(NVDA) - year-over-year growth surpassing 92% in five quarters

NVIDIA Corporation (NVDA) has exceeded earnings estimates for six consecutive quarters, with year-over-year growth surpassing 92% in five of those quarters. Nine different analysts raised their estimates for fiscal 2007. Over the past 90 days, fiscal 2007 estimates have soared 25.5% to $2.36 per share. Full Analysis NVIDIA Corporation (NVDA) offers digital media processors and related software for a wide range of visual computing platforms. Its processors are also used in applications for digital content creation, personal digital image editing and industrial product designing. The company designs, develops and markets graphics processing units (GPUs), media and communications processors (MCPs) and wireless media processors (WMPs). The company's GPUs are meant for desktop personal computers (PCs), notebook PCs and professional workstations. The MCPs comprise the nForce family of products and other products for gaming consoles and digital media centers, including Microsoft's Xbox. WMPs, under the GoForce family, support handheld personal digital assistants (PDAs) and cellular phones. NVIDIA has a strong position in its core GPU segment, with an estimated 51% share during the fourth quarter according to Mercury Research, and has improved its position in the integrated processor market with its new multi-year patent cross-licensing agreement with Intel. Capitalizing on its partnership with Intel, NVIDIA introduced and shipped the nForce 4 SLI X16 Intel Edition and nForce 4 SLI Intel edition MCPs for Intel-based personal computers. The company scored an important win with Dell for its GeForce 7800 GTX GPU, which has been included in the new Dell XPS 600 PC for the gaming enthusiast market, Dell's first computer that includes a chipset which enables dual graphics cards. Perhaps the most important part of NVIDIA's growth strategy over the long term is the mobile device market. The acquisition of MediaQ, Inc. in 2003 has helped NVIDIA gain a strong foothold in the graphics market for wireless devices. GoForce handheld GPUs are currently shipping in the new Monorola 3G RAZR V3 phone and in the new Sony Ericsson Walkman phones. In February, the company unveiled its GoForce 5500 handheld GPU, which enables DVD quality video, full H.264 processing for fluid digital television, hi-fi surround sound, rapid multi-shot photography and console-class 3D graphics. On February 16th, NVIDIA announced outstanding results for its fourth quarter of fiscal year 2006, ended Jan 29, 2006. For the quarter, revenue was $633.6 million, an increase of 12% over the $566.5 million reported in the year-ago quarter. Net income for the quarter was $98.1 million, or 53 cents per diluted share, compared to net income of $48.0 million, or 27 cents per diluted share during the fourth quarter of fiscal 2005. The estimate was 49 cents. NVDA has exceeded earnings estimates for six consecutive quarters, with year-over-year growth surpassing 92% in five of those quarters. Nine different analysts raised their estimates for fiscal 2007. Over the past 90 days, fiscal 2007 estimates have soared 25.5% to $2.36 per share. Despite NVDA's strong run, the stock is attractively valued at 20x fiscal 2007 estimates, slightly above the long-term growth rate of 17.83%, giving the stock a PEG ratio of 1.12. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(TXU) - exceeded earnings estimate in nine of 12 quarters

