(NSC) - topped analysts' earnings estimates in nine out of the last 10 years

Norfolk Southern Corporation (NSC) has topped analysts' earnings estimates in nine out of the last 10 years. Earnings per share grew an impressive 32.1% over the past five years. The company recently posted record quarterly operating revenues. Analysts have been revising their estimates upward. NSC has a current dividend yield of 1.2% and a five-year average dividend yield of 1.3%. Full Analysis Norfolk Southern Corporation engages in the rail transportation business in the United States and parts of Canada. The railway operates approximately 21,200 route miles in 22 eastern states, the District of Columbia and Ontario, Canada. NSC has exceeded analysts' earnings expectations in nine out of the last 10 years by an average margin of 13.2%. Earnings per share grew an impressive 32.1% over the past five years and are forecasted to grow 12.8% over the next 3-5 years. On Apr 26, 2006, NSC topped the Street's estimate in the first quarter of 2006 by 7.5% when it posted profits of 72 cents per share. When compared to the prior-year period, the company's EPS increased by 53.2%. Railway operating revenues amounted to $2.30 billion—the highest of any quarter in NSC's history. The company's revenues in the first quarter of 2005 were $1.96 billion. NSC succeeded in shipping more goods despite raising rates. The company is working to add capacity to improve service levels. The railroad industry is prospering from more goods being imported from Asia. These goods arrive by ship and are subsequently transported by rail from the ports. Furthermore, with utilities burning more coal to generate electricity in the face of high natural gas prices, railroads are reaping the benefits. Analysts have become more optimistic about the company's future prospects. Three analysts covering the stock submitted upward earnings revisions for this quarter, while four did so for next quarter. For the full year of 2006, seven analysts boosted their earnings estimates and five took the same action for 2007. NSC increased revenues for the past seven years and grew profits for five years running. On Apr 25, 2006, the Board of Directors at NSC declared a regular quarterly dividend of 16 cents per common share of stock. The dividend will be distributed on June 10 to shareholders of record on May 5. The company is currently yielding 1.2% and has a five-year average dividend yield of 1.3%. With the railroad industry performing quite well, NSC has outshone its peers when measured by return on equity. The company's ROE is 13%, compared to the industry average of 10%. NSC is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 22.0% 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.

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(PEBK) - topped analysts' earnings expectations four out of past five quarters by an average margin of 28.9%

Peoples Bancorp of North Carolina, Inc. (PEBK), a Zacks #1 Rank stock, has topped analysts' earnings expectations in four out of the past five quarters by an average margin of 28.9%. The company's financial results for the first quarter of 2006 were rather strong. Analysts' estimates have been trending higher. The Board of Directors at PEBK recently issued both a cash and a stock dividend. The company has a price-to-book (P/B) multiple of 1.8. Full Analysis Peoples Bancorp of North Carolina, Inc. serves as the holding company for Peoples Bank. The bank provides various banking services to individuals and small- to medium-sized businesses in Catawba Valley along with surrounding communities in North Carolina. On Apr 17, 2006, PEBK posted first-quarter 2006 earnings per share of 69 cents. With analysts covering the stock expecting 53 cents per share, PEBK surprised to the upside by 30.2%. The company crushed its profits in the prior-year period of 36 cents by 91.7%. Net interest income increased 29.0% to $8.0 million, versus $6.2 million in the first quarter of 2005. Total assets sat at $761.7 million, compared with $690.0 as of Mar 31, 2005. PEBK has now exceeded analysts' earnings estimates in four out of the past five quarters by an average margin of 28.9%. The consensus earnings estimate for this quarter currently stands at 65 cents per share. This amounts to a 20.4% increase when compared to the consensus of 30 days ago. Looking ahead to next quarter, the consensus estimate jumped 5.5% over the same time period. Profit forecasts for the full years of 2006 and 2007 have risen 10.6% and 10.7%, respectively. On Feb 24, 2006, the Board of Directors at PEBK announced a cash dividend in the amount of 11 cents per share. The dividend will be distributed on Mar 17, 2006 to shareholders of record Mar 6, 2006. Furthermore, on Apr 21, 2006, the Board authorized a 10% stock dividend to be paid in conjunction with its cash dividend for the second quarter of 2006. Shareholders of PEBK will receive one new share of stock for every 10 shares of stock they own as of the record date. The company has a current dividend yield of 1.6% and a five-year average dividend yield of 2.1%. PEBK is trading at a discounted valuation. The company has a price-to-book (P/B) multiple of 1.8. Moreover, the stock trades at a valuation of 13.2x trailing 12-month earnings and at 11.7x its current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.1x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. Its P/B multiple currently stands at 4.2. PEBK's return on equity of 14% is slightly higher when compared to the industry average of 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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(UIL) - expected to announce strong earnings when it reports on May 9

UIL Holdings(UIL) even utilities can be Momentum stocks. Background UIL Holdings Corporation is the holding company for The United Illuminating Company and United Resources. United Illuminating Company is a New Haven-based regional distribution utility that provides electricity and energy-related services to customers in municipalities in the Greater New Haven and Greater Bridgeport areas. Full Analysis It has to be a strong overall market when utility companies start showing up on our momentum screens. UIL is expected to announce strong earnings when it reports on May 9 the results of the quarter ended Mch 2006. The analysts consensus is that the company will report earnings of 41 cents per share versus the 22 cents that it earned in the same quarter last year. Moreover, UIL has delivered a positive earnings surprise the last three consecutive quarters. Technical Review Heavy trading volume on Wednesday propelled UIL to its highest close in more than six months at $52.65. In the process, UIL has broken out to the upside of a six month trading range, illustrated on the chart below running roughly between $53 and $46. For technical traders looking for reversal patterns there is a very nice inverted head and shoulders formation contained within this trading range, providing alert traders to the potential for a breakout to the upside. Volume is a critical component in identifying Momentum stocks. Momentum investors are looking for ‘good companies with improving fortunes at the time that the market is recognizing and rewarding those improving fortunes'. Thus Mommentum traders are looking, by definition, for stocks in an up-trend. But rising prices aren't enough to qualify a stock as a Momentum trade. Breaking out of a six month trading range to the upside is compelling evidence that the market is recognizing and rewarding the improving fortunes at UIL. But it is the heavy volume that confirms the validity of that opinion. With lots of investors willing to pay ever increasing higher prices, UIL definitely fits the definition of a Momentum Stock. 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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(VNT) - Over the past 60 days, the consensus estimate has increased 23%

