(AXS) - Taking AXS's 13% growth rate into consideration, the PEG ratio is 0.53

Axis Capital Holdings Limited (AXS) topped the Street's earnings estimate in 10 out of the past 12 quarters, most recently by 16.4%. Gross and net premiums written for the quarter were up 29.7% and 33.2%, respectively. Earnings per share are projected to grow 13% over the next 3-5 years for this Zacks #1 Rank stock. The company has a price-to-book ratio of only 1.3, considerably lower when compared to 5.1 for the market. AXS's PEG ratio currently sits at 0.53. Full Analysis Axis Capital Holdings Limited, through its subsidiaries, provides insurance and reinsurance products worldwide. The company focuses on writing coverage for specialized classes of risk. These include terrorism, aviation and marine war, political risk, commercial property and onshore and offshore energy. AXS is no stranger to topping the Street's earnings estimate. The company exceeded analysts' earnings expectations in 10 out of the past 12 quarters. AXS's most recent positive surprise of 16.4% came on Aug 7 when the company posted second-quarter profits of $1.42 per share. Analysts were calling for $1.22. When compared to the $1.12 reported in the second quarter of 2005, earnings ballooned an impressive 26.8%. Gross premiums written jumped 29.7% to $995.4 million, while net premiums written increased 33.2% to $820.7 million. For the first half of 2006, gross and net premiums written rose by 9.9% and 8.1%, respectively. Looking ahead, earnings per share are forecasted to grow 13% over the next 3-5 years, with the industry growth rate expected to be 12%. The consensus estimate for this quarter has increased 6.0% over the past 60 days and currently resides at $1.06. For the full year, profit forecasts jumped 5.9% to $5.00. Three analysts submitted upward revisions for this quarter while five followed suit for the full year. The Board of Directors declared a quarterly dividend of 15 cents per common share of stock on Sep 8. The dividend is payable on Oct 16 to shareholders of record as of Sep 30. AXS has a current dividend yield of 1.8%. AXS is currently trading at a valuation of 6.7x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.3, considerably lower when compared to 5.1 for the market. Taking AXS's 13% growth rate into consideration, a PEG ratio of 0.53 is calculated. 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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(TFX) - The company has increased revenues for an impressive nine years in a row

Teleflex Incorporated (TFX), a Zacks #1 Rank stock, beat the Street's earnings estimate in seven out of the past eight quarters by an average margin of 12.8%. The company recently surprised to the upside by 10.8% in the second quarter. Consensus estimates for 2006 and 2007 have been trending higher. The Board of Directors declared a 14% increase in its quarterly cash dividend in late April. TFX is currently yielding 2.1% and has a five-year average dividend yield of 1.7%. Full Analysis Teleflex Incorporated is a diversified industrial company that designs, manufactures and distributes specialty engineered products for a wide range of customers in the commercial, medical and aerospace industries. TFX exceeded analysts' earnings expectations in seven out of the past eight quarters by an average margin of 12.8%. On Jul 27, the company surprised to the upside by a solid 10.8% when it reported second-quarter profits of $37.3 million, or 92 cents per share. Revenues amounted to $682.6 million, up 3.9% from the $657.0 million posted in the second quarter of 2005. The company has increased revenues for an impressive nine years in a row. Chairman and Chief Executive Officer Jeffrey P. Black stated, “Second-quarter results from operations came in slightly better than our revised expectations. We expect to see ongoing progress in the second half of the year from our initiatives to improve business performance. Our overall fundamentals remain strong with solid cash generation and a balance sheet that can clearly support growth initiatives.” For the entire year, TFX expects earnings per share between $3.75 and $3.90. The company's prior guidance called for profits between $3.65 and $3.80 per share. The consensus estimate for this year currently calls for $3.71 per share. This represents a 4.2% jump when compared to the consensus 60 days ago. Profit forecasts for next year have risen by 3.2% to $4.14 over the same period of time. Steadily increasing cash flows from operating activities have enabled TFX to meet the needs of investors requiring additional cash flow in the form of a dividend. In late April the Board of Directors authorized a 14% increase in its quarterly cash dividend to 28.5 cents per share of common stock. The company's current dividend yield is 2.1%, while its five-year average dividend yield is 1.7%. TFX's return on equity of 12%, a common measure of a company's profitability, 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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(HP) - Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters

Helmerich & Payne has exceeded earnings estimates in seven out of the past eight quarters, with four of those periods registering surprises of more than 17%. Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters. Two analysts have raised their estimates for both this year and next. Over the past 60 days, this year's estimates have increased 3.7% to $2.50 per share, while next year's numbers have jumped 11% to $3.85 per share. Full Analysis Helmerich & Payne, Inc. (HP) engages in the contract drilling of oil and gas wells for others in North and South America. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to enable its customers to explore for and develop oil and gas from onshore areas, as well as from fixed platforms, tension-leg platforms, and spars in offshore areas. It also engages in the ownership, development, and operation of commercial real estate in Tulsa, Oklahoma. The company said in late-July its fiscal third-quarter profit surged, driven by stronger U.S. land operations and a one-time gain from asset sales. Quarterly net income more than doubled to $80 million, or 69 cents per share, from $29.8 million or 28 cents per share, in the year-ago period. Operating revenue grew to $319.8 million from $207.4 million. Analysts had expected 64 cents per share. In a sign of health, operating income from the company's U.S. land drilling unit nearly doubled in the quarter to $93.7 million from $47.2 million, as average rig revenue set a record of $23,503 per day. In last year's fiscal third quarter, average rig revenue was $16,658 per day. This year's third quarter segment operating income increased in all of the Company's contract drilling business segments compared with both last year's third quarter and this year's second quarter. Company President and C.E.O., Hans Helmerich commented, "Even with the uncertainty surrounding natural gas prices, rig demand remains strong and customers are increasingly focused on safety, performance and cost reducing drilling technology. The Company's increasing FlexRig activity will add substantial leverage to our earnings going forward, even if rig margin growth continues to moderate. Although we expect to continue to face production schedule and capital cost challenges, we anticipate our overall new build returns to remain strong." HP has exceeded earnings estimates in seven out of the past eight quarters, with four of those periods registering surprises of more than 17%. Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters. Two analysts have raised their estimates for both this year and next. Over the past 60 days, this year's estimates have increased 3.7% to $2.50 per share, while next year's numbers have jumped 11% to $3.85 per share. The stock is trading at an ultra-low price-to-earnings ratio of 6x next year's estimate, well below the projected long-term growth rate of 48%, giving the stock a PEG ratio of 0.12. 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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(TK) - Earnings estimates for this quarter and next quarter have ballooned 123.7% and 41.6%, respectively

Teekay Shipping Corporation (TK), which is a Zacks #1 Rank stock, recently exceeded analysts' second-quarter earnings expectations by 15.8%. Consensus estimates have experienced a sizeable leap over the past 60 days. The Board of Directors increased its share repurchase program by $150 million in mid June and declared a quarterly dividend of 20.75 cents per common share of stock on Jul 4. TK has a price-to-book ratio of only 1.4, considerably lower when compared to 5.1 for the market. Full Analysis Teekay Shipping Corporation, together with its subsidiaries, provides international crude oil and petroleum product transportation services to oil companies, oil traders and government agencies worldwide. As of Jun 30, the company's fleet (excluding vessels managed for third parties) consisted of 146 vessels, including chartered-in vessels and newbuildings on order. When TK reported second-quarter earnings per share of 66 cents, it represented the second straight quarter in which the company topped the Street's estimate. With analysts looking for 57 cents, the company surprised to the upside by 15.8%. In the previous quarter, TK posted a 4.0% positive surprise. Net revenues declined 18.6% to $311 million from $382 million recorded in the prior-year period. Consensus estimates have experienced a considerable jump over the past 60 days, displaying analysts' growing optimism about the future prospects of the company. Estimates for this quarter and next quarter have ballooned 123.7% and 41.6%, respectively. For the full years of 2006 and 2007, profit forecasts have risen 24.7% and 20.7%, respectively, over the past two months. Four analysts submitted upward revisions for both this quarter and the full year of 2006, while three did so for the fourth quarter and the full year of 2007. On Jun 12, the Board of Directors upped its existing share buyback program by $150 million, resulting in $186 million available for repurchase. TK has bought back 1.3 million shares, for a total cost of $54.3 million, since Jun 12. This leaves $132.1 million remaining under the company's existing share repurchase authorization. The Board also declared a dividend of 20.75 cents per common share of stock on Jul 4. The company has a current dividend yield of 2.0%. TK increased its dividend 51% in 2005, following increases of 16% in 2004 and 10% in 2003. TK is currently trading at a valuation of 9.5x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x trailing 12-month earnings and at 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.4, considerably lower when compared to 5.1 for the market. TK's return on equity of 15% is in line with that of the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(GEF) - 31.8% positive earnings surprise and soared past earnings in the prior-year period by a robust 64.8%