TXU Corp. (TXU) reported considerably improved fourth-quarter and full-year 2005 results in early February. The company completed a three-phase restructuring program and has immediately begun implementation of its extensive revised strategies. On Feb 16, 2006, TXU declared a regular quarterly dividend of 41.25 cents per share of common stock. The company has a current dividend yield of 3.2%. Full Analysis TXU Corp., through its subsidiaries, manages a portfolio of competitive and regulated energy businesses in North America, primarily in Texas. The company’s subsidiaries are TXU Energy Company LLC and TXU Electric Delivery Company. TXU has exceeded the consensus earnings estimate in nine of the past 12 quarters. Earnings per share grew 6.5% over the past five years and are forecasted to grow by a larger margin going forward—11.1% over the next 3-5 years. On Feb 2, 2006, TXU Corp. reported considerably improved fourth-quarter and full-year 2005 results. The company posted fourth-quarter 2005 earnings per share of 85 cents, which beat the Street’s estimate by a penny. However, EPS in the quarter were significantly higher than the prior year’s period of 34 cents per share. Higher margins and lower costs enabled the company to report profits of $356 million. Operating revenue grew to $2.7 billion, up from $2.1 billion a year ago. For the full year of 2005, TXU reported profits of $1.7 billion. TXU recently completed a three-phase restructuring program, which began in early 2004. The company conducted extensive reviews of its financial and growth strategies, and has initiated ongoing execution of a wide range of operational, risk management and corporate finance initiatives. Going forward, TXU’s growth strategy includes plans to drive operational improvements, fund core business development opportunities and explore targeted value-creating transactions. Analysts’ estimates have been trending higher for TXU Corp. The current consensus estimate for this quarter’s earnings of $1.16 is 6.4% higher than it was 30 days ago. Forecasts for second-quarter profits have been upped 4.8% to $1.31 per share. On Feb 16, 2006, The Board of Directors at TXU Corp. declared a regular quarterly dividend of 41.25 cents per share of common stock. Investors requiring a stream of cash flow in the form of dividends have been quite content. The company currently yields 3.2% and has a five-year average dividend yield of 3.7%. TXU’s return on equity over the past five years has averaged 44.1%. TXU is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a http://www.zacks.com/help/zrankguide.php?p=13 >market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(SUR) - earnings estimate by an average of 13.1% the past seven quarters

CNA Surety Corporation (SUR), a Zacks #1 Rank stock, has a history of exceeding the consensus earnings estimate, having done so for the past seven quarters by an average margin of 13.1%. Analysts' estimates have been on the rise for 2006. The company has a return on equity of 14%, compared to the industry average of 12%. SUR has a five-year average dividend yield of 1.6% and a price-to-book multiple of 1.6. Full Analysis CNA Surety Corporation is an insurance holding company that provides surety and surety-related products in the United States and international markets. CNA Surety's insurance subsidiaries are Western Surety Company and Universal Surety of America. SUR provides surety bonds in all 50 states, the District of Columbia, U.S. Territories and many foreign countries. Headquartered in Chicago, Illinois, CNA Surety Corporation is the largest publicly traded surety company. SUR has exceeded the consensus earnings estimate in seven consecutive quarters by an average margin of 13.1%. On Feb 16, 2006, CNA Surety Corporation posted fourth-quarter 2005 earnings per share of 38 cents, which topped the consensus earnings estimate by a healthy 11.8% and surged past its prior year's EPS by 35.7%. Gross written premiums for the quarter increased 6.7% to $94.2 million, when compared to the fourth quarter of 2004. Net written premiums jumped 12.4% to $83.4 million. For the full year, gross written premiums rose 7.2% to $417.5 million, while net written premiums increased 15.0% to $365.9 million. CNA Surety Corporation recorded net investment income of $33.7 million—an 11.6% increase when compared to the $30.2 million achieved in 2004. Analysts have upped their earnings estimates for the full year of 2006. The current consensus earnings estimate for 2006 has increased by 6.9% to $1.55 over the past 30 days. CNA Surety Corporation is trading at a highly-discounted valuation. The company has a price-to-book (P/B) multiple of 1.6. The stock trades at a valuation of 11.6x trailing 12-month earnings and at 11.2x its current fiscal-year estimated earnings. Management appears committed to building shareholder value. SUR has a ROE of 14%, compared to the industry average of 12%. The company has a five-year average dividend yield of 1.6%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(GBX) - four quarters of positive earnings surprises