Nacional Telefonos de Venezuela (VNT) has been performing admirably, largely on the strength of its wireless and Internet service businesses. 2006 estimates have been on the rise. Over the past 60 days, the consensus estimate has increased 23% to $2.35 per share. One analyst has increased his number. Full Analysis Nacional Telefonos de Venezuela (VNT) is the largest telecom service provider in Venezuela, based in Caracas. The company (also known as CANTV) is the dominant provider of fixed telecom services in Venezuela and one of the leading wireless service providers through its wholly-owned subsidiary, Movilnet. As of December 31, 2005 CANTV had approximately 3.1 million fixed access lines in service, 307,000 broadband customers (ADSL customers and Private Circuits), and 5.2 million wireless subscribers. The Venezuelan economy staged a strong recovery in 2005, mainly due to the strengthening of global oil prices, and the near-term outlook is encouraging. Real GDP increased by an estimated 17% for the year after declining by 9% in each of the previous two years. While still too high, the inflation rate (approximately 15% in 2005) has appeared to stablize, exchange rate and price control mechanisms have been implemented by the government in an effort to stabilize the economy, and foreign investment has picked up. Assuming the economy continues to recover, CANTV should see healthy growth in demand for various types of telecom services, particularly since wireline and wireless penetration levels are still relatively low. CANTV has been performing admirably, largely on the strength of its wireless and Internet service businesses. Movilnet, CANTV wireless subsidiary, sustained the momentum by generating revenue growth of more than 68% in 2005 propelled by a 67% increase in the subscriber base. According to Conatel, the Venezuelan Regulator for the Telecommunication Industry , total mobile susbscribers grew 48.4% in 2005. Hence, the company's 67% increase in the subscriber base achieved during 2005 represents a significant gain in market share. The company is targeting a further 21.2%-22.6% growth in wireless customers in 2006. Another area of strength has been the Internet services business, particularly the company's broadband (ADSL) service offering. ADSL revenues more than doubled in 2005 while the subscriber base grew by 82%. While the local phone business has been struggling, CANTV is expected to receive some much needed regulatory relief later this year, which should have a positive impact on revenues and earnings. 2006 estimates have been on the rise. Over the past 60 days, the consensus estimate has increased 23% to $2.35 per share. One analyst has increased his number. The stock is quite cheap, despite a strong run this year. VNT is trading at 8.6x 2006 estimates of $2.35 per share, well below the long-term growth rate of 27.65%, giving the stock a PEG ratio of 0.31. 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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(ITW) - exceeded analysts' earnings expectations in four consecutive quarters

Illinois Tool Works, Inc. (ITW) recently reported strong results for the first quarter of 2006. Earnings per share grew 17.4% over the past five years. Analysts have been revising their estimates upwards for this Zacks #1 Rank stock. ITW has a current and five-year average dividend yield of 1.3%. Full Analysis Illinois Tool Works, Inc. designs and produces an array of highly engineered fasteners and components, equipment and consumable systems, and specialty products and equipment for customers around the world. ITW has exceeded analysts' earnings expectations in four consecutive quarters by an average margin of 3.4%. Furthermore, the company has met or topped the Street's estimate in 15 out of the past 16 quarters. Earnings per share grew 17.4% over the past five years and are forecasted to grow 12.3% over the next 3-5 years. On Apr 20, 2006, ITW beat the Street's earnings estimate by 3.2% when it posted first-quarter 2006 earnings per share of $1.29. The company crushed its earnings in the first quarter of 2005 by 21.7%. Operating revenues increased to $3.30 billion, compared to $3.05 billion in the prior-year period. The company attributed its strong results to strong product demand, and remains optimistic going forward due to the high potential of future acquisitions. ITW projects second-quarter earnings per share of between $1.52 and $1.58. The company also upped its full-year 2006 earnings guidance to between $5.89 and $6.07 per share. ITW's previous outlook in mid-March called for earnings per share of between $5.76 and $5.94 per share—which was also an upwardly-revised estimate at the time. Analysts' earnings estimates for this quarter and next have increased 5.4% and 2.6%, respectively, when compared to the consensus of 60 days ago. Profit forecasts for this year and next have each risen 5.4% over the same time period. Eight analysts submitted upward revisions for this quarter, while nine did so for next quarter. Eight analysts covering the stock revised their estimates upwards for this year, while seven did so for next year. On Feb 10, 2006, the Board of Directors at ITW declared a regular quarterly cash dividend of 33 cents per share. ITW has a current and five-year average dividend yield of 1.3%. ITW increased revenues and expanded gross margins for the past four years. The company grew profits for three years running. ITW's return on equity is higher than that of the industry average—21% compared to 18%. 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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(USAP) - topped earnings estimates in nine quarters by an average of 20.2%

