(NAT) - Consensus estimates for this quarter soared 55.7% to 95 cents over the past 30 days

Nordic American Tanker Shipping Limited (NAT), a Zacks #1 Rank stock, topped the Street's earnings estimate for the past three quarters, most recently by 19.3%. An increase in the company's credit line to $500 million, along with a public offering of five million shares of its common stock, should help NAT add to its current fleet of vessels. The company has a price-to-book ratio of 1.6, compared to 5.2 for the market, and is currently yielding 12.3%. Full Analysis Nordic American Tanker Shipping Limited engages in the ownership and operation of crude oil tankers in Bermuda. On Jul 6, the company announced that it acquired its eleventh and twelfth Suezmax tankers. NAT topped analysts' earnings expectations for the past three quarters by an average margin of 12.5%. On Jul 27, the company announced second-quarter earnings per share of 68 cents. The results easily surpassed the Street's estimate of 57 cents by 19.3%. Compared to the prior-year period, earnings were up 19.3% as well. Looking ahead to the third quarter, NAT stated on Sep 26 that it expects profits between 92 cents and 95 cents per share. The company expects to boost its third-quarter dividend to between $1.28 and $1.31 per share, compared to 60 cents per share in the third quarter of 2005. The Board of Directors declared a quarterly dividend of $1.07 for the second quarter. Investors requiring additional cash flow in the form of a dividend have been extremely pleased with NAT's current dividend yield of 12.3%. Analysts' optimism has grown considerably over the past 60 days. Consensus estimates for this quarter soared 55.7% to 95 cents over the past 30 days. Profit forecasts for the full year of 2006 are up 4.2% over the same period of time. On Sep 6, NAT's lenders authorized an increase in the company's credit line to $500 million from $300 million. This bodes well for the company because it will be able to acquire more vessels. Furthermore, on Sep 26, NAT announced that it will offer five million shares of its common stock through a public offering. The proceeds will be used to pay the balance of the company's most recently acquired tankers as well as fund future acquisitions. NAT is currently trading at a valuation of 9.5x trailing 12-month earnings and at 9.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.6, compared to 5.2 for the market. NAT's return on equity of 18% tops the industry average of 15%. 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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(GNW) - Board of Directors approved a 20% increase in the company's quarterly dividend

Genworth Financial, Inc. (GNW) exceeded analysts' earnings expectations for six consecutive quarters by an average margin of 7.3%. After releasing solid results for the second quarter, the company raised its 2006 earnings per share guidance. On Sep 20, the Board of Directors announced a 20% increase in the company's quarterly dividend. GNW has a current dividend yield of 0.86%. Full Analysis Genworth Financial, Inc. is a leading provider of domestic and international mortgage, long-term care and payment-protection insurance. The company also sells individual and group life insurance and retirement products. When GNW reported earnings for the second quarter of 2006, it marked the sixth straight quarter in which the company beat analysts' expectations. GNW's average margin of surprise over the past six quarters was 7.3%. In its most recent quarter, the company surprised to the upside by 5.9% when it posted profits of 72 cents per share. It also represented a 20.0% year-over-year improvement. Total revenues grew to $2.76 billion from $2.61 billion. The company experienced solid growth across its various insurance segments including 9% growth in its term life sales, while universal life sales more than doubled. Individual long-term care sales jumped 8%. Based on GNW's impressive second quarter, it raised its earnings per share guidance for the full year of 2006. The company now expects profits between $2.75 and $2.85 per share, versus its previous outlook which called for earnings per share between $2.65 and $2.75. GNW repurchased 2.2 million shares during the second quarter for approximately $74 million. Through June the company bought back $553 million worth of an authorized $750 million repurchase program. GNW plans to buy back the remaining $197 million by year end. On Sep 20, the Board of Directors approved a 20% increase in the company's quarterly dividend to nine cents per share. The company cited the strength of its businesses, ongoing solid financial performance and progress on growth initiatives and execution across all lines of its business as fueling the increase. GNW has a current dividend yield of 0.86%. The dividend will be paid on Oct 27 to shareholders of record as of Oct 12. GNW's return on equity of 10%, a common measure of a company's profitability, is in line with the industry average. GNW increased profits for the past two years, most recently by 5.5% in 2005. The company has stated that it aims to raise its ROE to 12% in 2008. GNW 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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(MDCO) - Over the past 90 days, this year's estimates have increased 35%

