(LMT) - Stock pick for growth and income - Lockheed Martin Corporation - surprised in nine of the past 10 quarters by an average of 11.2%

Lockheed Martin Corporation (LMT), which was first highlighted as a Growth and Income pick on Feb 2, 2006, continues to impress. The company exceeded analysts' earnings expectations in nine out of the past 10 quarters. Furthermore, LMT recently raised its full-year earnings per share guidance. The company is currently yielding 1.5%, with a five-year average dividend yield of 1.3%. Full Analysis Lockheed Martin Corporation is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. The company operates in five business segments: aeronautics, electronic systems, space systems, integrated systems and solutions and information and technology services. LMT was featured as a Growth and Income pick on Feb 2. At the time, the company was a Zacks #1 Rank due to its history of beating the Street's estimates coupled with rising profit forecasts. Needless to say, things haven't changed much, which is obviously a good thing for investors of LMT. The company surprised to the upside in nine out of the past 10 quarters by an average margin of 11.2%. Moreover, LMT met or topped analysts' expectations in 15 of the last 16 quarters. Higher information technology and satellite sales fueled a strong second quarter. On Jul 25, the company reported a 12.9% positive earnings surprise with profits of $1.31 per share. LMT achieved earnings of 96 cents in the prior-year period. Revenues increased 7.5% to $10 billion. For the first six months of 2006, profits and revenues were up 44.6% and 7.9%, respectively, when compared to the first six months of 2005. Solid financial results pushed LMT to raise its full-year 2006 earnings per share guidance to between $5.10 and $5.30, versus its prior outlook between $4.65 and $4.85 per share. Since the release of its second-quarter results, analysts' estimates have been on the rise. Over the past week, consensus estimates for this quarter and next are up 5.2% and 4.7%, respectively. Seven analysts submitted upward revisions for this quarter while six did so for next quarter. Profit forecasts for this year and next rose 6.9% and 5.0%, respectively, over the same period of time, and reflect upward adjustments by seven analysts. On Jun 22, LMT declared a quarterly cash dividend of 30 cents per common share of stock. The company is currently yielding 1.5%, with a five-year average dividend yield of 1.3%. LMT's return on equity exceeds that of the industry average-26% compared to 17%. With a large percentage of its business coming from the government sector, LMT should continue to benefit from higher defense spending for the remainder of the Bush Administration. Earnings per share are forecasted to grow 10.5% over the next 3-5 years. 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

Click for full article

(HCR) - Growth stock for long-term Baby Boomer play - Manor Care, Inc

Manor Care, Inc. (HCR) met or exceeded analysts' earnings expectations for the past 11 quarters. The company's expansion plans should help fuel future growth. Earnings per share are projected to grow 15.4% over the next 3-5 years. The company is currently yielding 1.3% and has a five-year average dividend yield of 0.90%. Full Analysis Manor Care, Inc. through its operating group HCR Manor Care, provides a range of healthcare services including short-term post-acute medical care and rehabilitation and long-term skilled nursing care. The company operates in two segments: long-term care and hospice and home health. It has been quite some time since HCR missed the Street's earnings estimate dating back to the third quarter of 2003 to be exact. Thus, the company has met or exceeded analysts' estimates for the past 11 quarters-posting positive surprises on eight occasions. On Jul 28 HCR reported profits of 58 cents per share, soaring past its earnings in the prior-year period by 20.8% and surprising to the upside by 7.4%. Revenues climbed 7.2% to $894 million, versus $834 million in the second quarter of 2005. Earnings and revenues also increased sequentially. Chairman, President and CEO Paul A. Ormond stated, 'Each of our major business sectors performed well in the second quarter and we believe there are continuing opportunities across the board, especially in our hospice operations.' In the second quarter, HCR completed the expansion of six skilled nursing centers, with 36 more in progress. As far as new construction, five new skilled nursing centers are being built and one inpatient hospice facility has already opened its doors. With $40 million invested in new construction, expansion and acquisitions, the company's growth prospects are very appealing. Consensus estimates for this year and next year have risen 3.6% and 3.9%, respectively, over the past 90 days. Three analysts upped their profit forecasts for this year while four followed suit for next year. Earnings per share grew 16.2% over the past five years and are forecasted to grow 15.4% over the next 3-5 years. The Board of Directors recently declared a quarterly cash dividend of 16 cents per common share of stock, payable on Aug 28, 2006 to shareholders of record as of Aug 14, 2006. The company is currently yielding 1.3% and has a five-year average dividend yield of 0.90%. HCR's 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

