(AFG) - Over the past four quarters, the company surprised to the upside by an average margin of 15.1%

American Financial Group, Inc. (AFG), which was first featured in mid March, continues to beat analysts' earnings expectations. The company topped the Street�s estimate in four straight quarters and in 11 out of the past 13. AFG recently upped its 2006 earnings guidance. This Zacks #1 Rank stock has a price-to-book ratio of only 1.5, compared to 5.0 for the market. Full Analysis American Financial Group, Inc., through its subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of annuities and various forms of supplemental insurance. When AFG was first introduced as a Value pick in mid March, it proudly held the status of a Zacks #1 Rank stock. In order to wear this crown, a company must post earnings that are exceeding analysts' expectations while receiving upward revisions to its earnings estimates. Five months later, investors will notice not much has changed, as it remains a Zacks #1 Rank stock. AFG topped the Street's earnings estimate in four straight quarters and in 11 out of the past 13. Over the past four quarters, the company surprised to the upside by an average margin of 15.1%. On Aug 1, AFG posted second-quarter profits of $1.16 per share, surpassing analysts� estimates by 8.4% and topping earnings in the prior-year period by 34.9%. Revenues came in at $995 million versus $984 million in the second quarter of 2005. AFG's Co-Chief Executive Officers Craig Lindner and Carl Lindner III jointly stated,"We are making excellent progress toward meeting the company's objectives for 2006. Based on our results through the 2006 second quarter and the trends in our business, we are increasing our 2006 core earnings guidance to between $4.35 and $4.65 per share." Consensus estimates have been on the rise for 2006 as well as 2007. Profit forecasts for this year increased 7.2% over the past 30 days. Analysts upped their estimates by 4.5% for 2007 over the same period of time. Earnings per share are projected to grow 10% over the next 3-5 years. AFG is currently trading at a valuation of 10.8x 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 16.4x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.5, compared to 5.0 for the market. Its return on equity betters that of the industry average -- 14% compared to 11%. 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| VitalStocks Home

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(BDX) - Stock Pick - beaten the Street's estimate for 13 consecutive quarters, including the most recent

Becton, Dickinson and Company (BDX) recently lifted its fiscal 2006 earnings guidance after reporting solid results for the third quarter. The company exceeded analysts� earnings expectation for the past 13 quarters. Consensus estimates have been on the rise for BDX. The company is currently yielding 1.3% and its return on equity nearly doubles that of the industry average�24% compared to 13%. Full Analysis Becton, Dickinson and Company engages in the manufacture and sale of a broad range of medical supplies, devices, laboratory equipment and diagnostic products worldwide. BDX serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. BDX's history of exceeding analysts� earnings expectations should catch the eyes of investors. The company has beaten the Street's estimate for 13 consecutive quarters, including the most recent. Furthermore, BDX met or topped the consensus estimate in 16 straight quarters -- meeting on only two occasions. On Jul 28, BDX reported third-quarter fiscal 2006 profits of $206.4 million, or 81 cents per share. Analysts were calling for 79 cents per share. Compared to the prior-year period, which resulted in profits of $189.7 million, or 73 cents per share, earnings climbed 11.0%. Revenues experienced a 7.3% jump to $1.48 billion�led by a 9% advance in the company's biosciences segment. BDX upped its earnings per share outlook for the full fiscal year 2006 to between $3.26 and $3.27. The company's previous guidance called for profits between $3.18 and $3.22 per share. When compared to fiscal 2005 results, the projection would represent an increase of approximately 13% to 14%. Analysts' optimism about BDX�s future earnings potential continues to grow as well. Since the release of the company's third-quarter numbers, nine analysts raised their estimates for this quarter while four did so for next quarter. For fiscal 2006, nine analysts submitted upward revisions while 10 followed suit for fiscal 2007. Earnings per share are projected to grow 12.5% over the next 3-5 years. The Board of Directors declared a quarterly dividend of 21.5 cents per common share of stock on Jul 25. The company is currently yielding 1.3% and has a five-year average dividend yield of 1.2%. BDX's return on equity nearly doubles that of the industry average�24% compared to 13%. On Aug 14, BDX offered $350 million, or $9.25 per share, for TriPath Imaging Inc. This would effectively purchase the remaining 93.5% of the medical imaging company that BDX doesn�t already own. The purchase of TriPath, which develops products used in cancer detection, would enable BDX to advance its presence in this ever-important market. BDX is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% 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| VitalStocks Home

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(MDTH) - Growth Stock - Two of the past four quarters have seen earnings surprises over 100%

