(JCP) - 12th straight quarter of increasing same-store sales, a key measurement for retailers

J.C. Penney Company (JCP) reported its 12th straight quarter of increasing same-store sales, a key measurement for retailers. JCP has exceeded earnings estimates for seven consecutive quarters. Nine analysts have raised their numbers for fiscal year 2007. Earnings estimates for the company continue to rise. Over the past 90 days, this year's estimates have risen 2.6% to $4.35 per share. Full Analysis J.C. Penney Company, through its wholly-owned subsidiary J.C. Penney Corporation, sells family apparel, jewelry, shoes, accessories, household goods, and home furnishings through its stores, catalogs and website. The company operates 1,019 department stores in the United States. J.C. Penney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise, and JCPenney.com is one of the largest apparel and home furnishings sites on the Internet. J.C. Penney's fiscal year ends in January. The investment case for J.C. Penney is the company's business momentum, improving profit margins, and effective use of cash. The company's business momentum is being driven by smart merchandising efforts and strong traffic trends. J.C. Penney is improving the quality and fashion consciousness of its private-label merchandise, avoiding apparel price deflation, and further differentiating its merchandise. The company continues to enjoy strength across all merchandise categories including Internet sales and in its new off-mall concept. The increased fashion appeal of the private brands women's apparel and accessories has boosted sales. Meanwhile, JCP's gross margin in fiscal year 2005 improved 74 basis points to 39.26% thanks to a reduced number of markdowns, better merchandise transition, and a higher mix of private-label merchandise. During the fiscal year 2005, the company repurchased 44 million shares for $2.2 billion. In fiscal year 2004, the company has repurchased approximately 94 million shares for about $4.1 billion. For fiscal 2006, the company authorized a new $750 million common stock repurchase program, which is expected to be completed by the end of fiscal 2006. J.C. Penney's declining share count is helping accelerate its earnings per share growth rate. JCP reported an excellent first quarter. Profits rose 22% in the period, as holding overhead costs below the rate of inflation helped the department store operator supplement a modest revenue increase. The company also proceeded to raise their forecast for the rest of the year. First-quarter earnings of 90 cents per share beat estimates by four cents and last year's result by 27 cents. The company also reported its 12th straight quarter of increasing same-store sales, a key measurement for retailers. They were up 1.3%, and Penney predicted another increase in the second quarter. JCP has exceeded earnings estimates for seven consecutive quarters. Nine analysts have raised their numbers for fiscal year 2007. Earnings estimates for the company continue to rise. Over the past 90 days, this year's estimates have risen 2.6% to $4.35 per share. The stock is trading at 12.8x next year's estimates, below the company's long-term growth rate of 16.35%. 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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(FAL) - primary focus is the identification and development of world-class copper and nickel mining deposits

Falconbridge Ltd (FAL) enjoys good earnings growth, a great chart, a hot industry and is in the middle of a bidding war. Background Falconbridge Limited is a leading copper and nickel company with investments in fully-integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel mining deposits. Full Analysis FAL finds itself in the middle of a bidding war as Xstrata offered to buy the 80% of FAL that it doesn't already own, offering $14.5 billion, which exceeds Inco's offer for FAL. On the earnings front, FAL reported March 2006 EPS of $1.21, up 112% from last year's 57 cents and a positive 21% earnings surprise over analysts' consensus estimates. Sales grew 35% to $2.858 billion and income was $462 million, up 129% FAL set new 52-week highs on Wednesday at $51.32 after news of the Xstrata offer was made public. Clearly the chart looks healthy with the new highs made on extremely heavy volume. Trading takeover candidates can be tricky as normally reliable indicators like breakouts on heavy volume can be suspect. Momentum traders watch volume closely to ensure that breakouts have validity (breakouts to the upside on heavy volume means that very strong hands are involved and the implication is that the stronger the hands, the better informed that they are). With takeover candidates however, heavy volume can simply be arbitrage plays. Before taking a position, Momentum traders should satisfy themselves that the company in question is worth owning even if the takeover fails to materialize. Given FAL's strong earnings and industry position, if would appear attractive even without the multiple takeover offers. 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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(CCRT) - Three analysts upped their estimates for next year

