(ABFS) - Stock share buyback - company surprised to the upside by 15.3%

Arkansas Best Corporation (ABFS), a Zacks #1 Rank stock, exceeded analysts' earnings estimates in three out of the past four quarters, most recently by 15.3% in the second quarter of 2006. Management at ABFS has returned value to shareholders through both share buybacks and dividend payments. The company has a price-to-book ratio of 1.9, compared to 5.1 for the market. Full Analysis Arkansas Best Corporation is a diversified transportation holding company engaging in motor carrier transportation and intermodal transportation operations. ABFS topped analysts' earnings expectations in three out of the past four quarters by an average margin of 10.9%. Earnings per share grew 31.1% over the past five years. On Jul 24, the company surprised to the upside by 15.3% when it posted second-quarter earnings per share of $1.13. When compared to the prior-year period, earnings climbed 24.2%. Revenues came in at $479.3 million, an increase of 12.0% over second-quarter 2005 revenues of $427.9 million. For the first six months of the year, profits and revenues rose 13.3% and 10.0%, respectively, when compared to the first half of 2005. The company increased revenues and grew profits for the past three years, most recently by 8.4% and 38.5%, respectively, in 2005. Management at ABFS has returned value to shareholders through both share buybacks and dividend payments. During the second quarter of 2006, the company repurchased 200,000 shares of its common stock at a total cost of $8.3 million. Dating back to January 2003, ABFS bought back 1,143,150 shares worth $37.6 million. The current program authorized in July 2005 enables the company to purchase up to an additional $37.4 million of its common stock. The Board of Directors declared a quarterly cash dividend of 15 cents per share on Jul 18. ABFS has a current dividend yield of 1.4% and a five-year average dividend yield of 0.96%. ABFS is currently trading at a valuation of 10.9x trailing 12-month earnings and at 10.6x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x trailing 12-month earnings and at 15.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 5.1 for the market. Its return on equity is slightly better than that of the industry average--18% compared to 16%. 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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(GMT) - Strong Stock blasts earnings estimates - topped analysts' earnings expectations in 15 out of the past 16 quarters, including the last 14

GATX Corporation (GMT) exceeded analysts' earnings expectations in 15 out of the past 16 quarters, including the last 14 straight. The company upped its 2006 earnings per share guidance after reporting solid second-quarter results. Consensus estimates have been trending higher for both 2006 and 2007. GMT has a current dividend yield of 2.3% and has consistently paid dividends to its shareholder base every quarter since 1919. Full Analysis GATX Corporation provides lease financing and related services to customers operating rail, air, marine and other targeted assets. The company operates in three segments: GATX Rail, GATX Air and GATX Specialty. GATX's history of positive earnings surprises is quite extraordinary. The company topped analysts' earnings expectations in 15 out of the past 16 quarters, including the last 14 in a row. Earnings grew 17.0% over the past five years. On Jul 27, GATX reported second-quarter profits of 66 cents per share, topping the Street's estimate by 10.0% and the prior-year result by 6.5%. Revenues amounted to $321.3 million, marking a 5.7% increase when compared to $304.0 million in the second quarter of 2005. The company increased revenues and grew profits for the past three years, most recently by 8.4% and 38.5%, respectively, in 2005. Due to better-than-expected results in the company's rail and specialty business segments, GMT boosted its 2006 earnings per share guidance to between $3.10 and $3.20. The company also expects market conditions to remain favorable going forward. Earnings per share are forecasted to grow 16% over the next 3-5 years—in line with the projected growth rate of the industry. Analysts reacted to GMT's strong quarter and positive outlook by raising their profit forecasts. Consensus estimates for this quarter and next jumped 10.6% and 11.1%, respectively, when compared to 30 days ago. Three analysts submitted upward revisions for this quarter while two did so for next quarter. For the full years of 2006 and 2007, consensus estimates have risen 7.8% and 4.9%, respectively, over the same period of time. Three analysts upped their estimates for both years. The Board of Directors declared a quarterly dividend of 21 cents per share on Jul 21. The dividend will be paid Sep 30 to shareholders of record as of Sep 15. GMT has now paid dividends to its shareholder base in every quarter since 1919. The company is currently yielding 2.3%. GMT 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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(GRMN) - Increased earnings estimates - Eight analysts have raised their estimates for this year and next

