(PCAR) - PACCAR, Inc. - history of exceeding analysts estimates in 15 out of the past 16 quarters by an average margin of 18.0%

PACCAR, Inc. (PCAR) topped the Street's earnings estimate in 15 out of the past 16 quarters. The company increased revenues, expanded gross margins and grew profits for the past four years. Earnings per share are projected to grow 13% over the next 3-5 years. PCAR's quarterly dividend was raised 20% to 30 cents per share back in late-April. The company is currently yielding 1.6%. Full Analysis PACCAR, Inc. designs, manufactures and distributes light, medium and heavy-duty trucks, under the Kenworth, Peterbilt, DAF and Foden nameplates. The company also participates in the aftermarket distribution of parts worldwide and the manufacture of industrial winches. PCAR has a very strong history of exceeding analysts' earnings expectations, having done so in 15 out of the past 16 quarters by an average margin of 18.0%. Earnings per share are projected to grow 13% over the next 3-5 years, easily surpassing the 6% expected growth rate for the industry. On Apr 25, 2006, PCAR reported first-quarter profits of $342 million, or $2.02 per share, compared to $274 million, or $1.56 per share in the prior-year period. The Street was calling for $1.85, resulting in a 9.2% positive earnings surprise for the company. Revenues grew 15.6% to $3.85 billion. The company is expected to release results for the second quarter today. The Board of Directors declared a 50% stock dividend of PCAR's common stock on Jul 11, 2006, with the new shares to be issued on Aug 10, 2006, to stockholders of record as of Jul 27, 2006. Furthermore, the Board approved a quarterly cash dividend in the amount of 20 cents on each newly-split share. The company's regular quarterly dividend was raised 20% to 30 cents per share back in late-April. PCAR is currently yielding 1.6% and has a five-year average dividend yield of 1.5%. On Jun 1, 2006, PCAR was selected by Industry Week magazine as one of the 50 best manufacturing companies in the United States. In order to qualify, companies must possess impressive three-year performance numbers, including revenue growth, profit margin, asset turnover, inventory turns, return on assets and return on equity. The consensus estimate for this quarter currently sits at $2.08. This marks a 7.2% improvement when compared to the consensus of 90 days ago. Three analysts upped their profit forecasts. For the entire year, analysts are calling for earnings per share of $8.22—an 8.9% jump over the past three months. Three analysts revised their estimates upward. PCAR increased revenues, expanded gross margins and grew profits for the past four years. The company's return on equity of 32% is more than five times greater than that of the industry average. PCAR 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. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(MS) - Morgan Stanley - return on equity of 22% is in line with the industry average

Morgan Stanley (MS), a stock that we first featured on Mar 29, 2006, has continued its winning ways. The company has maintained its Zacks #1 Rank due to its history of topping analysts' expectations while experiencing upward estimate revisions. Earnings per share are projected to grow 12.6% over the next 3-5 years. MS has a current dividend yield of 1.7%. Full Analysis Morgan Stanley is a global financial services firm that operates in four segments: institutional securities, retail brokerage, asset management and Discover. With more than 600 offices in 30 countries, the company's diverse client base includes corporations, governments, financial institutions and individuals. When MS was first highlighted as a Growth and Income stock on Mar 29, 2006, it had topped the consensus earnings estimate for the past three quarters by an average margin of 24.8%. The company continued its winning ways by beating the Street yet again in its most recent quarter, and has now done so in 13 out of the past 15 quarters. Furthermore, and most importantly, it is still a Zacks #1 Rank. On Jun 21, 2006, MS posted second-quarter fiscal 2006 profits of $1.85 per share, surprising to the upside by a solid 28.5%. Earnings were almost a dollar better than the 86 cents per share achieved in the prior-year period. Net revenues soared 48.3% to a new record of 8.9 billion. Chairman and CEO John J. Mack stated, "I could not be more pleased with the outstanding results the employees of Morgan Stanley delivered in the second quarter. There is still a great deal of work to be done, but we are moving aggressively on many fronts and we see significant opportunities to create shareholder value." For the first six months of fiscal 2006, profits and net revenues were up 51.0% and 34.9%, respectively, when compared to the first six months of fiscal 2005. Earnings per share are projected to grow 12.6% over the next 3-5 years. Consensus estimates for this quarter and next jumped 11.4% and 4.2%, respectively, over the past 90 days. Profit forecasts for fiscal 2006 and fiscal 2007 have risen 12.9% and 6.0%, respectively, over the same time period. On May 31, 2006, the Board of Directors declared a quarterly cash dividend of 27 cents per share of common stock. The company's annual dividend was 80 cents per share in fiscal 2000 but has since jumped to $1.08 per share. MS is currently yielding 1.7%. Moreover, the company repurchased approximately 22 million shares of its common stock since the end of fiscal 2005. Its return on equity of 22% is in line with the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(PEP) - PepsiCo, Inc. - weak retail environment for carbonated soft drinks is being countered by the company's lineup of non-carbonated beverages