Greenbrier Companies (GBX) has a combination of fundamental and technical factors in its favor right now. Background Greenbrier Companies Inc. is a leading supplier of transportation equipment and services to the railroad and related industries. The manufacturing segment produces double-stack intermodal railcars, conventional railcars and marine vessels, and performs repair and refurbishment activities for both intermodal and conventional railcars. In addition to manufacturing, they are engaged in complementary leasing and services activities. Full Analysis Companies with long histories of not disappointing during their earnings reports are often bought by savvy investors before their earnings are released. The confidence that management provides in consistently meeting or beating analysts' consensus estimates makes earnings season somewhat less stressful for these companies. Greenbrier is one of those companies. During the last 11 quarters, GBX has failed to meet or beat estimates only once. The last four quarters have all consisted of positive earnings surprises. Thus, it comes as no surprise that investors are confidently buying GBX shares, even though the company doesn't report earnings for the quarter ended February 2006 until Mar 22, 2006. For the record, the consensus earnings estimate for GBX is 52 cents per share, up 68% from the same quarter a year earlier. Technical Review GBX has been in its current uptrend since bottoming out on Oct 8, 2002 at $4.10. It had been moving in a rather tight trading range between $37.15 and $24.67 from Dec 16, 2004 when it first established the upper boundary of the trading range at $36.99. A test of the upper boundary occurred on Apr 6, 2005 when the market managed to register a high of $37.15. Volume was light on the breakout to the upside and it lasted only a day before retreating back into its sideways trend. GBX tested a breakout to the downside of the trading range on Nov 2, 2005 but it too only lasted a day. The trading range was finally broken decisively on Feb 16, 2006 with a close of $37.68. Since that time, GBX has continued to move higher, setting 52-week highs on heavy volume, a very positive sign. With a long sideways congestion area behind it, GBX appears to have now continued its uptrend. Breakouts to the upside of long congestion areas tend to have force and power behind them. And with a long history of meeting earnings estimates, GBX has fundamental and technical reasons to move higher. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(LFL) - strong international growth - estimates have increased 36.8%

Lan Airlines S.A. (LFL) is experiencing strong international growth. Over the past 60 days, 2006 estimates have increased 36.8% to $2.08 per share. Despite the stock's strong move over the past year, it is still attractively valued at 19.6x 2006 estimates. Full Analysis Lan Airlines S.A. (LFL) is the main provider of domestic and international passenger and cargo air services in Chile and one of the leading airlines in Latin America. Lan Airlines serves 15 destinations in Chile, seven destinations in Peru, two destinations in Ecuador, 18 destinations in Latin America, 25 destinations in North America, 10 destinations in Europe and four destinations in the South Pacific. LFL has a fleet of wide-bodied aircraft, narrow-bodied passenger aircraft and freighter aircraft. The company also provides cargo service to all passenger destinations and to additional freighter destinations. The company continues to grow its international presence. In April 2005, the company signed important agreements with Korean Air and Lufthansa Cargo. During the first half of 2005, Lan Airlines, together with a local partner, acquired an Argentine carrier Aero2000. The carrier was renamed to Lan Argentina and initiated its operations on June 8, 2005, with three domestic destinations. According to the company's management, the first months of the Argentinean joint-venture were better than expected, and there are already plans for new routes. Lan continues to have a solid cash position and remains one of the few airlines in the world with investment grade debt, which should enable the company to access the capital markets on reasonable terms. The company reported excellent fourth-quarter numbers. Operating income for the quarter rose 73.8% to US$59.2 million in 2005 from US$34.1 million in 2004. Operating margins improved 2.8 points, from 5.6% in 2004 to 8.4% in 2005, as revenue growth of 15.9% outpaced a 12.5% increase in operating expenses. Total revenues for the quarter grew due to a 23.0% increase in passenger revenues and a 9.0% rise in cargo revenues. Passenger and cargo revenues accounted for 58% and 37% of total revenues, respectively. Earnings estimates have been on the rise for LFL. Over the past 60 days, 2006 estimates have increased 36.8% to $2.08 per share. Despite the stock's strong move over the past year, it is still attractively valued at 19.6x 2006 estimates. This is about even with the company's long-term growth rate of 18.5%, giving the stock a PEG ratio of 1.06. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(NX) - exceeded analysts' expectations in 11 out of the past 12 quarters