Greif, Inc. (GEF), first highlighted as a Growth and Income stock on Jul 19, continues to impress. In addition to holding on to its Zacks #1 Rank status, the company also increased its fiscal 2006 earnings per share guidance after delivering strong results in the third quarter. The Board of Directors recently declared quarterly cash dividends of 36 cents per share of Class A Common Stock and 54 cents per share of Class B Common Stock. Full Analysis Greif, Inc. is engaged in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide. The company has over 160 operating locations in more than 40 countries. It has been almost two months since GEF was first presented as a Growth and Income pick back on Jul 19. With only the very top 5% of stocks attaining the coveted Zacks #1 Rank designation, maintaining it can prove to be an impressive task. By receiving upward estimate revisions and by posting earnings per share surprises, GEF has remained in this elite class. In the time that has elapsed since its debut, GEF reported third-quarter fiscal 2006 profits of $1.45 per share. This amounted to a 31.8% positive surprise and soared past earnings in the prior-year period by a robust 64.8%. The company has now topped analysts' earnings expectations for the past four quarters by an average margin of 18.7%. Net sales of $690.5 million in the quarter marked a new record and were up 13.4% when compared to the $609.0 million achieved in the prior-year period. The jump in sales was fueled by strong performances in the company's industrial packaging & services ($59.3 million) and paper, packaging & services segments ($20.4 million). In addition to posting solid results for the third quarter, the company also delighted investors by upping its fiscal 2006 earnings per share guidance by 40 cents to between $4.25 and $4.35. GEF also issued revised guidance for the year back in May as well as in March. The consensus estimate for this quarter currently sits at $1.32 and represents a 12.8% increase when compared to the consensus of 30 days earlier. Profit forecasts for fiscal 2006 and fiscal 2007 have risen 16.4% and 11.4%, respectively, over the same period of time. GEF distributed $10.4 million of cash dividends to its shareholders in the third quarter versus $6.9 million for the third quarter of 2005. On Aug 29, the Board of Directors declared quarterly cash dividends of 36 cents per share of Class A Common Stock and 54 cents per share of Class B Common Stock. Both dividends are payable on Oct 1 to shareholders of record as of Sep 20. The company has a current dividend yield of 1.9% and a five-year average dividend yield of 1.7%. The company's profitability, as measured by its return on equity, betters that of the industry average--16% 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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(ARII) - The stock is quite cheap given its strong growth prospects - low PEG ratio of 0.45

American Railcar is enjoying the fruits of a strong backlog and increased production. Over the past month, earnings estimates have been on the rise. This year's numbers have increased 6% to $1.95 per share, while next year's estimates have risen 5% to $2.31 per share. Full Analysis American Railcar Industries, Inc. (ARII) provides railcars, railcar components, railcar maintenance services, and fleet management services in North America. It manufactures covered hopper and tank railcars. It also designs and manufactures railcar and industrial components used in the production of its railcars, and railcars and nonrailcar industrial products produced by others. The company's components comprise hitches, tank railcar components and valves, discharge outlets for covered hopper railcars, manway covers and valve body castings, and outlet components and running boards, as well as aluminum and special alloy steel castings. In addition, it offers railcar repair and refurbishment services through a network of six full service maintenance and repair facilities, and four mobile repair units, as well as provides fleet management and engineering services. As of September 30, 2005, the company managed approximately 57,000 railcars for various customers. In early-August, the company reported earnings that surpassed expectations by almost 9%. After paying preferred dividends, earnings grew to $10.8 million, or 51 cents per share, from $1.9 million, or 17 cents per share, in the year-ago quarter. Analysts had expected 47 cents per share. ARII also said its backlog stood at 12,790 rail cars at June 30, up from 6,425 a year ago. Its Marmaduke plant resumed operations on Monday and is expected to reach capacity production rates by the end of the third quarter. For the six months ended June 30, 2006 revenues were $330.3 million versus $291.6 million for the comparable period of 2005. Revenues for 2006 were reduced by the tank railcar manufacturing plant being under repair for the entire quarter, but still exceeded the prior year due to strong growth in covered hopper railcar production, and growth in the railcar services business. "The Company had a very strong quarter, even though our tank railcar manufacturing plant was undergoing repair. The covered hopper railcar plant set a new production record with 1,649 railcars shipped in the quarter," said James J. Unger, President and CEO of ARI. "Our substantial backlog of unfilled orders for new railcars totaled 12,790 cars at June 30, 2006, and was almost double the 6,425 railcar backlog of one year earlier. Our Marmaduke plant has resumed operations this week and we expect to see production steadily increase and reach capacity rates by the end of the third quarter. We expect the third quarter to be strong with good operating rates for covered hopper railcars and further payments from our business interruption insurance for our tank railcar manufacturing plant, as production at that plant increases to capacity production rates. The fourth quarter is expected to be very strong, with both railcar assembly plants expected to be operating at capacity levels by the beginning of that quarter." Over the past month, earnings estimates have been on the rise. This year's numbers have increased 6% to $1.95 per share, while next year's estimates have risen 5% to $2.31 per share. The stock is quite cheap given its strong growth prospects. ARII is currently trading at 12.3x next year's estimate, well below the projected long-term growth rate of 27.55%, giving the stock a low PEG ratio of 0.45. 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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(CAE) - succeeded in beating the Street's earnings estimate on five occasions by an average 32.6%