PepsiCo, Inc. (PEP) recently posted solid results for the second quarter and upped its profit guidance for the full year of 2006. Earnings per share are projected to grow 11.1% over the next 3-5 years. PEP is currently yielding 1.9%, with a five-year average dividend yield of 1.5%. The company increased its annual dividend every year since 1972. Full Analysis PepsiCo, Inc. is a global snack and beverage company that operates in four divisions: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. On Jul 13, 2006, PEP topped the consensus estimate of 77 cents by 3.9% when it posted second-quarter earnings per share of 80 cents. In the prior-year period, the company achieved profits of 70 cents per share. Revenues jumped 11.7% to $8.6 billion. PEP's solid quarter was fueled by strong sales of non-carbonated drinks such as Gatorade and Aquafina water. For the first six months of the year, revenues and profits were up 10.5% and 14.3%, respectively, when compared to the first six months of 2005. As a result, the company raised its full-year 2006 earnings per share outlook to at least $2.95. PEP's prior guidance called for $2.93. Earnings per share are projected to grow 11.1% over the next 3-5 years. The weak retail environment for carbonated soft drinks is being countered by the company's lineup of non-carbonated beverages, including double-digit growth in Gatorade, Aquafina, Lipton ready-to-drink teas, Tropicana juice drinks and Propel. Furthermore, PEP announced a partnership with juice maker Ocean Spray Cranberries Inc. to co-develop beverages, helping the company expand its current lineup of non-carbonated, non-cola drinks. PEP's Smart Spot-eligible products grew at a double-digit rate during the second quarter. The initiative places green Smart Spot symbols on products that offer a healthier alternative. On Jul 21, 2006, the Board of Directors declared a quarterly dividend of 30 cents per common share of stock. The dividend is payable Sep 29, 2006 to shareholders of record as of Sep 8, 2006. PEP is currently yielding 1.9%, with a five-year average dividend yield of 1.5%. When the company bumped its dividend to 30 cents per share in early May, it marked the 34th straight increase in its annual dividend. PEP's ability to generate cash flow has been quite impressive. In 2005, operating cash flow was $5.9 billion, representing a 15.8% year-over-year increase. Approximately $6.2 billion of operating cash flow is expected in 2006. PEP 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. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(MOT) - Motorola, Inc. - return on equity crushes that of the industry average-19% compared to 9%

Motorola, Inc. (MOT) exceeded analyst's earnings expectations in 11 out of the past 12 quarters. The company recently posted record quarterly revenues, fueled by its mobile devices business segment. MOT shipped its 50 millionth Razr since the handset was introduced, and unveiled two new models at its annual analysts' meeting. The company has a current dividend yield of 0.93% and a five-year average dividend yield of 1.1%. Full Analysis Motorola, Inc. is a communications company that designs, manufactures, markets and sells mobility products worldwide. The company operates in four segments: mobile devices, government and enterprise mobility solutions, networks and connected home solutions. Investors have grown accustomed to MOT exceeding analysts' earnings expectations, having done so in 11 out of the past 12 quarters (in one quarter the company matched the Street's estimate). The company's most recent surprise occurred on Jul 19, 2006, when MOT posted second-quarter profits that came in at a penny better than what analysts were expecting. Revenues of $10.9 billion were not only up 29.8% when compared to the $8.4 billion achieved in the prior-year period, but also marked a new record. For the first six months of the year, profits came in at $2.1 billion, up from $1.6 billion. Revenues amounted to $20.5 billion-a 26.5% jump from the $16.2 billion in the first half of 2005. Looking ahead to the third quarter, MOT projects sales between $10.9 billion and $11.1 billion, which would represent an increase of 20% to 23% versus the prior-year quarter. The growth is expected to be fueled by its mobile devices business segment. MOT shipped its 50 millionth Razr since the handset was introduced to the world in the fourth quarter of 2004. Furthermore, at the company's annual analysts' meeting, two new Razr phones were unveiled-the Krzr and the Rizr. The Krzr should hit stores in the third quarter, with the Rizr available in the fourth quarter-just in time for the holidays. MOT shipped 51.9 million mobile handsets, up 53% compared to the second quarter of 2005. The company successfully launched 11 new handsets in several different markets. With retail stores established in different parts of China, the company should experience further growth in the second half of 2006. The company was able to generate $500 million of operating cash flow during the second quarter. This marked the 22nd straight quarter in which operating cash flow was positive, and has enabled the company to offer a current dividend yield of 0.93%. MOT's five-year average dividend yield is 1.1%. The company will also repurchase $1.2 billion of its common shares two years ahead of schedule, with $4.5 billion to be bought back over the next 36 months. MOT's return on equity crushes that of the industry average-19% compared to 9%. MOT 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. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(LUFK) - Lufkin Industries, Inc. - For the first half of the year, profits rose an eye-popping 82.1%