Universal Stainless & Alloy Products, Inc. (USAP), a Zacks #1 Rank stock, has topped analysts' earnings estimates in nine consecutive quarters by an average margin of 20.2%. The company recently released record profits and revenues for the first quarter of 2006. The consensus earnings estimates for this quarter and for the full year of 2006 have been on the rise. The company has a price-to-book (P/B) multiple of 2.5. Full Analysis Universal Stainless & Alloy Products, Inc. manufactures and markets semifinished and finished specialty steel products, including stainless steel, tool steel and other alloyed steels. The company's products are sold to rerollers, forgers, service centers and original equipment manufacturers. USAP has made a habit out of exceeding analysts' earnings expectations, having done so in nine consecutive quarters by an average margin of 20.2%. Earnings per share grew 13.2% over the past five years. On Apr 20, 2006, USAP posted record first-quarter 2006 financial results. Earnings per share for the company came in at an all-time high of 59 cents—topping the Street's estimate by 13.5% and soaring past its prior-year's profits by an impressive 31.1%. Revenues amounted to $44.9 million—another high for the company. USAP's revenues in the first quarter of 2005 were $43.0 million. The company pointed to process improvements and its strategic shift to higher value products over the past year as fueling growth. Looking ahead to the second quarter, revenues are projected to be between $43 million and $48 million, while earnings per share are forecasted to be between 60 cents and 65 cents. The company's revenues and earnings per share in the second quarter of 2005 were $41.9 million and 50 cents, respectively. USAP continues to expand its facilities and production capabilities. The company increased revenues, expanded gross margins and grew profits for the past two years. The consensus earnings estimate for this quarter currently stands at 64 cents per share. This represents a 20.8% increase when compared to the consensus of 60 days ago. Profit forecasts for the full year jumped 15.8% over the same time period. USAP has a price-to-book (P/B) multiple of 2.5. The stock trades at a valuation of 14.7x trailing 12-month earnings and at 12.3x its current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.0x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. Its P/B multiple currently stands at 4.2. 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.

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(RBN) - 35.7% positive earnings surprise

Robbins & Myers(RBN) ready to challenge nine-year highs? Background Robbins & Myers, Inc. is engaged in the design, manufacture and marketing of fluids management equipment, primarily progressing cavity pumps, chemical reactor and storage vessels, agitators and mixers, and fluoropolymer corrosion-resistant coatings. Full Analysis 29 days ago RBN released earnings for the quarter ended Feb 2006 at 19 cents per share, versus 13 cents last year (a 46.2% improvement). This amounted to a 35.7% positive earnings surprise when compared with the analysts' consensus estimate of 14 cents. Income was up 48.5% to $3.12 million. Technical Review Since that positive earnings report on March 29, savvy investors have noted that not only is the price of RBN continuing to go up (now at a six-month high) but that it is doing so on noticeably heavier volume. Clearly this stock appears to be attracting new buying interest. With the stock now trading around the $24 level, it is easily within striking distance of the 52-week high of $24.89 set last June 21. It's often difficult to justify buying stocks in anticipation of a breakout. Resistance areas are indeed resistance areas precisely because formidable selling pressure has been encountered at that level before. And as we've written in the past, the more recent the resistance point, the more powerful that it can be expected to be when it is next encountered. So why is RBN a featured Momentum stock? Look again at the tremendous increase in volume that RBN is attracting while it is moving into the resistance range. The attached chart has been extended for two years to show not only how volume is much higher than before, but to show the overhead resistance as well. Once RBN is able to conquer overhead resistance at about $30, there really is not overhead resistance in this stock until the all time high of $40.50 set on Dec 18, 1997. 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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(AVCI) - Earnings of 15 cents - well ahead of consensus, a loss of 60 cents

Avici Systems Inc. (AVCI) has a well-established relationship with AT&T and has landed several new customers over the past year, including IP Only, in Sweden. On April 20th, Avici announced results for the first quarter of 2006, ended Mar 31, 2006. Revenue of $21.4 million was well ahead of expectations and up significantly over the $10.7 million reported in the year-ago period. The company posted revenues of $6.1 million in the previous quarter. Full Analysis Avici Systems Inc. offers high-speed core networking equipment that enables telecommunications and Internet service providers to transmit high volumes of information across their networks. The company specializes in providing high-performance routing solutions, which also have the supporting infrastructure to allow customers to adapt to future Internet protocol (IP) advancements. Features include storage, virtual private networks (VPNs), gaming, video and convergence of legacy networks. For fiscal year 2005, product sales accounted for 87% of total revenue, while services contributed the balance. Given its reliance on AT&T as a customer, the bulk of its sales are in North America. Avici's strategy is designed to meet carrier requirements for the highest scalability, reliability and network availability, while lowering the total cost of building and operating its networks. The company's strategy establishes new standards for carrier-class core routing and will help the company penetrate key carrier accounts. Though Avici faces numerous challenges ahead, strong results in the first quarter may help reassure investors that AT&T will remain a customer following its merger with SBC and that efforts to diversify its business are gaining some traction. The company is currently undertaking a major restructuring and has hired Morgan Stanley and Bowman Advisors to evaluate its strategic alternatives, which could include a merger or returning cash to shareholders in the form of a special dividend. With carriers focused on next-generation IP routing, Avici is in the right part of the market. The company has a well-established relationship with AT&T and has landed several new customers over the past year, including IP Only, in Sweden. Avici also colaborated with Alcatel in France to provide core routers to Türk Telekom for deployment it its IP/MPLS-based data backbone network. This marks Avici's first collaboration with Alcatel, which will have responsibility for the network rollout. On April 20th, Avici announced results for the first quarter of 2006, ended Mar 31, 2006. Revenue of $21.4 million was well ahead of expectations and up significantly over the $10.7 million reported in the year-ago period. The company posted revenues of $6.1 million in the previous quarter. Earnings per share of 15 cents came in well ahead of the consensus, which called for a loss of 60 cents per share. The company has exceeded earnings estimates in 12 out of the past 14 quarters. Two different analysts raised their numbers for 2006. AVCI is slated to lose money this year, but the loss estimate has been dramatically reduced over the past week from $1.72 per share to 96 cents per share. 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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(GGG) - crushed its prior-year profits by 27.5%

