(JLG) - (JOYG) - (CAT) - (TEX) - Demand for Machinery Stays Strong

Demand for Machinery Stays Strong By James Giaquinto Mar 16, 2006 "Economic activity in the manufacturing sector grew for the 33rd straight month in February, suggesting that the machinery industry picked up in 2006 where it left off in 2005. There are several machinery-related spaces in the top 100 of the Zacks Industry Rank, but construction & mining is out in front with a reading of 2.44, which places it 15th out of more than 200 industries. Most economists predict the U.S. economy to increase at a 3% to 3.5% pace in 2006, which in our view will keep domestic manufacturing demand buoyant," wrote Zacks Equity Research analyst Mario Ricchio in a recent research report. This 'buoyant' manufacturing demand was underscored in the most recent ISM Report on Business (R). Last month's PMI was at 56.7%, denoting another month of positive economic activity in manufacturing. (A reading above 50% indicates expansion while a reading under 50% indicates contraction). The result was up 1.9% from January's seasonally adjusted reading of 54.8%. A strong economy is fueling manufacturing activity. The same report indicated that the overall economy grew for the 52nd straight month in February. Furthermore, the Bureau of Economic Analysis recently announced that real GDP increased at an annual rate of 1.6% in the fourth quarter of 2005. That's not exactly moving like wildfire, but it's enough to keep momentum in manufacturing moving in the right direction, especially since the industry is heavily tied to overall GDP growth. In addition to U.S. manufacturing, the construction & mining machinery industry also has opportunities overseas. Western Europe and Asia have a number of emerging economies. These countries, which including China and Russia, are in a building frenzy, and several companies in this industry are willing to lend a hand. "In addition to stronger domestic fundamentals, the declining U.S. dollar is likely to give a boost to export demand," said Ricchio. There, of course, are also challenges in the construction & mining machinery industry, especially the volatility in energy markets. But there are ample opportunities for investors. The rise in commodity prices are fueling demand for mining equipment, and Ricchio believes that the six-year $286 billion highway bill is likely to boost demand for construction equipment while offsetting weakness in residential construction. Leaders in the Industry JLG Industries, Inc. (JLG) is the world's leading producer of access equipment (aerial work platforms and telehandlers). Late last month, JLG Industries reported a strong fiscal second quarter with substantially improved earnings and a new record for revenues. Earnings per share reached 52 cents and consolidated revenues advanced to $494 million in the quarter. That earnings result marked a dramatic improvement from the previous year and also beat the consensus by more than 8%. Consolidated revenue jumped 40%, thanks to a 43% rise in the U.S. and a 31% improvement internationally. JLG highlighted its order board, which reached $1 billion at the end of the quarter, as a reflection of the continued strength in demand for its products. That continuing demand instills further confidence that 2006 will be another good year. JLG previously announced that it expects revenue growth for the year to rise between 20% and 25% over that of fiscal 2005, but now expects that growth at the upper end of that range. Furthermore, the company raised its earnings per share guidance to between $2.35 and $2.45, compared to the previous outlook of $2.15 to $2.25. Shortly after the quarterly report, JLG's Board increased its quarterly dividend and announced a two-for-one stock split. "As JLG continues to grow and deliver improved results, today's announcement reflects the Board's confidence in our ability to execute our strategic plan," stated Bill Lasky, Chairman of the Board, President and CEO. "We are committed to the relentless pursuit of quality and process excellence as we continue to remain focused on our core products and services and to leverage our position as the world's leading producer of access equipment." Joy Global Inc. (JOYG) is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining. Joy Global had previously announced that 2006 would start out stronger than usual; and that's exactly what happened. Adjusted earnings per share in the fiscal first quarter were 47 cents, which soared past 18 cents in the year-ago period. It also topped the consensus by approximately 20.5%. Net sales improved 48% to $553 million as both P&H Mining and Joy Mining revenues advanced more than 45% year-over-year. "While the remaining quarters of fiscal 2006 will not reflect such strong year-over-year growth, we do expect that operating results will continue to reflect the robust commodity market conditions which our customers continue to enjoy," said John Hanson, Chairman, President and CEO. Looking forward, overall activity remains robust and the company's overall optimism is relatively unchanged. Due to the combination of strong market conditions, offset by supply chain and other capacity restraints, Joy Global expects revenues in the next 12 months to grow between 11% and 21% to a range of $2.35 billion to $2.55 billion. Caterpillar Inc. (CAT) is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Their products are used in the construction, road building, mining, forestry, energy, transportation and material-handling industries. In late January, the company reported fourth quarter earnings of $1.20 per share on sales and revenues of $9.66 billion; both were records for any quarter in Caterpillar's history. That earnings result rose from 77 cents year-over-year and beat the consensus by more than 8%, while revenues advanced by approximately 13%. The quarter capped off 'an incredibly strong year' for Caterpillar. Full-year 2005 earnings per share rose to $4.04 due primarily to higher price realization and sales volume, partially offset by an increase in core operating costs. Sales and revenues for the year advanced 20% to $36.3 billion (highest in company history) from $6.03 billion. "2006 should be another year of excellent growth for Caterpillar," said Chairman and CEO Jim Owens. "Most of the industries we serve are strong, and the fundamental economic picture remains positive. Our emphasis is on execution with 6 Sigma as we implement our new strategy to achieve our 2010 goals, with even greater focus on improving employee safety, product quality and product availability." Caterpillar expects 2006 earnings per share of $4.65 to $5, which was increased from a preliminary outlook of between $4.52 and $4.91. The sales and revenues guidance is unchanged at about $40 billion. Terex Corporation (TEX) is a diversified global manufacturer that makes a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, recycling, surface mining, shipping, transportation, refining, utility and maintenance industries. Terex recently delayed its annual report, but provided an update for 2005 and an outlook for 2006. Excluding items, the company expects 2005 earnings per share between $3.90 and $4. Revenue should reach about $6.4 billion, marking a year-over-year increase of about 28%. “In general, 2005 was a very good year for Terex, reflecting continued strengthening end markets in many of our product categories and the early stages of a recovery in others," said Chairman and CEO Ronald M. DeFeo. The company said it has already surpassed its objective to reach $6 billion in revenue by 2006, which was accomplished in 2005. Furthermore, Terex continues to benefit from an operating environment that is poised to produce another year of significant growth. Terex anticipates meaningful growth in revenue in 2006, which should be more broadly based across its segments. Total revenue should come in between $6.7 bill and $7.1 billion during the year. Earnings per share should range from $5.50 to $6, excluding items. Content Courtesy: Zacks.com

