Santa Rally Just in the Nick of Time

Here is the key segment from my Monday commentary:

"The less there is to worry about in Europe, the more we can focus on the home front. And there is plenty of the economic data to support sufficient GDP growth to generate corporate earnings growth. And with valuations so attractive on a historical basis, it will create a pull towards US stocks soon enough. So I think Santa will deliver in the days to come."

And deliver he did on Tuesday as the S&P surged +3%. Why? Some could point to oversold conditions via technical analysis like Stochastics.

But for those of us who prefer fundamental reasoning, consider this. Last week investors scoffed at the steps Europe was taking to clean up their debt mess. Today there is greater realization that the ECB's new bank loan program is a stealth form of QE and that it is more powerful than previously understood. With that, their bond rates are coming down and stocks are going up. Kevin Cook from Zacks said this right out of the gate. It just took others a little longer to catch on.

I think that stocks will continue to drift higher through years end. And the less bad news coming from Europe only adds more fuel to that fire.

Now let me switch gears to another important topic. Survey after survey shows that the thing investors struggle with the most is the timing of when to get in and get out of positions. And yet that is one of the keys to outperformance. Here to lend a hand is Kevin Matras who's latest article helps you know... When to Buy and When to Sell

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Wednesday- December 21, 2011

ZACKS RANK BUY STOCKS

• Aggressive Growth - iRobot Corp. (IRBT) full-year Zacks Consensus Estimate for 2011 is up 30 cents, to $1.40. Analysts are looking for $1.45 in 2012, up 14 cents. This is growth rates of 59% and 3%, respectively. Read More...
   
• Growth & Income - The Kroger Co. (KR) generates strong free cash flow and management has been rewarding shareholders through stock buybacks and dividend hikes. It currently yields 1.9%. Read More...
   
• Momentum - SolarWinds, Inc. (SWI) saw some solid movement in estimates off the good quarter, with the current year adding 10% to 88 cents. The next-year estimate is pegged at $1.00, a bullish 13% growth projection. Read More...
   
• Value - Energy XXI (Bermuda) Limited (EXXI) has a forward P/E of just 9.3. That is well under its peers of 12.5. The company also has a solid 1-year return on equity [ROE] of 16.5%. Read More...
   

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

• Top 5 Aggressive Growth Mutual Funds Read More...
• Top 5 Wells Fargo Mutual Funds Read More...
• Mutual Fund Homepage

• Bull Of The Day: CenturyLink, Inc.
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Citi Trends, Inc.
  Full Zacks research report: Read More...
  
  
• Ahead of Wall Street
  Read More...
  


• Zacks Industry Outlook: Health Insurance Stock Review - Dec. '11
  U.S. health expenditures account for about 18% of U.S. GDP. Money spent per person on healthcare in the United States is more than in any other nation in the world. Read More...
  
  
• Analyst Blog Highlights
• A.M. Best Rates Aetna Securities
• Telus Sees Overall Growth in '12
• Is Everyone Rejoicing Online?
• Full Analyst Blog

• Aggressive Growth Stock Picks-Dec.20, 2011
• 2012 Market Outlook
• 2012 Investment Strategies

PeopleAndPicks.com:

VIP "Neurodoc" screens are proving profitable with his BUY calls in (KND), (R) and (RJET). Read More...

• PAYROLL TAX ROULETTE @ CNNMoney.com
• Market Preview: Visions of Bullishness @ TheStreet.com
• House Investigators Set to Question More MF Global Executives @ FOXBUSINESS.com
• Europeans at doorway to fiscal discipline @ MarketWatch.com

SCREEN OF THE WEEK: New Highs

This week, Kevin Matras talks about stocks making new highs and why you shouldn't be afraid of to buy them. Highlighted stocks include DY, HD, LSTR, ASGN and HPY. Read More...

FACEBOOK

Visit the Zacks.com Facebook page and get the latest insight on stocks and the market:
Zacks On Facebook

TWITTER

Get the Zacks.com newsfeed delivered straight to your Twitter account:
Zacks On Twitter

OTHER ZACKS RESOURCES:

• Read current and past issues of this newsletter online
• Zacks.com Home Page
• All Zacks #1 Rank Buy Stocks (Premium)
• Zacks Home Run Investor: Our under-the-radar small and mid caps picks for your long-term investing approach. Get Started Now>>
• Equity Market Anomalies: Discover stock picking strategies developed by experts based on often overlooked market factors.

Manage your Profit from the Pros subscription:

• Free Subscription plus 4 Strong Stock Picks
• Would you like to give us input on new products and features for Zacks.com?
• Unsubscribe

REFER-A-FRIEND

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!
Refer a Friend

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.

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
Attn: Profit from the Pros
111 N. Canal St., Suite 1101
Chicago, IL 60606

To unsubscribe from receiving "Zacks.com Profit from the Pros"
e-mail newsletter, Click here....