Quanex Corporation (NX) has exceeded analysts' expectations in 11 out of the past 12 quarters, including the past six in a row. On Feb 23, 2006, NX not only crushed the Street's estimate for fiscal 2006 first-quarter earnings, but also increased its quarterly cash dividend by 16.1%. The company is currently yielding 0.96% and has a five-year average dividend yield of 1.8%. Full Analysis Quanex Corporation is an industry-leading manufacturer of engineered materials and components for the vehicular and building products markets. The company's products include engineered carbon and alloy steel bars, aluminum flat-rolled products, flexible insulating glass spacer systems and precision-formed metal and wood products. NX has exceeded the consensus earnings estimate for six consecutive quarters by an average margin of 9.5%. Furthermore, the company has beaten the Street in 11 of the past 12 quarters. Earnings per share grew 36.4% over the past five years and are forecasted to grow 13.5% over the next 3-5 years. On Feb 23, 2006, Quanex Corporation posted first-quarter fiscal 2006 earnings per share of $1.27—22.1% better than analysts' estimates. Profits rose to $33.0 million from $28.2 million in the first quarter of fiscal 2005. Revenues, however, declined to $444.6 million from $465.2 million. NX has increased revenues for the past four years. The company has expanded gross margins and grown profits for the past two years. From fiscal 2004 to fiscal 2005, profits and revenues increased by 184.8% and 34.8%, respectively. Analysts covering the company have been upping their estimates. The current consensus estimate for this quarter's earnings of $1.37 is 10.5% higher than it was 60 days ago. Forecasts for fiscal 2006 second-quarter profits are also rising, having been upped 4.4% to $1.44 per share. Estimates for both fiscal 2006 and fiscal 2007 are higher than two months ago by 13.5% and 10.9%, respectively. The Board of Directors at Quanex Corporation recently approved a 16.1% increase of its quarterly cash dividend to 18 cents from 15.5 cents per share. A 3-for-2 stock split in the form of a 50% stock dividend was also given the green light. NX has a current dividend yield of 0.96%. Strong cash flows from operating activities have led to a five-year average dividend yield of 1.8%. The company's ROE of 28% illustrates management's success in enhancing shareholder value. The ROE of the industry is 22%. NX is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a http://www.zacks.com/help/zrankguide.php?p=13 >market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(ECLP) - Sales jumped 20.6%

ECLIPSYS (ECLP), up over 37% already this year, seems poised to move higher yet. Background Eclipsys Corporation is a healthcare information technology company delivering solutions that enable healthcare providers to achieve improved clinical, financial and administrative outcomes. Eclipsys offers an integrated suite of healthcare products in five critical areas -- clinical management, access management, patient financial management, strategic decision support and integration. Eclipsys' products have been designed to deliver a measurable impact on outcomes, enabling Eclipsys' customers to quantify clinical benefits and return on investment. Full Analysis Eclipsys released earnings of 10 cents per share for the December 2005 quarter, matching analysts' expectations and compared with a loss of six cents in the year earlier quarter. Sales jumped 20.6% and Income was $5.0 million. With the release of this report, it's now been more than a year since ECLP released a quarterly earnings report that was below consensus expectations. Clearly the market focused on the return to profitability for ECLP as the stock gapped into new 52-week highs after the earnings release and took out the high made on Jan 24, 2006. Volume was an incredible 6.5 times normal and the stock closed 15.7% higher on the day. Since the earnings report, the stock continues to move higher, again setting new 52-week highs on Monday of this week. Upside resistance to this move is between $25 and $27, all set in the late-2000/early-2001 timeframe. Once that resistance is taken out, there is negligible resistance at $34.125, set in July 1999 and then nothing until the all time high of $40.125 set on Jan 12, 1999. Resistance points often reside at old highs for the very real reason that investors who mistakenly bought at the old-high levels are finally getting back to even. Human nature what it is, when a poor investment breaks even, many investors are happy to sell and get out. But the more recent that the high was made, the stronger the resistance at that level. Highs made years ago, as in ECLP's case, tend to be a less formidable obstacle to overcome. Right now, ECLP seems to have the momentum to continue moving higher, with little significant upside resistance, improving financials and a constructive technical picture. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(CTRN) - aggressive growth strategy is paying off - four analysts raised their numbers

