(HSC) - raised its fiscal 2006 earnings per share guidance

Harsco Corporation (HSC) topped the Street's earnings estimate for 11 straight quarters. The company recently reported record revenues in the first quarter of 2006. Earnings per share are projected to grow 14.0% over the next 3-5 years. HSC has made 224 consecutive quarterly dividend payments. The company is currently yielding 1.7% and has a five-year average dividend yield of 2.6%. Full Analysis Harsco Corporation is a diversified, worldwide industrial company. HSC's operations fall into three segments: mill services, access services and gas technologies, plus an all other category labeled engineered products and services. The company has locations in 45 countries. HSC makes a habit out of exceeding analysts' earnings expectations, having done so for an impressive 11 quarters in a row. Earnings per share grew 10.7% over the past five years and are projected to grow by a larger margin going forward—14.0% over the next 3-5 years. On Apr 24, 2006, HSC reported first-quarter profits of $34.3 million, or 81 cents per share, versus $23.1 million, or 55 cents per share, in the prior-year period. With the Street expecting only 64 cents per share, HSC surprised to the upside by 26.6%. Growth in both its service and product sales enabled revenues to increase 20.2% to a record $769.6 million from $640.1 million in the first quarter of 2005. Two acquisitions completed in the prior quarter contributed to the company's impressive first-quarter numbers. Based on its stellar first quarter, HSC raised its fiscal 2006 earnings per share guidance. The company now expects profits between $4.00 and $4.10 per share, compared with its previous forecast between $3.90 and $4.00 per share. Furthermore, on May 16, 2006, the company announced that its MultiServ mill services division will add new services at three steel mills, bringing in an additional $17 million in revenues. HSC increased revenues and expanded gross margins for the past three years, while growing profits for the past four. The consensus earnings estimate for 2006 currently resides at $4.15. When compared to the consensus of 30 days ago, analysts have upped their estimates by 3.2%. Profit forecasts for 2007 rose 2.7% to $4.65 per share over the same time period. Four analysts covering the stock submitted upward earnings revisions for this year while three did so for 2007. Strong cash flows from operating activities enabled HSC to meet the demands of investors seeking additional income in the form of a cash dividend. On Mar 23, 2006, the Board of Directors at HSC declared a regular quarterly cash dividend of 32.5 cents per share. The company has paid dividends every year since 1939, including dividend increases in each of the past twelve years. HSC has a return on equity of 17%, compared to 13% for the industry average. HSC 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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(ING) - retail banking posted a record quarter, with underlying profit before tax up 43.7%

ING Group (ING), a Zacks #1 Rank stock, recently posted an impressive first quarter fueled by strong growth in its retail banking and life insurance units. Analysts' earnings estimates have been trending higher for this year as well as next year. ING is trading at a discounted valuation with a price-to-book ratio of 1.8. Full Analysis ING Group is a global financial services company of Dutch origin with 150 years of experience, providing a wide array of banking, insurance and asset management services in over 50 countries. The company's customer base includes individuals, corporations, institutions and governments. On May 11, 2006, ING reported first-quarter profits of 2.01 billion euros ($2.57 billion), compared to 1.94 billion euros ($2.48 billion) in the prior-year period. The company's three key growth segments—ING Direct, retirement services and life insurance in developing markets—continued to perform quite well. Furthermore, retail banking posted a record quarter, with underlying profit before tax up 43.7%. Looking ahead, ING announced that it is confident in the growth prospects of the underlying business for 2006 and expects to report figures well ahead of forecasts. In 2005 the company reported revenues of EUR 71.141billion and net profits of EUR 7.210 billion. ING increased revenues and grew profits for the past three years, most recently by 4.8% and 26.9%, respectively, in 2005. Analysts' earnings estimates for this year as well as next year have been on the rise. The consensus earnings estimate for 2006 currently resides at $4.21. When compared to the consensus of 30 days ago, analysts upped their estimates by 20.3%. Profit forecasts for 2007 rose 14.4% to $4.28 per share over the same time period. On Apr 26, 2006, ING announced that it will pay a total annual dividend for 2005 of EUR 1.18 per ordinary share. The dividend payment represents an increase of 10.3% on the previous year's dividend of EUR 1.07. The company has a current dividend yield of 2.7%. The company is currently trading at a valuation of 10.4x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.4x trailing 12-month earnings and at 15.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 3.9 for the market. ING's return on equity is slightly higher than that of the industry average—20% 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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(TLK) - Total operating revenue was up 26.4% from the same quarter a year ago