The Medicines Company has dramatically exceeded earnings estimates in three out of the past four quarters. The three positive surprises averaged 43%. Five analysts have raised their numbers for this year, while four have done so for next year. Over the past 90 days, this year's estimates have increased 35% to 27 cents per share. Next year's estimates have jumped 7.2% to 89 cents per share. Full Analysis The Medicines Company (MDCO) is engaged in acquiring, developing, and marketing specialty pharmaceutical products that are discovered by other pharmaceutical and biotechnology companies. Its leading product, Angiomax (bivalirudin), which was acquired from Biogen Idec, Inc. in 1996, is used as an anticoagulant in patients undergoing coronary angioplasty. The company's other late-stage products include Clevidipine and Cangrelor, both acquired from AstraZeneca several years ago. Clevidipine is an intravenous drug (calcium channel blocker) intended for the short-term control of blood pressure in patients undergoing cardiac surgery. Cangrelor is an intravenous anticoagulant, having potential uses in coronary angioplasty and cardiac surgery. The company sells its products through its own sales force and distributors. Angiomax is the company's first approved product in the U.S. (December 2000); the company began selling the product in early 2001. The Medicines Company has clearly demonstrated Angiomax s superiority to heparin, a standard anticoagulant used in the U.S. To reinvigorate Angiomax growth the company is conducting trials so that it can be used for additional indications like Coronary Artery Bypass Graft (CABG) and acute coronary syndromes (ACS). The company has dramatically exceeded earnings estimates in three out of the past four quarters. The three positive surprises averaged 43%. Five analysts have raised their numbers for this year, while four have done so for next year. Over the past 90 days, this year's estimates have increased 35% to 27 cents per share. Next year's estimates have jumped 7.2% to 89 cents per share. The stock is currently trading at 25.8x next year's estimates of 89 cents per share, well below the projected long-term growth rate of 37.5%, giving the stock a PEG ratio of 0.69. 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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(PRA) - Company was named to Forbes "100 Best Mid-Cap Stocks" once again this year

ProAssurance Corporation (PRA), a Zacks #1 Rank stock, beat analysts' earnings expectations in seven out of the past nine quarters by an average margin of 13.4%. The company completed its merger with Physicians Insurance Company of Wisconsin, Inc. on Jul 31 and it is expected to fuel premium growth going forward. Profit forecasts have been on the rise. PRA has a price-to-book ratio of 1.7, compared to 5.2 for the market. Full Analysis ProAssurance Corporation, through its subsidiaries, engages in the sale of professional liability insurance primarily to physicians, dentists, healthcare facilities and other healthcare providers in the mid-Atlantic, Midwest and Southeast United States. The company is the nation's fourth-largest writer of medical professional liability insurance. PRA exceeded analysts' earnings expectations in seven out of the past nine quarters by an average margin of 13.4%. In the two quarters in which the company failed to surprise to the upside it did manage to match estimates. On Aug 8, PRA posted second-quarter profits of $30.0 million, or 90 cents per share. With analysts calling for 80 cents, the company beat estimates by a solid 12.5%. Compared to the prior-year period, earnings were two cents better. Gross and net premiums written were up 2.7% and 5.3%, respectively, when compared to the second quarter of 2005. PRA's merger with Physicians Insurance Company of Wisconsin, Inc. closed as expected on Jul 31. When reporting results for the second quarter, the company stated that integration planning has been underway for several months and is moving forward as expected. PRA will now have a market leading position in Wisconsin, while its existing business in Illinois, Iowa and Kansas will be enhanced. PRA will also be able to add business from Minnesota, Nebraska, South Dakota and Nevada as a result of the merger. The company was named to Forbes "100 Best Mid-Cap Stocks" once again this year, ranking 64th. PRA leaped 21 spots when compared to its ranking in 2005. Forbes uses such criteria as positive return on equity, sales and earnings-per-share growth over the past five years and through the latest 12 months. Companies are also required to have forecasts for at least 10% annualized earnings growth over the next three to five years. Finally, current news, business trends and changes in consensus estimates are analyzed. Speaking of consensus estimates, they are up 7.2% and 9.2%, respectively, over the past 60 days for this quarter and next quarter. For the full years of 2006 and 2007, profit forecasts have risen 7.8% and 6.6%, respectively, over the same period of time. Earnings per share are forecasted to grow 14% over the next 3-5 years, while the industry is expected to grow 12%. PRA is currently trading at a valuation of 14.9x trailing 12-month earnings and at 13.6x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.7, compared to 5.2 for the market. PRA's return on equity of 14% tops the industry average of 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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(BID) - Topped analysts' earnings expectations for six consecutive quarters by an average margin of 19.5%