Citi Trends' (CTRN) aggressive growth strategy is paying off. Over the past 30 days, estimates have increased 5.8% to $1.10 per share, with four analysts raising their numbers. The stock is currently trading at 34.9x 2007 estimates of $1.24 per share, compared to the company's long-term growth rate of 20.60%. Full Analysis Citi Trends (CTRN) is a rapidly growing, value-priced retailer of urban fashion apparel and accessories for men, women, and children, including products from nationally recognized brands, as well as private label products and a limited assortment of home decor items. Through strong relationships with its suppliers, Citi Trends seeks to provide nationally recognized branded merchandise at 20% to 60% discounts to department and specialty store prices. Citi Trends' strong merchandising efforts are the backbone of the company's success. The company takes advantage of the popularity of nationally recognized urban apparel that is associated with hip-hop and rap musicians. These brands are growing faster than many other fashion brands, and that should continue for the next several quarters. Building on these popular trends, the company focuses on timely and fashionable urban apparel at value prices for the entire family. Each store offers a wide variety of products for men and women, as well as infants, toddlers, boys, and girls. In addition, Citi Trends continues to pursue its aggressive growth strategy, and that should be the primary driver of the company's future growth. Given the company's relative small number of stores and limited geographical footprint, there is enormous potential for future store expansion. More importantly, Citi Trends' profitable store model should enable the company to continue to grow profitably over the long-term. The company designs stores that are inviting and easy to shop, while limiting start up and operating costs. CTRN reported excellent sales for the four weeks ended January 28, 2006. Total net sales during the period increased 48.3% to $20.9 million compared with $14.1 million for the four-week period ended January 29, 2005. Comparable store sales increased 22.7% for the four- week period ended January 28, 2006, compared with a 10.1% increase in the prior-year period. Earnings estimates for 2006 are on the rise as well. Over the past 30 days, estimates have increased 5.8% to $1.10 per share, with four analysts raising their numbers. The stock is currently trading at 34.9x 2007 estimates of $1.24 per share, compared to the company's long-term growth rate of 20.60%. CTRN's PEG ratio is 1.69. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

Fidelity Independent Adviser - recent economic reports and inflation worries

Don Dion, editor of the Fidelity Independent Adviser newsletter, discusses recent economic reports and inflation worries. Read about some of the good news and discover what this expert has to say about traders. Afterward, take a look at Dion's update on the recent performance of the Fidelity Select Environmental Fund. Don's Outlook from February 23 After putting together a solid week last week, stocks pulled back at the beginning of this week, with investors concerned about rising crude oil prices, inflation fears, and that ever-present Fed. There was also a troubling report about declining confidence levels in U.S. stocks on the part of institutional investors. But then yesterday, instead of oil continuing to move toward $70 per gallon, prices dropped back significantly. The other good news yesterday was that data on consumer inflation was in line with expectations. After a report Tuesday on future economic activity came in higher than expected, fanning inflation fears, yesterday's numbers calmed the jitters. The result: A sustained rally, once-again led by a resurgent Dow Jones Industrial Average that reached its highest level since June of 2001. The S&P 500 and Nasdaq also posted nice gains. While traders seem resigned to one or two more interest rate hikes by the Fed, they won't panic as long as inflation seems to be under control. Meanwhile gold has rebounded and is back over $550 an ounce. Bonds also advanced yesterday. Fund Spotlight Fidelity Select Environmental (FSLEX) Fidelity Select Environmental's net asset value reached its highest point since 2000 this month, driven by the 52-week or multi year highs of several of its major holdings, primarily in the waste management industry. Investors flocked to the sector after key players demonstrated what appeared to be real, potentially long-standing price increases in the fourth quarter of 2005. Those results also pointed to the potential for stronger margins due to cost-cutting and asset reallocation across the sector. The result? A nice ride for FSLEX shareholders. Through February 21, FSLEX is already up 9.97 percent in 2006, beating the S&P 500 by 7.09 percentage points and placing the fund in the top percentile of Morningstar's Mid-Cap Growth category. The fund's year-to-date return also bettered 99% of its category, while its one-year gain of 25.09% was stronger than 93% of the category. Even over five years, FSLEX's annualized return of 5.68% put it in the category's 23th percentile. While the fund's concentration and idiosyncrasies mean that it shouldn't make up a large slice of your portfolio, it's hard to argue with recent results. Plus, its long-term history shows it can be a diversification tool as a niche holding. This article highlights the commentary of Don Dion for the Zacks.com audience. Don Dion provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Fidelity Independent Adviser" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Fidelity Independent Adviser" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

