(CALL) - loss estimates have decreased significantly from 11 cents per share to six cents over the past 60 days

Callwave (CALL) has a limited earnings history, but it did post a 33% earnings surprise last quarter. CALL is still losing money, but the loss estimates have decreased significantly from 11 cents per share to six cents over the past 60 days. The company's initiatives into higher margin business segments should allow it to be profitable in the near future. Full Analysis CallWave is a Santa Barbara, CA-based company, which provides advanced telecom services, primarily on a subscription basis. The company's "call-bridging" services enable customers (both businesses and consumers) to manage calls across their existing landline, mobile and Internet networks. Unlike traditional call-forwarding services, CALL's software allows subscribers to screen ingress voicemail in real-time before deciding whether to converse on existing landline, mobile or Internet network. CallWave was incorporated in 1998, began offering call bridging services on a free basis (partially supported by advertising revenues) in October 1999. It began fee-based services in April 2001, and went public in September 2004. While CallWave has historically generated a high percentage of revenues from fixed-line services in a price-sensitive direct consumer market, the company is in the infancy phase of launching promising new services for the fast-growing fixed mobile convergence market. The strategic shift will emphasize higher up-front investments, but over the long-run the business potential is expected by management to result in larger revenue opportunity as the company leverages indirect selling through phone companies. CallWave is repositioning the company and resources to address these higher-margin opportunities. Telephony carriers will repackage the CallWave solution to subscribers. Recently, the company announced trials with Hawaiian Telecom, where CallWave's software-only convergence solution is being evaluated and marketed to the telephone company's customer-base. The company has a limited earnings history, but it did post a 33% earnings surprise last quarter. CALL is still losing money, but the loss estimates have decreased significantly from 11 cents per share to six cents over the past 60 days. The company's initiatives into higher margin business segments should allow it to be profitable in the near future. 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. Blog Home

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(GPI) - topped analysts' earnings expectations by an impressive 35.8%

Group 1 Automotive, Inc. (GPI) exceeded analysts' earnings expectations by an average margin of 29.2% over the past two quarters. Furthermore, the company upped its full-year 2006 earnings per share guidance in early May. The Board of Directors at GPI increased its cash dividend by 7.7% in late May. This Zacks #1 Rank stock is currently yielding 0.94%. Full Analysis Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retailing industry. The company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts. GPI owns 95 dealerships comprised of 140 franchises, 32 brands and 30 collision service centers. On May 2, 2006, GPI topped analysts' earnings expectations by an impressive 35.8% when it posted first-quarter profits of 91 cents per share. This marks the second consecutive quarter in which the company blew away the Street's estimate. In the fourth quarter of 2005, GPI surprised to the upside by 22.6%. Revenues in the first quarter amounted to $1.42 billion-a 1.5% increase when compared to the prior-year period. All reporting segments witnessed an increase in revenues with the exception of wholesale used vehicles. The company responded to its solid first quarter by upping its earnings per share guidance for the full year of 2006. GPI now expects profits between $3.40 and $3.70 per share, compared to its previous forecast between $3.15 and $3.45 per share. Furthermore, on Jun 1, 2006, the company raised its annual revenue outlook from acquisitions to $500 million from $300 million. The consensus earnings estimate for the full year of 2006 currently resides at $3.66 per share-which represents a 12.6% increase when compared to the consensus of 60 days ago. Profit forecasts for 2007 jumped 12.6% to $4.02 per share over the same period of time. Earnings per share are projected to grow 11.0% over the next 3-5 years. The company increased revenues and expanded gross margins for the past eight years, most recently by 9.8% and 12.1%, respectively, in 2005-a year in which profits nearly doubled. On May 25, 2006, the Board of Directors at GPI boosted its quarterly cash dividend by 7.7% to 14 cents per share. The dividend will be paid on Jun 15, 2006 to stockholders of record as of Jun 5, 2006. The company has a current dividend yield of 0.94%. The company's return on equity of 12% is in line with 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. Blog Home

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(TKR) - topped analysts' earnings expectations in 10 out of the past 11 quarters