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(AIR) - (ECLP) - (FFIV) - (IVAC) - (SPSS) - substantial move-up in stock prices between now and August

Donald Rowe, editor of the Wall Street Digest newsletter, sees bullish signs and expects a substantial move-up in stock prices between now and August. Read this expert's update on the major averages and find out what he has to say about the recent Jobs report as well as oil prices. Then learn his thoughts on the economy. Afterward, take a look at a sampling of his buy recommendations. Commentary from March 10 Falling oil prices and a good February Jobs report triggered a rally on Wall Street today. At the close, the Dow added 104 points, closing at 11,076; the Nasdaq rose 12 points, closing at 2,262; and oil closed down $0.51 at $59.96 per barrel. In February, 243,000 jobs were created; only 210,000 were expected. Hourly earnings were up 0.3 percent in February. Traders pushed stocks higher after oil prices fell below $60 a barrel. The economy was booming in February. Inflation is still well contained. The stock market is still undervalued by 31 percent, while liquidity is at record levels. Shares of stock available for purchase continue to shrink because of cash corporate buybacks, mergers and acquisitions. The M3 supply jumped $28 billion last week to a record high of $10.36 trillion dollars. During his 18 years as Fed chairman, Alan Greenspan created more money than all other Fed chairmen combined. All of the above is bullish and portends higher stock prices ahead. With liquidity at record levels, Donald Rowe continues to expect a substantial move-up in stock prices between now and August. A Sampling of Buy Recommendations: AAR Corporation (AIR) is a worldwide leader in supplying aftermarket products and services to the global aerospace/aviation industry. It provides aircraft, engines and engine parts; airframe and accessories products; overhaul, repair and maintenance services and company-manufactured products to customers in all segments of this industry, including the world's largest commercial airlines and air cargo operators, original equipment manufacturers, domestic and foreign military and government agencies, aircraft leasing companies and maintenance service providers. Eclipsys Corporation (ECLP) 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. F5 Networks, Inc. (FFIV) is a leading provider of integrated Internet traffic and content management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications. The company's products monitor and manage local and geographically dispersed servers and intelligently direct traffic to the server best able to handle a user's request. The products are designed to help prevent system failure and provide timely responses to user requests and data flow. Intevac, Inc. (IVAC) is a leading supplier of static sputtering systems and related manufacturing equipment used to manufacture thin-film disks for computer hard disk drives. Sputtering is a complex vacuum deposition process used to deposit multiple thin-film layers on a disk. The company's primary objective is to be the industry leader in supplying disk sputtering equipment by providing disk sputtering systems which have both the highest overall performance and the lowest cost of ownership in the industry. SPSS, Inc. (SPSS) is a multinational company that delivers reporting, analysis and modeling software products, and whose primary markets are marketing research, business analysis/data mining, scientific research and quality improvement analysis. SPSS develops, markets and supports an integrated line of statistical software and other products that enable users to effectively bring marketplace and enterprise data to bear on decision-making. Content Courtesy: Zacks.com