Cascade Corporation (CAE), which is a Zacks #1 Rank stock, exceeded analysts' earnings expectations in five out of the past six quarters, most recently by 18.2%. Consensus estimates have shot upward over the past seven days. The Board of Directors recently declared a quarterly dividend of 15 cents per share and authorized a share repurchase program of up to $80 million over a two-year period. The company has a price-to-book ratio of 1.9, compared to 5.1 for the market. Full Analysis Cascade Corporation is a global leader in the design, manufacture and marketing of materials handling equipment and related technologies, primarily for the lift truck industry. Over the past six quarters, CAE succeeded in beating the Street's earnings estimate on five occasions. The company's average margin of surprise during this period of time was 32.6%. Second-quarter fiscal 2007 profits came in at $11.9 million, or 91 cents per share. With analysts expecting 77 cents, CAE topped expectations by 18.2%. Compared to the 84 cents reported in the prior-year period, earnings were up 8.3%. Net sales jumped 3.8% to $119.4 million versus $115.0 million for the second quarter of fiscal 2006. Earnings per share grew 24.9% over the past five years. CAE increased revenues, expanded gross margins and grew profits over the past four years. Consensus estimates have experienced a dramatic increase over the past seven days. For this quarter and next quarter, estimates soared 26.4% and 19.4%, respectively. Profit forecasts for fiscal 2007 and fiscal 2008 increased 15.7% and 7.3%, respectively, over the past week. The Board of Directors has been very active in its efforts to increase shareholder value. On Sep 5, a quarterly cash dividend of 15 cents per share was announced. The dividend will be paid on Oct 20 to shareholders of record as of Oct 3. The company is currently yielding 1.4% and has a five-year average dividend yield of 1.5%. Furthermore, the Board authorized a share repurchase program of up to $80 million over a two-year period. CAE is currently trading at a valuation of 13.7x trailing 12-month earnings and at 12.5x 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 15.5x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 5.1 for the market. CAE's return on equity trumps that of the industry average--15% compared to 10%. 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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(AJG) - Estimates for this quarter and next increased 18.6% and 39.4%, respectively, over the past 60 days

Arthur J. Gallagher & Co (AJG) is the world's fourth-largest insurance brokerage and risk management services firm. Analysts' earnings estimates have been on the rise for this Zacks #1 Rank stock. The Board of Directors recently declared a quarterly cash dividend of 30 cents per share. AJG is currently yielding 4.5% and has a five-year average dividend yield of 2.9%. Full Analysis Arthur J. Gallagher & Co. and its subsidiaries operate as an insurance brokerage and risk management services firm. The company has operations in seven countries and does business in more than 100 countries through a network of correspondent brokers and consultants. On Jul 25, AJG reported its third straight quarter of better-than expected earnings. Profits for the second quarter reached $36.6 million, or 37 cents per share, which edged past the Street by a penny. Revenues decreased slightly to $370.6 million compared to $371.1 million in the prior-year period. However, AJG's brokerage segment advanced 9% while its risk management increased 10%. Consensus estimates have been trending higher for the next two quarters, as well as for the full years of 2006 and 2007. Estimates for this quarter and next increased 18.6% and 39.4%, respectively, over the past 60 days. Meanwhile, earnings expectations for 2006 rose 6.3% over the same time frame and are now expected at $1.51, while forecasts for 2007 are up by 7.5% to $1.72. On Jul 20, the Board of Directors declared a regular quarterly cash dividend of 30 cents per common share of stock. The dividend is payable on Oct 13 to shareholders of record as of Sep 29. This equates to a hefty current dividend yield of 4.5% and a five-year average dividend yield of 2.9%. Earnings per share grew 8.6% over the past five years and are forecasted to grow by a larger magnitude going forward—-11.0% over the next 3-5 years. The company increased revenues for nine years running. The company received some bad news on Aug 30 when it's Chairman of the Board, Robert E. (Bob) Gallagher, passed away. Gallagher joined his father's insurance agency in 1947 and was instrumental in building the company into a global, billion dollar enterprise. Management's effectiveness was quite apparent when looking at AJG's return on equity. The company's ROE exceeds that of the industry average--22% 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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(CRYP) - company earned 59 cents per share, almost 26% higher than the 47 cent estimate