Click for full article

(SII)-Stock #1 Zacks rank-Smith International-profits and revenues were up 68.4% and 30.8%, respectively

Smith International, Inc. (SII), which was first featured as a Growth and Income pick on Feb 23, has maintained its Zacks #1 Rank. The company met or beat analysts' earnings estimates in the past 14 quarters, most recently by 7.6%. SII recently upped its 2006 earnings guidance, and consensus estimates have been trending higher. The company's return on equity tops that of the industry average'24% compared to 21%. Full Analysis Smith International, Inc. is a worldwide supplier of premium products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets. The company operates through its four business units: M-I SWACO, Smith Technologies, Smith Services and Wilson. SII was first highlighted as a Growth and Income pick on Feb 23. At the time, we mentioned that the company was excelling in beatings analysts' earnings expectations and was receiving upward revisions to its earnings estimates. As a result, the company was a Zacks #1 Rank (strong buy). Investors will be happy to know that things have not changed at SII-the company has maintained this coveted status. SII topped the Street's earnings estimate in the past three quarters by an average margin of 7.6%. Furthermore, the company met or beat estimates in the past 14 quarters. Earnings per share grew 26.3% over the past five years. On Jul 25, the company reported second-quarter profits of 57 cents per share, compared to 34 cents in the prior-year period. Analysts were calling for 53 cents. Higher sales across all of its business segments fueled revenue growth of 28.9% to $1.74 billion. For the first six months of 2006, profits and revenues were up 68.4% and 30.8%, respectively, when compared to the first six months of 2005. The company increased revenues, expanded gross margins and grew profits for the past three years. After releasing its results for the second quarter, SII raised its full-year earnings guidance to between $2.35 and $2.45 per share. The company previously forecasted profits between $2.15 and $2.25 per share. Analysts' earnings estimates have been trending higher for SII. Profit forecasts for this quarter and next quarter are up 5.2% and 4.7%, respectively, over the past 30 days. Six analysts upped their estimates for this quarter while five did so for next. Consensus estimates for this year and next year jumped 4.9% and 5.2%, respectively, over the same time period. Profit forecasts were revised upward by eight analysts for this year while seven followed suit for next year. On Jul 21, the Board of Directors declared a regular quarterly dividend of eight cents per share, payable Oct 16 to shareholders of record as of Sep 15. The company has a current dividend yield of 0.71%. SII's return on equity tops that of the industry average'24% compared to 21%. 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

Click for full article

(TWP)-Stock pick-57% above consensus earnings estimates-Trex Company, Inc.

Trex Company, Inc. has exceeded earnings estimates in 11 out of the past 12 quarters, with several of those surprises coming by double-digit percentages. This year's earnings estimates have risen 16% to $1.01 per share over the past 30 days. The stock is quite cheap given its growth prospects. TWP is currently trading at 15x next year's estimates of $1.85 per share, well below the long-term growth rate of 38.65%, giving the stock a PEG ratio of 0.39. Full Analysis Trex Company, Inc. (TWP) and its subsidiaries engage in the manufacture and distribution of wood/plastic composite products for residential and commercial decking and railing applications in North America. It manufactures Trex Wood-Polymer lumber by combining waste wood fibers and reclaimed polyethylene. The company provides three decking product lines, including Trex Origins, which features a smooth surface; Trex Accents that features a smooth surface on one side and an embossed wood grain on the other; and Trex Brasilia, which replicates the look of tropical hardwoods with color variations. TWP reported exceptionally strong second-quarter earnings. The company came in with 47 cents per share, almost 57% above the consensus estimate and well above last year's loss of seven cents per share. Revenue nearly doubled on the company's marketing efforts. Management also guided higher for the year on sales and earnings. Trex now expects 2006 sales to range from $340 million to $350 million and earnings per share to range from 95 cents to $1.05. Analysts, on average, expect 88 cents per share on sales of $358.8 million. "Trex's solid second-quarter results reflect the effectiveness of our 'early buy' promotional programs and consumer brand building campaign, combined with the success of our distributor partners in reaching all segments of the market," said Anthony J. Cavanna, chairman and chief executive officer. The company has exceeded earnings estimates in 11 out of the past 12 quarters, with several of those surprises coming by double-digit percentages. This year's earnings estimates have risen 16% to $1.01 per share over the past 30 days. The stock is quite cheap given its growth prospects. TWP is currently trading at 15x next year's estimates of $1.85 per share, well below the long-term growth rate of 38.65%, giving the stock a PEG ratio of 0.39. 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