Medcath only has one analyst covering the stock, but he raised his numbers for this year and next. Two of the past four quarters have seen earnings suprises over 100%. As would be expected, earnings estimates have been shooting higher. Over the past month, this year's projections have jumped 31% to 42 cents per share. Similarly, next year's estimates have increased 31% to 85 cents per share. MedCath Corporation (MDTH) engages in the ownership and operation of hospitals in partnership with physicians. The company focuses on the diagnosis and treatment of cardiovascular disease. In addition to hospitals, it owns and/or manages cardiac diagnostic and therapeutic facilities. The company also offers consulting and management services to cardiologists and cardiovascular surgeons. Its services are offered through mobile cardiac catheterization laboratories. As of September 30, 2005, the company owned and operated 12 hospitals with a total of 727 licensed beds in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. MDTH reported fiscal third-quarter earnings that easily surpassed analyst expectations. MedCath reported net income of $5.4 million, or 30 cents per share. This exceeded the consensus estimate by 18 cents, or 150%. That's up from net income of $2.7 million, or 14 cents per share, in the same period last year. Revenue increased 6.3 percent to $191.1 million. "This quarter's solid revenue growth and financial performance reflect the commitment that our organization has made to improving our operations and growing our business, while maintaining our commitment to providing quality care," says Ed French, MedCath's chief executive. "We have re-established operating momentum in certain markets, which is important as we continue to evolve from a development company to a strong operating company with a continued focus on growth." Medcath only has one analyst covering the stock, but he raised his numbers for this year and next. Two of the past four quarters have seen earnings surprises over 100%. As would be expected, earnings estimates have been shooting higher. Over the past month, this year's projections have jumped 31% to 42 cents per share. Similarly, next year's estimates have increased 31% to 85 cents per share. The stock is currently trading at 29.7x next year's estimates, above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.48. 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| VitalStocks Home

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(BCE) - (TI) - (VOD) - Strong Stock Dividends - Seek to Find Good Telecom Yields

Seek to Find Good Telecom Yields, With David Weissman With market volatility expected to continue and investors growing increasingly more concerned about many issues related to the general markets, senior analyst David Weissman, CFA says there are several opportunities to find good telecom stocks with attractive valuations and solid dividend yields within his coverage. We spoke with him recently for his perspective. David, we wanted to discuss with you today the recent economic climate, not to mention the horrific geo-political events and its impact on the telecom investments. What is your overall view at this point? The culmination of conflicts in the Middle East, North Korea and other areas of the world are having devastating effects on economic markets, regardless of whether the investment is technology and telecom related, seasonal or cyclical, small-cap or large-cap. It is important for investors to maintain a long-term investment horizon, diversify in multiple asset types - stock, bonds, cash and tangible assets - and look for solid companies that survive turbulent times like these. Has your overall neutral view on the telecom industry become more negative because of war and other events over the past month? If you look at it from a shorter time horizon, the answer is yes. But, because I also believe that telecommunications is a utility - like electricity, water and other necessities - and the long-term prospects remain intriguing for investors with patience. What can you recommend for investors still interested in maintaining an investment allocation in the telecom industry? During these turbulent market times that may be exacerbated by higher interest rates and continued expectations of inflation, the impact is often more severe in higher-risk telecom and technology equity sectors. If investors are considering an allocation in telecom, it is worth identifying established companies with significant balance sheet strength, strong cash positions, limited debt, and with the ability to effectively improve their business prospects. I look for companies that are offering attractive dividend yields and companies that are large and stable to weather the volatility. Can you give us some examples of respectable dividend-paying telecom companies? Sure. It is rare to find a telecom equipment company paying a dividend. However, most telecom services companies offer some sort of payout to their investors. In that regard, I have identified Embarq (EQ) as offering one of the more attractive dividends in the United States services sector, yielding approximately 5%. Verizon (VZ) is not far behind in terms of a dividend payout, and I believe Verizon would be a more suitable investment as their business is more stable and the company has been around much longer than newly formed EQ, which was the recent spin-off of Sprint's local telephone business. Probably a worthwhile strategy is to couple dividend-paying companies with diversification in foreign countries. Bell Canada (BCE) is also offering an attractive dividend at approximately 4.5% when we last checked. Can you give us some companies outside North America that offer attractive yields? Typically European telecom services companies provide growing dividends to their shareholders. Telecom Italia (TI), for instance, is trading at 13x 2006 earnings and yielding approximately 3.7% in dividends. Vodafone (VOD) is also generating a small return to investors, but it is also growing its wireless business beyond industry expectations, with the possibility of receiving a cash influx should their stake in Verizon Wireless be purchased entirely by Verizon. In other areas, like Asia, Korea Telecom (KTC) is trading at under 10x 2006 earnings and offering approximately 6.8% yield. Similarly, Chunghwa Telecom (CHT), a recognized telecom company in China, is also providing dividends in a similar range. We also surveyed dividend payouts in less stable areas of the world, such as Venezuela. CANTV (VNT) has one of the industries highest dividend yield at nearly 10% of the stock price as it is required to offset political risk. For investors who are less risk-averse and do not restrict investments because of political opinions, this may be something to at least review. David Weissman, CFA is a senior analyst covering the telecommunications industry for Zacks Equity Research. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(FPIC) - Over the past 12 quarters, the company topped the Street's estimate by an average margin of 12.8%

