(ACF) - AmeriCredit Corp. - topped analysts' earnings expectations in 13 out of the past 15 quarters

AmeriCredit Corp. (ACF) beat the Street's earnings estimate in 13 out of the past 15 quarters. The company recently increased its fiscal 2007 earnings per share guidance. Analysts have been raising their profit forecasts for this quarter as well as for the full year. The company's repurchase program was boosted by $300 million in September. This Zacks #1 Rank stock has a price-to-book ratio of 1.9, compared to 5.4 for the market. Full Analysis AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. ACF topped analysts' earnings expectations in 13 out of the past 15 quarters. On Oct 24, the company beat the Street's estimate by a penny when it reported first-quarter fiscal 2007 earnings per share of 54 cents. This marked a 35.0% year-over-year improvement when compared to earnings of 40 cents per share in the first quarter of fiscal 2006. Revenues jumped 24.6% to $523.6 million from $420.3 million. President and CEO Dan Berce stated, “Our September quarter was a solid beginning to fiscal year 2007, with new loan volume and credit performance improved from a year ago.” The company boosted its fiscal 2007 earnings per share guidance to between $2.45 and $2.65 on revenues between $3.25 and $3.55 billion. ACF's previous projection called for profits between $2.15 and $2.35 per share. The company cited the rollout of a broader credit spectrum of product offerings through its Bay View platform as fueling the revised outlook. During the quarter, ACF bought back $324 million of its common stock. The repurchase program, which was authorized in April 2004, has enabled the company to buy back $1.25 billion worth of its common stock. Furthermore, the Board of Directors increased the program by $300 million in September. Over the past 60 days, six analysts increased their earnings estimates for this quarter. The consensus currently stands at 60 cents per share. Upward revisions were also submitted by six analysts for the full year with the consensus estimate climbing 7.1% to $2.58. Earnings per share are projected to grow 13% over the next 3-5 years. ACF is currently trading at a valuation of 11.5x trailing 12-month earnings and at 10.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.5x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 5.4 for the market. Its PEG ratio currently sits at 0.81. 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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(NATI) - National Instruments Corp. - seven out of the eight the company produced double-digit earnings surprises

National Instruments Corporation (NATI) topped analysts' earnings expectations in eight out of the past nine quarters. The company recently announced record revenues for the third quarter. Consensus estimates for both this year and next have been trending higher. NATI is increasing shareholder value through stock buybacks and dividend payments. This Zacks #1 Rank stock is currently yielding 0.76%, with a five-year average yield of 0.42%. Full Analysis National Instruments Corporation is a supplier of measurement and automation products that engineers and scientists use in a range of industries. The company sold products to more than 25,000 companies in 90 countries in 2005. NATI has direct operations in nearly 40 countries. NATI exceeded analysts' earnings expectations in eight out of the past nine quarters by an average margin of 14.1%. In seven out of the eight aforementioned quarters, the company managed to produce double-digit earnings surprises. Earnings per share grew 16% over the past five years and are forecasted to grow by an even greater magnitude going forward—20% over the next 3-5 years. The industry is projected to grow at a 16% clip. On Oct 23, NATI produced a 14.3% positive earnings surprise when it posted third-quarter profits of 24 cents per share. Analysts were calling for 21 cents. Compared to the prior-year period, earnings increased 33.3%. Revenues hit an all-time high, coming in at $164.1 million. The company posted revenues of $141.6 million in the third quarter of 2005. For the first nine months of the year, profits amounted to $48.3 million, versus $40.6 million for the first nine months of 2005. Revenues jumped 16.2% to $479.0 million from $412.2 million. NATI increased revenues and expanded gross margins for the past four years. The company grew profits for three years running, most recently by 26.5% in 2005. Consensus estimates for both this year and next have been on the rise. Profit forecasts for 2006 increased 3.5% to 89 cents over the past seven days, and reflect upward revisions by two analysts. Estimates for 2007 currently reside at $1.13 and represent a 4.6% jump over the same period of time. Two analysts also upped their estimates. Steadily increasing free cash flows over the past few years helped the company increase shareholder value through dividend payments and share buybacks. The Board of Directors recently declared a quarterly cash dividend of six cents per share. The dividend is payable on Nov 27 to shareholders of record as of Nov 6. NATI is currently yielding 0.76%, with a five-year average yield of 0.42%. During the third quarter, the company repurchased 608,000 shares of its common stock for a total cost of $16.5 million. 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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(ININ) Interactive Intelligence, Inc. - Over the past month, this year's estimates have increased 50%