CompuCredit Corporation (CCRT), a Zacks #1 Rank stock, recently beat the Street's quarterly earnings estimate by 18.5%. Earnings per share are forecasted to grow 15.5% over the next 3-5 years. The consensus earnings estimate has been on the rise for both 2006 and 2007. CCRT is currently trading at a valuation of 10.2x trailing 12-month earnings and at 9.2x current fiscal-year estimated earnings. Full Analysis CompuCredit Corporation is a provider of credit and related financial services and products. The company operates in four segments: credit cards, investments in previously charged-off receivables, retail micro-loans and auto finance. CCRT exceeded analysts' earnings expectations in five of the past seven quarters by an average margin of 32.0%. Earnings per share grew 49.0% over the past five years and are forecasted to grow 15.5% over the next 3-5 years. On May 8, 2006, CCRT topped the Street's first-quarter 2006 earnings estimate of 92 cents by 18.5% when it reported profits of $54.8 million, or $1.09 per share. When compared to the first quarter of 2005, the company's earnings were up 17.2%. CCRT reported record earnings for the full year of 2005 back in mid-February. The company increased revenues for the past four years. Management stated it was very pleased with this start to the year, and will continue to focus on the needs of its customers and expanding its product and service offerings throughout 2006. Back in late-September, CCRT announced that it had signed a definitive agreement to acquire CardWorks, Inc., a privately held issuer and third-party servicer of consumer credit cards. According to CCRT, the acquisition will provide a variety of new products and business lines that will generate substantial shareholder value and deliver immediate revenues and earnings. The consensus earnings estimate for the full year of 2006 currently sits at $4.22. When compared to the consensus of 60 days ago, analysts increased their estimates by 4.5%. Four analysts covering the stock submitted upward revisions. Profit forecasts for the full year of 2007 jumped 4.9% over the same time period. Three analysts upped their estimates for next year. CCRT is currently trading at a valuation of 10.2x trailing 12-month earnings and at 9.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x trailing 12-month earnings and at 15.5x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.7, compared to 4.0 for the market. The company's level of profitability has been quite impressive. CCRT has a return on equity of 25%, compared to 21% for the industry average. 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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(OMC) - company experienced a record year for new business in 2005

Omnicom Group, Inc. (OMC) met or exceeded analysts' earnings expectations in eight of the past nine quarters. Earnings per share are projected to grow 12.1% over the next 3-5 years. The company increased revenues and grew profits for an amazing nine years in a row. OMC had a record year for new business in 2005 and continues to expand in Asia. The company has a current and five-year average dividend yield of 1.1%. Full Analysis Omnicom Group, Inc., through its subsidiaries, operates in the advertising, marketing services, specialty communication, interactive/digital media and media buying businesses. The company offers its services under four disciplines: traditional media advertising, customer relationship management, public relations and specialty communications. OMC met or exceeded analysts' earnings expectations in eight of the past nine quarters. During this time period, the company topped the Street's estimate seven times. Earnings per share grew 11.5% over the past five years. Going forward, they are forecasted to grow by a slightly higher margin—12.1% over the next 3-5 years. On Apr 25, 2006, OMC reported first-quarter 2006 profits of $165.7 million, or 93 cents per share, versus 150.5 million, or 82 cents per share in the first quarter of 2005. With the Street calling for 90 cents per share, the company surprised to the upside by 3.3%. Worldwide revenues increased 6.7%, domestic revenues were up 9.2% and international revenues jumped 3.6%. The company experienced a record year for new business in 2005, with net wins of over $5.5 billion. OMC won more than $1 billion in new accounts (measured by client spending), adding such names as EBay (EBAY), Bank of America (BAC), Motorola (MOT), General Electric (GE), Pepsi (PEP) and Gillette (PG) to its client list. The company increased revenues and grew profits for an amazing nine years in a row. OMC also remains committed to further expanding its business and business relationships in Asia, where operating conditions remain very positive. The company acquired Unisono Fieldmarketing in the first quarter of 2006, a marketing and merchandising organization that helps domestic and foreign companies build and maintain market share in China. Furthermore, on Apr 9, 2006, OMC announced the opening of an office in the Grand Gateway Shanghai. The company has a current and five-year average dividend yield of 1.1%. Strong cash flows from operating activities have made dividend payouts possible. OMC 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 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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(USG) - Earnings per share grew 58.1% over the past five years

