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Thursday, July 06, 2006

(ABBI) - next year's estimates have risen 14.9% to $1.16 per share. The stock is attractively valued at 20.7x next year's estimates

Abraxis BioScience, Inc. (ABBI) has exceeded estimates in 11 out of the past 16 quarters. Earnings estimates have been moving solidly higher. Over the past 60 days, this year's estimates have increased 11.7% to 86 cents per share, while next year's estimates have risen 14.9% to $1.16 per share. The stock is attractively valued at 20.7x next year's estimates, below the long-term growth rate of 22.50%, giving the stock a PEG ratio of 0.92.

Full Analysis

Abraxis BioScience, Inc. operates as a biopharmaceutical company in North America. It develops, manufactures, and markets injectable products for the treatment of cancer and various life-threatening diseases. The company, using nab platform, developed ABRAXANE product, for the treatment of metastatic breast cancer.

The company reported earnings of 37 cents per share for the first quarter, above last year's 33 cents per share. Net sales increased 19 percent to $143.8 million compared with net sales of $120.7 million in the 2005 first quarter. On April 18, 2006 subsequent to the end of the first quarter, APP completed the merger with its parent company, American BioScience, to form Abraxis BioScience.

"This has been a transforming quarter for Abraxis BioScience, a quarter that reaffirms our commitment to establishing a company with a unique business model that is poised to be a leading player in this competitive marketplace," said Patrick Soon-Shiong, M.D., chairman and chief executive officer of Abraxis BioScience. "We've moved ahead on all facets of our business. We have completed our merger, announced significant agreements with AstraZeneca that not only double the number of sales representatives selling ABRAXANE and increases the promotional investment for ABRAXANE but also significantly increase our current injectables business, and added to our manufacturing capabilities with the purchase from Pfizer of a European and US compliant manufacturing complex in Puerto Rico. All of these events continue to support our strategic plan to build Abraxis BioScience into a global company focused on critically ill patients."

In April, AstraZeneca inked a $200 million deal with Abraxis BioScience to co-promote their cancer drug Abraxane in the United States. AstraZeneca also announced that it was selling its U.S. anesthetics and analgesic products to Abraxis for $350 million. Subject to approval by U.S. regulators, AstraZeneca said it will pay $200 million to Abraxis for co-promotion rights for 5 1/2 years. AstraZeneca will provide sales representatives to support Abraxane and will fund half of the promotional and advertising program.

The company has exceeded estimates in 11 out of the past 16 quarters. Earnings estimates have been moving solidly higher. Over the past 60 days, this year's estimates have increased 11.7% to 86 cents per share, while next year's estimates have risen 14.9% to $1.16 per share. The stock is attractively valued at 20.7x next year's estimates, below the long-term growth rate of 22.50%, giving the stock a PEG ratio of 0.92.

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

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(FED) - exceeded earnings estimates for four consecutive quarters, three of which registered surprises of more than 10%

FirstFed Financial Corp. (FED) has seen its earnings estimates rise dramatically. Over the past 60 days, this year's estimates have risen 12.5% to $6.28 per share, while next year's estimates have jumped 19.2% to $7.75 per share. The stock is attractively valued at 7.4x next year's estimates. Additionally, FED sports a return-on-equity of 19%, well above the industry's average of 9%.

Full Analysis

FirstFed Financial Corp. operates as the holding company for First Federal Bank of California that provides commercial banking services in California. The bank engages in generating deposits and originating loans. Its deposit products include passbook, money market, and checking accounts, as well as certificates of deposits.

The bank's loan portfolio comprises adjustable mortgage, real estate residential, commercial, construction, and consumer loans. It also offers trust and insurance brokerage services.

First-quarter earnings rose 67 percent, aided by higher net interest income and loan prepayment fees. Earnings increased to $31 million, or $1.83 per share, up from $18.5 million, or $1.10 per share, a year earlier.

Net interest income increased to $67.1 million during the first quarter, up from $50.1 million during the first quarter of 2005. Other income, including income from loan servicing, retail office fees and other fees, more than doubled to $10.2 million from $4.5 million.

The company has exceeded earnings estimates for four consecutive quarters, three of which registered surprises of more than 10%. Year-over-year earnings growth has accelerated to around 70% over the past few quarters. FED has minimal analyst coverage, but one analyst did raise his numbers for this year.