Graco, Inc. (GGG) reported impressive results for the first quarter of 2006 - the company's sixteenth straight quarter of revenue growth. Analysts' earnings estimates have been on the rise for this Zacks #1 Rank stock. Earnings per share are projected to grow 12.5% over the next 3-5 years. GGG is currently yielding 1.2% and has a five-year average dividend yield of 1.3%. Full Analysis Graco, Inc. designs, manufactures and markets systems and equipment to move, measure, control, dispense and spray fluid materials for industrial and commercial applications. The company operates through three segments: industrial/automotive equipment, contractor equipment and lubrication equipment. GGG has exceeded analysts' earnings expectations in 12 of the past 16 quarters. Earnings per share grew 14.0% over the past five years and are forecasted to grow 12.5% over the next 3-5 years. On Apr 20, 2006, GGG reported first-quarter earnings per share of 51 cents, beating the Street by 10.9% and crushing its prior-year profits by 27.5%. Net sales were $192.2 million, versus $170.9 million in the first quarter of 2005—a 12.5% increase. Broken down by business segment, industrial was up 14.0%, contractor jumped 9.7% and lubrication rose 15.7%. The first quarter of 2006 marked the company's sixteenth consecutive quarter of sales growth and the eleventh consecutive quarter in which all three business segments reported higher revenues when compared to the prior-year period. Analysts' earnings estimates for this quarter increased 5.3% to 60 cents per share over the past seven days. Profit forecasts for next quarter are a penny higher when analyzed over the same time period. The consensus estimates for the full years of 2006 and 2007 have risen 4.8% and 6.3%, respectively, over the same time period. On Feb 17, 2006, the Board of Directors at GGG authorized the buyback of up to seven million shares of its outstanding common stock through Feb 29, 2008. The company repurchased $17.4 million, or approximately 420,000 shares, during the first quarter. Furthermore, the Board declared a quarterly dividend of 14.5 cents per common share of stock. GGG has a current dividend yield of 1.2% and a five-year average dividend yield of 1.3%, thanks primarily to increasing cash flows from operations. GGG increased revenues, expanded gross margins and grew profits for the past four years. The company's return on equity dwarfs that of the industry average—49% compared to 18%. 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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(RUSHA) - has topped analysts' earnings estimates in six consecutive quarters by an average margin of 25.8%

Rush Enterprises, Inc. (RUSHA), a Zacks #1 Rank stock, has topped analysts' earnings estimates in six consecutive quarters by an average margin of 25.8%. Earnings per share are forecasted to grow 10.4% over the next 3-5 years. The company has a price-to-book (P/B) multiple of 1.1 and a return on equity of 18%. Full Analysis Rush Enterprises, Inc. operates a network of heavy-duty truck dealerships and a heavy construction equipment dealership. Stores feature a wide array of financial services, including the financing of trucks, equipment, cranes and trailer sales. Other offerings are insurance products and the leasing and rental of trucks and equipment. RUSHA has a history of exceeding analysts' earnings expectations, having done so in six straight quarters by an average margin of 25.8%. Earnings per share are forecasted to grow 10.4% over the next 3-5 years. On Apr 18, 2006, RUSHA beat the Street's earnings estimate by 12.2% when it posted profits of 46 cents per share. The company surpassed its earnings in the prior-year period by an impressive 48.4%. Gross revenues amounted to $497.9 million, a 23.9% increase when compared to the $402.0 million reported in the first quarter of 2005. The company increased revenues, expanded gross margins and grew profits for the past three years. Moreover, 2005 was a record year for RUSHA in terms of profits and revenues. RUSHA expects its deliveries of class 8, medium-duty and used trucks to set all-time records in 2006. Furthermore, the company anticipates that increased truck sales, combined with growing parts, service and body shop revenues, will increase its absorption rate and result in record profits for 2006. On Mar 21, 2006, RUSHA acquired certain assets of Great Southern Peterbilt, Inc.'s Peterbilt and Hino truck dealership in Jacksonville, Florida for around $22.3 million. The purchase will allow the company to offer an extensive range of heavy-duty and medium-duty trucks, parts and service throughout central and north Florida. This will be RUSHA's fifth location in the state of Florida. The consensus earnings estimate for this year currently stands at $2.15. This represents an 8.6% increase when compared to the consensus of 90 days ago. Profit forecasts for next year have risen 3.7% over the same time period. When comparing RUSHA to the industry in which it participates, the company is generating a higher level of profits. The company's return on equity is 18%, compared to the industry average of 16%. RUSHA has a price-to-book (P/B) multiple of 1.1. The stock trades at a valuation of 10.0x trailing 12-month earnings and at 9.0x 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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(TWGP) - met or exceeded earnings estimates for five straight quarters