FPIC Insurance Group, Inc. (FPIC), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for 12 consecutive quarters by an average margin of 12.8%. The company has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Its return on equity betters that of the industry average--15% compared to 11%. Full Analysis FPIC Insurance Group, Inc., through its subsidiaries, provides medical professional liability insurance for physicians, dentists and other healthcare providers. The company also offers insurance management services in the United States. It has been a very long time since FPIC posted earnings that fell short of analysts' expectations. One would have to go all the way back to the first quarter of 2003 to witness such an occurrence. Over the past 12 quarters, the company topped the Street's estimate by an average margin of 12.8%. On Aug 8, FPIC posted second-quarter profits of $9.4 million, or $0.87 per share. The results equated to a 4.8% positive earnings surprise. FPIC reported earnings per share of 80 cents in the prior-year period. Total revenues jumped 7.6% to $76.3 million from $70.9 million. For the first six months of the year, revenues climbed 11.7% to $154.2 million while profits increased 9.9% to $18.8 million. The consensus estimate for this quarter currently sits at 92 cents. When compared to the consensus of a week earlier, it has risen by 5.8%. For the entire year, analysts have upped their profit forecasts by 3.5% to $3.57 over the past seven days. The Board of Directors recently authorized the buyback of up to an additional 500,000 shares of its common stock through 2008. The amount is on top of the remaining 44,732 shares authorized for repurchase through 2007. FPIC is currently trading at a valuation of 11.3x trailing 12-month earnings and at 10.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x trailing 12-month earnings and at 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Its return on equity betters that of the industry average--15% compared to 11%. 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| VitalStocks Home

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(PX) - Strong Stock Pick - surprising to the upside on 11 occasions, while matching estimates in 5 quarters

Praxair, Inc. (PX), which was first featured as a Growth and Income pick back in mid December, continues to perform quite well. The company met or topped analysts earnings expectations for the past 16 quarters. After posting solid results for the second quarter, PX upped its 2006 earnings per share guidance. The company is currently yielding 1.8%, with a five-year average dividend yield of 1.5%. Full Analysis Praxair, Inc. supplies atmospheric, process and specialty gases, high-performance coatings and related services and technologies. The company has operations in 40 countries and serves a wide range of industries including food and beverages, healthcare, semiconductors, chemicals, refining, primary metals and metal fabrication, as well as other areas of general industry. PX, which was first highlighted as a Growth and Income pick in mid December, delighted investors by consistently meeting or beating analysts earnings expectations. It's good to see that some things never change. Over the past 16 quarters, the company has yet to report an earnings disappointment, surprising to the upside on 11 occasions, while matching estimates in 5 quarters. On Jul 26, PX posted profits of $247 million, or 75 cents per share. Compared to the prior-year period, earnings were up a healthy 19.1%. The consensus estimate called for 70 cents per share. Revenues advanced 8.3% to $2.08 billion, compared with $1.92 billion a year earlier. Chairman and Chief Executive Officer Dennis H. Reilley stated, While some macro-economic indicators point to a slowdown, we have not seen any significant decline in demand from our customers. New business development, higher prices and better productivity fueled the strong quarter. In addition to releasing solid results for the second quarter, the company upped its 2006 earnings per share projection to between $2.85 and $2.90, versus its previous forecast between $2.74 and $2.82. Revenue is expected to rise 10%. Looking ahead to 2007 and 2008, PX stated that a growing backlog of new projects across all geographic regions should drive sustainable earnings growth. The company increased revenues and grew profits for the past three years, while expanding gross margins for six years running. Over the past 30 days, seven analysts revised their earnings estimates upward for 2006, while four did so for 2007. Earnings per share are projected to grow 12% over the next 3-5 years, with the industry expected to grow at a 9% clip. The Board of Directors declared a quarterly dividend of 25 cents per share on Jul 25. The dividend is payable Sep 15 to shareholders of record as of Sep 7. PX is currently yielding 1.8%, with a five-year average dividend yield of 1.5%. The company�s return on equity is greater than that of the industry average�22% compared to 16%. PX is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% 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. | Blog Home| VitalStocks Home

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(BRNC) - Earnings per share are forecasted to grow a robust 55% over the next 3-5 years, while the industry is projected to grow 38%