P.T. Telekomunikasi Indonesia Tbk (TLK) is experiencing robust growth in the wireless business. This year's earnings estimates have been on the rise. Over the past 90 days, 2006 estimates have increased 15.4% to $2.62 per share. The stock is attractively valued at 12.2x this year's estimates, below the company's long-term growth rate of 16.92%, giving the stock a PEG ratio of 0.72. Full Analysis P.T. Telekomunikasi Indonesia Tbk., popularly known as TELKOM, is the leading provider of telecommunications services in Indonesia. Fixed-line telephone services (mainly local and domestic long distance) are offered through seven regional divisions operating across Indonesia. Cellular services are offered through TLK's 65%-owned subsidiary, Telkomsel. Favorable industry trends are expected to sustain robust growth in the wireless business for the next several years. Both fixed-line and mobile phone penetration in the country are still low (< 20%), leaving plenty of opportunities for subscriber growth. Wireless services are increasingly popular as a result of declining handset prices, attractive service plans and improving network coverage. Additionally, Telkomsel's EBITDA margin has held up well in the face of increasing competition due to its significant economies of scale. Telkomsel remains the wireless leader in Indonesia with more than 50% market share based on the number of subscribers. Telkom has launched a new satellite to support the demand for voice, video and data. The company also entered into interconnection agreements with both Hutchison CP Telecommunication and Indosat, respectively. These initiatives will create much needed bandwidth and connectivity for the company's fixed-line subscribers. On May 3, TLK announced fiscal 2006 first-quarter earnings results. Total operating revenue was up 26.4% from the same quarter a year ago. Net income was up 49.2% over the prior-year quarter. EPS increased 94% and EBITDA was up 41.29%. This year's earnings estimates have been on the rise. Over the past 90 days, 2006 estimates have increased 15.4% to $2.62 per share. The stock is attractively valued at 12.2x this year's estimates, below the company's long-term growth rate of 16.92%, giving the stock a PEG ratio of 0.72. 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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(NATL) - company pointed to its alternative risk transfer and specialty personal lines components as driving the growth in premiums

National Interstate Corporation (NATL), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for five straight quarters, most recently by 12.8%. Earnings per share are projected to grow 13.5% over the next 3-5 years. Consensus earnings estimates have been trending higher for this year as well as next year. NATL has a price-to-book ratio of 3.1 and a PEG ratio of 0.96. Full Analysis National Interstate Corporation operates as a specialty property and casualty insurance company. It underwrites and sells insurance products to the passenger transportation and trucking industry, general commercial insurance to small businesses in Hawaii and Alaska and personal insurance to owners of recreational vehicles and watercraft in the United States. NATL topped the Street's earnings estimates in five consecutive quarters by an average margin of 16.0%. Earnings per share are forecasted to grow 13.5% over the next 3-5 years. On May 9, 2006, NATL reported first-quarter earnings per share of 44 cents, which beat analysts' expectations by 12.8% and soared past its profits in the prior-year period by the same percentage. Gross and net premiums written in the first quarter were up 5.8% and 7.8%, respectively, when compared with the first quarter of 2005. The company pointed to its alternative risk transfer and specialty personal lines components as driving the growth in premiums. The consensus earnings estimate for 2006 currently resides at $1.77. When compared to the consensus of 30 days ago, analysts have upped their estimates by 6.6%. Profit forecasts for 2007 rose 7.9% to $2.05 per share over the same time period. On May 22, 2006, the Board of Directors at NATL declared a cash dividend of four cents per common share of stock. The dividend will be payable on Jun 16, 2006 to shareholders of record at the close of business on Jun 2, 2006. The company has a current dividend yield of 0.70%. NATL increased revenues and grew profits for the past two years, most recently by 21.8% and 32.9%, respectively, in 2005. The company is currently trading at a valuation of 13.9x trailing 12-month earnings and at 13.0x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.5x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.1, compared to 3.9 for the market, and a PEG ratio of 0.96. NATL's return on equity more than doubles that of the industry average—24% compared to 11%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

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(SHW) - met or exceeded analysts' earnings expectations in 11 out of the past 12 quarters