Click for full article

2006 is Shaping up to be Positive

Jim Collins, editor of The OTC Insight newsletter, explains that valuations are still quite attractive and are little changed since November, as earnings growth has kept pace with stock price appreciation. Read this expert's outlook on stocks, interest rates and the economy. Then discover a few of his stock picks and catch up on some company news MARKET OUTLOOK from February 21 Mr. Bernanke spoke last week before the House and Senate Finance Committees. Like his predecessor, Mr. Bernanke did not go into much detail regarding the Fed process. He did, however, reiterate that further interest rates may be needed to keep inflation in check and that the economy appeared to be on track. The comments are consistent with the Fed's actions and did not produce any negative surprises. The stock market will get its cue from economic reports over the next couple of weeks. Last week, the news was largely positive. Retail sales jumped 2.2% in January, which nearly tripled expectations. In addition, the housing market continued to show resiliency as building permits and housing starts were stronger than anticipated. The downside to a strong economy is that it increases the likelihood of more interest rate increases. However, as long as inflation remains contained, a strong economy is welcomed. Tomorrow the government will report consumer inflation for January, which is expected to show a 0.2% increase outside of food and energy prices. A low reading will ease pressure to raise rates, while a high reading will increase the pressure to raise rates. Even if the Fed raises rates another ½ of 1%, we would still be in low-moderate interest rate environment. Stocks will continue to battle high energy prices and further interest rate increases over the near term. A peaceful resolution with Iran and economic reports showing a solid economy with little inflation will relieve this pressure and allow price/earnings multiples to expand. Valuations are still quite attractive and are little changed since November, as earnings growth has kept pace with stock price appreciation. While stocks are unlikely to make much headway before late March when anticipation will begin to build for first quarter results, 2006 is shaping up to be quite positive as interest rate increases end and energy prices stabilize or fall. Stock Picks GFI Group (GFIG) is a leading inter-dealer broker specializing in over-the- counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments. Headquartered in New York, GFI has additional offices in London, Hong Kong, Tokyo, Singapore and Sydney. GFI clients include leading banks, broker-dealers, trading houses, funds, and insurance and energy companies. Its brands include GFI, GFInet and FENICS. GMX Resources (GMXR) is an independent natural gas producer. GMXR has interests in wells and acres in Texas, Louisiana & New Mexico. GMXR also has a large inventory of development prospects in North Carthage Field of East Texas. The Company's strategy is to drill and complete CVS wells, which could significantly grow production, grow its natural gas reserves and build shareholder value. Company News NetLogic Microsystems (NETL) and Cypress Semiconductor announced on Wednesday that NetLogic has completed the acquisition of assets and intellectual property associated with Cypress's standard Network Search Engine products. Some of the acquired technology complements NetLogic's existing products and is a critical component in low-cost applications acceleration and security processing solutions. The other acquired technology expands NetLogic's customer base and its product offerings in the high-volume, entry-level switch market. aQuantive (AQNT) reported on Wednesday financial results for the fourth quarter ended December 31. Revenue increased 44% over the fourth quarter of 2004 to $87.5 million. Net income was $11.6 million, or $0.15 per share, an increase of 63% over the fourth quarter of 2004. However, the stock was down somewhat after the company said earnings for 2006 would be at the lower end of analysts' expectations. This article highlights the commentary of Jim Collins for the Zacks.com audience. Jim Collins provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "OTC Insight" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "OTC Insight" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