Click for full article

(NOV)-Stock pick-Petroleum equipment-National-Oilwell Varco, Inc-cash flows buoyed by peak-cycle commodity prices

National-Oilwell Varco, Inc, has exceeded earnings estimates by at least 10% in each of the past two quarters. Four analysts have raised their estimates for this year, while three have done so for next year. Not surprisingly, earnings estimates have been increasing. Over the past 30 days, this year's numbers have increased 5.9% to $3.41 per share. The stock is trading at 14.1x next year's estimates of $4.68 per share, well below the long-term growth rate of 26.67%, giving the stock a PEG ratio of 0.53. Full Analysis National-Oilwell Varco, Inc, (NOV) formerly National-Oilwell, is a worldwide leader in the design, manufacture, and sale of comprehensive systems, components, products, and equipment used in oil and gas drilling and production worldwide. The company reached its current form following the March-2005 merger between National-Oilwell and Varco International. Following the merger, National-Oilwell Varco re-organized its operations in three business segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services. The Rig Technology segment (accounted for 45% of the company's 2005 revenue) designs and manufactures integrated drilling systems and components for land and offshore drilling rigs. The Petroleum Services & Supplies segment (33%) is comprised of a number of the company's services and consumables, including inspection and quality assurance services for tubular goods, solids controls and rig instrumentation. The Drilling Services segment (22%) sells and rents technical equipment used in the drilling process. With oil and gas producers cash flows buoyed by peak-cycle commodity prices, capital outlays for exploration and production activities should continue trending up over the next few years. This is already showing up in increased demand for drilling equipment, which has helped increase the North American rig count to prior cyclical highs. With limited excess drilling capacity and dayrates growing towards replacement-cost levels, demand for constructing new rigs (newbuilds) and refurbishing existing ones is steadily increasing. NOV has exceeded earnings estimates by at least 10% in each of the past two quarters. Four analysts have raised their estimates for this year, while three have done so for next year. Not surprisingly, earnings estimates have been increasing. Over the past 30 days, this year's numbers have increased 5.9% to $3.41 per share. The stock is trading at 14.1x next year's estimates of $4.68 per share, well below the long-term growth rate of 26.67%, giving the stock a PEG ratio of 0.53. 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

Click for full article

(VSEA)-Stock earnings estimate raised-third quarter of 2006 was record-setting for Varian Semiconductor