The Sherwin-Williams Company (SHW) met or exceeded analysts' earnings expectations in 11 out of the past 12 quarters. Earnings per share are projected to grow 11.3% over the next 3-5 years. The Board of Directors at SHW increased its quarterly cash dividend back in late-February. The company is currently yielding 2.1% and has a five-year average dividend yield of 2.0%. Full Analysis The Sherwin-Williams Company is one of the world's leading companies engaged in the manufacture, distribution and sale of coatings and related products to professional, industrial, commercial and retail customers. SHW met or topped the Street's earnings estimate in 11 out of the past 12 quarters. Earnings per share grew 17.8% over the past five years and are projected to grow 11.3% over the next 3-5 years. On Apr 20, 2006, SHW posted first-quarter 2006 earnings per share of 82 cents, topping analysts' expectations by 7.9% and crushing its profits in the prior-year period by an impressive 41.4%. Net sales increased $230.0 million, or 14.9%, to $1.8 billion. According to the company, domestic and international paint sales were strong. SHW increased revenues for the past four years and grew profits for the past three. Revenues and profits jumped 17.6% and 17.8%, respectively, in 2005. The company expects second quarter year-over-year revenue growth between 10% and 13% with earnings per share growth between 16% and 20%. For the full year of 2006, SHW projects revenue growth percentage in the low-to-mid-teens and earnings per share growth between 14% and 19%. The consensus earnings estimate for this quarter increased 10.5% to $1.26 per share over the past 90 days. Profits forecasts for the full year of 2006 rose 5.1% over the same time period. Four analysts covering the stock upped their estimates for this quarter while six followed suit for the full year. Investors seeking income in the form of a cash dividend have been quite content with SHW. On Feb 22, 2006, the Board of Directors at SHW increased its quarterly dividend to 25 cents per common share of stock from 20.5 cents. Furthermore, on Apr 19, 2006, the Board declared its regular quarterly dividend of 25 cents, payable on Jun 9, 2006 to shareholders of record as of May 19, 2006. The company has a current dividend yield of 2.1% and a five-year average dividend yield of 2.0%. SHW's return on equity nearly doubles that of the industry average—29% compared to 16%. SHW 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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(SLB) - increased its regular quarterly dividend by 19% last year

Schlumberger Limited (SLB) has exceeded earnings estimates for six consecutive quarters. Ten analysts raised their numbers for 2006 and 2007. Over the past 30 days, estimates for 2006 have increased 7.3% to $2.66 per share. The stock is trading at 18.8x next year's estimate of $3.49 per share, below the company's long-term growth rate of 21.81%, giving the stock a PEG ratio of 0.86. Full Analysis Schlumberger Limited is a leading oilfield services company, providing technology, project management, and information services to the global oil and gas industry. The company divides its operations in two business segments: Oilfield Services (contributed 90% of its total pre-tax operating income in 2005) and WesternGeco (10%). Given the scope of its geographical footprint, Schlumberger enjoys strong leverage to the current up cycle in international oilfield activity levels. While activity levels in North America, particularly in the onshore markets, have reached peak cycle levels, most of the other global markets are at much earlier stages. This plays to Schlumberger's strengths, given its strong international presence and long-standing relationships with national oil companies, as well as its market leadership position and track record of technological innovation. International pricing will follow the North American lead, which should help sustain Schlumberger's margin-improvement trend of the last few quarters. In the last couple of years, Schlumberger has refocused its attention on the oilfield service market by divesting all of its non-oilfield businesses. It used the approximately $2.8 billion in proceeds from those divestitures and asset sales to strengthen its balance sheet. As a result, Schlumberger's net long-term debt declined from more than $5 billion at the end of 2002 to the current level of about $800 million. Schlumberger has also been actively returning excess cash to shareholders, through a growing dividend and buybacks. It increased its regular quarterly dividend by 19% last year to $0.125 per share ($0.50 per share annualized). During 2005, Schlumberger repurchased 15.2 million (split adjusted) of its own stock for a total amount of $612 million. The company has exceeded earnings estimates for six consecutive quarters. Ten analysts raised their numbers for 2006 and 2007. Over the past 30 days, estimates for 2006 have increased 7.3% to $2.66 per share. The stock is trading at 18.8x next year's estimate of $3.49 per share, below the company's long-term growth rate of 21.81%, giving the stock a PEG ratio of 0.86. 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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(OII) - has a habit of bettering the general market and beating analysts' estimates

Oceaneering International (OII) Full Analysis OII has a habit of bettering the general market, and in beating analysts' consensus estimates. The company has beaten the S&P 500 return in three of the last four years, losing out to the general averages only in 2003, when OII returned 'only' 13.2% to the S&P's return of 26.4%. The company reported earnings on May 4 and beat estimates yet again. OII reported EPS of 93 cents per share versus 40 cents in the same quarter last year. This amounted to a 27% positive surprise and represented the fifth straight quarter that OII has beaten the Street. Background Oceaneering International is an advanced applied technology company that provides engineered services and hardware to customers who operate in marine, space and other harsh environments. The company supplies a comprehensive range of integrated technical services to a wide array of industries and is one of the world's largest underwater services contractors. From a technical point, OII has been in a long, gradual up-trend beginning on Sep 25, 2001. The most striking thing that you notice when looking at OII's chart is the gap on the morning of May 5 (representing market reaction to the May 4 earnings report). On that day OII closed at $72.15, up over 10% on the day. In the 14 market sessions since that time, OII has failed to back fill this gap. Often a stock will gap higher immediately after some event, such as an earnings report, as a knee jerk reaction. Savvy traders know that in most cases such event-driven gaps fail. Thus, when you find a stock like OII that has failed to fill that gap, when you look at the chart, you see a graphical representation of a fundamental change in the company's prospects. Such stocks will move higher until they find a point where the market feels that the stock is fairly valued. OII's failure to back fill its most recent gap is evidence that it has not yet found that point. 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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(GGI) - Is Geo Group destined for higher prices?