Tower Group (TWGP) has a strong fifteen-year track record of underwriting profitability and growth that is superior to its peer group. TWGP has met or exceeded earnings estimates for five straight quarters. Two different analysts have raised their numbers for the current fiscal year. Furthermore, estimates for next fiscal year jumped 9.3% to $2.12 per share over the past 30 days. Full Analysis Tower Group was started in 1990 to provide specialty property-casualty lines to small to mid-sized businesses and individuals in New York State and surrounding areas. Tower Group focuses on markets that it believes are underserved by the major carriers. Many of these markets are too small or risky for the national carriers to underwrite profitably. By developing an expertise in certain product lines and geographic markets, the company believes that it can profitably grow in areas shunned by other carriers. These products include several commercial lines for small businesses: property, liability, workers' compensation and auto insurance and personal lines products such as homeowner's policies and auto. The risks are low severity, short tailed exposures with small premiums per policy. Tower Group carries an A- (Excellent) financial strength rating from A.M. Best Co. TWGP has a strong fifteen-year track record of underwriting profitability and growth that is superior to its peer group. Management has successfully executed its strategy of underwriting risks in niche, underserved markets with less competition. Tower segments these markets and develops expertise in product lines and geographic areas. The company's small size enables it to opportunistically move in and out of markets quickly, allocating capital to attractive segments as market conditions change. The company has moved into markets to grab business left by insurers that have exited or become insolvent. This niche focus and nimble operating model enables Tower to profitably underwrite business, enjoying better pricing power than in the overall market, which is reflected in the company's low and stable loss ratios. In the five years ended Dec 31, 2005, Tower's net combined ratio averaged just 83.5%. TWGP has met or exceeded earnings estimates for five straight quarters. Two different analysts have raised their numbers for the current fiscal year. Furthermore, estimates for next fiscal year jumped 9.3% to $2.12 per share over the past 30 days. The stock is cheap, trading at 12.5x next year's estimate, which is well below the long-term growth rate of 20% and gives the stock a PEG ratio of 0.62. 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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(DTLK) - 300% earnings surprise on Apr 12 for the Mar 2006 quarter

Datalink Corp (DTLK) is clearly awaking from a long slumber and is now ready to move higher. Background Datalink Corp. analyzes, custom designs, integrates or assembles, installs and supports high-end Open Systems data storage solutions for end-users, value-added resellers and original equipment manufacturers. The company has developed engineering, sales and support capabilities to become an expert in applying the best available storage technologies manufactured by the leading data storage hardware and software companies to solve its customers' growing data storage needs. Full Analysis After releasing a 300% earnings surprise on Apr 12 for the Mar 2006 quarter, DTLK exploded in price on extremely heavy volume. DTLK reported earnings of eight cents (compared to the consensus estimate of a four-cent loss) compared with a loss of 12 cents in the same quarter the previous year. Income grew 108% to $0.83 million and sales grew 19% during the same period. Technical Review The day before the earnings report, DTLK closed at $4.27 and had showed some modest recovery from a downtrend that began in February. The force of a 300% earnings surprise on the following day drove the stock to close up 27% on volume not seen in the last six years. As might be expected after such a forceful move, the stock paused for a few days to reassess the impact of the report. On Tuesday, DTLK again broke out to the upside on heavy volume, setting the highest price since Apr 19, 2002. Clearly the market is recognizing the improved earnings climate at DTLK and is rewarding the company with a higher market evaluation. With upside resistance so old (more than four years), expect little to slow the current advance. DTLK is clearly awaking from a long slumber and is now ready 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.

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(MAN) - beat the Street's estimate in 10 of the past 12 quarters

Manpower, Inc. (MAN), a Zacks #1 Rank stock, recently posted strong results for the first quarter, and issued earnings guidance above analysts' estimates. The company beat the Street's estimate in 10 of the past 12 quarters. Earnings per share are forecasted to grow 14.4% over the next 3-5 years. MAN increased its dividend in late October. The company has a price-to-book (P/B) multiple of 2.5. Full Analysis Manpower, Inc. operates in the employment services industry. The company provides recruitment, training, assessment and selection, outsourcing and consulting services in 72 countries around the world. MAN has exceeded analysts' earnings expectations in 10 of the past 12 quarters. Earnings per share grew 15.3% over the past five years and are projected to grow 14.4% over the next 3-5 years. On Apr 18, 2006, MAN posted first-quarter earnings per share of 48 cents, topping the Street's estimate by an impressive 23.1%, and soaring past its prior-period profits by 37.1%. Revenues increased to $3.93 billion, versus $3.76 billion in the first quarter of 2005. Based on the company's strong start to the year, MAN issued second-quarter 2006 earnings guidance above analysts' estimates. MAN expects to report earnings per share between 76 cents and 80 cents. The company increased revenues for the past four years. MAN expanded gross margins and grew profits for three years running. The consensus earnings estimate for this quarter and next have risen 4.0% and 3.1%, respectively, over the past seven days. Seven analysts covering the stock submitted upward revisions for each quarter. Profit forecasts for the full years of 2006 and 2007 jumped 5.5% and 4.4%, respectively, over the same time period. Eight analysts submitted upward revisions for each full year. On Feb 21, 2006, the company announced its new brand, which will demonstrate the depth of MAN's services and the strength of its leadership in the employment services industry. The effort will include a new logo, marketing materials and advertising campaigns across its 4,400 offices worldwide. The company stated that the effort has already had a positive impact with its clients and prospects. In late October, the Board of Directors at MAN raised its dividend to 27 cents a share from 20 cents. The company is currently yielding 0.85%. The Board also approved a share buyback program covering up to five million shares. The company has a price-to-book (P/B) multiple of 2.5. 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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(ZONA) - history of positive earnings surprises, and upside analyst revisions