USG Corporation (USG), a Zacks #1 Rank stock, recently reported record first-quarter 2006 net sales. The company beat analysts' earnings estimates for the past seven quarters. USG appears to be on track to emerge from bankruptcy later this year. The consensus earnings estimate has been on the rise for this quarter and for the full year of 2006. USG is currently trading at a valuation of 7.0x trailing 12-month earnings and at 6.2x current fiscal-year estimated earnings. Full Analysis USG Corporation engages in the manufacture and distribution of building materials worldwide. The company produces a range of products for use in residential, non-residential and repair and remodel construction, as well as products used in certain industrial processes. USG topped the Street's earnings estimate for seven consecutive quarters by an average margin of 18.8%. Earnings per share grew 58.1% over the past five years. On Apr 25, 2006, USG recorded earnings per share of $3.55, surpassing analysts' estimates by 16.4% and surging past profits posted in the prior-year period by an impressive 100.6%. The $3.55 excluded an after-tax charge of $300 million, or $6.70 per share, for fees related to pre-petition obligations that are expected to be paid upon the corporation's planned emergence from bankruptcy later this year. USG filed for bankruptcy in 2001 after it was named in a number of asbestos-related lawsuits. First-quarter net sales amounted to a record $1.5 billion, compared to $1.2 billion reported in the first quarter of 2005. Furthermore, operating profit more than doubled. The consensus earnings estimate for this quarter currently sits at $3.89. When compared to the consensus of 60 days ago, analysts upped their estimates by 16.5%. Profit forecasts for the full year increased 12.4% over the same time period. USG is currently trading at a valuation of 7.0x trailing 12-month earnings and at 6.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.7x its current fiscal-year estimated earnings. The company stated it is positioned for long-term growth. Its strategies of investing in and strengthening its businesses have facilitated its plan to emerge from bankruptcy later this year. USG continues to focus its attention and capital investments on improving customer service, manufacturing costs and operating efficiencies, as well as strategic investments to grow its businesses. The outlook for the corporation's markets in 2006 remains very positive. 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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(SLF) - topped the Street's earnings estimate for four straight quarters

Sun Life Financial, Inc. (SLF) topped the Street's earnings estimate for four straight quarters by an average margin of 12.8%. Total assets under management stood at a record CDN$402.4 billion at the end of the first quarter of 2006. The company continues to expand its operations overseas. SLF is currently yielding 2.3% and has a five-year average dividend yield of 2.4%. The company has a very impressive return on equity. Full Analysis Sun Life Financial, Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. SLF exceeded analysts' earnings expectations in four consecutive quarters by an average margin of 12.8%. Earnings per share grew 20.8% over the past five years. Going forward, they are forecasted to grow 10.5% over the next 3-5 years. On Apr 27, 2006, SLF posted first-quarter profits of 74 cents per share, which beat the Street's estimate by two cents and surpassed its earnings in the prior-year period by 17.5%. Revenues rose to CDN$5.3 billion, compared with CDN$5.1 billion in the first quarter of 2005. Total assets under management were a record CDN$402.4 billion as of Mar 31, 2006. SLF increased revenues for the past four years while growing profits for the past three. The company continues to expand its operations overseas. SLF increased its sales force and bancassurance alliances in India, while launching operations in additional cities in China. Furthermore, the company entered into new distribution relationships in the United States. SLF and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. The Board of Directors at SLF recently declared a quarterly dividend of 27.5 cents per common share of stock, payable Jul 5, 2006 to shareholders of record at the close of business on May 24, 2006. The company has a current dividend yield of 2.3% and a five-year average dividend yield of 2.4%. On May 9, 2006, SLF announced its intention to establish a dividend reinvestment and share purchase plan (DRIP). The company repurchased more than two million of its common shares during the first quarter of 2006. SLF's level of profitability, as measured by return on equity, crushes the industry average. The company's ROE is an eye-popping 61%, compared to 11% for the industry. SLF 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 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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(NWS) - positive 35% surprise over the consensus estimate

News Corp (NWS), is on a tear. Strong growth at both MySpace.com and Fox News Channel powers earnings. Background News Corporation's diversified global operations include the production and distribution of motion pictures and television programming; television, satellite and cable broadcasting; the publication of newspapers, magazines, books; the production and distribution of promotional and advertising products and services; the development of digital broadcasting; the development of conditional access and subscriber management systems; and the creation and distribution of popular on-line programming. Full Analysis Things are going great for NWS. With viewership at the Fox News Channel up 80% and strong growth at myspace.com, NWS reported EPS for the quarter ended March 2006 at 27 cents per share—a 93% increase from last year's 14 cents and a positive 35% surprise over the consensus estimate. Sales growth was modest at $6.2 billion, up 1.47% over last year. Income was up a strong 14.4% at $820 million. The technical picture at NWS is also compelling. Ever since late June 2003, NWS has traded in a tight $15.00 to $20.00 trading range. Thus, when the stock made a new 52-week high on heavy volume on Tuesday of this week, it was important not only for a new 52-week high, but also because it represented a breakout above the old trading range, with NWS closing Tuesday at $20.10. The story with NWS is compelling. Healthy growth in core businesses, increasing earnings and a stock that appears to be breaking out of a long slumber. Prudent investors might want to see more than a one-day close over the old range, but keep an eye on NWS. 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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(RDY) - 2007 estimate has increased 38% to $1.09