Sotheby's (BID), a Zacks #1 Rank stock, exceeded analysts' earnings expectations for the past six quarters by an average margin of 19.5%. The company recently reported record revenues and income from continuing operations in the second quarter. Consensus estimates for both this year and next year have been on the rise. Earnings per share are projected to grow 18% over the next 3-5 years. BID has a current dividend yield of 1.3%. Full Analysis Sotheby's, together with its subsidiaries, operates as an auctioneer of authenticated fine art, decorative arts, jewelry and collectibles. The company's finance business segment offers art-related finance to art collectors and dealers, and is involved in licensing activities. BID topped analysts' earnings expectations for six consecutive quarters by an average margin of 19.5%. Five out of the past six quarters produced double-digit earnings surprises. Income from continuing operations of $72.4 million, or $1.17 per share, for the second quarter marked an historic high for the company. It also beat the consensus earnings estimate by an impressive 19.4%. In the prior-year period, income from continuing operations amounted to $42.5 million, or 67 cents per share. Revenues of $248.3 million for the quarter also were a record and represented a 39.2% improvement when compared to the $178.4 million achieved in the second quarter of 2005. For the first six months of the year, another record was set with revenues of $344.3 million—a 36.4% jump when compared to revenues of $252.5 million for the first six months of 2005. Income from continuing operations soared 109.2% to $68.4 million. The Board of Directors recently declared a quarterly dividend of 10 cents per share. The company has a current dividend yield of 1.3%. The consensus earnings estimate for this year calls for profits of $1.73 per share. When compared to consensus estimate of 60 days earlier, it has jumped 15.3%. Profit forecasts for next year have risen 12.4% to $1.82. Four analysts upped their estimates for this year while three followed suit for next year. Earnings per share are projected to grow 18% over the next 3-5 years. The industry is expected to grow at a 17% clip. 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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(STEC) - Gross profit margin was 24.8% for the second quarter of 2006, compared to 19.3% in the first quarter of 2006

SimpleTech, Inc. has met or exceeded analyst estimates in five out of the past six quarters. Year-over-year growth was 150% in the latest quarter. Two analysts have raised their estiamates for both this year and next. Over the past 60 days, this year's estimates have increased 13.8%, while next year's numbers have jumped almost 29% to 45 cents per share. Full Analysis SimpleTech, Inc. (STEC) engages in the design, development, manufacture, and marketing of memory and storage products used in consumer electronics, computing, defense and aerospace systems, networking and communications, and other original equipment manufacturers applications in the United States. It offers flash products, including compactflash memory cards, digital and multimediacard flash memory cards, miniSD and reduced-size multimedia cards, USB flash drives, ATA flash PC cards, solid state drives, and flash disk modules that are used in various applications, including industrial, networking, and mobile consumer electronic applications. The company reported strong growth across the board for the second quarter of this year. Revenue for the second quarter of 2006 was $79.5 million, an increase of 21% from $65.5 million for the first quarter of 2006 and an increase of 13% from $70.3 million for the second quarter of 2005. earnings per share were 10 cents compared to two cents for the first quarter 2006 and four cents for the second quarter of 2005. Analysts expected nine cents. Gross profit margin was 24.8% for the second quarter of 2006, compared to 19.3% in the first quarter of 2006 and 18.2% for the second quarter of 2005. Revenue growth in the second quarter of 2006 resulted from stronger than expected demand in every major product category; in particular, sales of customized Flash memory to OEMs. Increased gross profit margin and diluted earnings per share for the second quarter of 2006 were impacted positively primarily due to a product mix shift toward higher-margin OEM Flash products. ``I am very pleased with our results for the second quarter of 2006 and even more with the strategic direction of the company at this time,'' said Manouch Moshayedi, SimpleTech's chairman and CEO. ``As I mentioned in a recent announcement, one of our strategic initiatives during the last two years was to invest significantly in research and development, and the sales and marketing infrastructure for customized OEM Flash solutions." The company has met or exceeded analyst estimates in five out of the past six quarters. Year-over-year growth was 150% in the latest quarter. Two analysts have raised their estiamates for both this year and next. Over the past 60 days, this year's estimates have increased 13.8%, while next year's numbers have jumped almost 29% to 45 cents per share. 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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(PD) - Over the past 16 quarters, the company managed to surprise to the upside on 12 occasions