The Timken Company (TKR), a Zacks #1 Rank stock, recently reported solid first-quarter results. The company upped its full-year earnings per share guidance back in mid-April. Analysts' estimates have been on the rise for this year and next year. Earnings per share are expected to grow 11.7% over the next 3-5 years. TKR has a price-to-book ratio of 1.8 and a PEG ratio of 0.88. Full Analysis The Timken Company engages in the manufacture of engineered bearings, alloy and specialty steel and related components. The company has three segments: Industrial Group, Automotive Group and Steel Group. TKR has operations in 27 countries. TKR met or topped analysts' earnings expectations in 10 out of the past 11 quarters. Earnings per share grew at a robust rate over the past five years-64.4%. On Apr 27, 2006, TKR reported solid first-quarter results with earnings per share of 71 cents. Compared to the prior-year period, profits were up 10.9%. The result was in line with the Street's estimate. Revenues amounted to $1.35 billion, up 3.9% from the $1.30 billion recorded in the first quarter of 2005. Production and shipment records were set in TKR's Steel Group, while the Industrial Group witnessed impressive growth in the aerospace, distribution and heavy industry sectors. Looking ahead, the company forecasts second-quarter earnings between 75 cents and 80 cents per share. For the entire year, TKR maintained its profit projection of between $2.80 and $2.95 per share, which was raised about a week before the company released its first-quarter results. It previously expected earnings between $2.65 and $2.80 per share. The consensus earnings estimate for the full year of 2006 currently sits at $2.88 per share-which marks a 5.1% increase when compared to the consensus of 90 days ago. Profit forecasts for 2007 jumped 8.1% to $3.20 per share over the same period of time. Expansion into China remains on most companies' radars these days, including TKR. The company completed construction of its fourth bearing plant in that country and expanded its industrial bearing plant in the Wuxi region, all with the intention of reducing operating costs and placing the company closer to its potential international customer base. The company is currently trading at a valuation of 11.3x trailing 12-month earnings and at 10.2x 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. TKR has a price-to-book ratio of 1.8, compared to 4.0 for the market, and a PEG ratio of 0.88. The company's return on equity crushes that of the industry average-17% compared to 10%. Furthermore, TKR is currently yielding 2.0% and has a five-year average dividend yield of 2.8%. 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. Blog Home

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(DDS) - More good news to come for Dillard's Inc.

Full Analysis Retail stocks have all done well recently, buoyed by improving earnings and strong May sales, and Dillard's is no exception. DDS is expected to report the April quarterly results soon (indeed, DDS was scheduled to report on Jun 6, but did not). Analysts' consensus estimates call for EPS of 59 cents per share, up from 46 cents in the same period last year. For May, same store sales were up 3% to $534.3 million, while for the 17-week period ended May 27, sales were $2.37 billion, with same store sales up 2%. Technical Review In expectation of a good earnings report, DDS set a new 52-week high on Wednesday at $29.25, and closed at a 52-week high of $29.06. Adding validity to the move was the heavier-than-normal volume. Looking at a longer-term chart, DDS bottomed out in early March 2003 at $12.37. Since that time, the stock has been in a reasonably steady uptrend. With this week's new highs, DDS is showing that there is more good news yet to come. Background Dillard's Inc. is one of the nation's largest fashion apparel and home furnishings retailers. The company's stores operate with one name, Dillard's, and span numerous states. Dillard's offers a distinctive mix of name brand and private label merchandise, appealing to a broad range of customers. 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. Blog Home

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(X) - United States Steel Corporation - blew away the Street's earnings estimate by 38.7%

United States Steel Corporation (X) met or exceeded analysts' earnings expectations in nine of the past 10 quarters, most recently by 38.7%. The Board of Directors at X boosted its cash dividend by 50% in late April. The company is currently yielding 0.94%, with a five-year average dividend yield of 1.3%. This Zacks #1 Rank stock's return on equity exceeds that of the industry average. Full Analysis United States Steel Corporation produces integrated steel products in the United States and central Europe. The company also engages in the production and sale of iron ore pellets, provides rail and barge transportation services and owns and develops various real estate assets. On Apr 25, 2006, X blew away the Street's earnings estimate of $1.50 by 38.7% when it reported first-quarter profits of $2.08 per share. When compared to the fourth quarter of 2005, the company's revenues climbed 7.4%, while profits grew by an eye-popping 157.1%. Sales of tubular products hit a new quarterly record—$177 million. However, profits and revenues were down when compared to the first quarter of 2005. The company is expected to release its second-quarter results on Jul 25, 2006. Analysts are growing more optimistic about the company's future prospects. The consensus earnings estimates for this quarter and next quarter increased 30.1% and 48.4%, respectively, over the past 90 days. Profit forecasts for this year and next year jumped 44.1% and 41.9%, respectively, over the same time period. Five analysts covering the stock submitted upward revisions for this quarter, while four have done so for next quarter. Seven analysts took the same action for this year and six have done so for next year. Earnings per share are forecasted to grow 10.0% over the next 3-5 years. The company's acquisition of National Steel enabled it to expand its capacity from 19 million tons to 27 million tons. The acquisition also presented X with greater economies of scale, increased market share and a greater leverage to the prices of finished steel products. The federal government previously prevented the company from acquiring National Steel in 1984. It finally acquired National Steel's assets in 2003 after the company went bankrupt. Due to an improving cash position, on Apr 25, 2006, the Board of Directors at X declared a dividend of 15 cents per share on its common stock-a 50% increase when compared to its previous dividend of 10 cents per share. This marked the company's third increase since early 2005, which bodes well for those seeking additional income. The company is currently yielding 0.94% and has a five-year average dividend yield of 1.3%. The company's return on equity is slightly better than the industry average-19% 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. Blog Home