Click for full article

Stealth Stocks Update - On any pullback I am looking to be a buyer

This is Dennis Slothower with your Stealth Stocks Weekly Update on Monday, February 27, 2006. Summary of Recommendations Stay mostly invested. Market Commentary Though February has not been a great month, it has recently managed to take out the January highs. While that may sound like a great achievement, the fact is that January ended at its highs and February has essentially been a month of testing the January lows and then making up lost ground to reach just slightly above where the market stood at the end of January. So, there hasn't really been a lot of progress in the month of February, relative to the highs of January for most sectors. However, the bulls remain very much in charge here. As I try and quantify what is happening in the stock market, I look at the market in terms of cycles, within cycles, subset trends within larger trends to help give perspective and an edge in our investing. I have pointed out before that the stock market tends to give the greatest profits between the months of October through April. The stock market bottomed in October, rallied impressively in the month of November but since then has been in a consolidating phase, until just recently. I think February completed an intermediate correction with the market now poised to climb higher in the months of March/April in line with a positive primary uptrend. However, as we enter into the month of March the market is now short-term overbought, suggesting that a potential pullback in the early days of March. We get the last revision of the GDP figures on Tuesday, which is the last day of the month. With the market short-term extended I look for some sort of a pullback for a few days and then for another upward surge to follow. On any pullback I am looking to be a buyer, and a short-term correction should present another buying opportunity. In the meantime, crude oil prices have been all over the place, with oil speculators in a tug-a-war between bearish fundamentals and geopolitical concerns, whipping up one day and down the next. Tensions eased over the weekend about the possibility that terrorists could disrupt shipments from Saudi Arabia. Iran is suddenly becoming more flexible, just ahead of the Security Council meeting. Russia and Iran agreed to create a joint company that would enrich uranium in Russia for Iran, the Iranian vice president for atomic energy, Qolam-Reza Aqazadeh, said on Sunday. The accord comes a week before the United Nations' nuclear watchdog meets to decide whether to ask the Security Council to take action against the Islamic republic. Iraq is still a hotbed of discontent but it appears that calmer heads are trying to keep the country from falling into civil war. The crude oil market finished the month of February breaking down through January's lows and appears to be closing near the lows for the month, which of course is a bullish fundamental for the stock market if oil prices continue to back off in March. Crude oil fell $1.91 on Monday, to close at $61.00 a barrel. Gold, along with commodities in general, looks to have made a top. Gold is short-term overbought, with the most recent short cycle rally failing to better its prior highs, so I am recommending selling Gammon Lake Resources (GMS) in the aggressive portfolio. In our income portfolio, Alliance Capital Management (AC) has a new name and symbol. The new name is now AllianceBernstein (AB). This is still a hold in our income portfolio and is doing quite well, up 21% since our buy recommendation. We were stopped out of two positions: Hurco Companies (HURC) and US Growth Investors (GROW) with small gains. I am looking to be a buyer on the next short cycle correction and will likely have a number of recommendations next week. Courtesy: Stealth Stocks Alert or call 800-524-4832 Eastman Communications, Inc. is the publisher of Stealth Stocks

Click for full article

(RBC) - first-quarter 2006 earnings per share guidance above analysts' expectations

REGAL-BELOIT CORPORATION (RBC) has exceeded the consensus earnings estimate for the past four quarters. Fourth-quarter 2005 profits for this Zacks #1 Rank stock nearly tripled when compared to the prior year's period. On Feb 8, 2006, RBC issued first-quarter 2006 earnings per share guidance above analysts' expectations. The company recently declared its 183rd consecutive dividend. RBC is currently yielding 1.3% and has a five-year average dividend yield of 2.2%. Full Analysis REGAL-BELOIT CORPORATION is a global manufacturer of commercial and industrial electric motors, electric generators and controls, and mechanical motion control products, as well as heating, ventilation and air conditioning (HVAC) motors. RBC's manufacturing and service facilities are located in the United States, Canada, Mexico, Europe and Asia. RBC has topped analysts' earnings expectations in four consecutive quarters by an average margin of 5.7%. The company has met or exceeded the consensus earnings estimate in nine straight quarters. Earnings per share grew 10.4% over the past five years and are forecasted to grow 12.3% over the next 3-5 years. On Feb 8, 2006, REGAL-BELOIT CORPORATION reported fourth-quarter 2005 earnings per share of 63 cents, 8.6% better than the Street's estimate and 125.0% above the prior year. Net sales increased 69.5% to $376.2 million from $221.9 million in the fourth quarter of 2004. Profits surged 190.0% to $20.3 million as compared to $7.0 million in the prior year's period. For the entire year, the company posted net sales of $1.4 billion from $756.6 million in 2004. Profits amounted to $69.6 million, versus $30.4 million reported in the prior year. As RBC heads into 2006, the company continues to see a positive sales environment. As a result, RBC issued first-quarter 2006 earnings per share guidance above analysts' expectations. REGAL-BELOIT CORPORATION now projects first-quarter EPS to be between 62 cents and 68 cents per share. The company's strong financial results and positive outlook for 2006 have caused the analysts covering the stock to become more optimistic. The current consensus estimate for this quarter stands at 65 cents—41.3% higher than the consensus of 30 days ago. Forecasts for the full years of 2006 and 2007 profits have jumped 5.0% and 6.4%, respectively, over the same time period. RBC has increased revenues and expanded gross margins for three years running. The company has grown profits for the past four years. RBC's return on equity is in line with that of the industry. Both the company and the industry have a ROE of 12%. On Feb 1, 2006, the Board of Directors declared a quarterly cash dividend of 13 cents per common share. The dividend payment represented the 183rd consecutive dividend declared by REGAL-BELOIT CORPORATION. The company is currently yielding 1.3% and has a five-year average dividend yield of 2.2%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