Garmin has exceeded earnings estimates in each of the past nine quarters. Seven of them have registered double-digit earnings suprises. Year-to-year growth has also routinely been above 35% during that time period. Eight analysts have raised their estimates for this year and next. Over the past month, this year's estimates have increased 9.4% to $1.98 per share. Similarly, next year's estimates have jumped 7.1% to $2.27 per share. Full Analysis Garmin, Ltd. (GRMN) is an original equipment manufacturer (OEM) of navigation and communication equipment that incorporate global positioning system (GPS)-based technology. End product markets include marine, recreation, automotive and aviation. The company s diverse portfolio of handheld, portable and fixed-mount GPS-enabled devices provide geographical location and navigation data using the GPS satellite system. In 2005, Garmin reported financial results according to the two broad end-markets served by it consumer and aviation. Consumer products accounted for approximately 78% of Garmin s total revenue in 2005, while aviation products made up the balance. The consumer segment focuses on retail sales of portable GPS receivers and accessories for the marine, recreational and automotive end-markets. These capabilities are being extended into a wider range of consumer products, including wireless handsets and personal digital assistants (PDAs), as they become economically feasible. The global GPS-enabled equipment market is expected to continue growing at a double-digit pace over the next several years. Garmin s success stems from an aggressive product development strategy. The company has a host of products in its pipeline, which are expected to fuel future growth. Garmin launched 50 new products in 2004 and 55 in 2005. Management is evaluating building sites to convert into manufacturing plants, as future production expansion plans are solidified. A new Taiwanese facility was purchased in the current quarter (for roughly $10 million), with production expected to commence by end-May. Garmin has a strong financial position, due to the $315 million of cash and equivalents, $46 million in marketable securities and the absence of long-term debt, which translates into $3.3 of net cash a share. Garmin has exceeded earnings estimates in each of the past nine quarters. Seven of them have registered double-digit earnings surprises. Year-to-year growth has also routinely been above 35% during that time period. Eight analysts have raised their estimates for this year and next. Over the past month, this year's estimates have increased 9.4% to $1.98 per share. Similarly, next year's estimates have jumped 7.1% to $2.27 per share. GRMN is trading at 19.3x next year's estimate of $2.27 per share, slightly above the projected long-term growth rate of 17.02%, giving the stock a PEG ratio of 1.14. 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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(CORS) - Exceeded analysts' earnings estimates in nine consecutive quarters by an average margin of 20.4%

Corus Bankshares, Inc. (CORS), first presented as a Value stock on Dec 12, 2005, exceeded analysts' earnings estimates in nine consecutive quarters by an average margin of 20.4%. This Zacks #1 Rank stock has a price-to-book ratio of 1.6, compared to 5.1 for the market. The company's return on equity nearly doubles that of the industry average--23% compared to 12%. Full Analysis Corus Bankshares, Inc. operates as the bank holding company for Corus Bank, N.A., which offers consumer and corporate banking products and services in the United States. The company was incorporated in Minnesota in 1958 and is headquartered in Chicago, Illinois. CORS was first unveiled as a Value stock over eight months ago on Dec 12, 2005. Three quarters have passed since the company was highlighted and all produced positive earnings surprises. CORS has now exceeded analysts' earnings estimates in nine consecutive quarters by an average margin of 20.4%. Furthermore, the company topped estimates 12 out of the past 14 quarters. On Jul 19, CORS reported second-quarter profits of $47.8 million, or 82 cents per share. With the consensus estimate sitting at 77 cents, the company beat the Street by 6.5%. Earnings in the prior-year period came in at 54 cents—marking a 51.9% year-over-year improvement. Earnings per share grew 29.8% over the past five years. Consensus estimates have been on the rise for 2006 and especially for 2007. While 2006 profit forecasts jumped 2.9% to $3.17 over the past 90 days, they ballooned 55.1% to $3.35 for 2007 over the same period of time. The company continues to pay out in dividends each year relative to its share price. Investors requiring a stream of cash flow from their investment in CORS have enjoyed a current dividend yield of 3.7% and a five-year average dividend yield of 2.2%. CORS is currently trading at a valuation of 7.8x trailing 12-month earnings and at 6.9x 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. CORS increased revenues, expanded gross margins and grew profits for the past three years. The company has a price-to-book ratio of 1.6, compared to 5.1 for the market. Its return on equity nearly doubles that of the industry average--23% 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| VitalStocks Home

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(CSE) - Consensus estimates for this quarter and next climbed 12.2% and 9.6%, respectively, over the past 90 days