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(FAL) - Revenues jumped 16.0% to $2.2 billion

Higher metals prices, along with strong operational performance, enabled Falconbridge Limited (FAL) to post impressive financial results for 2005. Analysts' estimates for this Zacks #1 Rank stock have been on the rise for 2006. The stock trades at a valuation of 13.3x trailing 12-month earnings and at 10.0x its current fiscal year estimated earnings. Falconbridge Limited has a price-to-book (P/B) multiple of 2.4 and is currently yielding 1.3%. Full Analysis Falconbridge Limited is a leading international copper and nickel company with investments in zinc and aluminum. The company is also one of the world's largest recyclers and processors of metal-bearing materials. Falconbridge has operations and offices in 18 countries. On Feb 8, 2006, Falconbridge Limited reported fourth-quarter 2005 earnings per share of 74 cents. With the Street calling for 69 cents, the company surprised by 7.3%. FAL posted fourth-quarter 2004 profits of 50 cents per share. Revenues jumped 16.0% to $2.2 billion. The increase was attributed to higher realized metal prices and copper and nickel sales volumes, increased revenue contribution from by-product molybdenum credits and improved copper concentrate treatment and refining terms. For the entire year, FAL posted revenues of $8.1 billion, a 19.1% increase over the $6.8 billion in revenues generated in 2004. Profits amounted to $872 million, versus $521 million reported in the prior year. Analysts' earnings estimates have shot upwards for this quarter. The consensus earnings estimate for the first quarter of 2006 stands at $1.00. This marks an impressive 23.5% increase when compared to the consensus of 90 days ago. Forecasts for full-year 2006 profits increased by 26.9% over the same time period. On Oct 11, 2005, Inco Limited announced an offer to acquire all outstanding common shares of Falconbridge. On Feb 21, 2005, Inco announced it would extend by four months its offer to acquire FAL's shares. The acquisition would create the world's top nickel producer and eighth-largest producer of copper; however, it still needs to pass the reviews of competition authorities in the United States and Europe. Strong cash flows from operations have enabled Falconbridge Limited to currently yield 1.3%. The stock trades at a valuation of 13.3x trailing 12-month earnings and at 10.0x its current fiscal year estimated earnings. The company has a price-to-book (P/B) multiple of 2.4. 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.