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(HVT) - Haverty Furniture breaking out to the upside on strong May sales

Full Analysis On May 1, 2006, HVT announced a 53.3% positive earnings surprise for the first quarter of 2006. Haverty reported EPS of 23 cents versus 14 cents last year, an increase of 64.3%. Sales grew 8.7% to $209 million and income grew a very healthy 292.3% to $5.1 million. For May, same-store sales were up 17.9%, suggesting a potential good result for the upcoming June quarter. Technical Review While the May 1 earnings report didn't really excite the market, the May sales numbers had an explosive effect on the stock price, driving it up over 10% the day of the report. On Tuesday, June 6, the stock rallied to a new 52-week high on heavy volume. Long-term indexes are turning up as Moving Average Convergence Divergence (MACD) indicated a Buy signal on June 2 and the stock crossed above its 200-day moving average on the same day. As Momentum traders are concerned with following strong intermediate- to longer-term trends, the technical indicators that are of most interest are the longer-term trend indicators, not overbought/oversold indicators. Why? Because by definition, Momentum traders are always "Buying high, selling higher." Thus overbought/oversold will always be in an overbought mode, just as a stock gains momentum and becomes interesting to Momentum traders. Longer-term indicators help clear our vision and define trends that we want to trade. Background Haverty Furniture Companies, Inc. is a full-service home furnishings retailer. The company operates showrooms in contiguous southern and central states. Haverty provides its customers with a wide selection of furniture and accessories primarily in the middle to upper-middle price ranges. As an added convenience for its customers, the company offers financing through a revolving charge credit plan. 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. Blog Home

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(VOLV) - Volvo AB - surprised to the upside by 21.0% when it posted first-quarter earnings per share of $1.27

Volvo AB (VOLV), a Zacks #1 Rank stock, recently reported impressive results for the first quarter of 2006, led by higher than expected demand for trucks in both Europe and North America. Furthermore, the company revised its full-year forecast upward for the total market sales of heavy trucks. Analysts covering the stock have grown increasingly optimistic. VOLV has a price-to-book ratio of 2.0-half that of the market average. Full Analysis Volvo AB is one of the world's leading manufacturers of trucks, buses, construction equipment, drive systems for marine and industrial applications and aerospace components and services. The company also provides complete solutions for financing and service. Ford Motor Company (F) acquired VOLV's car division in 1999. On Apr 25, 2006, VOLV surprised to the upside by 21.0% when it posted first-quarter earnings per share of $1.27. The Street was calling for profits of $1.05 per share. When compared to the first quarter of 2005, the company's earnings were up 10.4%. Revenues increased 15.1% to 60.2 billion kronor (euro6.45 billion; US$7.99 billion), compared to 52.3 billion kronor in the prior-year period. Higher than expected demand for trucks in both Europe and North America helped fuel the company's strong quarter. Chief Executive Leif Johansson stated, "Order bookings in North America were extremely high during the first quarter, and we have already sold virtually all our entire annual production for 2006." VOLV's impressive first quarter prompted it to up its sales forecast for the remainder of the year. Sales of heavy trucks in Europe are now projected to be between 270,000 and 280,000, compared to the company's previous forecast of 270,000. Projections in North America are now between 340,000 and 350,000, up from its previous forecast of between 333,000 and 340,000. Furthermore, on May 22, 2006, the company unveiled two completely new distribution trucks-the Volvo FL and the Volvo FE. These vehicles present VOLV with an opportunity to target those looking for new, smaller and lighter trucks. They will also be cleaner, quieter, and safer. Analysts' estimates have been on the rise for VOLV. The consensus earnings estimates for this quarter and next quarter have risen 12.4% and 13.4%, respectively, over the past 60 days. Profit forecasts for this year and next year jumped 7.5% and 8.7%, respectively, over the same time period. The company is currently trading at a valuation of 10.6x trailing 12-month earnings and at 11.0x 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. VOLV has a price-to-book ratio of 2.0, compared to 4.0 for the market. The company's return on equity exceeds that of the industry average-19% compared to 12%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home

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(FTI) - FMC Technologies, Inc. - Energy Systems revenue grew 34 percent over the prior-year quarter