Lufkin Industries, Inc. (LUFK), a Zacks #1 Rank stock, recently posted impressive results for the second quarter and first six months of 2006. Consequently, the company lifted its earnings guidance for the full year. LUFK exceeded analysts' estimates for nine consecutive quarters. The company has a price-to-book ratio of 2.8 and a PEG ratio of 0.55. Full Analysis Lufkin Industries, Inc. manufactures and sells oil field pumping units and power transmission products worldwide, along with highway trailers in the South Central United States and Mexico. The company mainly sells its products to oil and gas companies and various industries, as well as to small- and medium-size fleet freight-hauling companies through a dealer network. When LUFK posted second-quarter profits of $1.16 per share on Jul 19, 2006, it marked the ninth straight quarter in which the company surprised to the upside. Analysts were calling for $1.02 per share. Compared to the second quarter of 2005, earnings were up a stellar 63.4%. Revenues came in at $147.7 million, an increase of 21.4% from the $121.7 million reported in the prior-year period. For the first half of the year, profits rose an eye-popping 82.1% to $32.6 million, while revenues jumped 26.0% to $281.1 million. Due to LUFK's strong second quarter and first half of the year, coupled with its $208.3 million backlog, the company upped its profit outlook for the entire year. LUFK now expects earnings per share between $4.17 and $4.57, versus its previous guidance between $3.75 and $4.25. Furthermore, the company projects third-quarter profits between $1.00 and $1.20 per share, a substantial increase when compared with the 76 cents achieved in the third quarter of 2005. The Board of Directors increased its quarterly dividend by 36.4% to 15 cents per share in early May. The company has a current dividend yield of 1.1% and a five-year average dividend yield of 2.2%. Consensus estimates have been trending higher since LUFK released its second-quarter numbers and revised guidance. Profit forecasts for this quarter and next are up 5.6% and 4.4%, respectively, over the past seven days. Estimates for this year and next each jumped by 25 cents to $4.50 and $5.25 per share, respectively, over the same period of time. Earnings per share are expected to grow 23.0% over the next 3-5 years. LUFK is currently trading at a valuation of 14.3x trailing 12-month earnings and at 12.6x 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 15.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.8, compared to 3.8 for the market. LUFK's PEG ratio is 0.55 and its return on equity exceeds that of the industry average-22% compared to 20%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(RDN) - Radian Group, Inc. - beat the Street's earnings estimate by an impressive 14.7%

Radian Group, Inc. (RDN), a Zacks #1 Rank stock, made it 10 quarters in a row of topping the Street's estimate when it posted second-quarter profits of $1.79 per share. Earnings per share are projected to grow 10.7% over the next 3-5 years. RDN has a price-to-book ratio of only 1.4, compared to 3.8 for the market, and a PEG ratio of 0.93. Full Analysis Radian Group, Inc. is a global credit risk management company offering products and services to three primary business lines: mortgage insurance, financial guaranty and financial services. RDN makes a habit out of topping analysts' earnings expectations, having done so for the past 10 quarters by an average margin of 11.9%. Earnings per share grew 10.2% over the past five years and are projected to grow at a slightly higher rate going forward-10.7% over the next 3-5 years, which is in line with the forecasted growth rate of RDN's industry. On Jul 19, 2006, RDN beat the Street's earnings estimate by an impressive 14.7% when it posted second-quarter profits of $148.1 million, or $1.79 per share. In the second quarter of 2005, the company's earnings amounted to $1.56 per share. Since the release of its second-quarter numbers, analysts have been upping their profit forecasts. Four analysts revised their estimates upward for this quarter, while three did so for next quarter. Consensus estimates for this quarter and next currently stand at $1.49 and $1.51, respectively. Five analysts submitted upward revisions for this year and four followed suit for next year, with consensus estimates at $6.47 and $6.75 per share, respectively. On May 9, 2006, the Board of Directors declared a quarterly dividend of two cents per common share of stock, leading to a dividend yield of 0.1%. Not much of a yield but the company does exceed the industry's average of 0.0%. RDN is currently trading at a highly-discounted valuation of 9.6x trailing 12-month earnings and at 9.9x 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 only 1.4, compared to 3.8 for the market. RDN's PEG ratio is 0.93 and its return on equity of 15% is in line with that of the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(SON) - Sonoco Products Company - exceeded analysts' earnings expectations on eight occasions, while matching estimates three times