One reason that Cryptologic is a Zacks #1 ranked stock is that it consistently exceeds analyst estimates. The company has done so in five consecutive quarters, four of which registered double-digit surprises. Both analysts covering the stock raised their numbers for this year, while one has done so for next year. Over the past two months, this year's estimates have increased 10.5% to $2.10 per share. Next year's numbers have jumped 8.8% to $1.74 per share. Full Analysis CryptoLogic, Inc. (CRYP) engages in developing and supplying online gaming software on the Internet casino and poker markets of the global online gaming industry. It also provides licensing, e-cash management, and customer support services for its Internet gaming software to third-party gaming operators. The company's online gaming solutions comprises an Internet-based gaming software suite featuring casino table and slot games, player-to-player poker, multi-player bingo, multiple languages, multiple currencies, multiple platforms, play-for-fun and play-for-cash mode, and an integrated, proprietary e-cash management system, as well as customer support services. CRYP released strong earnings for its second-quarter report. The better-than-expected performance was attributable to strong organic growth in online poker software fees and a particularly strong quarter in online casino software fees, driven by the release of innovative new casino games and CryptoLogic's expanded high-margin slot portfolio. These achievements are especially notable because the second quarter is typically slower in online gaming and because the company's licensees had to compete for players' attention with the World Cup-particularly in the UK and Continental Europe. The company earned 59 cents per share, almost 26% higher than the 47 cent estimate. Revenues increased 52% to $30.4 million. "CryptoLogic's new casino games went head-to-head with the World Cup and warm weather-and won. Our Q2 revenue and earnings were far ahead of expectations and surpassed our results in Q1 2006, which is typically a stronger quarter," said Lewis Rose, CryptoLogic's President and CEO. One reason that CRYP is a Zacks #1 ranked stock is that it consistently exceeds analyst estimates. The company has done so in five consecutive quarters, four of which registered double-digit surprises. Both analysts covering the stock raised their numbers for this year, while one has done so for next year. Over the past two months, this year's estimates have increased 10.5% to $2.10 per share. Next year's numbers have jumped 8.8% to $1.74 per share. The stock is attractively valued with a forward price-to-earnings ratio of 14.5. This is below the projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.72. 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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(TEX) - Consensus estimates for this quarter and next quarter have risen 19.7% and 18.1%, respectively, over the past 90 days

Terex Corporation (TEX), which is a Zacks #1 Rank stock, exceeded analysts' second-quarter earnings expectations by 20.0% when it posted profits of $1.20 per share. Moreover, revenues came in at a record $2.08 billion. TEX's solid quarterly numbers prompted it to increase its full-year earnings per share guidance. The company has a price-to-book ratio of 2.9, compared to 5.1 for the market. TEX's PEG ratio currently sits at 0.73. Full Analysis Terex Corporation is a diversified global manufacturer of capital equipment for the construction, infrastructure, quarry, mining, shipping, transportation, refining and utility industries. When TEX reported second-quarter earnings per share of $1.20, the company beat the Street's estimate by an impressive 20.0%. Furthermore, when compared to the second quarter of 2005, earnings soared 51.9%. Revenues rose 18.2% to a record $2.08 billion versus $1.76 billion in the prior-year period. TEX's solid quarter was fueled by strong sales of aerial work platforms, cranes, materials processing and mining and rebuilding and utility products. Chairman and Chief Executive Officer Ronald M. DeFeo stated, “We are very pleased with this record setting quarter for Terex, but we remain hard at work looking for continued improvement in all of our businesses. While this quarter marks a record level of revenue and net income, it best highlights the potential of our team members and products.” Looking ahead, the company upped its full-year 2006 earnings per share guidance to between $3.55 and $3.75. TEX's previous outlook called for profits between $3.20 and $3.40 per share. Revenues are projected to climb 17% to 22% from its 2005 results to a range between $7.5 billion and $7.8 billion. DeFeo stated, “The increase in profit expectations reflects continued favorable economic conditions and the internal progress we are making on improving costs, market development and price realization.” Earnings per share are expected to grow 16% over the next 3-5 years, compared to the 14% forecasted growth rate of the industry. Consensus estimates for this quarter and next quarter have risen 19.7% and 18.1%, respectively, over the past 90 days. Estimates for the full years of 2006 and 2007 jumped 12.5% and 14.6%, respectively, over the same period of time. TEX is currently trading at a valuation of 15.0x trailing 12-month earnings and at 11.4x 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 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.9, compared to 5.1 for the market. TEX's PEG ratio currently sits at 0.73. 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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(MNT) - posted first-quarter fiscal 2007 profits of 33 cents per share--beating the Street's estimate by an impressive 17.9%