Dr. Reddy's Laboratories, Ltd. is experiencing excellent growth. This is evidenced by increases in earnings estimate revisions. 2006 earnings estimates have been on the rise. Over the past 90 days, this year's estimate has risen 15.1% to 61 cents per share. Next year's estimate has increased 38% to $1.09 over the same time period. Full Analysis Dr. Reddy's Laboratories, Ltd. is a vertically-integrated global pharmaceutical company. The company produces active pharmaceutical ingredients (API), finished dosage forms and both branded and generic pharmaceutical products for the global market. The company possesses two branded pharmaceutical divisions that focus on India and the international market, respectively. Sales in India accounted for approximately 22.6% of total fiscal year 2005 revenue. RDY is also conducting basic research in the areas of cancer, diabetes, cardiovascular disease, inflammation and bacterial infection. The company derives revenues from the following segments: active pharmaceutical ingredients (API), branded formulations, generic finished dosages and other businesses. RDY is working steadily towards improving its top line. In recent quarters, the company has witnessed improved sales both segment-wise and geographically. Strengths in the brand formulations businesses and sustained results in the European generics business are aiding top-line growth at Dr. Reddy's. Sound performance in key markets is resulting in double-digit growth in the branded formulations segment, both in terms of international and domestic sales. Increased demand from trade channels is driving revenue growth in the branded finished dosage operations, with continued strength noted in Russia and other markets of the Commonwealth of Independent States (CIS). The European generics business has emerged strong, fueled by higher contributions from omeprazole and amlodipine maleate. Gains in Europe bode particularly well for Dr. Reddy's as this market contributes approximately 40-45% to overall generics revenue. In order to further strengthen its position in the generics market, RDY recently acquired Betapharm. Betapharm is the fourth-largest generics company in Germany, with a market share of about 3.5%. It is also one of the fastest growing generic companies in Germany, with a portfolio of about 145 marketed products and a sales force of about 250. 2006 earnings estimates have been on the rise. Over the past 90 days, this year's estimate has risen 15.1% to 61 cents per share. Next year's estimate has increased 38% to $1.09 over the same time period. The company sports a return on equity of 6%, higher than the industry average of -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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(BMS) - enjoying double-digit volume increases in several high value-added markets

Bemis Company, Inc. (BMS), a Zacks #1 Rank stock, topped the Street's earnings estimates for the past three quarters, most recently by 20.0%. Earnings per share are forecasted to grow 10.0% over the next 3-5 years. The company upped its 2006 earnings per share guidance in late April. BMS has a current dividend yield of 2.5% and a five-year average dividend yield of 2.4%. Full Analysis Bemis Company, Inc. is the largest flexible packaging company in the Americas and a major manufacturer of pressure sensitive materials used for labels, decoration and signage. Nearly two-thirds of Bemis packaging is used in the food industry, with the balance used in markets including medical, pharmaceutical, chemical and agribusiness. BMS exceeded analysts' earnings estimates for the past three quarters by an average margin of 10.9%. Earnings per share are forecasted to grow 10.0% over the next 3-5 years. On Apr 27, 2006, BMS reported record revenues for the first quarter of 2006. Net revenues rose 8.4% to $901.6 million, compared to $831.9 million in the prior-year period. The company's profits amounted to 42 cents per share, topping the Street's estimate by 20.0%. BMS posted earnings per share of 30 cents in the first quarter of 2005. The company is enjoying double-digit volume increases in several high value-added flexible packaging markets. Looking ahead, BMS announced that it expects second-quarter 2006 earnings per share between 37 cents and 41 cents, including a restructuring charge of six cents per share. Full-year 2006 profits are forecasted between $1.59 and $1.69 per share, including about 16 cents per share of restructuring and related charges. Both estimates reflect upward adjustments to the company's previous guidance. The consensus earnings estimates for the full years of 2006 and 2007 increased 6.4% and 5.2%, respectively, over the past 90 days. One analyst revised his estimate upward for this year, while three followed suit for next year. Looking ahead, BMS stated new cost control efforts implemented in 2005 will continue to improve results in 2006. Furthermore, as raw materials costs decline, packaging companies such as BMS are expected to benefit. According to the company, its customer base is also excited about its new product innovation. On May 4, 2006, the Board of Directors at BMS approved a regular quarterly cash dividend of 19 cents per share. The dividend is payable on Jun 1, 2006, to shareholders of record at the close of business on May 19, 2006. BMS has a current dividend yield of 2.5% and a five-year average dividend yield of 2.4%. BMS's return on equity of 13% is in line with the industry average. The company has a price-to-book (P/B) multiple of 2.3. The market's P/B multiple, represented by the S&P 500, currently stands at 4.0. 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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(TRN) - operating profit was the highest in its history