Zonagen, Inc. (ZONA) is climbing again after consolidating previous gains. Background Zonagen Inc. is a biopharmaceutical company engaged in the development of products for the human reproductive system, including sexual dysfunction, vaccine adjuvants, products for fertility and female health as well as urological applications, specifically prostate cancer. Zonagen's products to treat sexual dysfunction all incorporate phentolamine mesylate, an alpha-adrenergic blocker, as the active agent. Zonagen's lead product, VASOMAX(R), is a rapidly disintegrating oral formulation of phentolamine for the treatment of male erectile dysfunction. Full Analysis ZONA expects to report earnings for the March 2006 quarter on May 8. The consensus among analysts is for a loss in the quarter of 65 cents. ZONA is currently a Zacks Rank #1 stock due to a history of positive earnings surprises, and upside analyst revisions. Technical Review ZONA began a new uptrend when, on Feb 1, 2006, it broke out of an 18-month old sideways congestion area that ran from approximately $6 per share on the upside to $3 per share on the downside. Since the breakout, the stock has more than doubled. The stock paused briefly from Feb 22 to Apr 19 to consolidate its gains, but began a new move upward, accompanied by heavy volume, setting 52-week highs on Thursday and Friday of last week. Clearly ZONA has powerful market action behind it, and the uptrend shows little sign of slowing for the near term. Traders interested in ZONA need to be aware of the overhead resistance at 12.9 made in March 2000. That resistance was a spike, meaning that a well supported move upward (one that is not too overextended by the time that it approaches the old resistance) should have little problem taking it out. 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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(STTS) - semiconductor assembly and test services - analysts have raised their numbers for 2006

STATS ChipPAC, Ltd. (STTS) has exceeded earnings estimates in the past two quarters by an average margin of 68%. Two different analysts have raised their numbers for 2006. This year's estimates increased 14.6% over the past 90 days to 47 cents per share. Full Analysis STATS ChipPAC, Ltd. (STTS) is a leading provider of semiconductor assembly and test services to fabless companies, integrated device manufacturers and wafer foundries. ST Assembly Test Services, Ltd. completed the major acquisition of ChipPAC, Inc. on AuG 5, 2004. The company has key operations in Singapore, China, Malaysia and Korea, with additional operations in Taiwan and the United States. The company serves the $10.2 billion packaging and test market that is forecasted to grow at a 19.6% compounded annual growth rate (CAGR) through 2007. This rate is greater than the overall expected semiconductor industry CAGR, as companies continue to outsource an increasing amount of business. Within the communications market, the company offers services for some of the attractive high growth segments such as data networking, broadband and mobile communications. The company has specific expertise in testing RF (radio frequency) and mixed-signal semiconductors. Key customers include Analog Devices ( ADI ) (20.6% of 2004 revenue), Broadcom ( BRCM ) (11.1%), Marvell ( MRVL ) (8.5%), Qualcomm ( QCOM ), Texas Instruments ( TXN ), Motorola ( MOT ) and STMicro ( STM ). The strongest near-term catalyst for STTS is likely to be the merger of the company with ChipPAC. The merged assembly and test company, being the third largest global service provider, has increased scale, a global footprint, more diversified end markets and strategic positioning in the outsourced assembly and test industry. The new combination should yield some revenue synergies as each unit cross sells into the other's customer base. Since both the companies are focused on some of the same fast-growing markets, their complementary products should make integration smoother. STTS has exceeded earnings estimates in the past two quarters by an average margin of 68%. Two different analysts have raised their numbers for 2006. This year's estimates increased 14.6% over the past 90 days to 47 cents per share. The stock is attractively valued at 17.3x this year's estimate of 47 cents per share, in-line with the long-term growth rate of 17.5%, giving the stock a PEG ratio of 0.99. 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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(FELE) - exceeded the Street's expectations in five of the past six quarters, most recently by 35.5%

Franklin Electric Co., Inc. (FELE) reported record earnings per share and revenues in the first quarter of 2006. Analysts' earnings estimates have been trending higher for FELE. The company has exceeded the Street's expectations in five of the past six quarters, most recently by 35.5%. FELE is currently yielding 0.66% and has a five-year average dividend yield of 1.0%. This Zacks #1 Rank stock recently closed it acquisition of Little Giant Pump Company. Full Analysis Franklin Electric Co., Inc. designs, manufactures and distributes groundwater and fuel pumping systems, electronic controls and related parts and equipment. The company's products are present in approximately one of every two water wells and filling stations worldwide. FELE has exceeded analysts' earnings expectations in five of the past six quarters by an average margin of 12.7%. Earnings per share grew 15.7% over the past three years and are projected to grow 14.5% over the next 3-5 years. On Apr 17, 2006, FELE reported first-quarter earnings per share of 42 cents. The Street was expecting 31 cents, thus, the company surprised by a healthy 35.5%. FELE's profits in the prior year amounted to 26 cents per share. Revenues were a record $111.0 million, versus $82.4 million for the same quarter in 2005. The company increased revenues for the past four years, while profits grew for the past five. FELE expanded gross margins for seven years running. On Mar 20, 2006, FELE agreed to acquire Little Giant Pump Company, a leading worldwide provider of commercial and consumer water transfer solutions, for $121 million. After receiving Federal Government approval, the company announced the closing of the acquisition on Apr 21, 2006. The acquisition should solidify FELE's position as a global supplier of pumping equipment for residential and commercial markets. Analysts' earnings estimates have been trending higher for FELE. Profit forecasts for the full years of 2006 and 2007 jumped 11.9% and 19.1%, respectively, over the past seven days. On Jan 31, 2006, the Board of Directors at FELE announced a quarterly cash dividend of 10 cents per share. The company has a current dividend yield of 0.66% and a five-year average dividend yield of 1.0%. FELE's profitability, measured by its return on equity, blows away the industry average. The company has a ROE of 20%, compared to 10% 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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(LLY) - Bullish on Eli Lilly