CapitalSource, Inc. (CSE), a Zacks #1 Rank stock, met or exceeded analysts' earnings expectations in the past 12 quarters. Earnings per share are forecasted to grow 18% over the next 3-5 years—twice that of the industry's expected growth rate. Analysts' estimates have been trending higher for CSE. The company is currently yielding 8.4%. Full Analysis CapitalSource, Inc., one of the leading commercial finance firms in the United States, provides various financial products to small- and medium-sized businesses. The company operates through three divisions: corporate finance, healthcare and specialty finance and structured finance. CSE met or beat the Street's earnings estimate in the past 12 quarters. During that timeframe, the company exceeded analysts' expectations on seven occasions. Earnings per share grew 30.0% over the past five years. On Aug 9, the company topped the consensus estimate by a penny when it posted second-quarter profits of 48 cents per share. Compared to the prior-year period, earnings jumped 23.1%. Net interest and fee income soared 85.5% to $292.6 million from $157.7 million reported in the second quarter of 2005. Analysts' estimates have been trending higher for CSE. Consensus estimates for this quarter and next climbed 12.2% and 9.6%, respectively, over the past 90 days. Profit forecasts for the full years of 2006 and 2007 increased 12.1% and 7.1%, respectively, over the past three months. Earnings per share are forecasted to grow 18% over the next 3-5 years—twice that of the industry's expected growth rate. Commenting on the future of the company, Chief Financial Officer Thomas A. Fink stated, “The outlook for the second half of the year is very strong, and we are on track to achieve our 2006 dividend goal of $1.96 per share and projected payout guidelines of up to 90% of adjusted earnings.” On May 31, the Board of Directors announced a quarterly cash dividend of 49 cents per share. CSE has a current dividend yield of 8.4%. CSE increased revenues and grew profits for the past two years, most recently by 43.1% and 31.9%, respectively, in 2005. The company's return on equity of 20%, compared to the industry average of 12%, illustrates management's success in enhancing shareholder value. 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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(BOT) - Company has exceeded earnings estimates by an average of about 12% over the past two quarters

CBOT Holdings is benefiting from increasing trading volume in derivatives. The company has exceeded earnings estimates by an average of about 12% over the past two quarters. Over the past two months, estimates have been rising for this year and next. This year's projections have jumped 12.6% to $2.94 per share, while next year's numbers have increased 11.6% to $3.65 per share during that time period. Full Analysis CBOT Holdings, Inc., (BOT) through its wholly owned subsidiaries, operates as a derivatives trading exchange in the United States. It offers markets in a range of futures and options on futures contracts based on interest rates, agricultural commodities, equity indices, metals, energy and other underlying instruments, and risk-based activities. The company also provides markets in contracts based upon interest rate products, such as U.S. Treasury bonds and notes, Federal Funds Rate, and interest rate swaps, as well as agricultural products, such as wheat, corn, soybeans, and rough rice. In addition, its equity index markets include contracts based upon the Dow Jones Industrial AverageSM, metals markets include contracts for gold and silver, and energy market includes ethanol futures contract. BOT reported 82 cents per share for its second-quarter earnings report, 15.5% better than the 71 cents expected by analysts. Revenue grew to $158.5 million from $120.6 million a year ago, as exchange fees jumped 32 percent to $91.9 million and clearing fees rose 12 percent to $25.4 million. Market data revenue leaped 44 percent to $26.3 million. "This was a solid quarter for the CBOT, as we continued to realize volume growth across each of our product categories, advance our strategic initiatives aimed at creating new opportunities for our customers and extend our reach globally," said Bernard W. Dan, President and Chief Executive Officer of CBOT Holdings. "Furthermore, our second quarter record financial results underscore the effectiveness of our business model as we significantly improved our profitability by scaling our operating platform and stringently controlling fixed costs. CBOT reported trading volume in the quarter increased to 208 million contracts, from 184.9 million, while average daily volume rose to 3.3 million from 2.9 million a year ago. The average rate per contract rose 13 percent year over year. The company also said that July trading volume jumped 21% from last year. The company has exceeded earnings estimates by an average of about 12% over the past two quarters. Over the past two months, estimates have been rising for this year and next. This year's projections have jumped 12.6% to $2.94 per share, while next year's numbers have increased 11.6% to $3.65 per share during that time period. BOT is currently trading at 29.4x next year's estimates of $3.95 per share, compared to the company's projected long-term growth rate of 21.4%, giving the stock a PEG ratio of 1.37. 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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(KSWS) - 10 consecutive quarters of better-than-expected EPS - company surprised to the upside by an average margin of 30.3%