Earnings estimates have been on the rise over the past 60 days. In that time period, this year's estimates have risen 12.5% to $6.28 per share, while next year's estimates have jumped 19.2% to $7.75 per share. The stock is attractively valued at 7.4x next year's estimates. Additionally, FED sports a return-on-equity of 19%, well above the industry's average of 9%.

Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site.

Content Courtesy: Zacks Investment Research

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(EZPW) - This is a stock with strong fundamentals and powerful market momentum

Full Analysis

EZCorp isn't expected to report earnings until Jul 19, but the fireworks began just in time for the Fourth. Last Friday, EZPW raised its guidance for the quarter that ended in June to between 35 and 37 cents per share, well above the consensus estimate of 22 cents. For the full year, EXPW raised its guidance to between $1.85 and $1.80, up about 12% from previous estimates. Noteworthy is the fact that EZPW had positive earnings surprises in six out of the last seven quarters.

Technical Analysis

On Monday, EZPW took off like a rocket, gaining almost 14% on heavy volume. In addition to the explosive move, the stock set new 52-week highs on Monday. With the stock already up 142% for the year, the logical question becomes "Can it still move higher?" The answer is likely yes. EZPW's stock is being driven by dramatic improvements in its earnings potential, so there is real substance behind the breakout of the stock. With no overhead resistance, the stock will now move higher in search of a new supply/demand balance point. This is a stock with strong fundamentals and powerful market momentum. A classic Momentum investor play.

Buying a stock like EZPW always leads to concerns. Many investors just can't pull the trigger on buying a stock making new highs. And yet a stock making new highs already has powerful forces behind it, like EZPW's earnings increases. In addition, by setting new highs, the stock has proven that other investors are willing to put their 'money where their mouth is' (one of the reasons watching volume numbers is so important).

Background

Ezcorp Inc. is engaged in establishing, acquiring, and operating pawnshops which function as convenient sources of consumer credit and as value-oriented specialty retailers of primarily previously-owned merchandise. Through its lending function, the company makes relatively small, non-recourse loans secured by pledges of tangible personal property. The company contracts for a pawn service charge to compensate it for each pawn loan.

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

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(LECO) - analysts were expecting earnings per share of 75 cents, LECO posted 86 cents per share for the first quarter

Lincoln Electric Holdings, Inc. (LECO) managed to beat the consensus estimate by an average margin of 7.85% over the past five consecutive quarters. In late April, the company posted first-quarter earnings of 86 cents per share, which topped analysts' expectations of 75 cents and exceeded the year-prior total. Sales reached a record $468.4 million, which compares to last year's $362.9 million.
Full Analysis

Lincoln Electric Holdings, Inc. is the world leader in the design, development and manufacture of arc welding products, robotic arc-welding systems, plasma and oxyfuel cutting equipment and has a leading global position in the brazing and soldering alloys market.

The company delivered an upside first-quarter earnings surprise on April 26, 2006. While analysts were expecting earnings per share of 75 cents, LECO posted 86 cents per share for the first quarter. The result also topped its year-ago total. During the past five consecutive quarters, Lincoln Electric Holdings managed to beat the consensus estimate by an average margin of 7.85%.

Sales reached a record $468.4 million, which compares to last year's $362.9 million. John M. Stropki, Chairman and Chief Executive Officer, noted that the company's regional strategies continue to progress effectively, resulting in record sales levels across most channels, product segments and markets.

Wall Street has been bullish on earnings estimates for the second quarter and the full year. Current quarterly forecasts of 95 cents per share are 12 cents ahead of the three months-ago levels. Analysts' expectations for 2006 moved up 55 cents over the past 90 trading to the current level of $3.60 per share.

On April 28, 2006, the company declared a cash dividend of 19 cents per share. LECO offers a current dividend yield of about 1.2%. The company's has a five-year average dividend yield of 2.63%.