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(BHI) - exceeded analyst expectations in 10 of the past 11 quarters

Baker Hughes Inc. (BHI), a stock that we first highlighted on Jan 19, 2006, has exceeded analyst expectations in 10 of the past 11 quarters. In mid-February, the company posted record fourth-quarter 2005 results and issued full-year 2006 guidance above analysts' estimates. Earnings per share are forecasted to grow 20.0% over the next 3-5 years. This Zacks #1 Rank stock currently yields 0.78% and has a five-year average dividend yield of 1.3%. Full Analysis Baker Hughes Inc. is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry. BHI operates in over 90 countries worldwide, providing products and technologies to international oil and gas companies, independent oil and gas companies and national oil companies. BHI was first presented as a Growth & Income pick on Jan 19, 2006. At the time, Baker Hughes Inc. was a Zacks #2 Rank (Buy) stock. Since then, BHI has achieved the coveted Zacks #1 (Strong Buy) ranking. BHI is one of the top three companies in the oilfield services industry; the other two being Schlumberger (SLB) and Halliburton (HAL). The company has exceeded analyst expectations in 10 of the past 11 quarters by an average margin of 11.5%. While the company missed the Street's estimate in the third quarter of 2005 by two cents, BHI rebounded nicely in the fourth quarter by achieving record results. Baker Hughes Inc. posted fourth-quarter earnings per share of 75 cents, while the consensus estimate called for 72 cents. Fourth-quarter profits surged past the prior year by 41.5%. Revenues jumped 19.2% to $1.99 billion from $1.67 billion in fourth quarter of 2004. For the full year, profits increased to $878.4 million, compared to $528.6 million in 2004. Revenues grew 18.3% to $7.19 billion. Earnings per share have grown 17.6% over the past five years and are forecasted to grow 20.0% over the next 3-5 years. BHI's outlook for 2006 is very optimistic. The company said its customers have increased their exploration and production budgets in 2006 and it expects continued strength through 2007. BHI projects revenues to be up between 19% and 21% when compared to 2005 revenues. Furthermore, the company is projecting income from continuing operations of between $3.40 and $3.60 a share. Analysts' estimates have been trending higher for Baker Hughes Inc. The consensus estimate for first- and second-quarter 2006 earnings have increased by 5.4% and 6.3%, respectively, over the past 90 days. Forecasts for full-year 2006 and 2007 profits were upped 7.9% and 13.9%, respectively, over the same time period. BHI's return on equity is considerably higher than the industry average. The company has a ROE of 20%, compared to 14% for the industry. The stock trades at a valuation of 18.6x its current fiscal-year estimated earnings. Thanks to strong operating cash flows, on Jan 26, 2006, the Board of Directors at Baker Hughes declared a quarterly cash dividend of 13 cents per share of common stock. BHI offers a current dividend yield of 0.78% and has a five-year average dividend yield of 1.3%. 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.

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(ASMI) - has blown away estimates in two quarters by over 900%

ASM International N.V. (ASMI) has blown away earnings estimates in each of the past two quarters by an average margin of over 900%. One of the three analysts covering this company raised expectations for the full year. Over the past 30 days, estimates for 2006 increased 36% to 68 cents per share. Full Analysis ASM International N.V. (ASMI) is an original equipment manufacturer (OEM) offering semiconductor manufacturing equipment used in the fabrication of integrated circuits (ICs). Its products are used in both the front- and back-end segments of the semiconductor production process. The front-end processes include all the steps necessary in manufacturing a wafer containing multiple copies of an IC device. The back-end processes involve the separation of the wafer into multiple individual semiconductor IC devices, followed by packaging and final testing. ASMI is the only semiconductor manufacturing company with a major presence in both the front-and-back-ends of the $48.3 billion semiconductor manufacturing equipment market. ASMI recently completed the NuTool, Inc. and Genitech, Inc. acquisitions in June and August of 2004, respectively. NuTool via the LuminaCu platform provides integrated copper deposition and removal through the electrochemical mechanical deposition (ECMD) and reverse linear - chemical mechanical polishing (RL-CMP) technologies. Genitech, a Korean company, is a supplier of plasma enhanced ALCVD. Based on capital expenditure guidance from some semiconductor companies, 2006 should be a growth year for the semiconductor equipment industry, fueling the company's optimism for both Front-end and Back-end operations. Judging by ASMI's current order backlog, revenues for 2006 should be solid for both Front-end and Back-end. The company has blown away earnings estimates in each of the past two quarters by an average margin of over 900%. One of the three analysts covering this company raised expectations for the full year. Over the past 30 days, estimates for 2006 increased 36% to 68 cents per share. The stock is currently trading at 27.8x 2006 estimates of 68 cents per share, which is a bit above the company's long-term growth rate of 18%, giving the stock a PEG ratio of 1.54. 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.