K-Swiss, Inc. (KSWS), a Zacks #1 Rank stock, topped the Street's earnings estimate for 10 consecutive quarters, most recently by 28.9%. The company increased revenues, expanded gross margins and grew profits for the past five years. KSWS has a price-to-book ratio of 3.0, compared to 5.1 for the market. Full Analysis K-Swiss, Inc. designs, develops and markets athletic footwear for sport, fitness activities and casual wear in the United States and internationally. The company offers its products under the brand names K-Swiss and Royal Elastics. KSWS also markets apparels and accessories. Including its recently-announced second quarter 2006 results, KSWS has put together 10 consecutive quarters of better-than-expected EPS. During this timeframe, the company surprised to the upside by an average margin of 30.3%. On Jul 27, KSWS posted second-quarter earnings per share of 58 cents, beating the Street's estimate of 45 cents by 28.9% and soaring past earnings in the prior-year period by 23.4%. Total worldwide revenues were down 1.8%, but international revenues increased 37.3% to $43.1 million. Looking ahead, KSWS expects third quarter revenues between $119 million and $129 million, with earnings per share between 40 cents and 50 cents. For the full year, the company projects revenues between $470 million and $480 million, with earnings per share between $1.90 and $2.00. Analysts have been boosting their profit forecasts. Consensus estimates for this quarter and next quarter jumped 14.3% and 27.8%, respectively, over the past 30 days. Profit forecasts for the full years of 2006 and 2007 have risen 13.8% and 11.8%, respectively, over the same period of time. Earnings per share grew 37.8% over the past five years. The company increased revenues, expanded gross margins and grew profits for five years running. Management has been doing its part returning value to its stockholders. The company purchased 10,000 shares of its common stock during the second quarter. Its existing repurchase program allows for the buyback of an additional 4,091,000 shares. Dating all the way back to August 1996, KSWS repurchased a total of 25.3 million shares, equating to a total value of $164.1 million. Furthermore, the Board of Directors declared a quarterly dividend of five cents per share on Aug 8. KSWS is currently trading at a valuation of 12.6x trailing 12-month earnings and at 14.1x 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 3.0, compared to 5.1 for the market. Its return on equity, a common measure of profitability, betters that of the industry average—27% compared to 17%. 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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(CBK) - July same-store and total sales increased by 10% and 21%, respectively

Christopher & Banks Corporation (CBK) met or exceeded analysts' earnings estimates in 15 out of the past 16 quarters. After releasing strong sales results for the month of July, the company upped its second-quarter and fiscal-year 2007 earnings per share outlook. The Board of Directors recently authorized a share repurchase program and boosted the company's quarterly dividend by 50%. Full Analysis Christopher & Banks Corporation is a Minneapolis, Minnesota-based specialty retailer of women's apparel. The company operates its retail stores under the Christopher & Banks, C.J. Banks and Acorn names. CBK exceeded analysts' earnings expectations for the past three quarters by an average margin of 5.2%. Moreover, the company met or topped the Street's estimate in 15 out of the past 16 quarters. CBK is expected to release results for the second quarter of fiscal 2007 on Sep 19. On Jun 20, CBK reported first-quarter fiscal 2007 profits of $14.6 million, or 39 cents per share. The result beat the consensus estimate by two cents and marked an impressive 50.0% year-over-year improvement. It was the highest quarterly profit in the company's history. Net sales climbed 16.1% to $142.5 million from $122.7 million. Same-store sales, or sales in stores that have been open for a year or more, jumped 7%. CBK successfully opened the doors to 35 new stores during the first quarter. As of May 27, 2006, the company operated a total of 739 stores, compared to 660 stores on May 28, 2005. On Aug 3, the company boosted its second-quarter and fiscal-year 2007 earnings per share guidance. CBK now projects second-quarter profits between 19 cents and 20 cents per share versus its prior guidance between 17 cents and 19 cents. Earnings per share for the full year are expected to be between $1.08 and $1.11, up from the company's previous guidance between $1.06 and $1.10. The upward revisions came after CBK announced that July same-store and total sales increased by 10% and 21%, respectively. The Board of Directors on Jul 28 authorized a two-year stock buyback program that will enable CBK to repurchase up to $20 million of its common stock. Furthermore, the Board raised its quarterly dividend by 20% to six cents per share. The company is currently yielding 0.57%. CBK 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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(NTG) - Strong Growth Stock - stock is quite cheap given its robust long-term growth rate of 48%