Trinity Industries, Inc. (TRN), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for five straight quarters, most recently by 11.1%. Earnings per share are projected to grow 15.8% over the next 3-5 years. The company is in great position to ride the railroad industry's latest boom. TRN has a five-year average dividend yield of 1.5%. Full Analysis Trinity Industries, Inc. is one of the nation's leading diversified industrial companies providing a variety of high volume, repetitive products and services for the transportation, industrial and construction sectors of the marketplace. The company's customers include railroads, leasing companies and shippers, such as utilities, petrochemical companies, grain shippers and construction and industrial companies. TRN topped the Street's earnings estimates for the past five quarters. Earnings per share are forecasted to grow 15.8% over the next 3-5 years. On May 3, 2006, TRN reported first-quarter 2006 profits of $37.0 million, or 70 cents per share. The company's earnings topped analysts' expectations by a healthy 11.1%. TRN's prior-year profits were 15 cents per share. Revenues increased 17.6% to $760.9 million, compared with revenues of $646.9 million for the first quarter of 2005. TRN's operating profit was the highest in its history. New orders in the first quarter amounted to 12,941 railcars in North America, the highest quarterly order volume since 1998. Furthermore, the company shipped 6,164 railcars, the highest quarterly total since 1999. TRN remains pleased by the depth of its company-wide backlog. TRN's railcar manufacturing unit accounted for more than half of the company's yearly operating profit. With the rail industry continuing to perform quite well, the company should continue to benefit. Moreover, the company's barge and construction businesses remain solid. The consensus earnings estimate for this quarter currently sits at 78 cents per share. When compared to the consensus of 60 days ago, this marks a 20.0% increase. Profit forecasts for the full years of 2006 and 2007 rose 12.3% and 9.2%, respectively, over the same time period. On Mar 9, 2006, the Board of Directors at TRN declared a quarterly dividend of seven cents per share. This represents the company's 168th consecutive quarterly cash dividend and is payable Apr 28, 2006 to stockholders of record as of Apr 14, 2006. TRN has a five-year average dividend yield of 1.5%. 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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(LFC) - controls approximately 44% of the market for life insurance in China

China Life ADR (LFC), a Zacks #1 Rank Stock, soars along with the Chinese yuan. Background China Life provides products and services including individual life insurance, group life insurance, accident and health insurance. LFC is China's largest life insurance company, a leading provider of annuity products and life insurance for both individuals and groups, and a leading provider of accident and health insurance. Full Analysis China Life continues to search for both domestic and foreign partners. On May 15, the company announced that it planned to take a rumored US$160 million stake in the IPO of Bank of China and an undisclosed amount in the Industrial and Commercial Bank of China. LFC controls approximately 44% of the market for life insurance in China and the company announced in March that it would initiate a new property insurance company, but said in Monday's announcement that it might still buy an existing insurer. Since going public in December 2003, LFC shares have risen more than 190%, cumulating with a historic high on May 12, 2006 of $63.80. There is some limited support on the downside at a three-day range at $56.75, but if you're looking for serious support for this stock, you need to look at February's highs of 49.44. With the China market booming (investors are very bullish on Chinese financial firms given the $1.8 trillion dollars of personal savings in China) and the Chinese yuan at its highest level in a decade, solid companies like LFC are looking very good to Momentum traders. From a technical standpoint, there is no upside resistance and, as mentioned, some minor support fairly close to the current price. Volume remains very good, with Friday's all time high taking place on more than twice normal volume, a bullish sign. 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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(SRVY) - exceeded earnings estimates for seven consecutive quarters - past two surprises averaging 250%