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(CLE) - CLE beat the Street in 15 of the past 16 quarters

Claire's Stores, Inc. (CLE) recently announced record results for fiscal year 2006. The company is benefiting from international expansion, coupled with strong North American growth. CLE has beaten the Street in 15 of the past 16 quarters. Earnings per share have grown 41.1% over the past five years. This Zacks #1 Rank stock's return on equity is almost twice that of the industry average—22% compared to 12%. Full Analysis Claire's Stores, Inc. is a leading international specialty retailer offering value-priced costume jewelry, accessories and cosmetics to fashion-aware tweens, teens and young adults through its two store concepts: Claire's Accessories, which caters to girls and teens in the seven to 17 age range and Icing by Claire's, that caters to teens and young women in the 17 to 27 age range. CLE has topped the consensus earnings estimate in five straight quarters by an average margin of 8.7%. Furthermore, the company has beaten the Street in 15 of the past 16 quarters. Earnings per share have grown 41.1% over the past five years. On Mar 9, 2006, Claire's Stores, Inc. reported record financial results. The company posted earnings per share of 75 cents for the fourth quarter of fiscal 2006, which topped the Street's estimate of 66 cents by 13.6%, and the prior year by 21.0%. Net sales rose 4.8% to $414.7 million, compared with $395.9 million for the same period last year. For the entire fiscal year, net sales grew 7.0% to $1.37 billion from approximately $1.28 billion achieved in fiscal 2005. Profits increased 20.4% to $172.3 million from $143.1 million in the prior year. The company cited that 2006 was a time of growth for their international division. CLE began conducting business in three new countries—Spain, Holland and Belgium. Claire's Stores, Inc. plans to enter at least one new country in fiscal 2007 as well as open new stores in countries where they already have a presence. CLE issued first-quarter fiscal 2007 guidance slightly below analysts' estimates, however, for the full year, the company's outlook topped analysts' forecasts. For fiscal 2007, CLE is projecting revenue growth of between 6% and 7%, with comparable store sales expected to grow between 3% and 4%. Profits are projected to be between $190 and $195 million, or $1.96 to $2.01 on a diluted per share basis. Analysts' estimates for fiscal 2007 have been on the rise. The current consensus estimate stands at $1.98—a 7.6% increase over the past 60 days. Management at Claire's Stores, Inc. has been extremely successful in enhancing shareholder value. On Mar 2, 2006, the Board of Directors declared a regular quarterly cash dividend of 10 cents per share. CLE has a current dividend yield of 1.1% and a five-year average dividend yield of 1.0%. Furthermore, the company's return on equity is almost twice that of the industry average. CLE has a ROE of 22%, compared to 12% for the industry. 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.

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(AFG) - Earnings per share have grown 23.8% over five years