Bullish on Eli Lilly Posted Tue Apr 25, 11:55 am ET Eli Lilly and Company (LLY) is one of the world's largest pharmaceutical companies. Lilly products treat depression, schizophrenia, attention-deficit hyperactivity disorder, diabetes, osteoporosis and many other conditions. Lilly has one of the best pipelines in the industry, in our view. New products should drive above-industry-average growth over the next few years. We think investors should establish a position in the shares before what we believe will be a very positive next few quarters. We rate the shares a Buy with an aggressive $66 price target. We believe that Cymbalta will be the driving force for Lilly's top-line over the next few years. Recent data presented by Lilly demonstrated that Cymbalta reduced symptoms of depression at least as fast as Forest Lab's Lexapro by the end of two weeks. We believe this data will help drive trends in the depression market toward the newer serotonin and norepinephrine (SNRI) products such as Cymbalta and Effexor over the older SSRI products such as Zoloft and Lexapro. Additionally, Cymbalta offers the best potential to treat the physical symptoms of depression such as neuropathic pain and fibromyalgia in our view. This gives the product an advantage over generic products such as Prozac, Celexa, and Paxil. Erectile Dysfunction (ED) drug Cialis also looks strong, with a 26% (March 2006) market share in the U.S. Cialis is now the number one prescribed ED drug in eleven countries outside the U.S. We believe that Cialis will continue to pick up market share from Pfizer's (PFE) Viagra in 2006. Courtesy: Zacks.com

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Alcoa, Inc. (AA) - Analysts' earnings estimates have been climbing higher

Alcoa, Inc. (AA) reported the highest quarterly profits and revenues in the company's history on Apr 10, 2006. Analysts' earnings estimates have been climbing higher for AA. The company is currently yielding 1.7% and has a five-year average dividend yield of 2.0%. This Zacks #1 Rank stock continues to implement its growth strategy by expanding into China and beyond. Full Analysis Alcoa, Inc. is the world's leading producer of primary aluminum, fabricated aluminum and alumina. The company also makes and markets consumer brands including Reynolds Wrap®, Alcoa® wheels and Baco® household wraps. AA has operations in 43 countries around the world. On Apr 10, 2006, AA posted first-quarter 2006 earnings per share of 70 cents, which crushed the Street's forecast by 40.0% and soared past prior-year profits by an impressive 70.7%. This marked a new high for AA. Revenues also hit a new record—$7.2 billion, up 16.1% when compared to the first quarter of 2005. Five of the company's six business segments achieved higher volumes. Earnings per share at AA grew 16.4% over the past five years and are forecasted to grow 14.0% over the next 3-5 years. Analysts' earnings estimates have been climbing higher for AA. The consensus estimates for this quarter and next have ballooned 33.9% and 38.8%, respectively, over the past 90 days. Profit forecasts for the full years of 2006 and 2007 have jumped 40.4% and 36.4%, respectively, over the same time period. Seven analysts submitted upward revisions for this year, while five have done so for 2007. The company continues to expand into China. On Apr 10, 2006, AA announced it has formed a joint venture with a Chinese engraving company to make aluminum brazing sheets. This $95 million investment will be the company's third flat-rolled production facility in China. Furthermore, AA also began first phase feasibility studies for a 341,000 mtpy greenfield smelter in Trinidad, a second 250,000 mtpy greenfield smelter in Iceland and increased its stake in the Estreito hydropower facility in Brazil during the last quarter. Those seeking additional income in the form of a dividend have been pleased with AA. The company has a current dividend yield of 1.7% and a five-year average dividend yield of 2.0%. AA's profitability, measured by its return on equity, is in line with the industry average. The company has a ROE of 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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Viad Corp. (VVI) - topped analysts' earnings expectations in 14 out of the past 15 quarters

Viad Corp. (VVI), a Zacks #1 Rank stock, topped analysts' earnings expectations in 14 out of the past 15 quarters. The company raised its full-year 2006 earnings per share guidance in early February. VVI's strong cash balance enabled it to authorize a share repurchase and puts it in a position to possibly make a strategic acquisition. The company has a price-to-book (P/B) multiple of 1.9. Full Analysis Viad Corp. is a provider of various services that address the needs of trade show organizers and exhibitors, as well as travel and recreation services in the United States and Canada. VVI has a strong history of exceeding analysts' earnings expectations. The company beat the Street in 14 out of the past 15 quarters. VVI is expected to release its first-quarter 2006 results the morning of Apr 28, 2006. On Feb 3, 2006, VVI posted fourth-quarter profits of $3.7 million, or 16 cents per share, compared with a prior-year loss of $4.5 million. Revenues rose 4.3% to $158.6 million from $152.1 in the fourth quarter of 2004. For the entire year, revenues amounted to $826.3 million, versus $785.7 million in 2004. The company posted profits of $37.8 million. Furthermore, VVI raised its earnings per share guidance for 2006, due primarily to its favorable outlook for Exhibitgroup—a segment that provides exhibition and event services. EPS are now projected to be between $1.49 and $1.60, versus the company's previous guidance of between $1.45 and $1.56. Revenues are forecasted to increase by a mid-single digit rate from the 2005 amount of $826.3 million. The consensus earnings estimate for this quarter currently stands at 43 cents per share. This represents a 10.3% increase when compared to the consensus of 60 days ago. Profit forecasts for the full year of 2006 jumped 3.2% to $1.60 over the same time period. During 2005, VVI's cash balance grew by $37.6 million to $152.6 million. The company said it still hopes to make a strategic acquisition with the excess funds. The Board of Directors did authorize the repurchase of up to one million shares of its common stock. On Feb 23, 2006, VVI declared a quarterly dividend of four cents per share. The company has a current dividend yield of 0.48%. The company is trading at a highly-discounted valuation. VVI has a price-to-book (P/B) multiple of 1.9. 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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(BUCY) - suppliers to the mining industry should also do well