Mentor Corporation (MNT) topped the Street's earnings estimate in six out of the past seven quarters by an average margin of 11.0%. Management has worked to increase shareholder value through dividends and share repurchases. This Zacks #1 Rank stock has a current dividend yield of 1.5% and a five-year average dividend yield of 1.2%. MNT's return on equity nearly doubles that of the industry average--21% compared to 11%. Full Analysis Mentor Corporation is a leading global medical device company that develops, manufactures and markets various products serving the aesthetic medical market. The company is headquartered in Santa Barbara, California, with manufacturing and research operations in the United States, France, the Netherlands and the United Kingdom. MNT exceeded analysts' earnings expectations in six out of the past seven quarters by an average margin of 11.0%. Furthermore, the company matched or topped the consensus estimate in 10 out of the past 11 quarters. On Aug 7, MNT posted first-quarter fiscal 2007 profits of 33 cents per share--beating the Street's estimate by an impressive 17.9%. Net revenues rose 7.2% to $79.4 million from $74.1 million in the prior-year period. Over the past five years, the company's earnings per share grew 12%. Looking ahead, they are expected to grow by 18% over the next 3-5 years, with the industry forecasted to grow at a 16% clip. Management has done its part in boosting shareholder value. During the first quarter, MNT repurchased two million shares of its common stock for a total of $84 million. The Board of Directors also increased the authorized number of shares that the company can buy back to 5 million from 3.3 million. Moreover, the Board declared a quarterly cash dividend of 18 cents per share on Jun 20. The company has a current dividend yield of 1.5% and a five-year average dividend yield of 1.2%. The consensus estimate for fiscal 2007 currently resides at $1.19. This marks a 5.3% improvement when compared to the consensus of 60 days earlier. Profit forecasts for fiscal 2008 have risen 11.0% to $1.52 over the same period of time. On Jun 2, MNT sold its surgical urology and clinical and consumer healthcare business segments to Coloplast A/S, a worldwide provider of high-quality and innovative healthcare products and services, for $463 million. Going forward, the company will focus primarily on the fast-growing field of aesthetics medicine, which covers breast implants, liposuction products and dermatology items. The company's level of profitability, measured by its return on equity, nearly doubles that of the industry average—21% 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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(GLYT) - exceeded earnings estimates in a remarkable 16 consecutive quarters

The Genlyte Group has exceeded earnings estimates in a remarkable 16 consecutive quarters, with seven of those periods registering double-digit surprises. Three analysts have raised their estimates for this year and next. Over the past 60 days, this year's estimates have risen 9.1% to $4.07 per share, while next year's numbers have jumped 9% to $4.62 per share. Full Analysis The Genlyte Group Incorporated (GLYT) engages in the design, manufacture, marketing, and sale of lighting fixtures, controls, and related products in North America. Its products include incandescent, fluorescent, light emitting diodes, and high-intensity discharge lighting fixtures; lighting controls; poles; and accessories for commercial, residential, industrial, institutional, medical, entertainment, hospitality, and sports markets, and task lighting for various other markets. Genlyte Group sells its products to distributors, electrical wholesalers, mass merchandisers, and national accounts. The company markets its products through the independent sales representatives and company direct sales personnel primarily in the United States, Canada, and Mexico. The company said in late-July that second-quarter profit surged 67 percent on a 16 percent jump in sales. Genlyte earned $35.9 million, or $1.09 per share, compared with $21.5 million, or 76 cents per share, for the same quarter in 2005. Revenue grew to $366.1 million from $316.2 million in the year-ago period. Analysts had expected 91 cents per share. Company officials said the company's focus on higher margin product lines and price increases helped Genlyte post higher sales and gross margins. Chairman, President and CEO Larry Powers said, "We are pleased to report second quarter increases in both sales and earnings. Our focus on higher margin product lines and the price increases helped us achieve higher sales and gross margins for the second quarter. We are pleased with the second quarter gross margin increase to 39.4% compared to 37.3% last year. The operating profit margin increased during the second quarter to 14.0% from 12.0%. These margin increases are primarily attributed to the effective price increases, increases in volume, and the benefit of mix from selling higher value added products." The company has exceeded earnings estimates in a remarkable 16 consecutive quarters, with seven of those periods registering double-digit surprises. Three analysts have raised their estimates for this year and next. Over the past 60 days, this year's estimates have risen 9.1% to $4.07 per share, while next year's numbers have jumped 9% to $4.62 per share. GLYT is attractively valued with a PEG ratio less than 1.0. The stock is currently trading at 14.3x next year's estimates, below the company's projected long-term growth rate of 20.50%. 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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National Security a Safe Play in IT - Zacks Analyst Interview - With Larry Orlowski, Sep 11, 2006