Phelps Dodge Corporation (PD), a Zacks #1 Rank stock, topped the Street's earnings estimate in six out of the past eight quarters, most recently by 27.3%. Consensus estimates have been on the rise for both 2006 and 2007. The company has a price-to-book ratio of 3.0, compared to 5.2 for the market. PD's PEG ratio sits at 0.65 and the company has a current dividend yield of 0.98%. Full Analysis Phelps Dodge Corporation is one of the world's leading producers of copper. The company is also a world leader in the production of molybdenum, and the largest producer of molybdenum-based chemicals and continuous-cast copper rod. PD has two divisions, Phelps Dodge Mining Company and Phelps Dodge Industries. PD exceeded analysts' earnings expectations in six out of the past eight quarters by an average margin of 11.8%. Over the past 16 quarters, the company managed to surprise to the upside on 12 occasions. On Jul 26, PD crushed the Street's second-quarter earnings estimate of $3.85 per share when it reported profits of $4.90 per share. This amounted to a 27.3% positive earnings surprise and soared past its results in the prior-year period by 116.8%. Revenues ballooned to $2.99 billion from $1.97 billion a year earlier. PD and Inco Limited (N) called off their planned merger on Sep 5. The two companies, along with Falconbridge Ltd., had agreed to a three-way combination in a deal that would have resulted in a dominant copper and nickel producer in the North American market. However, Falconbridge was scooped up by Anglo-Swiss mining company Xstrata PLC, while Inco received a very attractive $17 billion offer from Brazilian mining giant Companhia Valo de Rio Dolce SA. Analysts had voiced their concerns about potential integration risks for PD if the deal was actually finalized. The company was recently listed as number 27 on Fortune's 2006 list of the 100 Fastest-Growing Companies. PD's profits surged 199% and revenues climbed 35% with a stock return of 68% on average annually over the past three years. Analysts' optimism about PD's future earnings prospects has been on the rise. Consensus estimates for this quarter and next quarter are up 16.7% and 15.3%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 jumped 8.7% and 21.6%, respectively, over the same period of time. PD is currently trading at a valuation of 7.5x trailing 12-month earnings and at 5.1x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.8x 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 5.2 for the market. PD's PEG ratio currently sits at 0.65. PD has a current dividend yield of 0.98%. The company's return on equity of 39% 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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(MLHR) - Company increased revenues for the past three years and grew profits for four years running, most recently by 14.6% and 45.9%

Herman Miller, Inc. (MLHR), a Zacks #1 Rank stock, produced only one negative earnings surprise over the past 16 quarters. In the first quarter of fiscal 2007, orders exceeded $500 million for the first time in more than five years. Earnings per share are projected to grow 16% over the next 3-5 years. Consensus estimates have been trending higher. MLHR has a current dividend yield of 0.95% and a five-year average dividend yield of 0.80%. Full Analysis Herman Miller, Inc. researches, designs, manufactures and distributes interior furnishings for use in various environments, including office, healthcare, educational and residential settings. The company has operations, sales offices, dealers, and licensees in more than 40 countries in North America, Asia/Pacific, Europe, Middle East, Africa and Latin America. MLHR has a strong history of either meeting or beating analysts' earnings expectations. Over the past 16 quarters, the company has only produced one negative earnings surprise. Earnings per share grew 55.2% over the past five years. On Sep 20, MLHR reported first-quarter fiscal 2007 profits of $28.5 million, or 43 cents per share, compared with $23.7 million, or 34 cents per share, in the prior-year period. The result marked a 26.5% year-over-year improvement and a 7.5% positive earnings surprise. Revenues jumped 4.4% to $449.7 million. Furthermore, orders for the quarter exceeded $500 million for the first time in more than five years. The company increased revenues for the past three years and grew profits for four years running, most recently by 14.6% and 45.9%, respectively, in fiscal 2006. At NeoCon 2006, the industry's annual trade show in mid June, MLHR launched more new and innovative designs than at any other time in the company's history. The company is very confident, based on customer responses, that they will have a favorable impact on its business going forward. Looking ahead, MLHR expects fiscal second-quarter profits between 53 cents and 57 cents per share, which would equate to a 33% to 43% improvement over the prior-year period. Sales between $490 million and $510 million are expected, marking a 12% to 16% jump over the second quarter of fiscal 2006. Analysts reacted by upping their profit forecasts for this quarter by 21.7% to 56 cents over the past seven days. The consensus estimate for this year currently resides at $1.95. This represents a 12.1% jump over the same period of time. Over the next 3-5 years, earnings per share are projected to grow 16%, with the industry forecasted to grow at a 15% clip. Investors requiring additional income in the form of a dividend have been fairly pleased with MLHR. The company has a current dividend yield of 0.95% and a five-year average dividend yield of 0.80%. 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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(CAM) - Company is expected to continue generating strong free cash flows