FMC Technologies, Inc. (FTI) is used to beating earnings expectations, having done so in eight out of the past nine quarters. Seven of those earnings surprises have come by double digit percentages. Nine analysts have raised their numbers for 2006, while eight have inreased estimates for 2007. Over the past 40 days, 2006 estimates have jumped 20.1% to $2.92 per share. Full Analysis FMC Technologies, Inc. engages in the design, manufacture, and servicing of machinery and systems for the energy, food processing, and air transportation industries. It operates in four segments: Energy Production Systems, Energy Processing Systems, FoodTech, and Airport Systems. The company reported an excellent first-quarter earnings release. FTI earned $47 million, or 67 cents a share, compared with breakeven a year ago. Analysts estimated earnings of 44 cents a share. First-quarter revenue rose 27.5% from a year ago to $869.3 million. Analysts were estimating revenue of $819.3 million. For fiscal 2006, the company increased its earnings guidance to $2.60 to $2.80 a share from $2.20 to $2.40 a share. Analysts estimated earnings of $2.43 a share. Its inbound orders in the first quarter increased 74.9% to $1.1 billion from the prior-year quarter. Order backlog climbed to $2.2 billion in the quarter on strong subsea inbound orders. Energy systems revenue, which contributed 78.2% to total revenue, increased 34.1% to $679.9 million from a year ago. FoodTech business segment revenue rose 10.2% to $123.3 million and airport systems revenue rose 5.4% to $68.2 million. "We are pleased with the outstanding performance in first quarter. Our results were driven by our subsea systems business as well as our surface systems and fluid control businesses," said Joseph H. Netherland, Chairman, and Chief Executive Officer. "Energy Systems revenue grew 34 percent over the prior-year quarter, Energy Systems operating profit margins were at record levels, and subsea backlog reached $1.4 billion. As a result of this performance and the expectation for high oilfield market activity levels in 2006, we have increased our estimate for full year 2006 earnings per diluted share to a range of $2.60 to $2.80." FTI is used to beating earnings expectations, having done so in eight out of the past nine quarters. Seven of those earnings surprises have come by double digit percentages. Nine analysts have raised their numbers for 2006, while eight have inreased estimates for 2007. Over the past 40 days, 2006 estimates have jumped 20.1% to $2.92 per share. The stock is attractively valued at 19.3x next year's estimates of $3.41 per share, below the long-term growth rate of 23%, giving FTI a PEG ratio of 0.84. 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. Blog Home

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(RY) - Royal Bank of Canada - the first six months of the year, profits increased 21.4%

Royal Bank of Canada (RY) recently reported solid results for its fiscal second quarter and first six months of fiscal 2006. Earnings per share are projected to grow 11.0% over the next 3-5 years. Analysts' earnings estimates for fiscal 2006 and fiscal 2007 have been on the rise. The company has a very impressive current dividend yield of 3.0% and a five-year average dividend yield of 3.6%. Full Analysis Royal Bank of Canada is Canada's largest bank as measured by assets and market capitalization and one of North America's leading diversified financial services companies. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. On May 26, 2006, RY reported second-quarter fiscal 2006 profits of $1.1 billion, compared to $907 million in the prior-year period. Revenues from continuing operations were up $436 million to $5.1 billion. The increase was attributed to higher wealth management and banking volumes, along with record trading results. For the first six months of the year, profits increased 21.4%, or $403 million, when compared to the first six months of fiscal 2005. Revenues increased $623 million, or 7%, fueled once again by the segments discussed above. Earnings per share are projected to grow 11.0% over the next 3-5 years. Having already established a solid base in Canada, RY has been turning its attention to the U.S. market in recent years, which now makes up about one quarter of the company's revenue. This percentage is expected to rise in the near future. Analysts' earnings estimates for 2006 and 2007 have been on the rise. The consensus estimate for this year currently resides at $2.98-an increase of 3.5% over the past 60 days. Profit forecasts for next year increased 4.6% to $3.19 per share over the same time period. On May 26, 2006, RY announced its intention to repurchase up to seven million shares of its common stock. The Toronto Stock Exchange must approve the buyback before it becomes official. Furthermore, the company declared a quarterly dividend of $0.36 per common share of stock, payable on Aug 24, 2006, to shareholders of record as of Jul 26, 2006. RY has a current dividend yield of 3.0% and a five-year average dividend yield of 3.6%. The company's return on equity of 13% is in line with the industry average. RY 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. Blog Home

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(CACH) - jumped right into the second quarter by posting a same-store sales rise of 11% in April, with total sales jumping 12%