Greenfield Online (SRVY) has met or exceeded earnings estimates for seven consecutive quarters, with the past two surprises averaging 250%. Three analysts have raised their numbers for 2006, while one has done so for 2007. Estimates for 2006 have increased 75% to 14 cents per share over the past seven days, while 2007 estimates have risen 25% over the same time period. Full Analysis Greenfield Online is a leading provider of Internet survey solutions to marketing research and consulting companies. Internet survey solutions are faster, more efficient and more cost-effective for collecting high quality marketing research data than traditional, labor-intensive methods such as telephone, direct-mail and mall-based surveying. The firm derives 100% of its revenues from Internet data collection products and services. Currently, the firm has an Internet-based panel of over 5.7 million double opt-in survey takers residing in households containing an estimated 14.8 million people. The firm completed 2,536 Internet-based projects for 461 clients in the first quarter of 2006 and should continue to grow. The Do Not Call registry has prompted more marketing research companies to adopt Internet-based survey data. In addition, the increased Internet penetration rates and broadband usage have accelerated Internet-based research. Greenfield Online's recent acquisitions have enhanced the company's market position and allowed the firm to show significant growth over the past two years. Its most positive business, Ciao's European and Asian operations, continue to post strong growth. As of Mar 31, 2006, Greenfield Online paid off almost all of its long-term debt obligations, and has a net cash position of $20.7 million. In addition, Greenfield Online has significant net operating loss carryforwards, which can be used to decrease the firm's future federal tax burden. The company has met or exceeded earnings estimates for seven consecutive quarters, with the past two surprises averaging 250%. Three analysts have raised their numbers for 2006, while one has done so for 2007. Estimates for 2006 have increased 75% to 14 cents per share over the past seven days, while 2007 estimates have risen 25% over the same time period. The stock is currently trading at 29.2x next year's estimates, slightly above the company's long-term growth rate of 25%, giving the stock a PEG ratio of 1.17. 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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(FCX) - Recently topped earnings estimate by 41.4%

Freeport-McMoRan Copper & Gold, Inc. (FCX), a Zacks #1 Rank stock, topped the Street's earnings estimate for six straight quarters, most recently by 41.4%. Earnings per share are projected to grow 25.0% over the next 3-5 years. The company continues to pay out supplemental dividends in addition to its regular quarterly dividends. FCX is currently yielding 2.0% and has a five-year average dividend yield of 1.4%. Full Analysis Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining and production of copper, gold and silver. The company's operations are conducted through its subsidiaries, PT Freeport Indonesia, PT Irja Eastern Minerals and Atlantic Copper, S.A. FCX exceeded analysts' earnings expectations in six consecutive quarters by an average margin of 16.0%. Earnings per share grew an astounding 60.9% over the past five years. Going forward, they are forecasted to grow by a smaller but still impressive rate—25.0% over the next 3-5 years. On Apr 18, 2006, FCX reported first-quarter profits of $251.7 million, or $1.23 per share. This compared quite favorably to the $130.4 million, or 70 cents per share, posted in the first quarter of 2005. With the Street looking for 87 cents per share, the company surprised to the upside by an impressive 41.4%. Profits were fueled by a dramatic rise in copper and gold prices. Revenues grew to $1.09 billion, versus $803.1 million in the prior-year period. FCX increased revenues for the past four years while growing profits for five years running. Analysts' earnings estimates have been on the rise. The consensus estimates for this quarter and next quarter increased 28.0% and 16.9%, respectively, over the past 90 days. Profit forecasts for this year and next year jumped 46.4% and 40.6%, respectively, over the same time period. On May 2, 2006, the Board of Directors at FCX approved a supplemental dividend of 75 cents per share, payable Jun 30, 2006 to shareholders of record as of Jun 15, 2006. The supplemental dividend was on top of its regular quarterly dividend of 31.25 cents per share. On Feb 1, 2006, the Board announced a supplemental common stock dividend of 50 cents per share. The company approved six supplemental dividends since the fourth quarter of 2004, totaling $3.00 per share. FCX has a current dividend yield of 2.0% and a five-year average dividend yield of 1.4%. FCX is in the final stages of a study to develop a high grade underground mine at the Big Gossan deposit. This new mine could begin production in 2008, and would be a significant addition based on current assumptions of 135 million pounds of copper and 65,000 ounces of gold annually. 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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(IPCC) - currently trading at a discounted valuation