Cameron International has exceeded earnings estimates in six consecutive quarters, with year-to-year growth exceeding 43% in each of those periods. Seven analysts raised their estimates for this year, while five bumped up their numbers for next year. Over the past 90 days, this year's estimates have increased 12.6% to $2.69 per share, while next year's numbers have jumped 11.8%. Full Analysis Cameron International Corporation (CAM), previously known as Cooper Cameron Corporation, is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission. Upon the change in the corporate name in May 2006, the company also re-branded its three business segments into Drilling & Production Systems (DPS), formerly the Cameron segment; Valves & Measurement (V&M), formerly the Cooper Cameron Valves segment; and Compression Systems (CS), formerly the Cooper Compression segment. CAM remains well positioned to capitalize on the current cyclical upturn in oilfield activity levels. The company is especially poised for a recovery in the subsea market. Subsea products have seen an increase in interest and, as about one third of the DPS segment s income comes from the subsea products, we expect earnings in this segment to strengthen - especially due to the company s Christmas Tree production and pressure control systems. According to Zacks Equity Research Analyst Sheraz Mian, Cameron International has been able to take advantage of its leverage to the land drilling business, which continues to remain strong. During the first quarter of 2006, the company received several large orders relating to seven new offshore rig construction projects. Margins have been increasing, in part due to price hikes. The company has already announced one price hike during 2005 and Mian expects more in the near to medium term. Further, increased order activity in the valve business is expected to be particularly beneficial to margin expansion, given the high fixed-cost nature of that business. The company has also been further strengthening its valve business through acquisitions. The acquisition of Dresser's (DRC) Flow Control business for $217 million in cash during the last quarter of 2005 was in keeping with that strategy. Mian also likes the fact that the company remains in strong financial health with $663.3 million in cash on hand and a net debt-to-capitalization ratio of about 15.3%. Given the favorable macro environment, the company is expected to continue generating strong free cash flows (operating cash flow less capex) in the near to medium term. The company generated approximately $275 million in free cash flow last year, which primarily went towards acquisitions. The company has exceeded earnings estimates in six consecutive quarters, with year-to-year growth exceeding 43% in each of those periods. Seven analysts raised their estimates for this year, while five bumped up their numbers for next year. Over the past 90 days, this year's estimates have increased 12.6% to $2.69 per share, while next year's numbers have jumped 11.8%. The stock is cheap at 12.7x next year's estimate, well below the long-term growth rate of 20.31%, giving the stock a PEG ratio of 0.63. 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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(LNT) - Crushed the consensus earnings estimate by 25.8%

Alliant Energy Corporation (LNT) exceeded analysts' earnings estimates for five consecutive quarters by an average margin of 45.2%. This Zacks #1 Rank stock recently upped its 2006 earnings per share guidance. The Board of Directors authorized a $200 million share repurchase plan in early August and declared a quarterly dividend of 28.75 cents per share in mid July. LNT has a price-to-book ratio of only 1.7, compared to 5.2 for the market. Full Analysis Alliant Energy Corporation is a public utility holding company serving approximately one million electric and over 400,000 natural gas customers in Iowa, Illinois, Minnesota and Wisconsin. LNT topped the Street's earnings estimate over the past five quarters by an average margin of 45.2%. The company produced a double-digit earnings surprise in each of the five quarters. On Aug 3, LNT reported second-quarter profits of $46.1 million, or 39 cents per share. The results crushed the consensus earnings estimate by 25.8%. Compared to the prior-year period, however, earnings were down a penny. Revenues declined slightly to $696.8 million, from $699.8 million in the second quarter of 2005. Commenting on the second quarter, Chairman, President and CEO William D. Harvey stated, “We are once again pleased with the strong and more predictable financial results our ongoing businesses produced this past quarter. Over the past several years, we have made significant progress executing our planned divestitures and improving the financial strength of our company.” LNT announced that it has increased its earnings per share guidance for the full year of 2006 to between $2.25 and 2.45, compared to its prior outlook which projected between $2.15 and $2.35. The company listed a number of reasons for its revised forecast, including continuing economic development and sales growth in its utility service territories as well as continuing cost controls and operational efficiencies The Board of Directors authorized a share repurchase plan in which the company can buy back up to $200 million of its common stock by the end of 2007. Moreover, on Jul 14, the Board declared a quarterly cash dividend of 28.75 cents per common share of stock. Dividends on the company's common stock have been paid for 243 consecutive quarters since 1946. LNT is currently yielding 3.3%. The consensus estimate for 2006 currently resides at $2.35 and represents a 4.4% increase over the past 60 days. Profit forecasts for 2007 jumped 4.3% to $2.45 over the same period of time. Three analysts upped their estimates for this year while two did so for next year. LNT is currently trading at a valuation of 13.6x trailing 12-month earnings and at 15.0x 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 1.7, compared to 5.2 for the market. LNT's return on equity of 12% tops the industry average of 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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(AEOS) - Receiving a number of upward earnings estimate revisions