Cache, Inc. (CACH), a Zacks #1 Rank stock, began the second quarter on a high note, reporting a solid increase in April and May same-store sales. Consensus earnings estimates have been trending higher for this year and next. The company plans to introduce its new Cache Luxe concept in September. CACH has a price-to-book ratio of 2.6 and a PEG ratio of 0.89. Full Analysis Cache, Inc. is a nationwide, mall-based, specialty retailer of sophisticated, social-occasion sportswear and dresses targeting style-conscious women between the ages of 25 and 55. As of early June, the company operated 306 Cache and Lillie Rubin stores in the United States-each of which carries its own distinctive branded merchandise. On May 5, 2006, CACH reported first-quarter profits of 11 cents per share, which were in line with the consensus earnings estimate. The company also posted earnings per share of 11 cents in the prior-year period. Net sales rose 1.6% to $63.8 million, while comparable store sales (sales in stores that have been open for more than one year) gained 1%. The company's first-quarter results were at the high end of its revised guidance. CACH jumped right into the second quarter by posting a same-store sales rise of 11% in April, with total sales jumping 12%. Furthermore, May's same-store and total sales each rose 6%. The company continues to be aggressive with the opening of new stores. By the end of 2006, CACH plans to have 320 stores in operation. CACH increased revenues for the past nine years and expanded gross margins for the past six. Profits have grown for five years running. On May 15, 2006, CACH announced that it will close its Lillie Rubin stores, a sportswear chain catering to women between the ages of 35 and 55, and open a new concept, Cache Luxe. The company will offer an elevated selection of casual and day-into-evening sportswear and accessories at higher price points through the Cache Luxe concept, slated to open in September. Analysts covering the stock have grown increasingly optimistic about the company's future prospects. The consensus estimate for this year currently resides at $1.13—an increase of 21.5% over the past 30 days. Profit forecasts for next year increased 6.1% to $1.22 over the same time period. CACH has a price-to-book (P/B) multiple of 2.6 and a PEG ratio of 0.89. The P/B multiple of the market, as represented by the S&P 500, is currently 4.0. Furthermore, the stock trades at a valuation of 15.0x its current fiscal-year estimated earnings, with the market trading at 15.4x estimated earnings. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home

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(IDCC) - Interdigital Communications, a change for the better?

Full Analysis On May 4, IDCC reported first quarter earnings of 23 cents per share, up from a loss of 2 cents per share in the same quarter a year earlier. IDCC's earnings represented a 28% positive surprise over analysts' consensus estimates. Sales were reported at $51.6 million for the quarter, a growth of 33.7% from last year while income grew 223.5% to $12.9 million. Technical Review Things started to get interesting technically for IDCC on Jan 24, 2006 when the stock gapped up on the open and managed to close 34% higher for the day on very heavy trading volume. Despite a negative earnings surprise for fourth quarter earnings, released on Mar 9 of this year, the stock has never managed to fill that gap. Now the stock is making 52-week highs on heavy volume and has no important technical resistance in sight. Why are unfilled gaps such an important tool for Momentum traders? Look at it this way. On most trading sessions, there are very few influential changes to a company's fortunes between the close of yesterday's session and the opening of today's. Thus the stock price should open near where it closed the day before. When a significant change in a company's fortunes occur while the market is closed, a sharp increase or decrease can occur in the next day's opening price. If that increase or decrease occurs outside of the previous day's trading range, it leaves a visible gap on the charts. Usually this is a knee-jerk reaction to the news, and once traders have time to reflect, the market usually gives up much of that knee-jerk reaction, thus 'filling the gap'. On rare occasions, the underlying news is so significant that it changes the basic fundamentals of a stock, and the gap is never filled. Thus, Momentum traders view unfilled gaps as a visual sign that the basic fundamentals of a company have changed. That's what we see in IDCC... a change for the better. Background INTERDIGITAL COMMUNICATIONS develops and markets advanced digital wireless telecommunications systems using proprietary technologies for voice and data communications and has developed an extensive patent portfolio related to those technologies. 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. Blog Home

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(ALL) - the company surprised to the upside by an impressive 27.7%

The Allstate Corporation (ALL), a Zacks #1 Rank stock, recently topped the Street's earnings estimate by 27.7% when it posted first-quarter profits of $2.12 per share. Furthermore, the company recently upped its full-year 2006 earnings guidance. Analysts' profit forecasts have been trending higher for this year and next. The company is currently trading at a discounted valuation, with a price-to-book ratio of 1.7. Full Analysis The Allstate Corporation, through its two segments, Allstate Protection and Allstate Financial, engages in the personal property and casualty insurance business, as well as in the life insurance, retirement and investment products business. On Apr 18, 2006, ALL posted first-quarter profits of $2.12 per share. With analysts covering the stock expecting $1.66, the company surprised to the upside by an impressive 27.7%. Earnings per share in the prior-year period amounted to $1.69. Consolidated revenues were up 4.6% to $9.1 billion. In addition to posting solid results for the first quarter, the company raised its full-year 2006 earnings guidance to between $6.00 and $6.40 per share, versus its previous outlook between $5.60 and $6.00 per share. Analysts covering the stock have been upping their earnings estimates for 2006, as well as for 2007. The consensus estimate for this year currently resides at $6.49—an increase of 8.2% over the past 60 days. Profit forecasts for next year increased 4.7% over the same time period. Six analysts covering the stock submitted upward earnings revisions for this year while five did so for 2007. On Feb 21, 2006, ALL increased its quarterly dividend by 9.4% to 35 cents per share. The 35-cent per share dividend was maintained the following quarter and will be paid on Jul 3, 2006 to stockholders of record at the close of business as of May 31, 2006. The company has a current dividend yield of 2.5% and a five-year average dividend yield of 2.3%. ALL has a price-to-book (P/B) multiple of 1.7. The P/B multiple of the market, as represented by the S&P 500, is currently 4.0. Furthermore, the stock trades at a valuation of 8.5x its current fiscal-year estimated earnings, with the market trading at 15.7x estimated earnings. With the U.S. hurricane season projected to be quite active yet again, ALL has prepared accordingly. Beginning in January, the company embarked upon a $2 billion nationwide reinsurance plan in an effort to lessen catastrophic risk and provide its shareholder base with at least some earnings protection. 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. Blog Home