GGI delivered it's seventh positive earnings surprise of the last eight quarters on May 4, when the company reported first-quarter EPS of 46 cents versus 28 cents in the same quarter last year. That represented over a 31% positive earnings surprise. Sales were up 17.5% to $185 million and income rose nearly 4% to $4.67 million. Background Geo Group is a world leader in the delivery of correctional and detention management, health and mental health, and other diversified services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, New Zealand, and Canada. Full Analysis The stock has been in a five-and-a-half year uptrend that began on Dec 19, 2000 when the stock traded as low as $6.00. However, for the last year and a quarter, the stock had been going nowhere, churning between $30 and $20 per share. But that all changed on Mar 13, when GGI delivered a nearly 6% positive earning surprise for the December 2005 quarter As a result, the stock gapped higher on heavy volume and closed the day up 7.3%. This set the stage for the break out of the trading range on Mar 31, which occurred with very heavy volume. Obviously this trend continues as GGI set a new 52-week high on Monday. Given the improving earnings and the powerful breakout of a long-term trading range, GGI looks to be destined for higher prices yet. 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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(TEX) - PEG ratio of 0.64 - healthy backlog - rapidly growing, multinational manufacturer

Terex Corporation (TEX) has exceeded earnings estmates for six consecutive quarters, five of which occurred by double digits. Two analysts raised their numbers for 2006, while one did so for 2007. Over the past 30 days, 2006 estimates have increased 12.1% to $6.74 per share. The stock is trading at about 10x next year's estimates. Full Analysis Terex Corporation is a rapidly growing, multinational manufacturer of a broad range of equipment, primarily for the construction, infrastructure, and surface mining industries. The company's manufacturing facilities are located in the U.S., Canada, Europe, Australia, Asia, and South America. Terex sells its products through a worldwide distribution network. The U.S. accounts for 37% of sales, the United Kingdom accounts for 11%, Germany 8%, other European countries 23%, and other countries account for the remaining 21%. There are several positive factors regarding Terex, including the continued strength in its Aerial Work Platforms (AWP) and Mining & Material processing group, and a healthy backlog position. The company delivered strong performance and surpassed its goal one-year ahead of schedule with 2005 recording revenues of approximately $6.4 billion. The Aerial Work Platforms unit is benefiting from a rising order backlog and good end-market demand. TEX's customers are expanding rental fleets in response to higher rental rates in the market. Moreover, utilization rates for these customers have also increased, which is underpinning demand. While the segment's fourth quarter 2005 sales recorded a robust year-over-year growth of above 60% (higher than the strong 57% growth reported in the prior quarter), full year revenues were also up significantly by more than 56%. In addition, the effect of price increases and surcharges implemented by the company in the last couple of quarters, coupled with volume growth, are driving operating margins. The company plans to implement significant price hikes in the Aerial Work Platforms business in order to mitigate higher year-over-year input costs. Management reiterated its expectations of achieving a 10% growth in operating margin in FY06. TEX has exceeded earnings estmates for six consecutive quarters, five of which occurred by double digits. Two analysts raised their numbers for 2006, while one did so for 2007. Over the past 30 days, 2006 estimates have increased 12.1% to $6.74 per share. The stock is trading at about 10x next year's estimates of $8.11 per share, well below the long-term growth rate of 15.67%, giving the stock a PEG ratio of 0.64. 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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(CNW) - analysts' estimates for the quarter have been trending higher