Bronco Drilling Company, Inc. (BRNC), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for the past four quarters by an average margin of 16.3%. The company recently reported record revenues for the second quarter. Earnings per share are forecasted to grow a robust 55% over the next 3-5 years. BRNC has a price-to-book ratio of 1.6 and a PEG ratio of 0.14. Full Analysis Bronco Drilling Company, Inc. provides contract land drilling services to oil and natural gas exploration and production companies. BRNC's specialty is drilling in difficult areas, including deviated holes and unstable formations. BRNC posted second-quarter profits of 59 cents per share on Aug 8, marking four consecutive quarters of positive earnings surprises. Analysts were expecting 57 cents per share. During the past four quarters, the average margin of surprise was 16.3%. Earnings per share are forecasted to grow a robust 55% over the next 3-5 years, while the industry is projected to grow 38%. Revenues in the second quarter hit an all-time high at $67.1 million. The company posted revenues of $11.7 million in the prior-year period, marking quite a significant increase. The average number of operating rigs jumped to 43 during the quarter, versus 39 in the first quarter. Analysts' earnings estimates have been on the rise. Consensus estimates for this quarter and next quarter increased 4.7% and 5.6%, respectively, over the past 60 days. Four analysts raised their estimates for both quarters. Profit forecasts for the full years of 2006 and 2007 climbed 5.0% and 5.6%, respectively, over the same period of time and represent upward revisions by four analysts. BRNC is currently trading at a valuation of 12.7x trailing 12-month earnings and at 7.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.6, compared to 5.0 for the market. Taking BRNC's projected earnings growth rate and current fiscal-year estimated earnings into account, the company has a miniscule PEG ratio of 0.14. 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| VitalStocks Home

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(MHP) - Top Stock - Above industry average earnings growth projected

The McGraw-Hill Companies, Inc. (MHP) met or exceeded the Street's earnings estimate for 16 consecutive quarters. After posting solid financial results for the first half of 2006, the company boosted its earnings per share outlook for the remainder of the year. MHP has a current dividend yield of 1.3% and a five-year average dividend yield of 1.6%. The company's return on equity tops that of the industry average—34% compared to 26%. Full Analysis The McGraw-Hill Companies, Inc. provides information services and products to the education, financial services and business information markets worldwide. The company serves its customers through various distribution channels, including printed books, magazines and newsletters, online via Internet Websites and digital platforms, through wireless and traditional on-air broadcasting and through a variety of conferences and trade shows. MHP met or topped analysts' earnings expectations over the past 16 quarters. During this timeframe, the company surprised to the upside on 14 occasions by an average margin of 7.6%. On Jul 25, the company posted second quarter profits of $221 million, or 60 cents per share, which beat the Street by 13.2% and improved upon the prior-year by 17.7%. Revenues increased to $1.53 billion versus $1.46 billion in the second quarter of 2006—a 4.8% jump. Broken down by business segment, financial services revenue rose 13.4% to $677.3 million, the education segment's revenue fell 2.7% to $611.6 million and the company's information and media segment climbed 3.6% to $238.6 million. MHP's information and media area includes Business Week, J.D. Power and Associates and broadcast holdings. For the first six months of the year, profits and revenues were up 7.8% and 7.4%, respectively, when compared to the first half of 2005. The company increased revenues and expanded gross margins for the past nine years. MHP grew profits for four years running. Based on its impressive first-half performance, MHP raised its full-year 2006 earnings per share guidance. The company now expects profits between $2.44 and $2.49 per share, versus its prior outlook for profits between $2.36 and $2.41. Since the release of its second-quarter results, eight analysts submitted upward earnings estimate revisions for this year while seven followed suit for 2007. Earnings per share are projected to grow 12% over the next 3-5 years, with the industry forecasted to grow at an 11% clip. The Board of Directors declared a quarterly dividend of 18.15 cents per share of common stock on Jul 26. The dividend is payable on Sep 12 to shareholders of record as of Aug 28. MHP has a current dividend yield of 1.3% and a five-year average dividend yield of 1.6%. The company's return on equity tops that of the industry average—34% compared to 26%. MHP is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% 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| VitalStocks Home

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(IIVI) - reported fiscal-fourth quarter earnings that easily topped last year's results and the consensus estimate