NATCO Group is clearly benefiting from steadily increasing energy prices. The company has exceeded estimates in each of the past three quarters by at least 16%. Three analysts have raised their numbers for this year and next. Over the past month, this year's estimates have increased 5.6% to $1.89 per share. Similarly, next year's estimates have risen 4.8% to $2.62 per share over the same time period. Full Analysis NATCO Group, Inc., (NTG) through its subsidiaries, engages in the design, manufacture, and marketing of oil and gas production equipment and systems. The company operates through three segments: Oil and Water Technologies, Gas Technologies, and Automation and Controls. The company is clearly benefiting from steadily increasing energy prices. NTG recently reported record second-quarter earnings in early August. Earnings per share of 50 cents blew away the consensus estimate by 22%, and was more than triple the earnings of a year ago. Revenue for the second quarter of $128.7 million increased 36% over last year's revenue of $94.6 million. NTG didn't stop there. The company raised 2006 guidance with respect to segment profit to $65 to $68 million based upon revenues of approximately $500 to $525 million and earnings per share of $1.75 to $1.85. For the third quarter 2006, the Company expects revenue of $120 to $125 million and segment profit of $16 to $17 million. John U. Clarke, NATCO's Chairman and CEO said, "The second quarter produced several new NATCO records including quarterly revenue, segment profit and earnings per common share. Additionally, our segment profit margin as a percentage of revenue reached 14% versus 8% in last year's second quarter. Record bookings and backlog underscore the strength of our markets and the improvements in marketing, operational and overall execution efficiency that we have implemented are continuing to result in significantly better profit margins." NATCO is no stranger to exceeding earnings estimates. The company has exceeded estimates in each of the past three quarters by at least 16%. Three analysts have raised their numbers for this year and next. Over the past month, this year's estimates have increased 5.6% to $1.89 per share. Similarly, next year's estimates have risen 4.8% to $2.62 per share over the same time period. The stock is quite cheap given its robust long-term growth rate of 48%. NTG is currently trading at 14.4x next year's estimates of $2.62 per share, giving the stock a PEG ratio of 0.30. 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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(OIS) - Oil Industry Stock - For the first six months of the year, profits and revenues soared 96.0% and 39.0%, respectively

Oil States International, Inc. (OIS), which was first featured as a Value stock in mid February, continues to beat analysts' earnings expectations. The company topped the Street's estimate in nine out of the past 10 quarters. Consensus estimates for this quarter and for the full year of 2006 have been on the rise. This Zacks #1 Rank stock has a price-to-book ratio of 2.0, compared to 5.1 for the market. Full Analysis Oil States International, Inc. is the provider of specialty products and services to oil and gas drilling and production companies throughout the world. The company operates in three segments: offshore products, tubular services and well site services. In the two quarters since OIS was last highlighted as a Value pick, the company has exceeded analysts' earnings expectations by an average margin of 23.2%. OIS has now topped the Street's estimate in nine out of the past 10 quarters. On Aug 2, OIS reported second quarter profits of $45.3 million, or 88 cents per share. This equated to a 31.3% positive earnings surprise and topped earnings in the prior-year period by a stellar 79.6%. Revenues came in at $463.4 million—-a 29.3% jump when compared to the $358.5 million achieved in the second quarter of 2005. For the first six months of the year, profits and revenues soared 96.0% and 39.0%, respectively, when compared to the first half of 2005. OIS increased revenues, expanded gross margins and grew profits for the past three years. Earnings per share grew 28.7% over the past five years. OIS, which was a Zacks #1 Rank stock back in mid February, still holds the coveted status today. In addition to topping the Street's earnings estimates on a consistent basis, consensus estimates have also been on the rise--two necessary ingredients for a favorable Zacks Rank. Profit forecasts for this quarter and for the full year of 2006 jumped 11.5% and 6.8%, respectively, over the past 30 days. Two analysts upped their estimates for this quarter while three did so for the full year. OIS continues to trade at a discounted valuation despite its strong fundamentals. The company is currently trading at a valuation of 9.8x trailing 12-month earnings and at 8.8x 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 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 5.1 for the market. Its return on equity, a common measure of profitability, tops that of the industry average—-24% 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. #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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(JCP) - Stock Earnings Suprises Continue - over the past 13 quarters, JCP surprised to the upside on 12 occasions