Infinity Property and Casualty Corporation (IPCC), a Zacks #1 Rank stock, increased revenues, expanded gross margins and grew profits for the past three years. Earnings per share are forecasted to grow 10.7% over the next 3-5 years. The company upped its 2006 earnings per share guidance in late April. IPCC is currently trading at a discounted valuation. The company has a price-to-book (P/B) multiple of only 1.3. Full Analysis Infinity Property and Casualty Corporation provides personal automobile insurance products with an emphasis on nonstandard auto insurance in the United States. The company also writes coverage on a limited basis for homes, personal watercraft and personal articles. On Apr 27, 2006, IPCC reported first-quarter 2006 earnings per share of 79 cents, which were in line with analysts' expectations. When compared to the prior-year period, earnings increased by two cents. Earnings per share are forecasted to grow 10.7% over the next 3-5 years. IPCC increased revenues, expanded gross margins and grew profits for the past three years. The company raised its earnings per share guidance for the full year of 2006 on Apr 27, 2006. It now expects earnings between $3.80 and $4.20 per share. Previously, it expected 2006 earnings between $3.20 and $3.60 per share. IPCC cited favorable development on reserves in the first quarter as fueling its upward revision. The consensus earnings estimate for the full year of 2006 currently stands at $4.06. When compared to the consensus of 30 days ago, it jumped 19.4%. Profit forecasts for the full year of 2007 increased 7.9% over the same time period. Six analysts covering the stock submitted upward revisions for 2006, while three did so for 2007. On Feb 8, 2006, IPCC declared a quarterly dividend of 7.5 cents per share of its common stock. The annual rate of 30 cents represents a 25% increase over the dividend paid in 2005. The company is currently yielding 0.73%. IPCC's return on equity is slightly higher than the industry average—14% compared to 12%. The company is currently trading at a discounted valuation. IPCC has a price-to-book (P/B) multiple of only 1.3. The market's P/B multiple, represented by the S&P 500, currently stands at 4.0. Furthermore, the stock trades at a valuation of 10.1x both trailing 12-month and current fiscal-year estimated earnings. The market is trading at a valuation of 16.9x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company's PEG ratio is 0.95. 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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(GDI) - surpassed the consensus estimate in each of the past 10 quarters

Gardner Denver, Inc. (GDI) has a history of easily surpassing the consensus estimate, having done so in each of the past 10 quarters. Three analysts raised their numbers for 2006, while two analysts increased their forecasts for 2007. Over the past 30 days, estimates for 2006 increased 25.5% to $4.28 per share. The stock is trading at 15.4x next year's estimates of $4.94 per share, in-line with the long-term growth rate of 15.50%. Full Analysis Gardner Denver, Inc. engages in the design, manufacture, marketing, and servicing of compressor and vacuum products, and fluid transfer products. It operates in two segments, Compressor and Vacuum Products, and Fluid Transfer Products. The Gardner Denver Fluid Transfer Division includes Emco Wheaton, the world's largest and most successful manufacturer of Loading Arms and associated products, such as Swivel Joints, API Dry-Break Couplers, Floating Suction and Roof Skimmers for storage tanks, and rack to transport Grounding Devices. The company reported an excellent first quarter, which blew away the consensus estimate. Revenues and net income for the three months ended Mar 31, 2006 were $399.3 million and $30.5 million, respectively. These results represent record levels for the company, exceeding the previous records achieved in the three-month period ended Dec 31, 2005. Diluted earnings per share (DEPS) were $1.15, beating the comparable period of the previous year by 130%, despite 29% more average shares outstanding in 2006 than in 2005. Analysts had only expected 70 cents per share. The CEO stated, "In the first quarter of 2006, our financial performance reflected the efforts of our employees and channel partners. Demand continued to improve, especially for compressor and vacuum products, and our previous capital investments and lean manufacturing initiatives resulted in reduced lead times and increased productivity. "Given our current economic outlook, as well as our existing level of backlog and recent manufacturing improvements, we are increasing our DEPS outlook for 2006 significantly to a range of $4.05 to $4.25, with second quarter DEPS approximating $1.00 to $1.15. The midpoint of the range for 2006 ($4.15) represents a 51% increase over the 2005 results.” The company has a history of easily surpassing the consensus estimate, having done so in each of the past 10 quarters. Three analysts raised their numbers for 2006, while two analysts increased their forecasts for 2007. Over the past 30 days, estimates for 2006 increased 25.5% to $4.28 per share. The stock is trading at 15.4x next year's estimates of $4.94 per share, in-line with the long-term growth rate of 15.50%. 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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(HLF) - Sales grew 40.6% over last year

Herbalife (HLF), a Zacks #1 Rank Stock, has easily beaten the S&P 500 in its short market history. Background Herbalife is a global network marketing company offering a range of science-based weight management products, nutritional supplements and personal care products intended to support weight loss and a healthy lifestyle. Full Analysis Herbalife reported earnings of 48 cents per share on May 3, but the stock continues to make new highs. EPS was 50% higher than the year ago period's 32 cents and marked a 17% positive surprise above analysts' expectations. Sales grew 40.6% over last year to $453.8 million and income rose to $35 million, 189% above the same quarter last year. In its short market history, HLF has easily beaten the S&P 500 for returns. Last year, HLF grew by 100% while the S&P only grew 3.0%. For year-to-date 2006, HLF is up 24.6% and the S&P is up only 3.7%. The stock spent quite a while last Fall and this Winter pivoting around the $30 level, before beginning its most recent move, above $40, back in March. This stock has a clear base from which to sustain an advance from these levels. With the stock spending seven months churning near $30, the current move can sustain a good deal higher price action. Long sideways congestion areas, like HLF's, are strong evidence that the supply and demand factors are in balance for the stock. Breakouts, such as HLF is now experiencing, are evidence that the market has not yet fully discounted recent good news (Income up 189% perhaps). Until the market finds a new balance, expect HLF to continue 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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(TM) - strong cash flow position and a strong balance sheet