American Financial Group, Inc. (AFG), a Zacks #1 Rank stock, has topped the consensus earnings estimate in four of the past five quarters. Earnings per share have grown 23.8% over the past five years. In mid-February, AFG raised its full-year 2006 earnings per share guidance and analysts reacted by upping their estimates. The company is trading at a discounted valuation, with a price-to-book ratio of 1.3. AFG has a current dividend yield of 1.3%. Full Analysis American Financial Group, Inc., through its subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of annuities and various forms of supplemental insurance. AFG has exceeded analysts' earnings estimates in four of the past five quarters by an average margin of 17.9%. Furthermore, the company has beaten the Street in nine of the past 11 quarters. Earnings per share have grown 23.8% over the past five years. On Feb 13, 2006, American Financial Group, Inc. reported fourth-quarter 2005 earnings per share of $1.11. This amounted to a 15.6% surprise, with the Street calling for 96 cents per share. The company exceeded its prior year's profits of 88 cents by 26.1%. Revenues jumped 4.4% to $1.02 billion from $977.1 million. Annual revenues increased 3.3% to $4.04 billion from $3.91 billion. Looking ahead to 2006, AFG projects continued growth and profitability in its insurance business. As a result, the company raised its full-year 2006 earnings per share guidance. American Financial Group, Inc. now expects core earnings to be between $3.90 and $4.20 per share. AFG's previous outlook called for profits of between $3.80 and $4.15 per share. The company forecasts growth in net written premiums of between 5% and 7% and a continuation of the strong underwriting profits experienced in 2005. Analysts' earnings estimates have been upped for both 2006 and 2007. The consensus earnings estimate of $4.28 for 2006 marks a 6.2% increase when compared to the consensus of 30 days ago. Forecasts for full-year 2007 profits have risen 4.9% over the same time period. On Jan 3, 2006, American Financial Group, Inc. declared a quarterly dividend of 13.75 cents per share of its common stock. This represents a 10% increase over each quarterly dividend paid in 2005 and has led to a current dividend yield of 1.3%. AFG's stock is trading at a valuation of 11.3x trailing 12-month earnings and at 9.9x its current fiscal year estimated earnings. The company has a price-to-book (P/B) multiple of 1.3. AFG's return on equity is in line with that of the industry. The company's ROE, as well as the industry's, is 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.

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(ICTG) - met or exceeded the estimate in four of the past five quarters

ICT Group Inc. (ICTG), a solid performer sets new highs. Background ICT Group, Inc. is a global telesolutions company serving clients in North and South America, Europe and the Pacific Rim. ICT Group is recognized as an industry leader in call center teleservices, with multinational and multilingual operations, leading-edge technology and highly skilled people committed to Quality Assurance. Full Analysis On Feb 23, 2006, ICTG reported earnings of 29 cents per share, versus 15 cents last year (93% increase), and compared to analysts' consensus of 27 cents (7.4% surprise). ICTG has met or exceeded the Street's estimate in four of the past five quarters. Sales grew 17.5% over the previous year and income grew 246%. Technical Review In reaction to that 7.4% earnings surprise, ICTG gapped higher on Feb 23 and closed 7.5% higher! Don't you love it when things are symmetrical? Since the immediate reaction to the earnings report, ICTG has consolidated its gains and quietly, if progressively, moved higher. This type of small, but persistent gain into new high ground often precedes a new move higher. Currently ICTG is trading at its highest levels in four years, and appears capable of challenging the all time high made on Apr 24, 2002 at $27.49. ICTG's Moving Average Convergence Divergence (MACD) remains in a buy mode, a positive indicator as this stock moves higher. In addition, the stock closed at a 52-week high on Tuesday, accompanied with heavy trading volume. Heavy trading volume on days that a stock makes a new 52-week high gives added weight to the validity of the move, as it indicates that money is flowing into the stock on the new move up. 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.

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(SCSS) - Four analysts raised their numbers for the current year