J.C. Penney Corporation, Inc. (JCP) exceeded analysts' earnings expectations for the past eight quarters, most recently by 7.1%. Both total and same-store sales were up for the quarter. The company recently upped its 2006 earnings per share outlook. JCP's expansionary plans include 50 new stores on an annual basis starting in 2007. The company has a current dividend yield of 1.1% and its return on equity tops that of the industry average—26% compared to 24%. Full Analysis J.C. Penney Corporation, Inc. provides merchandise and services to consumers through its department stores and catalog/Internet. As of April 29, 2006, JCP operated 1,021 department stores throughout the United States and Puerto Rico. JCP's history of exceeding analysts' earnings expectations is impressive to say the least. The company topped the Street's estimate in eight consecutive quarters by an average margin of 8.2%. Furthermore, over the past 13 quarters, JCP surprised to the upside on 12 occasions while matching the consensus estimate once. On Aug 10, JCP posted fiscal second-quarter profits of 75 cents per share. Analysts were calling for 70 cents and earnings in the prior-year period amounted to 46 cents. This marked a 63.0% year-over-year improvement and a 7.1% positive surprise. Total department store sales increased 7.1%, while same-store sales, or sales at locations open at least one year, advanced 6.6%. Moreover, direct sales rose 2.7%, and jcp.com sales jumped approximately 25%. Fine jewelry, along with children's and women's accessories, fueled the strong quarter. The rollout of JCP's new POS system, which offers faster transaction time and access to jcp.com at all registers, was completed during the second quarter. Looking ahead, JCP plans to open 25 stores in the third quarter, with 17 consisting of the new and successful off-mall format. Starting in 2007, the company anticipates opening 50 stores on an annual basis. Earnings per share for the full year are now projected to come in at $4.55, compared to the prior outlook of between $4.29 and $4.39 per share. Over the past 30 days, six analysts raised their earnings estimates for this quarter and next. Seven analysts submitted upward revisions for the full years of 2006 and 2007. Management at JCP continues to return value to its shareholder base. Growing cash flows from operating activities enabled the company to buy back eight million shares of its common stock during the second quarter--a $530 million value. Furthermore, JCP has a current dividend yield of 1.1% and a five-year average dividend yield of 1.8%. The company's return on equity tops that of the industry average—26% compared to 24%. JCP 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. #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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(FMD) - Strong Stock Earnings - Fiscal fourth-quarter profits soared ahead of estimates

First Marblehead has exceeded earnings estimates in eight out of the past nine quarters, with four of those reports registering a double-digit surprise. Four analysts have increased their numbers for this fiscal year. Over the past month, this year's estimates have jumped 7.3% to $4.12 per share. This quarter's estimates have vaulted 21.4%. Full Analysis The First Marblehead Corporation (FMD) provides outsourcing services for private education lending in the United States. It offers integrated suite of program design and marketing, borrower inquiry and application, loan origination and disbursement, and loan securitization services for student loan programs are tailored to meet the needs of the respective customers, students, employees, and members of national and regional financial institutions and educational institutions, as well as businesses and other enterprises. The company primarily focuses on loan programs for undergraduate, graduate, and professional education, as well as on the primary and secondary school market. It also offers services such as, private label programs and the guaranteed access to education programs. The company has strategic relationship with The Education Resources Institute. Fiscal fourth-quarter profits soared ahead of estimates. Quarterly profit rose to $70.8 million, or $1.12 per share, from $43 million, or 65 cents per share, in the year-ago period. Analysts only expected 84 cents per share, which was exceeded by over 33%. Revenue rose 24 percent to $148.8 million. FMD said the strong results came from an increase in service revenue, boosted by stronger securitizations of private loans and better yields. For the year, the company reported profit of $236 million, or $3.68 per share, up 48 percent from $159.7 million, or $2.39 per share in fiscal 2005. Revenue for 2006 rose 35 percent to $563.6 million, versus $418 million in the prior fiscal year. Wall Street analysts estimated earnings of $3.39 per share on revenue of $549.9 million. "Fiscal year 2006 was one of the strongest years in First Marblehead's history, as revenue, earnings and EPS all exceeded our expectations. We continue to demonstrate that our team can consistently deliver strong operating results," said Jack L. Kopnisky, First Marblehead's President and Chief Executive Officer. "Looking forward, we are confident in our business model and believe a foundation is in place for significant growth into the future." The company has exceeded earnings estimates in eight out of the past nine quarters, with four of those reports registering a double-digit surprise. Four analysts have increased their numbers for this fiscal year. Over the past month, this year's estimates have jumped 7.3% to $4.12 per share. This quarter's estimates have vaulted 21.4%. Given its explosive growth prospects, the stock is quite cheap. FMD is currently trading at 12,7x this year's estimate of $4.12 per share, well below the projected long-term growth rate of 36.87%, giving the stock a PEG ratio of 0.34. 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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(CLE) - (PFE) - (EV) - Undervalued Stocks - Screening system updated