(MTLG) - topped the consensus earnings estimate five times by an average margin of 31.1%

Metrologic Instruments, Inc. (MTLG), a Zacks #1 Rank stock, has topped the consensus earnings estimate in five of the past six quarters by an average margin of 31.1%. Record financial results for the full year and the fourth quarter of 2005 led MTLG to issue full-year 2006 guidance above analysts' estimates. The company has a price-to-book (P/B) multiple of 2.9 and a return on equity (ROE) of 16%. Full Analysis Metrologic Instruments, Inc. designs, manufactures and markets bar code scanning equipment incorporating laser and holographic technology. These scanners rapidly, accurately and efficiently read and decode all widely used bar codes and provide an efficient means for data capture and automated data entry into computerized systems. MTLG has exceeded the consensus earnings estimate in five of the past six quarters by an average margin of 31.1%. Earnings per share have grown by an eye-popping 86.7% over the past five years and are projected to grow 19.3% over the next 3-5 years. On Feb 21, 2006, Metrologic Instruments, Inc. posted earnings per share of 39 cents, which topped the Street by 44.4% and the prior year's period by a penny. Revenues and profits for the fourth quarter of 2005 have increased 14.8% and 2.8%, respectively, when compared to the fourth quarter of 2004. The fourth quarter was the highest quarter in terms of revenue in the company's 37-year history. Revenues and profits for the full year jumped 18.3% and 11.2%, respectively, when compared to 2004. MTLG increased revenues for the past nine years and grown profits for the past four. Record financial results for the full year and quarter ended Dec 31, 2005 prompted Metrologic Instruments, Inc. to issue full-year 2006 guidance above analysts' estimates. The company announced that revenues for the year are expected to be between $240 and $250 million. Profits for 2006 are expected to be between $27.9 and $29.0 million, or $1.20 to $1.25 earnings per share, exclusive of non-cash stock option expenses. Analysts' estimates for the current quarter, as well as for the second quarter of 2006, have been on the rise. Forecasts for this quarter's profits currently stand at 24 cents—14.3% higher than the consensus estimate of 90 days ago. The consensus earnings estimate for the second quarter of 2006 increased by 8.3% over the same time period. Forecasts for the full year of 2006 jumped 5.5% to $1.15 over the past three months. MTLG has a price-to-book (P/B) multiple of 2.9 and a PEG ratio of 1.0. Metrologic Instruments, Inc. has been more profitable than its peers as measured by its return on equity (ROE). The company has a ROE of 16%, compared to the industry average of 11%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article

ASEI - third consecutive positive earnings surprise on Feb 8

American Science and Engineering, Inc. (ASEI), a Zacks #1 Rank Stock, is being rewarded by the market for management's successes. Background American Science & Engineering (ASEI) develops, produces, markets, sells and provides research and engineering services with respect to X-ray inspection systems. Full Analysis ASEI delivered its third consecutive positive earnings surprise on Feb 8, 2006, reporting earnings of 95 cents per share versus 39 cents in the same period last year. The consensus estimate was 65 cents so the released number amounted to a 46.2% surprise. Sales grew 42.7% while income rose nearly 4% from the Dec 04 quarter. While initial market reaction to the earnings report was subdued, ASEI has since rallied into new 52-week high territory. The most recent new 52-week high was made on yesterday at $75.50. ASEI had been in a consolidation range running very roughly from $70 to $60 per share dating from Sep 2005 until the stock broke out to the upside decisively on Feb 22, 2006. Since that time the stock has managed to move higher in an orderly fashion. A strong earnings report is a good start at picking stocks. It gives financial proof that management is improving. But stronger earnings alone are not enough to equate to investing success. It's also necessary that the market itself notices the company's improvement. Clearly by setting new highs, the technical action of ASEI is giving proof that the market is beginning to recognize management's efforts. And that makes ASEI our momentum stock of the day. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

Click for full article