American Eagle Outfitters, Inc. (AEOS), a Zacks #1 Rank stock, has not reported a negative earnings surprise over the past 16 quarters. The company recently upped its third-quarter 2006 earnings per share guidance to between 56 cents and 58 cents. A new line called aerie by American Eagle launched in mid August should help fuel further sales growth. Strong cash flows from operating activities have led to a current dividend yield of 1.0%. Full Analysis American Eagle Outfitters, Inc. is a leading retailer that designs, markets and sells its own brand of laidback, current clothing targeting 15 to 25 year-olds. The company currently operates 815 stores in 50 states, the District of Columbia and Puerto Rico, and 71 stores in Canada. AEOS has a truly remarkable record when it comes to topping the Street's earnings estimate. The company exceeded analysts' earnings expectations in 13 out of the past 16 quarters. Furthermore, over the past 16 quarters, AEOS did not report a negative earnings surprise. On Aug 15, the company beat the consensus estimate by a penny when it posted second-quarter profits of $72.1 million, or 47 cents per share. AEOS's earnings per share in the prior-year period came in at 37 cents. Total sales jumped 16.8% to $602.3 million from $515.9 million last year. Same-store sales, or sales at stores open at least one year, rose 10%. CEO Jim O'Donnell stated, “American Eagle delivered solid top-line growth, outstanding profitability and strong cash flow for the second quarter of 2006.” Citing the company's August performance, which was fueled by its back-to-school sales, AEOS boosted its third-quarter 2006 earnings per share guidance to between 56 cents and 58 cents, compared to its previous guidance that called for profits between 52 cents and 54 cents. August same-store sales increased 11%, while analysts were expecting growth of 9.1%. On Aug 17, the company launched aerie by American Eagle. Available in stores across the country and online, the new line consists of dormwear and intimates for 15- to 25-year-old girls. Furthermore, a stand-alone aerie store was opened in Haywood Mall in Greenville, South Carolina, with two more expected to open this year. President and Chief Merchandising Officer Susan McGalla stated, “Our customers will love aerie for the same reasons they love AE sportswear and accessories—excellent fit, value and style.” AEOS has been receiving a number of upward earnings estimate revisions. The consensus estimate for this year has risen 5.5% to $2.32 over the past 60 days. Profit forecasts for next year increased 4.9% to $2.56 over the same period of time. Earnings per share are forecasted to grow 15.0% over the next 3-5 years. The Board of Directors declared a quarterly cash dividend of 11.25 cents per share on Aug 16. Strong cash flows from operating activities enabled AEOS to offer a current dividend yield of 1.0%. The company increased revenues for nine years running. AEOS's profitability, measured by its return on equity, crushes that of the industry average—27% compared to 19%. 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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(ODFL) - Second-quarter profit rose 55% on a 25% jump in revenue

Old Dominion Freight Line has exceeded earnings estimates in six consecutive quarters. Year-to-year growth has routinely exceeded 30% over that time period. Seven analysts have raised their estimates for this year, while six have done so for next year. Over the past 60 days, this year's estimates have increased 5.3% to $1.97 per share. Full Analysis Old Dominion Freight Line, Inc. (ODFL) operates as a less-than-truckload multiregional motor carrier in the United States and Canada. It provides one-to-five day service, and next-day and second-day services. The company also offers premium expedited services, truckload services, truckload brokerage services, logistical solutions, container delivery to and from 10 port facilities, and distribution services. As of March 1, 2006, it operates 171 service centers. As of December 31, 2005, the company operated 4,028 tractors; and a fleet of 15,701 trailers, including linehaul tractors, pickup and delivery tractors, pickup and delivery trucks, linehaul trailers, and pickup and delivery trailers. ODFL said in late-July its second-quarter profit rose 55% on a 25% jump in revenue. Old Dominion earned $21.6 million, or 58 cents per share, compared with $13.9 million, or 37 cents per share, for the same quarter in 2005. Revenue grew to $330.8 million from $264.3 million in the year-ago period. Analysts only expected 51 cents. Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion, commented, "We are pleased to report Old Dominion's strong profitable growth for the second quarter of 2006, as we continued to deliver revenue growth well above average industry growth rates while maintaining focus on margin improvement. We believe our success is increasingly driven by our ability to provide single-source solutions for our customers' logistics needs in regional, national and international markets." The company also increased its guidance for 2006 earnings per diluted share to a range of $1.94 to $1.97 from the previous range of $1.76 to $1.84. In addition, it established its earnings guidance for the third quarter of 2006 in a range of $0.51 to $0.54, compared with $0.43 earned for the third quarter of 2005. ODFL has exceeded earnings estimates in six consecutive quarters. Year-to-year growth has routinely exceeded 30% over that time period. Seven analysts have raised their estimates for this year, while six have done so for next year. Over the past 60 days, this year's estimates have increased 5.3% to $1.97 per share. The stock is currently trading at 13.3x next year's estimates of $2.26 per share, below the projected long-term growth rate of 16.75%, giving the stock a PEG ratio of 0.79. 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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Jim Collins, The OTC Insight newsletter - Soft Landing for Economy Helps Stocks