Interactive Intelligence has exceeded earnings estimates in five out of the past six quarters, with four of those periods posting 100%+ surprises. Two out of the three analysts covering the stock have raised their estimates for this year. Over the past month, this year's estimates have increased 50% to 33 cents per share. Full Analysis Interactive Intelligence, Inc. (ININ) provides business communications software solutions for contact center automation, enterprise Internet protocol telephony, unified communications, and self-service automation. It provides Customer Interaction Center (CIC), a software communications application suite, which enables organizations to combine various customer interactions, such as phone, fax, email, and Web contact. In addition, the company's software applications include e-FAQ, an email response management, knowledge management, and Web self-service solution; Vocalite, a speech-enabled interactive voice response software application; Interaction Session Initiation Protocol (SIP) Proxy server software compliant, which supports SIP methods and status codes; and Interaction Media Server, a device that provides the ability to offload audio processing functions from the CIC server. Income for the third quarter was $6.7 million, or 36 cents per share, up from $28,000, or break-even, last year. Revenue for the quarter was $22.2 million, up 46% from $15.2 million last year. Looking forward, the company projected sales would increase 20% to 25% over last year, implying sales of $18.2 million to $19 million. Analysts only expected nine cents, resulting in a whopping 300% surprise. "We had a great quarter," said Interactive Intelligence CEO, Dr. Donald E. Brown. "Our IP contact center solution is clearly gaining share in this fast-growing market. We are also gaining traction in the IP PBX market with significant orders from large and mid-size companies. The dollar amount and number of new orders were both up significantly in this quarter from the second quarter of this year." The company has exceeded earnings estimates in five out of the past six quarters, with four of those periods posting 100%+ surprises. Two out of the three analysts covering the stock have raised their estimates for this year. Over the past month, this year's estimates have increased 50% to 33 cents per share. The stock is currently trading at 38.3x next year's estimates of 46 cents per share, above the long-term growth rate of 30%, giving ININ a PEG ratio of 1.28. 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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(RS) - Reliance Steel & Aluminum Co. - increased revenues and expanded gross margins for the past four years

Reliance Steel & Aluminum Co. (RS), which has already been highlighted twice in the past, is still a Zacks #1 Rank stock. The company exceeded analysts' earnings expectations in 15 out of the past 16 quarters. RS recently reported record profits and revenues for the third quarter and for the first nine months of the year. Consensus estimates for this quarter and for the full year have risen over the past 60 days. The company has a price-to-book ratio of 1.6, compared to 5.4 for the market. Full Analysis Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. The company provides metals processing services and distributes a full line of more than 90,000 metal products through a network of more than 150 locations in 37 states, Belgium, Canada, China and South Korea. RS sells its products and services to more than 95,000 customers in a broad range of industries. RS, which we have already covered twice in the past year, continues to trade at a highly-discounted valuation. Moreover, the company is still beating analysts' earnings expectations, while receiving upward earnings estimate revisions. Putting all of this together, the company is still a Zacks #1 Rank stock. The company has now topped the Street's estimate in 15 out of the past 16 quarters. In the third quarter of 2006, RS reported record profits of $107.5 million, or $1.41 per share. The result compares with profits of $49.4 million, or 75 cents per share achieved in the third quarter of 2005. Analysts were expecting $1.39. Revenues also hit an all-time high, coming in at $1.6 billion, versus $870.1 million in the prior-year period. For the first nine months of the year, profits and revenues also marked new records for the company. Profits skyrocketed 93.3% to $279.9 million, while revenues soared 68.0% to $4.2 billion. RS increased revenues and expanded gross margins for the past four years. The company grew profits for three years running. The company's acquisition of Yarde Metals, Inc., which was finalized on Aug 1, contributed to its solid third-quarter results. The purchase was made in an effort to strengthen RS's market presence as well as complement the company's existing geographic network. It was RS's second-largest acquisition in terms of revenues. The consensus estimate for this quarter currently calls for profits of $1.25 per share. Compared to the consensus of 60 days earlier, it jumped 7.8%. Profit forecasts for the full year increased 5.9% to $5.07 over the same period of time. The Board of Directors declared a quarterly cash dividend of six cents per common share of stock on Oct 24. The dividend is payable on Jan 5 to shareholders of record as of Dec 8. RS distributed regular quarterly dividend payments for 46 straight years. The company has a current dividend yield of 0.69%. RS is currently trading at a valuation of 5.8x trailing 12-month earnings and at 6.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.6, compared to 5.4 for the market. Its return on equity, a common measure of profitability, of 28% is in line with the industry average. 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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(PCAR) - PACCAR, Inc. - topped the Street's estimate in 15 out of the past 16 quarters by an average margin of 15.0%