Select Comfort Corporation (SCSS) plans to increase its store base by 5% to 10% annually in 2006 and beyond. SCSS has met or exceeded analysts' earnings estimates for 15 consecutive quarters, with year-over-year growth routinely exceeding 50% over that time frame. Four different analysts raised their numbers for the current year. Estimates for the current quarter have increased 7.7% to 28 cents per share over the past 90 days. Full Analysis Select Comfort Corporation (SCSS) is a leading specialty mattress manufacturer and retailer. The company markets a line of adjustable-firmness mattresses featuring air-chamber technology, branded the Sleep Number bed, as well as foundations and sleep accessories. Select Comfort's products are sold through its 369 retail stores located nationwide, including leased departments in Bed Bath & Beyond stores, as well as through its national direct marketing operations. The company also sells its products wholesale through selected bedding retailers, home furnishings retailers and the QVC shopping channel. The mattress industry is an $9 billion business, and Select Comfort accounts for less 10% of mattress sales. This gives the company ample opportunity to grow its sales and earnings at a rapid clip over the next several years. This is evident in management’s long-term goals of 15% to 20% sales growth and 20% to 25% earnings growth. The company’s long-term growth plans are centered on increasing the awareness of its products and stores, opening new retail stores and expanding and improving its product lines. Select Comfort plans to increase its store base by 5% to 10% annually in 2006 and beyond. At the same time, the company should be able to continue increasing comparable-store sales and average revenue per transaction. Another goal of the company is to continue leading the industry in product innovation and sleep expertise by developing and marketing products that deliver personalized comfort and better sleep. On January 31, Select Comfort Corporation reported results for the fourth quarter ended December 31, 2005. Net sales increased 26% to a record $187.9 million, with same-store sales growth of 18%. Net income increased 52% to a record $15.8 million, compared to net income of $10.4 million in the fourth quarter of 2004. Earnings per share increased 50% to 42 cents per share, compared to 28 cents per share in the fourth quarter of 2004. For full-year 2005, net sales totaled $691.1 million, an increase of 24% versus 2004, with same-store sales growth of 15%. Earnings for the full year totaled $1.14 per share, an increase of 43% as compared to 80 cents per share in 2004. During 2005, the company opened 40 new stores and added 219 new partner doors. SCSS has met or exceeded earnings estimates for 15 consecutive quarters, with year-over-year growth routinely exceeding 50% over that time frame. Four different analysts raised their numbers for the current year. Estimates for the current quarter have increased 7.7% to 28 cents per share over the past 90 days. The stock is attractively valued at 21.2x next year's estimates of $1.70 per share, which is slightly below the long-term growth rate of 23.2%, giving the stock a PEG ratio of 0.91. 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.

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(TV) - has a return on equity of 20%, compared to 5% for the industry

Grupo Televisa, S.A. (TV) recently reported better-than-expected results for the fourth quarter of 2005. Analysts' earnings estimates for 2006 have been on the rise as the company should benefit from the Mexican presidential elections in July and the World Cup. The company has a return on equity of 20%, compared to 5% for the industry. Earnings per share are forecasted to grow 14.0% over the next 3-5 years. Full Analysis Grupo Televisa, S.A. is a Spanish-language media company and a player in the international entertainment industry. The company produces Spanish-language television programs, and owns a library of Spanish-language television programming. TV operates in nine segments: television broadcasting, pay television networks, programming exports, publishing, publishing distribution, Sky Mexico, cable television, radio and other business. On Feb 23, 2006, Grupo Televisa reported better-than-expected results for the fourth quarter of 2005. Net revenue increased 11% year-over-year to US$909 million, while operating income increased 19% to US$329 million. The jump in operating income was due to tight cost controls. The company posted higher revenues in all of its business segments, except programming exports. A 47.5% year-over-year growth in pay television and a 28% increase in cable TV sales served as the highlights of the quarter. Heading into 2006, Grupo Televisa stands to benefit from the Mexican presidential elections in July along with the World Cup. As of Dec. 31, 2005, the company reported that aggregate upfront advertising deposits for television advertising were up approximately 2% when compared with the prior year. Analysts' estimates for the full year of 2006 have been on the rise. The current consensus estimate stands at $5.11. This marks a 10.1% increase over the past 90 days. Management at Grupo Televisa appears committed to enhancing shareholder value. The company has a return on equity of 20%—quadruple that of the industry average. Earnings per share are forecasted to grow 14.0% over the next 3-5 years. The stock trades at a valuation of 15.1x its current fiscal-year estimated earnings. TV has a current dividend yield of 0.83% and a five-year average dividend yield of 1.2%. TV 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 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.

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(ASH) - increased its share repurchase program to $250 million