Target Price Raised on Toyota Toyota Motor Company (TM) continues to expand its production capacity in a manner that increases efficiency and meets local demand while placing it on the way to becoming the world's financially strongest automaker. It has a strong presence in North America, and has been successful in grabbing market share from the Big Three automakers. Moreover, the company can also boast of having strong cash flow position and a strong balance sheet. All the above factors lead us to take a positive view on the stock, and thus we upgrade our rating to a Buy with a six-month target price of $133.00. Demand for Toyota is presently exceeding supply, and to meet the rising demand, the company plans to continue increasing production. For this it is focusing on increasing its North American production capacity along with the domestic capacity in order to be able to manufacture 8.45 million vehicles by 2006. By 2008, management aims to increase its North American annual capacity to build 1.81 million vehicles, 1.44 million engines, and 600,000 automatic transmissions. Moreover, in the latter half of 2005, Toyota introduced hybrid vehicles in North America to meet the rising demand for such vehicles, which has been driven by surging fuel costs. The company aims to produce 1 million hybrid vehicles by 2010. To this end, the company is concentrating on upgrading the performance of its next generation hybrid systems. Content Courtesy: Zacks.com

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(URS) - the stock remains undervalued relative to the peer group - reiterate our Buy on URS

Business Booming at URS URS Corp. (URS) reported first quarter EPS of $0.47, above our expectations of $0.43, due to a strong federal business and growth in private and international businesses. The federal business is poised to expand at a high single-digit pace amid increasing spending by the Department of Defense (DoD) on maintenance and research work. The growing need for U.S infrastructure rebuilding and the U.S. Highway Bill bodes well for an increase in State and local government project activity. URS remains committed to debt reduction and to growing its partnership with Advatech. On a P/E valuation basis, the stock remains undervalued relative to the peer group. We reiterate our Buy on URS. We believe the EG&G (which comprises the company's 2002 acquisitions of Carlyle-EG&G Holdings Corp. and Lear Siegler Services) and URS divisions' federal businesses have excellent fundamental prospects. The DoD is spending more on operations and maintenance (O&M) spurred on by increased military operational activity in the Middle East. Recently, the Congress approved a $454 billion appropriations budget. The budget earmarks $50 billion for Iraq and Afghanistan. The Senate approved a $65 billion supplemental budget request to fund operations in the Middle East, of which $39 billion is earmarked for O&M activities and $710 million is allocated towards Research, Development, Test, and Evaluation (RDT&E). The 2006 DoD budget includes a fund of approximately $180 billion for O&M that supports its current high level of O&M work activity in the Middle East. Furthermore, the baseline budget includes over $70 billion for RDT&E that funds a portion of the company's EG&G business. We expect similar trends beyond 2006 as well, as next year's baseline budget proposal includes a 4% increase between 2007 and 2011. Content Courtesy: Zacks.com

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(ADO) - valuation is still attractive on a historical basis

Buy Adecco on Any Pullback by Santiago Burgaleta, CFA We maintain our Buy rating on Adecco (ADO) after the company reported its first quarter results. We still think Adecco is well positioned for the recovery in the employment markets and we think the new CEO is giving signs of a possible turnaround in the company. Although the stock has come out of its trading range fairly quickly, valuation is still attractive on a historical basis. We are buyers on pullbacks and revise up our target price to $18.50. Indications of an improving job market, a stable cost structure, increased staffing opportunities in the healthcare sector, and the potential deregulation of staff rules in major countries are the positives associated with Adecco, in our view. The U.S. government employment report for the month of December 2005 showed a decrease in the unemployment rate but also a decrease in non-farm payroll jobs after four consecutive months exceeding expectations. We expect job growth to continue to strengthen despite the recent slowdown, and that should support a favorable staffing environment. This is positive for Adecco as it generates one-fourth of its revenue from the U.S. The potential deregulation of staff rules in major foreign countries, such as Japan and Germany, will also provide growth opportunities for Adecco. Moreover, the recent improvement in gross margins shows that there has been some pricing power in the U.S., due to the change in its product mix. LHH Carrier Services is Adecco's Outplacement business. We expect this high gross margin division to generate roughly 6% of Adecco's gross profit. This is far lower than its historical contribution and could be on the verge of a turnaround. Content Courtesy: Zacks.com

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