Con-Way, Inc. (CNW) topped the Street's earnings estimate in 11 out of the past 13 quarters. Earnings per share are projected to grow 12.9% over the next 3-5 years. The Board of Directors at CNW recently expanded its share buyback program and declared a quarterly cash dividend. The company has a return on equity of 28%, compared to 17% for the industry average. Full Analysis Con-Way, Inc. provides transportation and supply chain management services for manufacturing, industrial and retail customers. The company conducts its businesses through three segments: Con-Way Transportation Services (Con-Way), Menlo Worldwide and CNF Other. CNW exceeded analysts' earnings expectations in 11 out of the past 13 quarters by an average margin of 10.4%. Earnings per share are forecasted to grow 12.9% over the next 3-5 years. On Apr 24, 2006, CNW reported first-quarter profits of 83 cents per share. With analysts' covering the stock expecting 76 cents per share, the company surprised to the upside by 9.2%. Compared to the first quarter of 2005, its profits were up 20.3%. Revenues rose 11.7% to $1.06 billion. Based on its impressive first quarter, CNW issued second-quarter earnings per share guidance above analysts' estimates. The company now expects profits from continuing operations between $1.20 and $1.28 per share. As a result, analysts' estimates for the quarter have been trending higher, with the consensus estimate currently sitting at $1.24. When compared to the consensus of 30 days ago, analysts covering the stock upped their projections by 4.2%. Profit forecasts for the full years of 2006 and 2007 jumped 3.6% and 4.1%, respectively, over the same time period. The Board of Directors at CNW recently approved an expanded share repurchase program in which the company can acquire up to $400 million of its common shares through the end of the second quarter of 2007. The new policy replaces its existing $300 million share repurchase plan approved in 2005. Furthermore, the Board announced a cash dividend of 10 cents per common share of stock. The dividend is payable Jun 14, 2006 to shareholders of record as of May 15, 2006. The company has a current dividend yield of 0.68% and a five-year average dividend yield of 1.1%. CNW has a return on equity of 28%, compared to 17% for the industry average. CNW 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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(WIRE) - beat the Street's quarterly earnings estimate by 54.6%

Encore Wire Corporation (WIRE), a Zacks #1 Rank stock, recently beat the Street's quarterly earnings estimate by 54.6%. Earnings per share grew 66.0% over the past five years. The consensus earnings estimates have been trending higher. WIRE is currently trading at a valuation of 13.8x trailing 12-month earnings and at 12.7x current fiscal-year estimated earnings. The company has a very impressive return on equity. Full Analysis Encore Wire Corporation manufactures copper electrical building wire and cable in the United States. The company supplies both residential and commercial wire. WIRE also purchases small quantities of other types of wire to resell to the customers that buy its products. WIRE crushed analysts' earnings expectations in four consecutive quarters by an average margin of 128.1%. Earnings per share grew 66.0% over the past five years. On Apr 25, 2006, WIRE posted first-quarter earnings per share of 68 cents, which topped the Street's estimate by an impressive 54.6% and served as the second best quarterly earnings in the history of the company. The company posted profits of only one cent per share in the first quarter of 2005. Net sales ballooned 83.7% to a record $252.0 million, versus $137.2 million in the prior-year period. Higher wire prices fueled WIRE's jump in quarterly sales. Construction of the company's new armored cable plant continues on schedule. The plant should be operational in the third quarter of 2006 and expects to be a strong contributor to WIRE's sales going forward. Analysts' earnings estimates have been shooting upward. The consensus estimate for this quarter and next quarter increased 60.7% and 27.1%, respectively, over the past 90 days. Profit forecasts for the full years of 2006 and 2007 jumped 49.3% and 21.8%, respectively, over the same time period. WIRE increased revenues for the past four years. The company expanded gross margins and grew profits for three years running, most recently by 30.0% and 50.0%, respectively, in 2005. WIRE is currently trading at a valuation of 13.8x trailing 12-month earnings and at 12.7x 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 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.88, compared to 3.90 for the market. WIRE's level of profitability, as measured by its return on equity, has been quite impressive, more than doubling that of the industry average—34% compared to 15%. 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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(SHLD) Sears Holding - another positive earnings shock

Sears Holding (SHLD) has another positive earnings shock. Full Analysis Sears Holding delivered a 90% positive earnings surprise last week with an EPS for the quarter ended April 2006 of $1.18, up from last year's seven cents. This represented the company's third straight quarter with a positive earnings surprise, giving SHLD a Zacks #1 rank. Sales were down 9% from the year ago period, while income rose 15.4%. Background Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co., is the leading home appliance retailer in North America and is a retail sales leader in tools, lawn and garden, home electronics, and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. SHLD began its long descent on Jul 20, 2005 when the market topped out at $163.50. The stock then churned in a relatively tight trading range between $127.75 and $111.64 for almost six months from Sep 16, 2005 until the results of the January 2006 quarter, which was released on Mar 15, 2006. That report showed an almost 11% positive earnings surprise and clearly caught the market off-guard as the stock closed up nearly 13% the very next day after gapping higher. That gap was never closed and SHLD repeated the same performance last week after its earnings release, gapping higher and again closing up 13%. Gaps are important to Momentum traders as they are visual evidence of a shock to the supply/demand balance in a stock. Coming as they do when a stock is emerging from a long sideways congestion range, they can be presumed to be acceleration gaps, indicating the beginning of a strong movement to the upside. The presence of very heavy volume on the breakout gives added validity to this signal 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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Stealth Stocks Weekly Update - Summary of Recommendations - Market Commentary