II-VI Incorporated reported a strong fiscal-fourth quarter and guided higher. The company has met or exceeded analyst expectations in 13 out of the previous 14 quarters. All three analysts covering the stock have raised their estimates for this fiscal year. Over the past month, this year's estimates have risen 9.5% to $1.15 per share. Full Analysis II-VI Incorporated (IIVI) engages in the development, manufacture, and marketing of materials and derivative products for precision use in industrial, medical, military, security, and aerospace applications. It offers laser-related products, including laser gain materials for solid-state lasers and optical elements used to focus and direct laser beams to target or work surfaces. The company also provides military infrared products, including missile domes, electro-optical windows and subassemblies, imaging lenses, and other components. It manufactures waveplates, polarizers, lenses, prisms, and mirrors for visible and near-infrared applications, which are used to control or alter visible or near-infrared energy and its polarization. It sells its products to original equipment manufactures, system integrators, laser end users, and military and aerospace customers. IIVI reported fiscal-fourth quarter earnings that easily topped last year's results and the consensus estimate. The company earned 31 cents per share, 24% ahead of estimates, and well above last year's 23 cents. Revenues for the quarter increased 14% to $65 million. Management proceeded to guide higher going forward. For the fiscal year ending June 30, 2007, the Company expects revenues to range from $261 million to $267 million and earnings per share to range from $1.08 to $1.17. Analysts had expected $1.05 per share a month ago. Francis J. Kramer, president and chief operating officer said, "We are very pleased to report solid performance for both the quarter and fiscal year ended June 30, 2006. Our Infrared Optics segment continues to benefit from an expanding worldwide base of laser systems as evidenced by our 15% or higher growth in bookings and revenues for both the quarter and fiscal year. The Compound Semiconductor Group, which is focused on new product and market development, achieved its third consecutive quarter of positive contributions to II-VI earnings. Our Near-Infrared Optics segment is winning business for a critical defense system product where on-time delivery and quality have been key drivers. This has contributed significantly to the strong bookings growth for this segment." The company has met or exceeded analyst expectations in 13 out of the previous 14 quarters. All three analysts covering the stock have raised their estimates for this fiscal year. Over the past month, this year's estimates have risen 9.5% to $1.15 per share. The stock is cheap at 15.1x next year's estimate of $1.38 per share, well below the projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.76. 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| VitalStocks Home

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(RBC) - Exceeded analysts' earnings expectations for six consecutive quarters

Regal Beloit Corporation (RBC), a Zacks #1 Rank stock, topped the Street's earnings estimate in six straight quarters by an average margin of 6.2%. On Jul 27, the company surprised to the upside by 5.3% when it posted second-quarter earnings per share of 99 cents. Consensus estimates have been trending higher for this quarter and the full year of 2006. The company is currently yielding 1.4% and has a price-to-book ratio of 1.9. Full Analysis Regal Beloit Corporation is a global manufacturer of commercial and industrial electric motors, electric generators and controls, and mechanical motion control products, as well as heating, ventilation and air conditioning (HVAC) motors. RBC's manufacturing and service facilities are located in the United States, Canada, Mexico, Europe and Asia. RBC exceeded analysts' earnings expectations for six consecutive quarters by an average margin of 6.2%. Furthermore, one would have to go all the way back to the third quarter of 2003 to witness an earnings disappointment by the company. On Jul 27, the company surprised to the upside by 5.3% when it posted second-quarter earnings per share of 99 cents. When compared to the prior-year period, earnings soared 59.7%. Net sales jumped 18.0% to $435.3 million. Chairman and CEO Henry W. Knueppel stated, "The sales environment was strong in almost all of our end markets during the quarter and our view remains positive into the future." Over the past 30 days, the consensus estimate for this quarter increased 20.9% to 81 cents and represents upward revisions by six analysts. For the full year of 2006, profit forecasts have risen 6.5% to $3.13. Seven analysts upped their projections. Earnings per share are expected to grow 15% over the next 3-5 years, which is 1% greater than the projected growth rate of the industry. The Board of Directors declared a quarterly dividend of 14 cents per share on Jul 24. The dividend is payable on Oct 16 to shareholders of record as of Sep 29. The company is currently yielding 1.4%. RBC is currently trading at a valuation of 14.1x trailing 12-month earnings and at 13.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.0x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.9, compared to 5.0 for the market. RBC's return on equity of 15% 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| VitalStocks Home

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(WW) - 38.1% positive surprise - analysts have bumped up their earnings estimates

Watson Wyatt Worldwide, Inc. (WW) met or exceeded analysts' earnings expectations in 12 straight quarters. This Zacks #1 Rank stock recently reported solid fourth quarter and fiscal-year 2006 results. Earnings per share are forecasted to grow 12.3% over the next 3-5 years. The company's return on equity tops that of the industry average—17% compared to 13%. Full Analysis Watson Wyatt Worldwide, Inc. provides consulting services mainly in the areas of employee benefits and compensation, human capital and human resource-related technology. WW exceeded analysts' earnings expectations for the past 12 quarters. During that time, the company surprised to the upside on 11 occasions and met once. Earnings per share grew 6.7% over the past five years and are projected to nearly double going forward—12.3% over the next 3-5 years. On Aug 10, the company posted fourth-quarter fiscal 2006 profits of $25.7 million, or 58 cents per share. This amounted to a 38.1% positive surprise and bettered earnings in the prior-year period by 16.0%. The quarter's impressive earnings surprise comes after WW crushed the Street's third-quarter estimate by 50.0%. Revenues in the fourth quarter were $347.1 million, up 74.8% when compared to the fourth quarter of fiscal 2005. For the entire fiscal year, profits soared 67.1% to $87.2 million. Revenues ballooned 72.3% to $1.27 billion. President and Chief Executive Officer John Haley stated, "All segments generated revenue growth in the fiscal year, with double-digit increases in Insurance and Financial Services, Investment Consulting, and Technology and Administration Solutions. And demand should remain robust, as various regulatory and accounting changes take shape." Since the release of its fourth-quarter and fiscal-year results, analysts have bumped up their earnings estimates. The consensus estimate for the first quarter of fiscal 2007 increased 9.5% to 46 cents over the past week. For the entire fiscal year, profit forecasts jumped 5.9% to $2.16. The Board of Directors authorized the repurchase of up to 1.5 million shares of the company's class A common stock. These shares are on top of the 488,534 shares that the company can still buy back under its previous authorizations. In mid May, the Board declared a quarterly dividend of 7.5 cents per share, leading to a current dividend yield of 0.85%. WW's return on equity, a common measure of a company's profitability, tops that of the industry average—17% compared to 13%. 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| VitalStocks Home