Bucyrus International (BUCY) is accelerating its rate of gains. Background Bucyrus is one of the world's leading manufacturers of large-scale excavation equipment used in surface mining. Bucyrus machines are used throughout the world by customers mining copper, coal, oil sands, iron ore and other minerals. An important part of the company's business consists of aftermarket sales in support of its large installed base of machines, which have service lives from 15 to 40 years. Full Analysis Anyone paying close attention to the stock market these days knows that all forms of mining stocks are doing well. Thus it should come as no surprise that suppliers to the mining industry should also do well. Bucyrus, a Zacks #1 Rank stock, is expected to report earnings on May 3. Analysts expect that the company will report earnings of 41 cents per share for the quarter ended Mar 2006, compared with 29.3 cents in the same quarter of the previous year. Since BUCY has delivered a positive earnings surprise in the last two quarters, and only disappointed once in the last six quarters, there is some expectation that BUCY may deliver a positive earnings surprise next month. Technical Review Certainly the stock price reflects the optimism of the market, as BUCY set a 52-week high on heavy volume on Wednesday of this week, closing at $57.87, barely off the day's high of $58.10. BUCY has been in a nice tight uptrend since October of last year, so yesterday's action, while not surprising in setting new highs, was impressive in breaking out of the upper limits of the channel. An old market adage says markets that do what you expect them to do tell you nothing new. Thus by breaking out of the upper channel Wednesday on heavy volume, BUCY's stock price is indicating that the improving financials at the company may well be better than the market has anticipated. 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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Retalix (RTLX) - Two different analysts have raised their numbers for 2006

Retalix (RTLX) has met or exceeded earnings estimates in six out of the past seven quarters. Two different analysts have raised their numbers for 2006. Over the past 60 days, this year's estimates have increased 12% to $1.21 per share. RTLX sports a return on equity of 10%, above the industry average of 9%. Full Analysis Retalix provides integrated software solutions to the retail food and fuel industries. Retalix has installed its software in more than 34,000 supermarkets and grocers, convenience stores and major fuel retailers in 50 countries. The company estimates that it has a market share of 9% among the top 75 of the largest U.S. supermarket chains. Retalix offers a range of products that target different segments of the retail food and fuel markets. Both its StoreLine and StorePoint solutions connect point-of-sales (POS) systems, fuel and payment networks, the back office, and enterprise applications. This highly integrated system is based on an open architecture. The company pursues a number of growth strategies. First, the company targets retailers with legacy systems. Numerous food and fuel retailers still use legacy information systems. As the industry continues to change, legacy systems become more difficult to maintain and integrate with state-of-the-art technologies. Second, it tries to distinguish itself through the power of its customer management tools. Third, the company has introduced Connected Services, which provide customer data to help smaller food retailers improve the effectiveness of its promotions. RTLX's acquisition of OMI in early 2004 strengthens the company's offering in the critical area of supply chain execution and warehouse management. This acquisition has transformed Retalix from a pure point-of-sale software provider to a vendor of supply chain management solutions. In addition, the acquisition is likely to increase the company's addressable market by providing more complete solutions to its customers. The company has met or exceeded earnings estimates in six out of the past seven quarters. Two different analysts have raised their numbers for 2006. Over the past 60 days, this year's estimates have increased 12% to $1.21 per share. RTLX sports a return on equity of 10%, above the industry average of 9%. The stock is attractively valued at 18.4x next year's estimates of $1.41 per share, in line with the long-term growth rate of 17.5%, giving the stock a PEG ratio of 1.05. 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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Equifax (EFX) - should benefit from increased visibility of identity theft

EFX Target is $39.50 Posted Fri Apr 21, 04:54 pm ET by Steve Biggs, CFA Equifax (EFX) should benefit from increased visibility of identity theft as it grows the consumer business and continues overseas expansion. The company has several growth initiatives, including Personal Solutions and international revenue, which are contributing to increased revenue. However, slower growth in core markets combined with the potential of a slowing residential mortgage market leave us on the sidelines. We maintain our Hold recommendation with a target price of $39.50. Equifax Inc. is one of the leaders in facilitating and securing commerce, with proprietary databases containing information on approximately 400 million consumers and businesses worldwide. Equifax, a member of Standard & Poor's(S&P) 500 Index, provides credit-related products and services to businesses and consumers. Equifax helps businesses to identify and market to targeted consumers, largely based on credit profiles. It also provides consumers with credit information, such as scoring and reporting, and helps manage identity theft. The company's North American global products and services are classified into three product lines: Information Services (U.S. consumer & commercial, mortgage services, and Canadian operations), Marketing Services (credit and direct marketing of products and services), and Personal Solutions, formerly Consumer Direct (individual credit information and other financial products to North American consumers through a secure Internet channel). In 2005, the North American Info Services (NAIS) segment contributed 68% of North American revenue, while its Marketing Services segment contributed 23%, and its Personal Solutions contributed 9% to its North American segment. Equifax's global operations include: consumer and commercial credit information services, credit card marketing and processing services, database management, direct-to-consumer services, and digital certificate services. The company operates in 13 countries within North America, Europe, and Latin America, through three segments: Equifax North America, Equifax Europe, and Equifax Latin America. In 2005, North American operations contributed roughly 81% to revenue, while Europe and Latin America accounted for 10% and 9%, respectively. The company relies on product differentiation, while maintaining competitive pricing to gain an edge over its peers. Shares of Equifax are currently trading near their 52-week high, which is at 20.7x our 2006 EPS estimate, a discount to its peer group and a premium to the S&P 500. The company has solid fundamentals and strong FCF generation. However, limited margin expansion potential makes earnings growth difficult and the company is unlikely to take on further leverage. Given the fairly high valuation, we believe that the stock will perform in-line with the broader equity market over the near-term. Over the last five years, EFX has traded in a range of 14x to 20x forward earnings. We believe the stock will trade towards the higherend of its range given the favorable outlook. We would adjust this multiple up slightly to account for the dilution from stock options, and therefore our target price of $39.50 is 20.8x our 2006 EPS estimate. Courtesy: http://www.zacks.com/blog/post_detail.html?t=1252

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