Sonoco Products Company (SON), a Zacks #1 Rank stock, met or topped the Street's earnings estimate for the past 11 quarters. After posting solid results for the first six months of 2006, the company raised its earnings per share outlook for the full year. SON has a price-to-book ratio of 2.5, compared to 3.8 for the market. Full Analysis Sonoco Products Company is a manufacturer of industrial and consumer packaging products, and a provider of packaging services. The company serves the paper, textiles, films, food, chemicals, pharmaceuticals, packaging, construction and wire and cables markets. Over the past 11 quarters, SON exceeded analysts' earnings expectations on eight occasions, while matching estimates three times. During this period of time, SON's average surprise amounted to 9.2%. On Jul 19, 2006, the company beat the Street by a penny when it posted second-quarter profits of 49 cents per share. Compared to the prior-year period, earnings were up 8.9%. Net sales came in at $917 million, up 4.4% when compared to the $878 million achieved in the second quarter of 2005. For the first six months of 2006, net sales jumped 2.6% to $1.7 billion, while profits soared 22.4% to $94.5 million. With results for the first half coming in better than expected, SON raised its earnings per share outlook to the upper range between $2.07 and $2.10. On Apr 19, 2006, the company raised its 2006 profit guidance to the upper range between $1.96 and $1.99 per share from its prior guidance between $1.90 and $1.94 per share. Analysts are growing increasingly optimistic about SON's future earnings potential. Consensus estimates for this quarter and next are up 5.7% and 5.5%, respectively, over the past 30 days. Profit forecasts for this year and next have risen 5.0% and 5.1%, respectively, over the same period of time. The Board of Directors declared the company's 325th consecutive quarterly dividend on Jul 19, 2006. The 24-cent dividend will be paid on Sep 8, 2006, to shareholders of record as of Aug 18, 2006. SON has a current dividend yield of 2.9% and a five-year average dividend yield of 3.3%. Healthy cash flows from operations have also enabled the company to repurchase 2.5 million shares of its common stock for approximately $83 million during the first six months of 2006. The company's return on equity exceeds that of the industry average-16% compared to 14%. SON is currently trading at a valuation of 16.3x trailing 12-month earnings and at 15.4x 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 2.5, compared to 3.8 for the market. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(CTBK) - CityBank - proven that it can deliver positive earnings surprises

Full Analysis With their Jul 12 earnings report, CTBK has now delivered four straight positive earnings surprises. Most recently, the company reported second quarter earnings of 88 cents per share versus 50 cents last year. That number represented a positive 15.8% surprise over analysts' consensus estimates. Sales grew 33.6% to $25.4 million. Technical Analysis CTBK began its current bullish trend when it bottomed out on Apr 4, 2003 at $22.00. With the uptrend over three years old, you might forgive investors for being cautious about establishing new positions. Still, CTBK shows little sign of topping out. The company set a 52-week high on Tuesday, a full 13 days after the earnings report was released. CTBK has proven that it can deliver positive earnings surprises, and the market is rewarding the stock with increasing prices -- a perfect combination for Momentum investors. Background CityBank is a full service bank that has offices throughout Snohomish and north King Counties (the area north of metropolitan Seattle). The bank offers a broad range of products and services from retail banking, residential construction lending, mortgage lending, and banking for small to mid-sized businesses. The bank has also offered alternative investment services to its clients through registered representatives employed by both the bank and a local broker-dealer. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(ALB) - Albemarle Corporation - company topped analysts' earnings expectations by an average margin of 24.4% during the past three quarters