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(DIOD) - Four analysts have raised their estimates for this year, while three have bumped their numbers for next year

Diodes is no stranger to exceeding earnings estimates. It has done so in six of the past eight quarters. Four analysts have raised their estimates for this year, while three have bumped their numbers for next year. Over the past 60 days, this year's estimates have increased 4.3%, while next year's have jumped 7%. Full Analysis Diodes Incorporated (DIOD) engages in the design, manufacture, and marketing of discrete and analog semiconductor products worldwide focusing on various end user applications in the consumer electronics, computing, industrial, communications, and automotive sectors. Its products include discrete semiconductor products, including performance Schottky rectifiers; performance Schottky diodes; Zener diodes and performance Zener diodes, such as tight tolerance and low operating current types; and standard, fast, super-fast and ultra-fast recovery rectifiers. The company offers its products primarily to original equipment manufacturers, electronic manufacturing services, and distributors through a combination of direct sales and marketing personnel, independent sales representatives, and distributors. DIOD exceeded earnings estimates when it reported its second quarter. Income for the quarter was $11.4 million, or 41 cents per share, up from $7.7 million, or 31 cents per share, last year. Analysts expected 39 cents per share. Quarterly revenue was $82.7 million, up from $50.6 million last year. Looking forward, the company projected third-quarter sales will increase 4 percent to 7 percent sequentially, with "comparable" gross margins, implying revenue of $86 million to $87.5 million. Analysts expect the company to report $85.7 million in third quarter revenue. Commenting on the quarter, Dr. Keh-Shew Lu, President and CEO of Diodes Incorporated, said: "During the second quarter, Diodes' revenues and net income achieved new record highs, as we continued our long-term trend of significant year-over-year growth. Innovative new products like our new PowerDI(TM)323 platform are helping to drive customer demand and improve our margins. We are also very pleased with customer acceptance of our standard analog products, and expect to see continued margin expansion as we internalize a higher percentage of these products." Diodes is no stranger to exceeding earnings estimates. It has done so in six of the past eight quarters. Four analysts have raised their estimates for this year, while three have bumped their numbers for next year. Over the past 60 days, this year's estimates have increased 4.3%, while next year's have jumped 7%. The stock is attractively valued at 17.9x next year's estimate of $1.98 per share, slightly below the company's projected long-term growth rate of 18.25%, giving the stock a PEG ratio of 0.98. 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| VitalStocks Home

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(NDE) - Indymac Bancorp - An Addition to the Hot List -