Jim Collins, editor of The OTC Insight newsletter, believes savvy investors can use this time to invest in quality stocks at discounts to what should be a good close to the year. Find out what this featured expert has to say about interest rates, the easing of geopolitical tensions and lower oil prices. Then take a look at one of the stocks that was reviewed in this edition of Collins' newsletter. Market Outlook from September 5 Soft Landing for Economy Helps Make Stocks Attractive Stock prices received relief in August, as interest rate increases were put on hold and geopolitical tensions declined. Geopolitical tensions had a particularly negative effect in July when Israel and Hezbollah were at war and Iran was unwilling to agree to talks over its nuclear program. Although tensions remain high among the international community with Iran, the ceasefire with Israel and Hezbollah is holding and no longer appears to be a threat to engulf the whole region. The result of the decreased tension is that oil prices have retreated below $70 per barrel. The fact that this year's hurricane season has been relatively benign and has not threatened the critical supply and production facilities in the Gulf of Mexico is also helping to ease the pressure on energy prices. Reduced geopolitical tensions and falling energy prices are allowing investors to benefit from the Federal Reserve's decision to keep short-term interest rates unchanged at their latest meeting. Initially, the stock market did not react positively to the halt in increases due to the Fed's stated concern over inflation. Now that energy prices are falling, the Fed will have greater flexibility when adjusting rates. As long as there is not another shock to world energy supplies, there will be an increased focus on the economy. There were clear signs the economy was slowing entering the third quarter. This led to increased speculation that the Fed may have tightened too much, potentially leading to a hard landing. Insight believes this view is overly pessimistic, and the data appear to back their argument. For example, the latest report on consumer spending indicates that spending increased by a larger than expected 0.8% last month. This was during a period of higher gasoline prices, which prevented the increase from being even larger. (Consumer spending accounts for approximately two-thirds of all economic activity.) Most retailers are also reporting the back-to-school sales season has been robust. Stocks remain attractive, as prices have not kept pace with earnings over the first eight months of the year and the earnings outlook is positive. The price-to-earnings (P/E) ratio for the S&P 500 on a trailing 12-month basis is at its lowest point since the first quarter of 1995. Using the earnings estimates for the S&P 500 over the next 12 months, the P/E ratio is at a level not seen since the third quarter of 1990. Meanwhile, earnings are expected to expand in excess of 10% over the next year, which is good by historical standards. The bottom line of Jim Collins and his team's analysis is that the risk/reward characteristics of stocks are pointed in investors' favor. There may be small periods of downside volatility as we close out the third quarter when many companies who expect to miss earnings projections preannounce their disappointing results. However, Collins and his team believe savvy investors can use this time to invest in quality stocks at discounts to what should be a good close to the year. Analysts' Review Garmin Ltd. (GRMN) is a leading, worldwide provider of navigation, communications and information devices, most of which are enabled by GPS technology. Garmin designs, develops, manufactures and markets a diverse family of hand-held, portable and fixed-mount GPS-enabled products and other navigation, communications and information products for the consumer and general aviation markets. The company employed 3,034 people as of December 31, 2005, and its headquarters are located in the Cayman Islands, though its primary operations are in Olathe, Kansas. Recent News On August 10, 2006, Garmin introduced an accessory to the popular Forerunner 305 that allows athletes to train indoors where a GPS signal is unavailable. Named the Forerunner 305 Foot Pod, the shoe-mounted device wirelessly communicates with the wrist-worn Forerunner 305 to provide accurate distance and speed while training on treadmills or indoor tracks. The Foot Pod uses a pair of accelerometers to measure each stride to provide a runner's speed and distance information. The Foot Pod is 97% accurate out of the box and 99% when calibrated, and it can be worn in tandem with the Forerunner 305's wireless heart rate monitor. Financials For the quarter ended June 30, 2006, Garmin reported net income of $0.55 per share, compared to $0.35 reported in the prior year before the effects of foreign currency exchange. Total revenue increased 64% to $432.5 million compared to $264.5 million reported last year. The strong revenue and earnings in the quarter were the result of significant strength in the automotive and mobile segment as well as solid results from the outdoor segment. This article highlights the commentary of Jim Collins for the Zacks.com audience. Jim Collins provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "OTC Insight" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "OTC Insight" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Donald Rowe, Wall Street Digest newsletter - Prepare for the Next Great Bull Market