PACCAR, Inc. (PCAR), which was first presented as a Growth and Income pick on Jul 25, exceeded analysts' earnings expectations in 15 out of the past 16 quarters. The company recently reported record profits and revenues for the third quarter and for the first nine months of 2006. Consensus estimates for both 2006 and 2007 have been trending higher. This Zacks #1 Rank stock is currently yielding 1.3% and its return on equity of 32% crushes the industry average of 6%. Full Analysis PACCAR, Inc. designs, manufactures and distributes light, medium and heavy-duty trucks, which are used for over the road and off highway hauling of freight, petroleum, wood products, construction and other materials. The company also participates in the aftermarket distribution of parts worldwide and the manufacture of industrial winches. Finance and leasing services are also provided by PCAR to its customers and dealers. PCAR, which was first featured as a Growth and Income stock on Jul 25, is up nearly 16%. Since its debut, the company added two more earnings surprises to its nearly spotless history of exceeding analysts' earnings expectations. PCAR has now topped the Street's estimate in 15 out of the past 16 quarters by an average margin of 15.0%. In late July, the company was a Zacks #2 Rank stock (buy). It now holds the coveted status of a Zacks #1 Rank stock (strong buy). On Oct 24, PCAR reported third-quarter profits of $403.6 million, or $1.61 per share. This beat the Street's estimate of $1.50 by 7.3% and marked a new record for the company. The result also represented a 35.3% year-over-year improvement when compared to earnings of $1.19 achieved in the third quarter of 2005. Revenues jumped 18.9% to a record $4.21 billion, compared to $3.54 billion in the prior-year period. For the first nine months of the year, both profits and revenues hit all-time highs as well. Profits soared 36.5% to $1.12 billion, while revenues rose 17.4% to $12.23 billion when compared to the first nine months of 2005. PCAR increased revenues, expanded gross margins and grew profits for the past four years. Consensus estimates for both 2006 and 2007 have been trending higher. Profit forecasts for 2006 are up 2.5% over the past 60 days, while estimates for 2007 have risen 4.0% over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years. The industry's expected growth rate currently sits at 6%. During the third quarter, PCAR bought back 1.1 million of its common shares at a cost of $59.4 million. This effectively put an end to the company's five million share repurchase program. PCAR repurchased 10 million shares over the past two years. Vice Chairman Mike Tembreull stated, “PACCAR's profits and cash flow are excellent and the company's shares represent attractive long-term value.” The Board of Directors declared a quarterly cash dividend of 20 cents per share on Sep 12. The dividend is payable on Dec 5 to stockholders of record as of Nov 17. The company is currently yielding 1.3%. PCAR's return on equity is more than five times greater than that of the industry average—32% compared to 6%. 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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(ILMN) - Illumina, Inc. - exceeded earnings estimates in 11 out of the past 12 quarters. Four of them had positive surprises over 100%