John Reese, editor of the Validea Hot List newsletter, updates investors on the performance of his Validea Hot List portfolio compared to the S&P 500 index. Take a look at the recent return figures as well as the since inception and year to date totals. Then read about one of the Hot List newbies and one of the guru strategies by which it is favored. Afterward, discover two other stocks from the Validea Hot List. The Validea Hot List Performance Since inception, the Validea Hot List has gained 164.7 percent compared with a 27.1 percent gain by the S&P 500 during the same period. Year to date, the Validea Hot List is up 19.3 percent while the S&P 500 has gained 1.9 percent. Since John Reese and his team's last issue of the newsletter two weeks ago, the Validea Hot List gained 1.4 percent, while the S&P 500 was up 0.7 percent. An Addition to the Hot List Indymac Bancorp (NDE) This is the largest savings and loan in Los Angeles County. Two guru strategies like this financial institution. One of the gurus is David Dreman. The David Dreman Strategy Mr. Contrarian, David Dreman, likes Indymac because it is large (market cap of nearly $2.8 billion), earnings have risen the past two quarters, earnings have risen faster than the S&P 500 and earnings are likely to continue to do so for the rest of the year. The strategy has four tests to see if a stock is contrarian; two of the four need to be passed, while Indymac passes three. Its price-to-book is not in the bottom 20 percent of the overall market, but the stock is in the bottom 20 percent of the market by three other criteria - P/E ratio, price-to-cash flow and price-to-dividend ratio. Of course, a stock may be out of favor for good reason, which is why the Dreman strategy looks at a number of financial criteria. Indymac passes almost all of these, including return on equity, pre-tax profit margins and yield. This is a contrarian stock with solid financials. A Sampling of the Hot List Abercrombie & Fitch Co. (ANF) is a specialty retailer that operates stores selling casual apparel, such as knit shirts, graphic t-shirts, jeans, woven shirts, shorts, as well as personal care and other accessories for men, women and kids under the Abercrombie & Fitch, abercrombie, Hollister and RUEHL brands. As of January 28, 2006, the Company operated 851 stores in the United States and Canada. During the fiscal year ended January 28, 2006 (fiscal 2005), A&F purchased merchandise from approximately 246 factories and suppliers located throughout the world, primarily in Southeast Asia and Central and South America. In fiscal 2005, the Company did not source more than 5% of its apparel from any single factory or supplier. A&F pursues global sourcing that includes relationships with vendors in 40 countries and the United States. Tower Group, Inc. (TWGP) offers a range of specialized property and casualty insurance products and services to small to mid-sized businesses and to individuals in New York State and the surrounding areas through its wholly owned subsidiaries, Tower Insurance Company of New York (TICNY), Tower National Insurance Company (TNIC) and Tower Risk Management Corporation (TRM). TICNY is a property-casualty insurance company. TNIC is a property and casualty insurance company. TRM is a non-risk-bearing insurance services company that produces, through its managing general agency, business on behalf of other insurance companies. The Company's commercial lines products provide insurance coverage to businesses, such as retail and wholesale stores, grocery stores, restaurants, artisan contractors, and residential and commercial buildings, while its personal lines products focus on modestly valued homes and dwellings. Tower operates in three segments: Insurance, Reinsurance and Insurance Services. This article highlights the commentary of John Reese for the Zacks.com audience. John Reese provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Validea Hot List" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Validea Hot List" and 30-Day Free Trial. And get immediate access to current issues and special reports. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(EXP) - management expects earnings $4.40 to $4.70 - at least 45% growth - (KOMG) - boosting manufacturing capacity and launching new products

Richard Moroney, editor of the Upside newsletter, highlights small companies that outperformed in the June quarter. Read about a wallboard and cement company. Then learn about a leading supplier of disks used for data storage. Afterward, take a look at three names from this featured expert's Upside Buy List portfolio. June-quarter Earnings Leaders from August 7 Reviewed below are two attractively valued small-company stocks supported by favorable earnings estimate trends. These stocks delivered impressive June-quarter results. Eagle Materials' (EXP) outstanding June-quarter results reflected higher prices and strong volume gains in wallboard and cement. Per-share profits were $1.16, up from $0.64. Revenue rose 27%. Average net selling prices rose 41% for wallboard and 16% for cement. Shares of Eagle, the nation's fifth largest wallboard producer and 12th largest cement producer, have slumped on concerns about a slowdown in residential construction. But price increases for cement and continued growth in commercial construction should sustain growth. Also, residential wallboard sales are concentrated in Texas and the Southwest - two regions that remain strong. For fiscal 2007 ending March, management expects per-share earnings of $4.40 to $4.70, implying at least 45% growth. Share repurchases should bolster per-share profits. On June 30, Eagle had 51.2 million shares outstanding, down 7% from a year earlier. Komag (KOMG), a leading supplier of disks used for data storage, is benefiting from the seemingly insatiable demand for hard-drive space. To meet demand, the company is boosting manufacturing capacity and launching new products. June-quarter earnings per share jumped 32% to $1.21. Revenue increased 35%. The company shipped 36.6 million finished disks, up 33%. The shares have been hurt by profit-margin concerns. June-quarter net profit margin was 17.2%, down slightly from the year-earlier period and the March quarter. Still, with global demand for data storage stretching capacity, Komag's market leadership and relationships with large disk makers should translate into robust near-term growth. A sampling of the Upside Buy List Kforce (KFRC) is a full-service, web-based specialty staffing firm providing flexible and permanent staffing solutions for organizations and career management for individuals in the specialty skill areas of information technology, finance & accounting, human resources, engineering, pharmaceutical, health care, legal, e-solutions consulting, scientific and insurance and investments. kforce.com offers web-based services including online resumes and job postings, interactive interviews and job placements and career management strategies. Kirby (KEX) conducts operations in two business segments: marine transportation and diesel repair. The Company's marine transportation segment is engaged in the inland transportation of industrial chemicals, petrochemical feedstocks, agricultural chemicals and refined petroleum products by tank barge; and in the offshore transportation of refined petroleum products by tanker and tank barge, and dry-bulk, container and palletized cargoes by barge and break-bulk ship. The Company's diesel repair segment is engaged in the sale, overhaul and repair of diesel engines and related parts sales. Men's Wearhouse (MW) is one of the largest specialty retailers of menswear in the United States and Canada. Under the Men's Wearhouse brand, the company targets middle and upper middle income men by offering quality merchandise at everyday low prices. In addition to value, Men's Wearhouse, Inc. provides a superior level of customer service. This article highlights the commentary of Richard Moroney for the Zacks.com audience. Richard Moroney provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Upside" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Upside" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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Top performing stocks - Spear Report - Terrorist plots effect on the market