Albemarle Corporation (ALB) topped the Street's earnings estimate in eight of the past nine quarters. Earnings per share are projected to grow 13% over the next 3-5 years, compared to a 10% forecasted growth rate for the industry. The company is currently yielding 1.3% and has a five-year average dividend yield of 1.9%. Full Analysis Albemarle Corporation develops, manufactures and markets specialty chemicals worldwide. The company operates in three segments: polymer additives, catalysts and fine chemicals. ALB sells its products to a range of customers, including manufacturers of electronics, building and construction materials, automotive parts, packaging, pharmachemicals and agrichemicals and petroleum refiners. The past three quarters at ALB have been extremely impressive. During this period of time, the company topped analysts' earnings expectations by an average margin of 24.4%. Furthermore, ALB topped the Street's estimate in eight of the past nine quarters. Earnings per share grew 9.4% over the past five years and are projected to grow by a greater rate going forward-12.7% over the next 3-5 years. The growth rate of the industry is forecasted to be 10%. On Jul 24, 2006, ALB surprised to the upside by an impressive 29.0% when the company reported record second-quarter profits of $43.3 million, or 89 cents per share. Net sales amounted to $569 million, up $66 million, or 13.1%, compared to the prior-year period. All three business segments produced improved earnings and margins. For the first six months of 2006, profits ballooned 37.8% to $77.7 million, while net sales came in at $1.176 billion, up $163 million from the first half of 2005. President and CEO Mark C. Rohr stated, "We expect demand and pricing for our products to remain robust in the second half of the year." Due to growing demand from Asia, ALB announced last month that it will build a new plant in China to produce flame retardants. The plant is expected to be in operation by the second half of 2007. While the products will be sold worldwide, a majority will be targeted towards Asia's electronics and construction industries. The consensus estimate for 2006 currently sits at $2.87 per share. When compared to the consensus of 90 days ago, analysts upped their estimates by 4.0%. Profit forecasts for 2007 call for $3.31 per share-representing a 4.4% increase over the same period of time. The company is currently yielding 1.3% and has a five-year average dividend yield of 1.9%. ALB's return on equity is slightly higher than that of the industry average-13% compared to 12%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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(GFI) - Gold Fields, Ltd. - Next year's earnings estimates have dramatically increased over the past two months

Gold Fields, Ltd. is benefiting from soaring gold prices. Next year's earnings estimates have dramatically increased over the past two months. Over that time period, estimates have risen 33.3% to $1.28 per share. The stock is quite cheap given the company's growth prospects and growth rate. Currently, GFI is trading at 16x next year's earnings estimate, well below the company's long-term growth rate of 30.5%, giving the stock a PEG ratio of 0.52. Gold Fields, Ltd. (GFI) is one of the leading precious metals producers in South Africa, with an annual gold production of approximately 4.2 million ounces. The company owns about 62.8 million ounces of mineral reserves. Gold Fields has gold and platinum group metals (PGM) exploration projects in Africa, Australia, Europe, and North and South America. In the last few quarters, management implemented various cost initiatives. One such cost saving project-the Project 100, completed during the fiscal 2005-generated savings that were 40% more than the amount targeted. Project Beyond (initiated in 2004) generated cost savings of R30 million in FY05 and R42 million during the first ninemonths of FY06. The Project is expected to generate additional savings of R20 million in the next quarter and thus remains on track to achieve its targeted cost savings in the range of R60-R80 million in 2006. The company's production is expected to increase dramatically over the next 2-3 years when these growth projects commence. Some of the projects underway are the Arctic Platinum Project (APP) in Finland, Cerro Corona in Peru, and two joint ventures (Fujian Zijin Mining Company and Sino Gold, a joint venture between Gold Fields and Shandong) in China. Arctic Platinum has an estimated resource content of about 14 million ounces of gold. High gold prices bode well for future revenue growth. Despite the strengthening of South African rand relative to the U.S. dollar, higher U.S. dollar gold prices resulted in increased rand gold prices, which more than offset the decline in third quarter production leading to a 22% revenue growth. Going forward, gold prices are expected to remain at high levels. Gold Fields cash flow position remains strong. During the quarter, the company generated US$191 million of cash flow, significantly higher than the prior-quarter level of US$90 million, amid higher earnings. Strong cash flows also assist Gold Fields in pursuing strategic acquisitions-the company recently acquired Bolivar Golds' Choco 10 mine in Venezuela. Next year's earnings estimates have dramatically increased over the past two months. Over that time period, estimates have risen 33.3% to $1.28 per share. The stock is quite cheap given the company's growth prospects and growth rate. Currently, GFI is trading at 16x next year's earnings estimate, well below the company's long-term growth rate of 30.5%, giving the stock a PEG ratio of 0.52. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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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