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(BDC) - Belden CDT sets new highs, weeks after a positive earnings report

Full Analysis On Apr 27, BDC reported earnings of 35 cents per share, representing a 75% increase over last year and a 30% positive earnings surprise. Sales were $322 million, down 4.7% from last year. Income was also down 11.5% to $16.64 million as compared to the year-earlier period. Technical Review BDC has a history of beating the general market as it has done in the last three years. For 2006, the stock is up 34%, also easily out performing the general market. The earnings report propelled BDC to new 52 week highs on heavier-than-normal volume. Interestingly, in the weeks since the earnings report, BDC has continued its momentum, setting new 52-week highs as recently as last Friday, also on heavy volume. The fact that the stock has continued to set new highs well after the earnings report bodes well for the future. Friday’s close was the highest price BDC has seen since Mar 15, 2001. The stock bottomed out at $8.90 on Mar 11, 2003 and has been in a gentle uptrend ever since. Nothing too wild, no over-extension of the stock price, but a nice dependable uptrend. Since the stock has continued to move higher in the weeks since the earnings report, Momentum traders can assume that BDC has yet to reach a point where the positive news has been discounted. The acceleration of volume that the stock has seen since the earnings report can be taken to mean that the general public is becoming more aware of the improvements in expectations at BDC. Background Belden CDT Inc. is one of the largest U.S.-based manufacturers of high- speed electronic cables and focuses on products for the specialty electronics and data networking markets, including connectivity. 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. Blog Home

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(CSR) - Analysts covering the stock have been upping their earnings estimates for 2006

Credit Suisse Group (CSR) recently announced that all segments reported improved earnings in the first quarter relative to the prior-year period. Earnings per share are projected to grow 18.6% over the next 3-5 years. Analysts' profit forecasts have been trending higher for this year and next. The company is currently yielding 1.7% and has a five-year average dividend yield of 2.1%. Full Analysis Credit Suisse Group is a global financial services company. CSR operates in six segments: private banking, corporate & retail banking, institutional securities, wealth & asset management, life & pensions and non-life. CSR earned CHF2.6 billion ($2.1 billion) in the first quarter of 2006, up from CHF1.91 billion in the prior-year period. Revenues increased 29% to CHF21.78 billion ($17.59 billion). Furthermore, the company brought in CHF31.1 billion in net new assets, more than doubling the CHF15.4 billion added in the first quarter of 2005. While CSR didn't provide an earnings outlook, the company stated its global growth should continue through 2007. Analysts covering the stock have been upping their earnings estimates for 2006, as well as for 2007. The consensus estimate for this year currently resides at $4.97—an increase of 4.9% over the past 60 days. Profit forecasts for next year increased 7.9% to $5.45 per share over the same time period. On May 31, 2006, CSR and General Electric (GE) are teaming up by launching a $1 billion joint venture ($500 million each) to invest in energy and infrastructure assets, targeting power plants, pipelines, airports, railroads and toll roads located around the world. The market opportunity is estimated at US$500 billion in developed markets and US$1 trillion in emerging markets over the next five years. On April 27, 2006, the company announced plans to merge its private banks Clariden Bank, BGP Banca di Gestione Patrimoniale, Bank Hofmann and Bank Leu plus the securities dealer Credit Suisse Fides to form a single entity called Clariden Leu. The move, which begins in 2007, is an effort to reduce costs. Clariden Leu will focus on wealthy clients, with the merger projected to generate synergies resulting in additional net income of around CHF100 million per annum from 2008. CSR has a current dividend yield of 1.7% and a five-year average dividend yield of 2.1%. The company's return on equity exceeds that of the industry average, 18% compared to 13%. CSR 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. Blog Home

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(HURN) - Four analysts have raised their numbers for 2006