Ashland, Inc. (ASH), a Zacks #1 Rank stock, recently posted first-quarter fiscal 2006 earnings per share that beat the Street by 24.7%. The Board of Directors at ASH increased its share repurchase program to $250 million in late January and declared a regular quarterly dividend of 27.5 cents per common share. The company is currently yielding 1.7% and has a price-to-book multiple of 1.3. Full Analysis Ashland, Inc. is a chemical and transportation construction company. The company has sales and operations throughout the United States and in more than 120 countries around the world. ASH has four segments: APAC, Ashland Distribution, Ashland Specialty Chemical and Valvoline. ASH has exceeded the consensus earnings estimate in three straight quarters by an average margin of 14.3%. Furthermore, the company has beaten the Street in six of the past seven quarters. On Jan 25, 2006, Ashland, Inc. reported first-quarter fiscal 2006 earnings per share of 91 cents. This exceeded analysts’ expectations by 24.7%. However, it was down compared to profits posted in the same period last year—$1.39 per share. The decrease was due to the June 2005 transfer of Ashland's former 38% interest in Marathon Ashland Petroleum LLC to Marathon Oil Corp., the retirement of most of Ashland's debt and the investment of the remaining proceeds. Revenues rose 3.8% to $2.4 billion. Analysts’ earnings estimates have been on the rise. Profit forecasts for this quarter and next have increased by 31.4% and 2.7%, respectively, over the past 90 days. Estimates have also been upped for fiscal 2006 and fiscal 2007, having risen by 14.3% and 22.2% respectively, over the same time period. The Board of Directors at Ashland increased its share repurchase program to $250 million in late January. ASH was given the authority in July 2005 to buy back $270 million of its shares and had repurchased $196 million through Dec 31, 2005. The company also declared a regular quarterly dividend of 27.5 cents per common share. ASH is currently yielding 1.7%. Ashland Specialty Chemical, a business unit of Ashland, Inc., announced in early January that it plans to begin manufacturing products in India in 2008. The unit already has sales offices in India and its headquarters in the city of Mumbai, India. Also, the company's Valvoline division has opened a second Valvoline Instant Oil Change store in Shanghai, China. ASH opened its first store in the region less than one year ago. Furthermore, in an effort to expand its presence in the Chinese water-treatment industry, the company bought the assets of Nanjing Clear Environment Protection Co. Ltd. on Mar 9, 2006. ASH is currently trading at a discounted valuation. The company has a price-to-book (P/B) multiple of 1.3. The stock trades at a valuation of 14.3x trailing 12-month earnings and at 18.4x its current fiscal-year estimated earnings. 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.

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(AMKR) - Estimates for 2006 have exploded 278%

Amkor Technology, Inc. (AMKR) is benefiting from outsourcing in the chip industry. The company has exceeded earnings estimates for three straight quarters, by an average margin of 112%. Estimates for 2006 have exploded 278% to 68 cents per share over the past 90 days, while 2007 estimates have increased 84% to 81 cents per share over the same time frame. Full Analysis Amkor Technology, Inc. (AMKR) operates as a subcontractor of semiconductor packaging and test services worldwide. It offers traditional packaging, which includes traditional leadframe products; and advanced packaging, which includes advanced leadframes and laminate products. The company tests various devices, including digital, linear, mixed signal, memory, radio frequency, and integrated combinations of these technologies. The increasing trend toward outsourcing in the semiconductor industry is an excellent growth opportunity for Amkor. As chips have become more intricate, semiconductor corporations have been forced to focus on their core competencies and to outsource noncore work, such as assembly and test services. Integrated device manufacturers have outsourced work to reduce the costs of keeping up technologically, while the growing fabless chip industry also relies heavily upon the services of companies such as Amkor. AMKR reported record fourth-quarter sales of $643 million, up 42% from the fourth quarter of 2004 and up 17% from the third quarter of 2005. Amkor's fourth-quarter net income was $54 million, or 30 cents per share, compared with net loss of $36 million, or 21 cents per share, in the fourth quarter of 2004. For the full year 2005, Amkor's sales were a record $2.1 billion, up 10% over 2004. For 2005, Amkor's loss was $137 million, or 78 cents per share, and included a provision of $50 million for legal settlements. For 2004, Amkor's net loss was $38 million, or 21 cents per share. The company has exceeded earnings estimates for three straight quarters, by an average margin of 112%. Estimates for 2006 have exploded 278% to 68 cents per share over the past 90 days, while 2007 estimates have increased 84% to 81 cents per share over the same time frame. Four different analysts raised their numbers for 2006. The stock is attractively valued despite the recent run-up in price. AMKR is trading at 10.7x 2007 earnings estimates of 81 cents per share, well below the long-term growth rate of 18.75%, giving the stock a PEG ratio of 0.57. 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.

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