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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Wednesday, July 05, 2006

(HAL) - topped analysts' expectations by an average margin of 29% over the past five consecutive quarters

Halliburton Co. (HAL), which has topped analysts' expectations by an average margin of 29% over the past five consecutive quarters, will release financial results for the second quarter on July 21, 2006. In mid-April, HAL reported first-quarter income from continuing operations of 90 cents per share, which exceeded the consensus estimate by roughly 2% and outperformed the previous year's result.
Full Analysis

Halliburton Co. is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and KBR. It operates in six segments: Production Optimization, Fluid Systems, Drilling and Formation Evaluation, Digital and Consulting Solutions, Government and Infrastructure, and Energy and Chemicals.

The company has topped analysts' expectations by an average margin of 29% over the past five consecutive quarters. Earnings per share grew 18% over the past five years and are forecasted to grow 12.5% over the next 3-5 years.

On May 17, 2006, The Board of Directors at HAL finalized the terms of the previously announced two-for-one common stock split that will occur in mid July. The company also declared a second-quarter dividend of 15 cents per share on the company's common stock. The company has a current dividend yield of almost 1% and a five-year average dividend yield of 1.97%. Halliburton Co. will release financial results for the second quarter on July 21, 2006.

On April 20, 2006, HAL reported first-quarter income from continuing operations of 90 cents per share, which exceeded the consensus estimate by roughly 2% and outperformed the previous year's result. Dave Lesar, chairman, president, and chief executive officer of Halliburton said, "I am pleased to report another record quarter for the Energy Services Group. We continue to benefit from our strength in North America, where our customers' spending is most concentrated. Our investment in key Eastern Hemisphere markets is also resulting in quality growth."

Analysts have been issuing upward revisions for both the next quarter and full year earnings forecasts. Current second-quarter estimates of 98 cents per share compare to 96 cents three months ago. Expectations of $4.11 per share for the 2006 are 13 cents ahead of the three months-ago levels.

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

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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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(TRW) - has met or exceeded earnings estimates for each of the past nine quarters

TRW Automotive Holdings Corp. (TRW) has met or exceeded earnings estimates for each of the past nine quarters. Four analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have increased 23% to $2.13 per share, while next year's estimates have risen 12.9% to $2.28 per share. The stock is attractively valued 11.8x next year's estimates, in-line with the company's long-term growth rate of 11.6%.

Full Analysis

TRW Automotive Holdings Corp. provides advanced technology products and services for the automotive markets. TRW Automotive is among the world's ten largest suppliers of automotive systems, modules and components to global automotive manufacturers.

TRW is a leading supplier to the OEM producers, with 85% of its revenue being derived from OEMs and 7% tied to the aftermarket. Europe accounts for 55% of the company's sales, North America for 37% and 8% from other areas. Nearly 80% of sales are targeted towards passenger safety.

The company is one of the largest suppliers of automotive chassis and occupant safety products (58% of sales). The company holds a leading position in automotive and commercial steering systems, foundation brake components and systems, seat belt systems, engine valves and valve train systems. The second leading division is Occupant Safety and Systems (29% of sales). This division contains air bags, seat belts, crash sensors, and other safety and security electronics.

TRW Automotive is a global leader in the development and supply of active and passive safety technologies. Increasing focus by the government and consumers on safety and fuel efficiency is likely to propel demand for active and passive safety products. The National Highway Safety Traffic Administration is making it mandatory for vehicles to incorporate a direct tire pressure monitoring system, capable of detecting when one or more tires are significantly under-inflated.

Under the present proposal, 100% compliance is expected by September 2007. Regulatory measures are likely to be a boon for TRW's vehicle stability control systems (VSC), curtain air bags, occupant sensing systems, electrically assisted power steering systems and tire pressure monitoring systems.

TRW has efficiently managed to mitigate the impact of higher raw material costs through cost cutting and efficient supply chain management. Overall cost cutting amounts to nearly $400 million annually. The company is shifting production to low wage areas, improving raw material purchases, and implementing Six Sigma.

The company has met or exceeded earnings estimates for each of the past nine quarters. Four analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have increased 23% to $2.13 per share, while next year's estimates have risen 12.9% to $2.28 per share. The stock is attractively valued 11.8x next year's estimates, in-line with the company's long-term growth rate of 11.6%.