Stealth Stocks Weekly Update on Monday, May 22, 2006. Summary of Recommendations: Defensive is now the game, as May is living up to its reputation of being the second worst month of the year. Remain largely on the sidelines as long as the technical underpinnings remain this poor. Market Commentary At the rate the market has been falling since May 10th, I fully believe that some sort of a rebound is way overdue. The market is ridiculously oversold as selling has been broad based and across all sectors, domestic and international. There are six trading days left for the month of May. In most months, it is the last few days of the month into the first few days of the new month that the market usually rallies, so if we are going to see a rebound it is most likely coming up. However, investor's attitudes have shifted from buying dips to selling rallies. From this point forward, until the Fed stops raising interest rates, I think traders will use any bounces as an opportunity to sell long positions or short stocks. Momentum has shifted in favor of the bears, suggesting any rally attempts aren't likely to come close to the May 10th highs. I do expect what is called a back test. After the first initial down leg, the market will try and rebound likely to the 50-day moving average, or the daily middle Bollinger Band line of the indexes. From this point traders will begin selling stocks in preparation for the next down leg in the market as a downward pattern of lower highs and lower lows develops. I suspect June will also prove to be a difficult month, going into the next FOMC meeting on June 28th/29th, as investors fret about further rate hikes. At the end of June we'll reach the end of the second quarter. Given the history of the Fed expanding one quarter and contracting the next, this suggests the Fed will start to expand again in the third quarter, particularly since we will be going into the mid-term elections. Until we see the Fed begin to expand again, I think investors need to be especially mindful of risk. The investment environment is suspect until we see the technical underpinnings of the market improve and evidence of the Fed's willingness to expand again. In summary, when market leadership began to fail in April, I knew we were entering into dangerous waters and warned you that May was likely to disappoint. On those stocks which had handsome profits, I tightened our stops to protect these profits. On marginal profits, I raised the stops above our entry points to keep us from losing money. Of course, not all of our positions were profitable, but here again the stops kept us from losing big. In trading stocks a big part of the challenge comes in knowing when portfolios are the most vulnerable and when to tighten stop loss limits. I do expect a back test / rebound, but June looks vulnerable and likely to be a continuation of May's deterioration. Our stock portfolios are well postured to protect the assets from further deterioration as we wait for a better market environment to emerge. In the meantime, don't bite on any short term bounces. The odds are not good that you'll be able to keep profits for long. Content Courtesy: Stealth Stocks

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(CNO) - Conseco analysis - Insurance Cos Brace for Hurricane Season