Illumina has exceeded earnings estimates in 11 out of the past 12 quarters. Four of them had positive surprises over 100%. Six analysts have raised their forecasts for this year, while five have done so for next year. Over the past 30 days, this year's estimates have soared 55% to 76 cents per share. Full Analysis Illumina, Inc. (ILMN) engages in the development and marketing of tools for the analysis of genetic variation and function primarily in the United States and internationally. Its single nucleotide polymorphism (SNP) genotyping product comprises Sentrix Array Matrix, which uses a universal format that allows it to analyze various sets of SNPs. The company also offers BeadLabs and BeadStations principally for gene expression profiling; BeadArray Reader, a scanning instrument that uses a laser to read the results of experiments that are captured in its instruments; and oligos, which are components of the reagent kits for its BeadArray products and are used for assay development. ILMN swung to a third-quarter profit and raised 2006 guidance last week. Illumina's quarterly profit of $16.2 million, or 32 cents per share, and $53.5 million in sales beat Wall Street expectations, prompting the San Diego-based company to raise its fiscal 2006 outlook. Analysts only expected 16 cents. This was the third straight quarter with a big surprise and a guidance increase. Also, Illumina reported total revenue of $53.5 million, a 174% increase over the $19.5 million reported in the third quarter of 2005 and a 29% increase over the $41.6 million reported in the second quarter of 2006. This represents the Company's 21st consecutive quarter of revenue growth. The combined gross margin for product and services was 69.3% in the third quarter of 2006, compared to 65.3% in the third quarter of 2005. For the third quarter of 2006, excluding the effect of non-cash stock compensation expense, the combined gross margin of product and services would have been 70.1%. It is an excellent sign that gross margins are rising for the company. The company has exceeded earnings estimates in 11 out of the past 12 quarters. Four of them had positive surprises over 100%. Six analysts have raised their forecasts for this year, while five have done so for next year. Over the past 30 days, this year's estimates have soared 55% to 76 cents per share. The stock is trading at 39.8x next year's estimates of $1.12 per share, above the long-term growth rate of 22%, giving it a PEG ratio of 1.81. 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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(PRE) - PartnerRe, Ltd. - company topped the Street's estimate in 10 out of the past 11 quarters by an average margin of 20.4%

PartnerRe, Ltd. (PRE), a Zacks #1 Rank stock, topped analysts' earnings expectations in 10 out of the past 11 quarters, most recently by 69.9%. The consensus estimate for 2006 has increased 4.7% over the past 30 days. The Board of Directors declared a quarterly cash dividend of 40 cents per common share of stock on Oct 23. The company has a price-to-book ratio of 1.2, compared to 5.4 for the market. Full Analysis PartnerRe, Ltd., through its subsidiaries, provides reinsurance and risk management solutions worldwide. Risks reinsured include property and casualty/motor, catastrophe, life, alternative risk transfer and specialty lines: agriculture, aviation & space, credit & surety, energy on-shore, engineering, marine and energy off-shore, specialty casualty and specialty property. PRE's history of exceeding analysts' earnings expectations should catch the attention of investors. The company topped the Street's estimate in 10 out of the past 11 quarters by an average margin of 20.4%. Over the past 16 quarters, PRE surprised to the upside on 13 occasions, matched estimates once and missed twice. Earnings per share grew 39.8% over the past five years. On Oct 23, PRE reported third-quarter earnings per share of $3.55. The result absolutely crushed the consensus estimate of $2.09 by 69.9%. The company lost $6.36 per share in the third quarter of 2005. Net written premiums experienced a 4.8% jump to $807.8 million when compared to the prior-year period. Total revenues increased 4.7% to $1.12 billion. For the first nine months of the year, net premiums written nudged up slightly to $2.97 billion from $2.95 billion for the first nine months of 2005. Total revenues slipped 3.0% to $3.04 billion while profits came in at $506.6 million, compared to a loss of $17.4 million for the same period last year. President and CEO Patrick Thiele stated, “PartnerRe's performance over the first nine months of 2006, together with our cumulative performance since 2001, provides clear evidence of the strength of our strategy and indeed the PartnerRe franchise.” The consensus estimate for 2006 currently sits at $8.48. When compared to the consensus of 30 days earlier, it jumped 4.7%, and represents upward revisions by five analysts. Profit forecasts for next year are up five cents to $8.20 over the same period of time. Two analysts revised their estimates upward. The Board of Directors declared a quarterly cash dividend of 40 cents per common share of stock on Oct 23. The dividend will be paid on Dec 1 to shareholders of record as of Nov 21. The company has a current dividend yield of 2.4%. PRE is currently trading at a valuation of 10.5x trailing 12-month earnings and at 8.0x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.2, compared to 5.4 for the market. 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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(TEVA) - Teva Pharmaceutical Industries - Over the past 16 quarters, TEVA beat analysts' earnings expectations on 14 occasions