Donald Rowe, editor of the Wall Street Digest newsletter, says speculators have left the housing sector and will join the 78 million baby boomers to create a bubble boom in the stock market between now and 2010. Read about other indicators that are signaling the arrival of the next great bull market. Then check out some of the stocks that this featured expert is touting as buys. Commentary from September 15 The price of oil, lumber and gold are below their 200-day moving averages. Nationally, the price of homes continues to inch higher even though home sales were down 21 percent during the June, July, August period. The flippers and the speculators have left the housing sector. They will join the 78 million baby boomers to create a bubble boom in the stock market between now and 2010. With the market 32 percent undervalued, the market P/E ratio at 13.6 compared to 24 in January of 2000, and corporate cash at record levels, the stock market will provide us with unusual profits this fall and well into 2007. Your patience will be rewarded. A more fully invested position is warranted. The next great bull market should be ready to unfold by mid-October. Buy recommendations include: Gorman-Rupp Co. (GRC) designs, manufactures and sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, military and other liquid-handling applications. Psychiatric Solutions, Inc. (PSYS) offers an extensive continuum of behavioral health programs to critically ill children, adolescents and adults through its ownership and operation of freestanding psychiatric inpatient hospitals and its management of psychiatric units within general acute care hospitals owned by others. PW Eagle, Inc. (PWEI) is a leading extruder of PVC pipe and polyethylene tubing products. The Company operates eight manufacturing facilities in the midwestern and western United States. This article highlights the commentary of Donald H. Rowe for the Zacks.com audience. Donald H. Rowe provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Wall Street Digest" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Wall Street Digest" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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Don Dion, Fidelity Independent Adviser newsletter - Large-cap stocks are no longer in the doghouse

Don Dion, editor of the Fidelity Independent Adviser newsletter, says the tide is turning for large-caps, and he explains that it might be best to look for large companies that are sitting on big cash reserves, as several are. Read about one such example in the financial services arena. Afterward, find out which fund this featured expert profiles as part of his Portfolio Spotlight. Commentary from September 14 In the past five years, small- and mid-cap stock indices have trounced their large-cap counterparts. But Don Dion and his team have been saying all year that this trend is about to end. And now it's clear that the tide is turning. With the Dow Jones Industrial Average outpacing the other major indices on the year, and up nearly 8 percent, it's becoming clear that large-cap stocks are no longer in the doghouse. In fact, they are becoming the place to put money. And if you are looking at large-cap stocks, it might be best to look for ones that are sitting on big cash reserves, as several are. In a July report, Citigroup's (C) chief equities strategist argued that cash-rich big-caps were a best bet. Cash and equivalents relative to market value are near 20-year highs, he noted, meaning plenty of potential for shareholder positives such as buybacks and increased dividends. Let's look at one example. American Express (AXP) is a financial services giant. The company benefits from a great brand image and strong customer loyalty, giving it a critical edge over its competitors. The average consumer in the United States, for example, charges four times as much to their American Express cards as they do to their Visas and MasterCards. American Express has recently tightened operations, slashing costs and focusing on the company's core businesses. In 2005, it spun off its insurance and investment services arm, Ameriprise Financial (AMP). These moves left it with cash and equivalents over 10 percent of market value, meaning American Express has a lot of money on its books. Earlier this year, the company raised its quarterly dividend 25 percent, to $0.15 a share, and approved a buyback program that could see as much as 16 percent of outstanding shares purchased. There are a number of large-cap stocks that are still offering that kind of value, as well as lower risk than small- and mid-cap stocks. Investors who were burned by large-caps five and six years ago appear to be over the disappointment. So for a while, bigger may end up being better for investors. Fidelity Fund, which currently comprises 31 percent of Dion's Fidelity Growth Portfolio is a large-cap growth fund that currently holds American Express among its 144 holdings. As of yesterday, the fund was up 5.83 percent year to date. Portfolio Spotlight ICON Telecommunications & Utilities (ICTUX) The ICON managers apply their proprietary investment approach to various sectors, including telecommunications and utilities. The strategy has worked particularly well here: ICON Telecommunications and Utilities' year-to-date and one-, three- and five-year returns all handily outpaced the S&P 500 and the average communications fund, according to Morningstar—and ICTUX's five-year gain landed in the category's top 12 percent. ICTUX recently held 31 percent of its assets in utilities stocks, with most of the rest in telecommunications. (A smaller percentage was held in stocks that fell into the computer hardware, industrial materials, energy and business services categories.) The ICON process has helped this fund weather an up-and-down—or, more accurately, down-and-up—environment for telecommunications stocks during the past several years. ICTUX demolished its competition during the bear market, in part because its value criteria kept it from loading up on pricey networking stocks—a strategy many of its competitors pursued during the tech bubble. Another reason: The fund holds a sizable weighting in foreign shares, which recently accounted for just over half of assets. Foreign stocks dramatically outperformed U.S. shares during the early years of this decade, helping this fund beat the average communications offering by 41.8 percentage points in 2000, 11.1 points in 2001 and 21.3 points during 2002. That development highlights the benefits of international diversification. This article highlights the commentary of Don Dion for the Zacks.com audience. Don Dion provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Fidelity Independent Adviser" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Fidelity Independent Adviser" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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