Huron Consulting Group, Inc. (HURN) has met or exceeded earnings estimates for six consecutive quarters. Four analysts have raised their numbers for 2006, while one has done so for 2007. This year's estimates have increased 7% to $1.37 over the past 60 days. Next year's estimates have risen 8.8% over the same time period. The company sports a return-on-equity of 27%, above the industry average of 22%. Full Analysis Huron Consulting Group, Inc. provides financial and operational consulting services in the United States. Its financial consulting services include financial and economic analyses, forensic accounting and expert support, and testimony services for organizations and their law firms in connection with litigation, business disputes, and regulatory and internal investigations; restructuring, turnaround, and bankruptcy advisory services for financially distressed organizations, creditors, and other constituents. The company turned in an excellent first-quarter earnings report. Revenues of $62.2 million for the first quarter of 2006 increased 33.0% from $46.8 million for the first quarter of 2005. The Company's first quarter 2006 operating income was $9.7 million compared to $8.2 million in the first quarter of 2005. Net income was $5.6 million, or $0.36 per share, for the first quarter of 2006 compared to $4.8 million, or $0.29 per share, for the comparable quarter last year. This beat the consensus estimate by 20%. "Huron Consulting Group performed well in the first quarter, driven by strong demand in our Disputes & Investigations practice with its continued work on high profile financial investigations. Our Higher Education and Legal Business Consulting practices also showed impressive growth in the marketplace. The other practices in Huron's balanced portfolio continued to meet our expectations," said Gary E. Holdren, chairman and chief executive officer, Huron Consulting Group. "Demand for Huron's services in the marketplace continues to look robust and we are optimistic about the remainder of the year." HURN anticipates full year 2006 revenues before reimbursable expenses in a range of $263 million to $268 million, operating income in a range of $41 million to $43 million, and between $1.36 and $1.43 in diluted earnings per share excluding secondary offering costs of approximately $0.03 per share. The consensus estimate currently stands at $1.37, so there could be some upside per the company's guidance. Huron has met or exceeded earnings estimates for six consecutive quarters. Four analysts have raised their numbers for 2006, while one has done so for 2007. This year's estimates have increased 7% to $1.37 over the past 60 days. Next year's estimates have risen 8.8% over the same time period. The company sports a return-on-equity of 27%, above the industry average of 22%. 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. Blog Home

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(TRAD) - nearly 27,000 brokerage accounts at the end of the first quarter, a year-over-year increase of 12.5%

Tradestation's unique programming capabilities and commission structure distinguish it from the larger online brokerages and clearly target extremely active traders. The plan is working: TradeStation had nearly 27,000 brokerage accounts at the end of the first quarter, a year-over- year increase of 12.5%. While the growth is impressive, the total number of accounts falls short of E*Trade (ET), but TradeStation makes up ground in commissions. The average customer makes 740 trades a year, versus 15 for the typical E*Trade client. Charles Norton and Allen Gillespie, editors of the Supernova Stocks newsletter, discuss the recent May swoon as well as price and volume action. Learn what these featured experts have to say about the market's next move. Also, find out which company said it would buy back 16% of its outstanding stock and boosted its dividend. Afterward, read about an electronic trading platform stock that is programmed for profit. Commentary Will he, or won't he - that is the question. Of course, Charles Norton and Allen Gillespie are referring to the market's persistent focus on the intentions of new Fed Chairman Ben Bernanke and the likelihood that he will pause at the FOMC's next meeting on June 29, or whether it will be the August 8. That six week difference, it seems, equates to billions of dollars in stock market value that evaporated in the sessions following the May 10 FOMC meeting. Every economic data point and every word from every Fed governor is being analyzed by equity investors in an effort to gauge the Fed's next action (or inaction). Besides investors' uncertainty surrounding the Fed, another possible cause of the recent May swoon in equities is the reported liquidation of $3 billion hedge fund Saranac Capital Management. Meanwhile, corporate bond investors remain confident about company's future profitability, as spreads remain tight. With stocks relatively cheap when compared to corporate bonds, stock buybacks and other shareholder friendly activities are picking up steam. American Express (AXP), for example, said it would buy back 16% of its outstanding stock and boosted its dividend. But at the end of the day, price and volume action, as well as the behavior of market-leading stocks, are the best data points to determine the market's next move. The all-clear will be sounded on a follow through day, which is a heavy volume up day that normally occurs four to seven trading days from the low. In the meantime, Norton and Gillespie are continuing to scour for the next potential leaders. Programmed for Profit: The Business Driver Thanks to TradeStation Group, Inc. (TRAD), stock brokers and institutional money managers can trade in real-time with sophistication and precision from anywhere in the country - including their homes. TradeStation keeps them connected to Wall Street at all times. Headquartered in Plantation, Florida, TradeStation is an electronic trading platform that offers state-of-the-art direct market access (DMA) order execution. For 15 years, clients have been able to design, test, optimize, monitor and automate their own custom trading strategies. Tradestation's unique programming capabilities and commission structure distinguish it from the larger online brokerages and clearly target extremely active traders. The plan is working: TradeStation had nearly 27,000 brokerage accounts at the end of the first quarter, a year-over-year increase of 12.5%. While the growth is impressive, the total number of accounts falls short of E*Trade (ET), but TradeStation makes up ground in commissions. The average customer makes 740 trades a year, versus 15 for the typical E*Trade client. More trading equals more revenue. The average TradeStation account delivers roughly $4,000 a year in revenue, 8 times the $500 that comes from the typical E*Trade customer. In a business where commissions account for 89% of revenues, that's a necessary edge over the competition. TradeStation ranked higher in client evaluations than formidable peers like TD Ameritrade (AMTD), Charles Schwab (SCHW) and E*Trade. Financial publications consider it best-in-class. In March, the company received the highest rating from Barron's, and it's already won 11 other major awards in 2006. The awards are a result of TradeStation's innovative technology. Its interactive trading assistant, EasyLanguage, allows traders to test, monitor and automate the execution of their trading strategies much more quickly and effectively than before. Using RadarScreen technology, traders can comb through thousands of securities to target buying or selling opportunities based on their strategies, while monitoring quotes, charts and news in real-time. Need to step away from the computer? TradeStation can step in for you. Because EasyLanguage facilitates automatic trade execution according to user-defined rules, there is no requirement to be present throughout the trading session. TradeStation also offers personal support services through registered trade-desk representatives to execute orders for those who desire assistance. The company tapped into another real growth opportunity by targeting large institutional investors in addition to the day-traders. Buy-side traders becoming less and less satisfied with sell-side brokerage firms are embracing direct-access execution for their trading decisions. They are looking for a system that provides the fastest execution at the best possible price - and they're finding it at TradeStation. TradeStation offers it all with the most advanced direct market access order execution. And the company never earns income from marking up customer securities or futures. Now, institutional investors can kiss sell-side firms goodbye. Fundamentals TradeStation's quarterly earnings growth has been phenomenal with year-over-year increases of 100% and 200% in the past two quarters. Sales jumped 36% over the same period last year. On an annual basis, earnings are expected to increase 31% this year and 17% next. The company is also squeezing more profit out of each sale with both operating and net margins expanding year-over-year for three consecutive quarters. In the first quarter, operating margins were a whopping 61%. Net margins in the period were 37%, an increase of over 1,300 basis points from last year. Summary TradeStation's top-notch program, supported by its second-to-none service ensures success for some time to come. Increasingly, investors will be swapping out the old for the new and improved. http://www.zacks.com/experts/featured/view_article.php?art_id=2487&newsletter_id=194 Blog Home