Gregory Spear, editor of The Spear Report newsletter, discusses the recent terrorist plot that was foiled and the Federal Open Markets Committee (FOMC) pause. Learn about one company's advanced products that can help in the fight against terrorism. Afterward, take a sneak peek into this featured expert's Consensus Buy List portfolio. Detail from August 11 The news on Thursday morning (8/10) that British authorities thwarted a terrorist plan to blow up as many as ten U.S.-based jumbo jets in mid-flight using liquid explosives smuggled in carry-on luggage is a stark reminder that many in the world hold a rather dim view of U.S. foreign policy in the Middle East, and are willing to take extreme measures to voice those objections. The plot apparently targeted American, Continental and United flights from Britain. As a consequence, liquids and lotions are being banned from U.S. flights and the national terror alert level has been raised to Red. The good news, supposedly, is that since the London bombing in July 2005, which resulted in a sharp intraday reversal and a multi-week rally, equity markets have been immune to terrorism news. On Thursday, Wall Street celebrated its resilience once again but the impetus behind the rally was half-hearted. The market remains profoundly uncertain and is exhibiting sudden shifts in direction that correspond with that state of confusion. The TSR Timing Model suggests a 25% exposure level. That seems about right. Scanning not Banning The latest terrorist plot was foiled, but the sad part is that such plots are very likely to succeed one day, yet we have the technology to stop most, if not all of them. Companies like American Science and Engineering (ASEI) have advanced products that will do the job, but they have to struggle for business because most nations are unwilling to upgrade outdated scanning equipment. Instead, we spend the money on personnel who pester us to untie our shoes, take off our belts and pat us down in a false show of conscientiousness that can be easily foiled by anyone who cares to. Some advanced equipment has been installed in Europe, and of course, in Israel. In Manchester, England, for example, new in-line systems enable screening of luggage eight times faster than in the average U.S. airport where bags are handled manually. Paradoxically, the Transportation Security Administration (TSA) is the chief obstacle to equipment upgrades in America. In the 2004 Intelligence Reform and Terrorism Prevention Act, Congress mandated the TSA to get better baggage screening technology into our airports, and all that the TSA has done is set up a committee, which has produced nothing of practical value. Instead, we get reactive edicts that ban the weapons-du-jour, which will now include just about everything, but we lack the technology to enforce the code in an efficient manner. Moreover, the latest ban on liquids will not stop the threat if manual searches remain the only verification method. Clothing can easily be constructed to hide such materials, which will not show up on the conventional metal scanners we walk through. If there is any lasting benefit from the massive media coverage of the London incident, it should be that a new level of high-tech inspection will now be demanded, using the type of equipment that sees through clothing and can identify the presence of all types of contraband, including dangerous organic compounds. American Science and Engineering's SmartCheck system is just such a device.' The Fed Anticlimax After 17 consecutive steps up the rate ladder, the Federal Open Markets Committee (FOMC) paused on Tuesday. This good news event was widely anticipated and thus Wall Street took it as an opportunity for selling, rather than buying. Chairman Bernanke can't keep a secret. He is far more transparent than his predecessor, which spreads the natural volatility of important Fed announcements over a period of weeks or even months, diminishing its final impact. The market had already reacted to the possibility of this news twice in June and twice in July, which resulted in a 5% rally for the S&P 500 well before the August 8th meeting. Unfortunately, the Dow Transportation Index, the former bulwark of the bulls, is reacting poorly of late, which is suggestive of the typical rotation from cyclicals to staples that occurs near the top of the business cycle. Gregory Spear and his team continue to recommend stocks with below-market multiples, exposure to emerging market economies and generous dividends as they feel these attributes will provide a margin of safety should the market trend downward. A Sampling of the Consensus Buy List Marathon Oil (MRO) is an energy company engaged in the worldwide exploration, production and transportation of crude oil and natural gas. The company refines, markets and transports petroleum products in the United States through Marathon Ashland Petroleum LLC, a joint venture company between Marathon and Ashland, Inc. Flextronic International (FLEX) is a leading provider of advanced electronics manufacturing services to OEMs primarily in the telecommunications and networking, consumer electronics and computer industries. The company's strategy is to provide customers with the ability to outsource, on a global basis, a complete product where the company's take responsibility for engineering, supply chain management, assembly, integration, test and logistics management. The company provides complete product design services, including electrical and mechanical, circuit and layout. Timken Company�s (TKR) activities are divided into two principal segments. The first is anti-friction bearings and the other is steel. Timken is a leading international manufacturer of highly engineered bearings, alloy and specialty steels and components, as well as related products and services. The company also produces custom-made steel products including precision steel components for automotive and industrial customers. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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