McDermott International
  Full Zacks research report: Read More...
  
  
• Ahead of Wall Street
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• Zacks Industry Outlook: Medical Devices Stock Outlook - Sept. 2011
  The industry is expected to fare relatively better this year thanks to several tailwinds and growth opportunities. Read More...
  
  
• Analyst Blog Highlights
• WaPo to Repurchase Shares
• Colgate's Share Repurchase Program
• Earnings Preview: Best Buy
• Full Analyst Blog

• Aggressive Growth Stock Picks-Sep. 9, 2011
• The Attractiveness of Options for Today's Market
• Growth & Income Stock Picks-Sep. 8, 2011

PeopleAndPicks.com:

VIP "smallstk" is compiling fundamentals to render returns with his BUY calls in (RWM), (SDS), and (SKF). Read More...

• G7 pledges 'strong, coordinated' effort @ CNNMoney.com
• Connecting Veterans With Career Opportunities @ FOXBUSINESS.com
• 9/11 observances in all shapes and sizes @ MarketWatch

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