The second half of 2006 has begun with some real fluctuation in the market. Amid longer-term economic concerns, how is the IT industry expected to perform? For answers, we turned to senior tech analyst Larry Orlowski, CFA. Are there any areas within the general IT market that you think might make good investments at this time? Sure I do. I think the computer services market – particularly companies such as CACI International (CAI) and ManTech International (MANT) which are good candidates to receive accelerated funding from the federal government in 2007 – would be good places to be invested within the tech market. Let me explain my thinking behind this. I'm finding myself pretty sensitive now to what's happening in the economy, especially with regard to the announcement recently that the productivity of the U.S. worker has slowed while labor costs continue to rise. My concern is that the Fed will sit up and take notice of this, believe that there may still be some inflation in the pipeline, and continue to raise interest rates. Now, the housing sector is another concern, and if interest rates keep going up we may see the issue of negative equity arise, which would force people to sell their houses. Higher interest rates would then tighten credit and the cost of borrowing, not just in terms of home mortgages but also in terms of consumer spending. And if spending slows, then I certainly would not want to overweight my investments in the tech market. Which brings us back around to the computer services companies you do like. Right. Certain factors make me think that some companies may be well situated if we do see an economic downturn. At this time, I have a Buy on CACI, which delivers IT applications and infrastructure to improve communications and building mission-critical solutions at the Department of Defense, the Department of Homeland Security and the intelligence industry. The stock price has fallen recently – there was some disappointment in the market when organic growth slowed – but I think now would be a good time to buy. I see accelerated growth in 2007, so I think CACI is a good stock to own. So you see this as a solid long-term investment? Yes, and I also see it as a defensive play. Congress wants Defense and Homeland Security bills to be signed into law before the mid-term election break. Even if congress swings Democratic after the election, neither party wants to be seen as weak on national security issues. So I think CACI and ManTech – on which I have a Hold at this point, but may give some consideration to upgrading in the near future – will have a strong fourth quarter because I think funding will accelerate for these companies' offerings. Politically, national security remains a hot topic. So the funding is definitely there, especially for those companies focused on the premium part of government IT – mission-critical solutions for intelligence operations. This is one area where investors can seek refuge, even if we see a dramatic economic downturn over the coming quarters. On the opposite side of this, what areas of tech would you recommend investors get out of? Tech is cyclical these days; it has grown so big. With that in mind, I wouldn't want to be too exposed to the PC market or other traditional parts of IT. I just think this market is quite mature, and the economic slow-down scenario that I'm wary of would only make things worse for this group. Have you noticed any increases in business IT spending? Not really; businesses have continued to under-invest in IT. Though this is subject to change. Business spending, as you may know, was supposed to pick up the baton from consumer spending that has kept the tech market somewhat buoyant over the past few years. And if business spending does indeed start to pick up, I would change my mind on the general broad IT market. But the fact of the matter is that business spending in IT has not been robust for a number of years. You'd have thought spending would have picked up by now, as companies are interested in refreshing their product cycles. The question for most businesses, though, is: If consumer spending continues to dampen, why should we invest in IT? Some companies don't want to be investing in IT if they see demand weakening, and will likely hold off until they see a more attractive opportunity. Larry Orlowski, CFA is a senior analyst covering the IT industry for Zacks Equity Research. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(DHIL) - Diamond Hill Investment Group is a diamond in the rough with special properties that Norton and Gillespie's readers should find attractive

Charles Norton and Allen Gillespie, editors of the Supernova Stocks newsletter, update investors on recent market action, draw parallels between past market events versus today's state of affairs and profile a diamond company. Benefit from these experts' explanation of what is happening with the current economic situation. Then read their analysis of a stock that is shining brightly. Commentary from September 1 Since Charles Norton and Allen Gillespie's last newsletter, the market has been attempting to claw its way back up to the scene of its May breakdown. While the S&P 500 has been somewhat successful in that endeavor, small-cap, technology and higher growth stocks have continued to struggle. The market scored a follow through day but investors should not throw caution to the wind. The follow through day was a very belated signal and leadership is still lacking. Prior leadership continues to break down, while the new leadership is clearly in the large-cap consistent earnings sectors like supermarkets, pharmaceuticals and consumer goods. In short, the market is clearly sending a message that it is preparing for recession. There are a couple of investment precedents Norton and Gillespie would like to make their readers aware of. There is a history of market breaks following the appointment of new Fed chairmen. In 1979, after Paul Volcker took the reins, the market broke then rallied back to a new high before a more severe setback of 200 points on the Dow, which was trading at 920 at the time. Shortly after Alan Greenspan became chairman, the 1987 Crash occurred. Norton and Gillespie see another interesting parallel between this market and the 1993 market, which struggled with inflation concerns following Hurricane Andrew (1992), the largest hurricane in terms of damage until Katrina. The S&P 500 was able to finish 1993 up just over 7% but then entered 1994 with a thud as it fell from just over 480 to less than 440. Stay tuned as Norton and Gillespie continue to monitor this parallel throughout the year. Shining Brightly Diamond Hill Investment Group (DHIL) is a diamond in the rough with special properties that Norton and Gillespie's readers should find attractive. The Fundamentals & Valuation Diamond Hill has been printing some serious green for a while now with eight straight quarters of triple digit sales growth and six of those showing triple digit earnings growth. The company is quickly ballooning its assets under management (AUM), a key metric in the analysis of financial services firms. Management has stated that important economies of scale will be achieved when assets reach the $2 to $4 billion range. It accomplished this goal in the June 30 reporting period with $2.7 billion in AUM. Investment management firms are highly scalable. They typically have a low employee count relative to revenues. Because retaining key employees is critical, they tend to be highly compensated. Diamond Hill reports just 21 employees, up from 13 a few years ago. Compensation jumped significantly from $2.2 million to $6.8 million in a year. This works out to $325,000 per employee. The increase was driven by performance bonuses. While the company states that the pay was for the performance over the last five years, it is still a significant jump. Such a large change makes it more difficult to project future earnings per share. With thinly traded companies, one is always concerned about them being run as quasi-private concerns rather than public companies. Diamond Hill has stated it is aiming to achieve 30% margins and the partnership did kick in a performance fee of $2.4 million for the year. The five year turnaround has been dramatic but going forward Norton and Gillespie believe employee compensation is a critical variable to monitor. Investment management firms have low fixed asset requirements, and again, Diamond Hill is no exception to this rule. As of June 30, the company had $19 million in assets, all of which are very liquid with $4.9 million in cash and near cash assets, and $13 million invested in the company's various funds. Importantly, of the $13 million invested, a little over $10 million is in the two private partnerships. This demonstrates Diamond Hill's confidence in their long-short strategies. The liabilities were $5.6 million giving the company a tangible book value of around $14 million dollars. Estimating a fair price for such a new company is challenging. On a book value basis, the stock certainly does not look cheap. Revenue growth has been outstanding, but the company has closed its most successful fund to new investors. A general rule of thumb for the investment management industry is to pay 4 times revenue. Based on the latest quarter, this would argue for a market cap of $85 million, or $48 per share. However, given the potential for performance fees related to the hedge funds, one might consider paying a slightly higher price. The danger to an outside shareholder is that the performance fees fail to flow through to the bottom line because they are paid out as incentive compensation. Summary Diamond Hill Investment Group's commitment to the alternative investment space makes it an exciting way to participate in the growth of the hedge fund industry. Investors benefit because the balance sheet is heavily invested in its funds, and also benefit as assets under management grow. More importantly, because it is a public company, investors do not have to worry about transparency issues. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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Bill Martin, editor of the FindProfit newsletter - Expert’s commentary regarding a new deep-water oil source in the Gulf of Mexico