Kelley Wright, editor of the Investment Quality Trends newsletter, has been receiving a steady stream of feedback, both from subscribers as well as investors and as a result this featured expert is rolling out the first phase of several changes. Take a look at some of the companies listed on his Timely Ten. Also, find out what's in store for the first quarter of 2007. INVESTMENT OUTLOOK from August 15 Having published on a biweekly basis for over forty years, IQ Trends has compiled quite a body of work. Consistent through that work is the adherence to Kelley Wright and his team's original interpretation of the Dividend Yield Theory, which, when coupled with their Criteria for Select Blue Chips, has provided investors the knowledge of, and profiles of value for, the highest quality blue chip stocks available and their historic patterns of dividend yield. This has been achieved primarily through Wright and his team's stock tables that identify the areas of Undervalue, Rising Trends, Overvalue and Declining Trends. What have changed over time are the complimentary features and articles that were created to bring interest, as well as practical ideas and suggestions to "flesh out" how to best use the data derived from Wright and his team's research and analysis. The catalyst for this review of Wright and his team's material has been a steady stream of feedback, both from subscribers and the investors that attend the various workshops and conferences Wright and his team are invited to participate in during the year. What they have been hearing consistently is that your needs have changed, and what you really want is more specific advice on stock selection. Wright and his team think the following subscriber communication sums up the consensus fairly well: "I think the categories of value are great, so don't change any of that. But look, there really is too much data to process. I know I am supposed to buy at Undervalue, hold through the Rising Trend and sell at Overvalue, but which Undervalues do I choose? Do I buy them all? What happens when a stock retreats from a Rising Trend to Undervalued; do I buy more? What about the feature articles? A lot of the information is interesting, but the bottom line is the last paragraph with the buy, sell or hold opinion. Then there's the Investment Outlook, which gives some interesting insights into what's going on in the markets, but for me the best part is the Closing Bell where he gets into specific stock ideas and selections. I would find it more helpful if you could concentrate on the advice and recommendations." This is perhaps one of the more colorful examples of what Wright and his team have been hearing, but it should be sufficient to make the point. It's clear enough to then; Wright and his team hear you loud and clear. So, mindful of tradition, but recognizing Wright and his team are an advisory service, they roll out the first phase of several changes they are making to the service. First, with this issue, they are introducing the Timely Ten. The Timely Ten is Wright and his team's ten best ideas, in order, right now. These stocks are chosen for their current value (always from Undervalued), quality, and technical indications. You could say the Timely Ten is a mixture of the art and the science. The stocks will move up and down the rankings, based on their actions in between issues. As stocks move into their Rising Trends they will leave the Timely Ten and be replaced by another Undervalued stock. With each issue, however, you will have Wright and his team's ten best ideas, right now. So whether you are in cash and wanting to create a portfolio, or partially invested and looking to add to a portfolio, or fully invested and just want a little affirmation or hand holding, the Timely Ten will give you three times the suggestions plus a little each issue. Secondly, by the end of the first quarter 2007 Wright and his team plan to unveil the new IQTrends.com. The site will be an investment portal with a subscriber�s only area. Besides downloading each issue as it becomes available, subscribers will also have access to the archived editions. Additionally, the site will provide links to quotes, company research, and charting tools. Wright and his team also are planning a chart library to hold an IQT chart for each of the Select Blue Chips in their universe. It is their intent to keep the issue action oriented and provide access to the complimentary tools and data on the site to use at your convenience. As always Wright and his team are open to your feedback and recommendations. A Sampling of the Timely Ten Claire's Stores (CLE), through its wholly-owned subsidiaries, is a leading mall-based retailer of popular-priced fashion accessories and apparel for pre-teens and teenagers. The Company's operations are divided into three principal product categories: Jewelry, Accessories, and Apparel. Jewelry consists of costume jewelry, including earrings and ear piercing services, while Accessories consists of other fashion accessories, hair ornaments, totebags and novelty items. Apparel includes name-brand as well as private label shirts and pants. Eaton Vance's (EV) principal business is creating, marketing and managing investment funds and providing investment management and counseling services to institutions and individuals. The Company conducts its investment management and counseling business through two wholly-owned subsidiaries, Eaton Vance Management and Boston Management and Research. The Company's growth has resulted from its ability to develop, offer successfully and manage effectively new funds and to increase the assets of existing Eaton Vance Funds. Pfizer (PFE) is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer has three business segments: health care, animal health and consumer health care. Its products are available in numerous countries. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(CTSH) - Stock Market at Lowest P/E Levels in Years