Insurance Cos Brace for Hurricane Season With Ann Northrop, May 22, 2006 As we approach another potentially devastating hurricane season in the Gulf and southern Atlantic coasts, we could not help wondering what insurance companies are doing ahead of time. Senior insurance analyst Ann Northrop, CFA was available to answer a few questions on the important topic. Hurricane season is appearing on the horizon once again. What's the forecast for insurance companies? This mostly depends on whether you're talking about primary insurers or reinsurers. In the case of reinsurance stocks, the valuations – particularly price-to-book multiples – have not really expanded since last year's hurricanes. Normally, one would expect this to have happened; after Hurricane Andrew in the early 90's, for instance, valuations expanded dramatically. I think this presents some opportunities, but investors seem to be taking a wait-and-see attitude right now. They are likely being cautious in case this year's hurricane season turns out to be more severe than expected. For reinsurance companies, pricing has hardened in the catastrophe-prone areas, but not so much outside of these areas. At the same time, the rating agencies have increased capital requirements, so this has managed to offset a bit of the price-hardening. As a response to this, the primary insurers are increasing their retentions, so they are paying a higher rate but insuring less coverage. So what is the overall effect this is having for these reinsurers? These days, a lot of reinsurers don't have the capital to grow and take advantage of the price-hardening in the catastrophe-prone areas. On the other hand, the nature of the insurance business is to diversify, but the price-hardening is only occurring in these select areas. So a good number of reinsurers may see some tough times ahead of them. They need more capital for the rating agencies, and they're also finding it harder to diversify. But aren't they getting more business from the primary insurers due to the current hurricane season trends? Well, as I mentioned, the primary companies are reacting to the higher prices by increasing their retentions – basically buying less reinsurance. They are increasing their excess of loss at a greater point; for instance, hypothetically, a company that would have increased its coverage after $1 million is now doing so after $2 million. This way, they keep their reinsurance costs stable. So there is less demand from the primary companies. However, for the reinsurers, for every given dollar of premium they underwrite they now need more capital, due to the increased capital requirements from the rating agencies. And a lot of these reinsurers don't have enough capital, and they are finding it harder to diversify. This is one reason I like the company Partner Re (PRE). It is one of the few reinsurers in a good position to benefit from the price hardening that's going on. We now expect the hardening to continue past the June renewal season and into the January '07 season. But even though this should continue longer than we had expected previously, it will likely only benefit relatively few insurers. Not only last year, but the previous year also had a bad hurricane season. Is the fact that we may be in a particularly bad trend being factored in? Yes. Catastrophe modeling has been readjusted to allow for more frequency and severity of claims. Ultimately, it depends where the hurricanes occur. If they're in the same places they were last year, then we might see more reinsurers' stocks go down. Then again, the well-capped reinsurers might see a medium-term benefit from another string of catastrophes, as prices would then harden again severely. In either case, it would definitely pull capital from the industry. All things considered, there hasn't been much of a down-cycle in the industry this past year. How are things looking from this perspective going forward? 2002 to 2005 was a very hard cycle. Things started to soften a bit last year. As a result, insurers appear to have pretty sound reserves, though they are not fully developed yet. If loss-cost trends remain as they are, I would expect to see some reserve releases in the future. What this means is when an insurance company writes a policy, they reserve. When they put in more claims, they need to build more reserves. But if these reserves never get used, they get released. Right now, pricing is good in the market, and if the loss-cost trends stay the same, this would help many insurers. You mentioned Partner Re (PRE) as a company you liked. Are there others you'd care to mention? Well, in the life & health segment I like Conseco (CNO). For the most part, this sector has run up, so I see very few opportunities. But Conseco has several catalysts for an increased stock price. It's trading at about book value right now. They have a large net operating loss carry-forward on their balance sheet, and they have a valuation allowance for the event they won't be able to use the operating loss. The company expects if its SEC audit gets finalized, it will be able to release a large portion of that reserve, and this could increase book value by a couple dollars. A longer-term catalyst is an increase in their AM Best financial strength rating, which is currently at a B+ right now. But given their capitalization, level of risk space capital and recent progress in cutting costs, I expect they may receive an AM Best upgrade to A- sometime in the coming quarters. This ratings upgrade would be crucial for them to sell life and long-term care policies, as this is somewhat of a benchmark. People don't generally want to buy policies from insurers that have less than an A- rating from AM Best. In fact, increasing their rating to A, or two ratings above where they are currently, is management's top priority. We're likely to see an A- rating sometime this year; they have more than enough risk space capital relative to other A- companies. They have been good at cutting costs, which is demonstrates the stability the rating agency likes to see. So we see a catalyst for the top line to grow, expand into life and long-term care sales, and achieve scales and expand its bottom line. The valuation is also very reasonable, at 0.9x book right now. This provides a downside cushion, given that we expect ROE to expand. Ann Northrop, CFA is a senior analyst covering the insurance industry for Zacks Equity Research. About Zacks Analyst Interviews Zacks Equity Research employs 50 stock analysts who are experts in the industries they cover. In these articles you will discover our analyst's current insights on key industries in the news along with their favorite stocks to buy and sell now. Content Courtesy: Zacks Investment Research

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(CELG) - opportunity to pick up shares of Celgene at a good entry point