Varian Semiconductor has exceeded earnings estimates in each of the past six quarters. Two analysts have raised their numbers for this year and next. Over the past month, this year's estimates have increased 5.9%, while next year's have risen 9.3%. The stock is cheap given the company's growth prospects. Currently, VSEA is trading at 15.9x next year's estimates of $2.00 per share, below the projected long-term growth rate of 18.75%, giving the stock a PEG ratio of 0.85. Full Analysis Varian Semiconductor Equipment Associates, Inc. (VSEA) engages in the design, manufacture, marketing, and servicing of semiconductor processing equipment used in the fabrication of integrated circuits. The company provides ion implantation systems to build the transistors that are the basis of integrated circuits. It offers a range of ion implantation systems for medium and high current, and high energy implant sectors. VSEA reported an excellent fiscal 2006 third quarter. Earnings per share came in at 43 cents, almost 5% ahead of expecations and well ahead of the 34 cents reported last year. Revenue for the third quarter of fiscal 2006 totaled $186.2 million, compared to revenue of $166.7 million for the same period a year ago. Management also guided higher for next quarter. They said they expect between 52 and 58 cents per share versus the old consensus of 49 cents. Chief Executive Officer Gary Dickerson said, "The third quarter of 2006 was a record-setting one for Varian Semiconductor as we shipped more single wafer high current systems than any quarter in our history. We are confident that continued strong demand for our market share leading high current and medium current systems, as well as the growing demand for our high energy and VIISta PLAD plasma doping system, should translate into higher overall market share in 2006 and 2007. The company is committed to enhancing shareholder value as evidenced by its recent doubling of its stock buyback from $100 million to $200 million. VSEA said it has so far spent $87 million for stock repurchases under its existing program. The increased buyback program will be funded using Varian Semiconductor's working capital. VSEA has exceeded earnings estimates in each of the past six quarters. Two analysts have raised their numbers for this year and next. Over the past month, this year's estimates have increased 5.9%, while next year's have risen 9.3%. The stock is cheap given the company's growth prospects. Currently, VSEA is trading at 15.9x next year's estimates of $2.00 per share, below the projected long-term growth rate of 18.75%, giving the stock a PEG ratio of 0.85. 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

Click for full article

(HS)-HealthSpring, Inc.-earned 37 cents per share, 37% above estimates due to enrolling new members

HealthSpring, Inc. reported robust second-quarter earnings and guided higher going forward. Not surprisingly, earnings estimates have been significantly rising. Over the past week, this year's estimates have jumped 27.7% to $1.43 per share. Two analysts raised their numbers. Third-quarter numbers increased 12.5% to 36 cents over the same time period. HS is currently trading at 13.1x this year's estimates, well-below the projected long-term growth rate of 19.38%, giving the stock a PEG ratio of 0.68. HealthSpring, Inc., (HS) through its subsidiaries, operates as a managed care organization in the United States. It focuses primarily on Medicare, the federal government sponsored health insurance program for retired U.S. citizens aged 65 and older, qualifying disabled persons, and persons suffering from end stage renal disease in the states of Tennessee, Texas, Alabama, Illinois, and Mississippi. In addition, the company offers services, including negotiation, monitoring, and quality assurance of contracts with third party healthcare providers; medical management, credentialing, marketing, and product promotion; support services and administration; personnel recruiting and retention; financial services; and claims processing, and other general business office services. The company reported robust second-quarter earnings. HS earned 37 cents per share, 37% above estimates due to enrolling new members through Medicare prescription drug plans and keeeing medical costs and margins under control. Total revenue rose 64 percent to $322.8 million. HealthSpring said it exceeded its expectations for membership, costs ratios and margins, the three most important drivers of the company's earnings. Premium revenue rose 65 percent to $314.2 million during the second quarter. Total Medicare revenue rose 77 percent to $282.3 million and commercial medical insurance revenue rose 1 percent to $31.9 million. Average Medicare premiums rose 4 percent and average commercial premiums rose 1 percent. The company raised earnings guidance for 2006 to a range of $1.26 to $1.36 per share from a range of $1.05 to $1.12 per share. Excluding one-time items, the company sees a profit of $1.32 to $1.42 per share, up from its previous view of $1.12 to $1.19 per share. The company affirmed revenue estimates in a range of $1.25 billion to $1.35 billion for 2006. Analysts forecast earnings of $1.12 per share on $1.28 billion revenue. Not surprisingly, earnings estimates have been significantly rising. Over the past week, this year's estimates have jumped 27.7% to $1.43 per share. Two analysts raised their numbers. Third-quarter numbers increased 12.5% to 36 cents over the same time period. HS is currently trading at 13.1x this year's estimates, well-below the projected long-term growth rate of 19.38%, giving the stock a PEG ratio of 0.68. 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

Click for full article