Donald Rowe, editor of the Wall Street Digest newsletter, explains that a strong bull market rally this fall and well into 2007 is highly likely. Take a look at this featured expert's commentary regarding the stock market's prospects and discover what he has to say about the housing sector. Afterward, learn about one of Rowe's recommendations. Commentary from August 15 Core Producer Price inflation fell last month, triggering a strong rally on Wall Street. At the close, the Dow rose 132 points, closing at 11,230; the Nasdaq added 46 points to close at 2,115; oil closed down $0.48 to $73.05 per barrel; and gold closed down $6.40 at $632.90 an ounce. A drop in the July Core Producer Price Index (PPI) increased the odds that the Fed will pause again at the September 20th FOMC meeting. The National Association of Realtors released its state-by-state examination of housing conditions for the April-May-June quarter: Home sales declined in 28 states, plus the District of Columbia. The housing sector is a powerful influence arguing for a pause in September. The period between August 15th and October 15th is the worst two-month period of the year for the stock market. Another pause from the Fed in September would position the stock market for a late-September or October bull market launch. The stock market is undervalued with the lowest P/E levels in years. A strong bull market rally this fall and well into 2007 is highly likely. A Buy Recommendation Cognizant Technology Solutions Corp. (CTSH) delivers high-quality, cost-effective, full life cycle solutions to complex software development and maintenance problems that companies face as they transition to e-business. These services are delivered through the use of a seamless on-site and offshore consulting project team. The company's solutions include application development and integration, application management, re-engineering, and mass change services. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(BKS) - Stock turn around - respectable quarter in what has proved to be a tough retail environment

Bill Martin, editor of the FindProfit newsletter, bought Barnes & Noble late last month after the stock pulled back -25% from its May high. Read about the company's second-quarter performance. Then read this featured expert's outlook on the stock and find out why he decided to purchase shares of the bookseller. QUICK HIT ALERT from August 17 Bookseller Barnes & Noble (BKS) reported second-quarter results and reaffirmed its full-year outlook. For Q2, BKS reported net earnings of $16.6 million, or 24 cents per share, up from $13.5 million, or 18 cents per share, a year ago. Earnings were -4 cents per share lower due to the impact of stock-based compensation expenses. Sales, meanwhile, declined -1% to $1.16 billion. At BKS' namesake stores, sales totaled $1 billion, flat compared to a year ago, and same-store sales fell -2.6%. At B. Dalton, sales were $21.9 million, down -31% from a year earlier due to store closings and a -9.1% drop in same-store sales. Online sales, meanwhile, fell -14% to $82.7 million. BKS' sales were impacted by tough year-over-year comparables, as last year's second quarter saw the release of "Harry Potter and the Half-Blood Prince," which broke sales records. During Q2, BKS repurchased approximately 677K shares for $26 million, and year to date, the company has bought back 2.8 million shares for $119 million. Looking forward, BKS said it expects to post a Q3 loss of -4 cents to -8 cents per share, including stock-based compensation expenses of -4 cents per share. For the full-year, BKS continues to expect earnings of $2.20 to $2.30 per share, which includes stock-based compensation expenses of -15 cents per share. Bottom Line: BKS turned in a respectable quarter in what has proved to be a tough retail environment. Book sales, like those of other forms of media, can be lumpy and impacted by release schedules, as evidenced this quarter. Bill Martin and his team stepped up and bought BKS late last month at $33.75 per share after the stock pulled back -25% from its May high, arguing that, "The selling in BKS is overdone and that the stock is inexpensive. Specifically, the company should drive free cash flow of $200 million this year, good for an 11% FCF yield at the current stock price - and that's AFTER $190 to $200 million in CapEx spending." While the retail and book selling environment remains challenging, BKS should be able to at least partially offset any near-term sales weakness with continued operating improvements and related efforts. Furthermore, with extremely robust cash flow, Martin and his team believe that the downside in BKS is limited as the company remains a potential private equity takeout target. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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