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(CEPH) - solid reputation as a significant biotech marketing player

Nadine Wong, editor of the BioTech Stock Report newsletter, does not know exactly when the bottom of the recent biotech downtrend will be established, but she knows that it will happen. This featured expert gets the sense that it may happen soon. Read her analysis and check out a company that has built a solid reputation as a significant biotech marketing player. Bargain Bin from June 1 The major indices appear to begin a broad-based recovery effort as investors sense that the market is oversold, therefore, renewing some enthusiasm for stocks. For the biotechs, the current correction has certainly reached oversold levels, and investors should certainly be considering establishing or adding to positions in individual stocks. Nadine Wong and her team don't pretend to know exactly when the bottom of this recent biotech downtrend will be established, but they do know that it will happen. They get the sense that we may be getting close to that point. So in their current issue (June 2006), Wong and her team will be sifting through the rubble. One company they have discussed in their June 2006 report is Cephalon (CEPH). Cephalon has built a solid reputation as a significant biotech marketing player through creating markets where none existed for products such as Provigil for narcolepsy and Actiq for breakthrough cancer pain. Cephalon's stock price has had a roller-coaster ride during the past six months as news on product approvals or non-approvals weighed heavily. For investors, the near-term focus is on regulatory action for its treatments, Sparlon (ADHD), Nuvigil (sleeping disorder), and FEBT (pain). Cephalon's shares are attractive below $60. Courtesy: Zacks.com Blog Home

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(UL) - Unilever Shows Strength

Unilever Shows Strength The benefits from the implementation of Path to Growth strategy, the expected cost savings from the overhead simplification project, and strong cash flows are all positives for the future prospects of Unilever (UL). In addition, the simplified management structure should improve operational decisions and the one-to-one equivalence between PLC and NV shares should improve financial transparency. Hence, Unilever PLC ADRs are rated a Buy. Unilever has leading brands such as Knorr, Hellmann's, Country Crock, Becel, and Bertolli Olive Oil. The company's premium ice cream brands are Breyers, Magnum, Ben & Jerry's, and Wall's. Unilever is also the largest seller of packet tea, with leading brands like Lipton and Brooke Bond. The Path to Growth strategy has been successful in terms of increasing the operating margin, even though the company could not sustain the margin above 16%. Leading brands (#1 or #2 positions in the majority of key markets in which they operate) have moved from 75% of sales in 1999 to over 93% of sales. The company has 12 brands with sales of over 1.00 billion Euros ($1.21 billion), compared to only four brands in 1999. Courtesy: Zacks.com Blog Home

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