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

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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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(NTG) - improving fundamentals and a strong chart - With no effective overhead resistance, NTG will continue to move higher

Full Analysis

On May 2, Natco reported an excellent quarter with earnings of 41 cents per share, up 193% from last year. It also marked a 32% positive earnings surprise over consensus estimates. All the other vital signs were solid as well, with Sales up 25% to $118 million and Income up 214% to $7.86 million.

Technical Analysis

When you have a stock with such excellent financial performance, what does its chart look like? Pretty much like a rocket taking off and that's what NTG's stock chart looks like right now. NTG set a new 52-week high on Friday on very heavy volume and continued the climb on Monday. With no effective overhead resistance, NTG will continue to move higher until it finds a point where the supply and demand for its stock is in balance. So far in 2006, NTG has yet to find that level.

Buying a stock with a chart like NTG is a difficult thing emotionally. We're trained to 'buy low and sell high' or to look for bargains. Momentum traders are comforted in times like these by reminding themselves that 'buying low' can often only be recognized after the moment. A basic tenant of Momentum investing is that the quickest way to superior returns is to buy good stocks with improving fundamentals at the same time that the market is recognizing that improvement. Such is the case with NTG.

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.

Background

Natco Group Inc. is a leading provider of wellhead equipment, systems and services used in the production of oil and gas. The production equipment and systems are primarily used at or near the wellhead to separate oil and gas within a hydrocarbon stream and to remove contaminants. Separation and decontamination at the wellhead are necessary to meet the specifications of transporters and end users. The products and services are used in onshore and offshore fields in most major oil and gas producing regions in the world.

Content Courtesy: Zacks Investment Research

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(TRN) - company registered an 11.1% earnings surprise for the first quarter of this year

Trinity Industries, Inc. (TRN) has exceeded earnings estimates for five consecutive quarters, with four of them coming by double-digit percentages. Three analysts have raised their numbers for this year, while two have done so for next year. .
As one would expect, earnings estimates have been on the rise. Over the past 60 days, this year's estimates have jumped 15.2%, while next year's numbers have climbed 7.4%. The stock is cheap at 13.6x next year's estimates of $2.91 per share, below the long-term growth rate of 17.77%, giving the stock a PEG ratio of 0.77

Full Analysis

Trinity Industries, Inc., a diversified industrial company, provides various products and services for the transportation, industrial, construction, and energy sectors in the United States. It operates in five groups: Rail, Construction Products, Inland Barge, Energy Equipment, and Railcar Leasing and Management Services. The company's customers include railroads, leasing companies, and shippers, such as utilities, petrochemical companies, grain shippers, and construction and industrial companies.

TRN recently raised their second-quarter earnings guidance due to a strong construction season. The company now sees earnings between 60 cents and 65 cents per share, up from the previous prediction of between 52 cents and 57 cents per share. Both the old and new guidance account for a 3-for-2 stock split on June 9. The current consensus estimate is 62 cents per share for the second quarter.

"All of our business segments continue to perform well, which will result in a stronger second quarter than we anticipated," said Timothy R. Wallace, Trinity's Chairman, President and CEO. "Our rail and barge businesses have exceeded our previous expectations. The weather during the second quarter in the southwestern U.S. has been generally favorable for our Construction Products Group and we have maintained our momentum in the Energy Equipment Group, specifically in the Structural Wind Tower business."

The company registered an 11.1% earnings surprise for the first quarter of this year. Earnings per share of 47 cents (split-adjusted) beat the 42-cent estimate and easily surpassed the 10 cents per share it earned last year.

Trinity received new orders for 12,941 railcars in North America during the first quarter, the highest quarterly order volume since 1998. The Company shipped 6,164 railcars in North America during the first quarter, the highest quarterly total since 1999. From the total shipments, the Company added more than 1,800 new railcars to its lease fleet during the first quarter, bringing the total number of railcars in the fleet to approximately 26,000.

The company has exceeded earnings estimates for five consecutive quarters, with four of them coming by double-digit percentages. Three analysts have raised their numbers for this year, while two have done so for next year. As one would expect, earnings estimates have been on the rise. Over the past 60 days, this year's estimates have jumped 15.2%, while next year's numbers have climbed 7.4%. The stock is cheap at 13.6x next year's estimates of $2.91 per share, below the long-term growth rate of 17.77%, giving the stock a PEG ratio of 0.77.

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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