Nadine Wong, editor of the BioTech Stock Report newsletter, discusses Celgene's Revlimid and explains that with current conditions, there could be an opportunity to pick up shares at a good entry point. Find out how Celgene is weathering the current turbulent trading environment. Then learn why this featured expert thinks Revlimid has the potential to become a blockbuster. Hanging in There from May 15 Celgene (CELG) reported impressive first quarter revenues which helped the company's share price remain buoyant in this current turbulent trading environment. It's hard to predict when the biotech sell-off will subside, but valuations are becoming "darned" attractive. Meanwhile, the key driver for Celgene's shares over the next 12 months should be Revlimid. Revlimid has the potential to become a blockbuster with potential sales greater than a billion, based primarily on a strong uptake of the product in multiple myeloma and a modest contribution from MDS patients. Revlimid is a more potent analog of Thalomid with fewer tolerability issues (sedation, constipation, peripheral neuropathy) thus it is likely Thalomid sales will face significant cannibalization from Revlimid, particularly as additional data for Revlimid in the frontline setting becomes available. Additional clinical data could increase sales particularly in chronic lymphocytic leukemia (CLL). Revlimid is currently in a Phase II trial as a single agent for CLL. The trial design allows patients with disease progression to add Rituxan. Interim data on 18 evaluable patients that had completed at least two months of therapy was reported at the ASH meeting in 2005. Patients in the study had prior therapies with encouraging results, 2/18 patients (11%) achieved a complete response and 10/18 patients achieved a partial response, demonstrating an overall response rate of 67%. Rapid and sustained absolute lymphocyte count reduction was also seen among patients who completed more than 4 months of Revlimid therapy. The toxicity profile was in line with what has been shown for Revlimid in multiple myeloma. Updated results from the trial are expected at the ASCO meeting in June. The company plans to initiate a Phase III study later this year, most likely with a design that has been negotiated under the SPA process. With the current conditions, there could be an opportunity to pick up shares of Celgene at a good entry point. Content Courtesy: Zacks Investment Research

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(YHOO) - Yahoo! Unveils Plan - holds a leadership position

YHOO Unveils Plan Posted Thu May 18, by Steve Biggs, CFA Yahoo! (YHOO) hosted a meeting for analysts Wednesday (5/17) where it unveiled its much-anticipated search monetization plan. The company is making its search engine more user-friendly for both users and advertisers, as well as improving the relevance of queries to attract more users to the site. Behind the scenes, advertisers will have greater analytical capabilities that should drive increased spending as they are able to see the direct impact of advertising campaigns on results. The design is complete and currently in testing. We can expect to see major differences to the portal in the latter half of the year, with a financial impact in 2007. In addition to search monetization, Yahoo! covered a number of other topics. Of note is its social networking initiative, where we believe Yahoo! holds a leadership position. Although social networking/media/search has received little media attention, this is a powerful platform in its ability to attract dedicated users and generate revenue through graphical advertising, sponsored listings, sponsorships, and subscriptions. Yahoo! is also a leader in online media, which will likely attract the bulk of money coming from traditional advertisers into online advertising. While search has shown the strongest growth over the past few years, traditional advertisers, such as consumer product companies that have shied away from online, are more attracted to traditional media. This is where we believe Yahoo! holds a significant advantage over its peers with its media focused management. We are positive on Yahoo! and its new initiatives along with the potential for growth in online advertising spending from traditional advertisers, and continue to rate the stock a Buy. Content Courtesy: Zacks Investment Research

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(XOM) - ExxonMobil Can Still Grow

XOM Can Still Grow Posted Fri May 19, by Sheraz Mian We are maintaining our Buy recommendation on ExxonMobil (XOM) and raising our earnings estimates following the company's strong first-quarter 2006 results. Given the continued favorable macro environment, we expect the company's 2006 results to top 2005's record performance. Exxon's strong pipeline of upstream development projects, a chemicals business that is fully integrated with its refining assets, an exceptionally strong balance sheet, and a track record of returning capital to shareholders are some of its key positives. While Exxon shares no doubt have all the hallmarks of a defensive play, we believe that it has more growth potential than it gets credit for. Growth, particularly in the upstream business, is a key issue in the Exxon story. The flat-to-declining trend in volumes over the last three years has brought this issue to the forefront. It will be a challenge for any company to replace more than four million oil-equivalent barrels per day in production, particularly with about half of that amount coming from the mature North American and European basins. However, Exxon has done as good a job as its peers or better in replacing its reserves. It has replaced more than 100% of its annual production every year, even going back to the early 1990's, while maintaining an industry-leading cost structure. Content Courtesy: Zacks Investment Research

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(DRIV) - Digital River has significant growth potential

Fair Value for DRIV Posted Mon May 22,by Lawrence Orlowski, CFA In Digital River's (DRIV) Q1 earnings report, revenue came in at $78.0 million, ahead of our estimate of $77 million. Also, GAAP earnings per share reached $0.41, one cent ahead of company guidance. The solid performance can be attributed to several factors, such as strong consumer spending, the rising contribution from marketing services, and the growing penetration of global markets. Although we think Digital River has significant growth potential, we think the stock is close to fair value at this point. Accordingly, we are maintaining our Hold rating and have set a target price of $47. The company is poised for robust growth as it expands online sales, delivers strategic marketing services, targets international growth, and offers clients a rich set of online tools. We have established a target price of $47. The target price is derived by applying a target multiple of 29.0x to our pro forma 2006 EPS estimate of $1.62. The target multiple is the close to the average P/E multiple for comparable firms. Content Courtesy: Zacks Investment Research

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