Bill Martin, editor of the FindProfit newsletter, highlights big news from the energy arena. Read this featured expert’s commentary regarding a new deep-water oil source in the Gulf of Mexico. Also, find out how the previously untapped region could benefit the country's total reserves and learn about several companies that stand to benefit. QUICK HIT ALERT from September 5 The big news in the energy sector today is centered on a new deep-water oil source in the Gulf of Mexico. Chevron (CVX) and partners, Devon Energy (DVN) and Statoil (STO) announced that tests in a previously untapped region of the Gulf of Mexico could ultimately yield between 3 billion and 15 billion barrels of oil and gas, significantly upping the country's total reserves. It is estimated that developing the wells in this deep-water region, which require boring through several miles of rock on the floor of the Gulf of Mexico, could cost several billion dollars, including the costs of platforms and pipelines. Bottom Line: While this news is certainly positive for the companies mentioned above and producers with exposure to this wide swath of potentially oil-rich territory in the Gulf of Mexico, it is also good news for companies like Pride International (PDE) and Lone Star Technologies (LSS), as increased activity will up the demand for rigs and tubing in a market that has seen the number of deepwater rigs in action shrink in recent years (with rigs moving to offshore markets). Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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(DNDN) - Dendreon - Hit many bumps in developing Provenge as a treatment for prostate cancer

Nadine Wong, discusses Provenge, which is Dendreon’s treatment for prostate cancer that is currently in development. The editor of the BioTech Stock Report newsletter updates investors on what is happening with the company’s BLA filing. Then this featured expert explains why share price spikes could be forthcoming. Commentary from September 5 Dendreon (DNDN) has hit many bumps in developing Provenge as a treatment for prostate cancer. However, management has reiterated the timeline for the completion of the BLA filing for Provenge in asymptomatic metastatic HRPC by the end of 2006, based on the data from the D9901A Phase III trial, along with supportive data from the second D9902A Phase III trial. And on August 24, 2006, Dendreon initiated the rolling submission of Provenge’s BLA. Nonetheless, Nadine Wong and her team wonder if the data conclusively supports approval, given that the first two Phase III trials failed their primary endpoints. Is the secondary median survival endpoint of time to progression of the disease and a side effect profile that was favorable, enough to satisfy the FDA? Wong and her team won’t know the answer until mid-2007 when the FDA reviews Provenge’s BLA. Over the course of the next 6-12 months, there will be opportune times to sell Dendreon during transient share price spikes potentially triggered by release of data from Provenge’s Phase III PROTECT trial, if positive; upcoming news flow from trials based on survival (expanded D9902B trial, for which enrollment has been accelerating, and supportive data from the D9902A trial); and the filing of the BLA. Dendreon has $105.6 million in cash at the end of the second quarter of 2006, which equates to about five quarters’ worth. Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home

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