Teva Pharmaceutical Industries Limited (TEVA), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 14 out of the past 16 quarters. Earnings per share are expected to grow 17.6% over the next 3-5 years. The company raised its 2006 earnings per share guidance in early August. TEVA has a current dividend yield of 0.71% and a five-year average dividend yield of 0.50%. Full Analysis Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in the development, production and marketing of generic and proprietary branded pharmaceuticals as well as active pharmaceutical ingredients. Over the past 16 quarters, TEVA beat analysts' earnings expectations on 14 occasions. The company's average margin of surprise over this period of time was 11.2%. Earnings per share grew 32.2% over the past five years. The company is scheduled to release its third-quarter results on Nov 7. On Aug 8, TEVA posted profits of $541 million, or 66 cents per share. With analysts calling for 45 cents, the company topped estimates by 46.7%. Compared to the prior-year period, earnings ballooned 83.3%. Net sales soared 76.4% to $2.17 billion from $1.23 billion in the second quarter of 2005. President and CEO Israel Makov stated, “This was an outstanding and exciting quarter for Teva—a quarter of record-breaking financial results and major strategic achievements.” Makov will retire next year and will be replaced by Shlomo Yanai. In addition to releasing solid results for the second quarter, TEVA upped its 2006 earnings per share guidance to between $2.15 and $2.25 from its previous outlook, which called for profits between $2.02 and $2.15 per share. Earnings per share are forecasted to grow 17.6% over the next 3-5 years. TEVA completed its acquisition of IVAX Corporation on Jan 26, 2006. The company is said to be making remarkable progress on the integration, which is moving along at a record pace. The second quarter was the first full quarter to include IVAX results since the acquisition was finalized. At the beginning of August, TEVA had 148 product applications awaiting final approval from the Food and Drug Administration. The company stated that collectively, the brand products covered by these applications have annual U.S. revenues of roughly $84 billion. The Board of Directors declared a second-quarter cash dividend of 7.7 cents per share. The company has a current dividend yield of 0.71% and a five-year average dividend yield of 0.50%. While the return on equity for the industry sits at a negative 39%, TEVA's is a positive 24%. As the baby boomer generation begins to retire in the coming years, the need for health care should rise dramatically. With health care costs moving higher, coupled with the impeding generic releases of brand-name drugs, generic drug manufacturers should do quite well. 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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(SPWR) - SunPower Corporation - Four analysts have raised their numbers for both this year and next

SunPower Corporation has dramatically exceeded earnings estimates in each of the four quarters it has been public. Two of the surprises have exceeded 100%. Four analysts have raised their numbers for both this year and next. Over the past week, this year's estimates have increased 6.5% to 33 cents per share, while next year's numbers have risen 4.5% to 69 cents per share. Full Analysis SunPower Corporation (SPWR) engages in the design, development, manufacture, and sale of solar electric power products. It offers solar cells, solar panels, and inverters that generate electricity from sunlight for residential, commercial, and remote power applications. The company's solar cells are semiconductor devices that directly convert sunlight into electricity. Its solar cell product includes A-300 solar cell, a silicon solar cell with a specified power value of 3.1 watts. The company's solar panels are solar cells electrically connected together and encapsulated in a weatherproof package. Sunpower just reported a third-quarter profit of $9.6 million on a 19% sales increase. Earnings per share came in at 13 cents, a full 30% above analysts' expectations. Quarterly sales climbed 19 percent to $65.3 million from $21.9 million a year ago. For the fourth quarter, SunPower estimates sales of $70 million to $72 million and adjusted earnings of 16 cents to 17 cents per share. The company also reiterated its plan for sales of $360 million in 2007. Analysts expect fourth-quarter revenue of $70.1 million and earnings of 15 cents and target 2007 sales of $369.8 million. Tom Werner, SunPower's CEO, said, "We posted another strong quarter with operating results that exceeded our announced objectives. We saw excellent execution across the company, with significant progress on a number of fronts. Our plans for rapid growth continue on track: SunPower has tripled solar cell manufacturing capacity over the past year and we plan to more than double that capacity by the end of next year while rapidly expanding our panel manufacturing in parallel." Over the past four quarters SunPower increased by a factor of seven its share of the California residential solar retrofit market as measured by kilowatts installed. During the third quarter, as reported by the California Energy Commission, SunPower captured a 14% share of this market. SPWR has dramatically exceeded earnings estimates in each of the four quarters it has been public. Two of the surprises have exceeded 100%. Four analysts have raised their numbers for both this year and next. Over the past week, this year's estimates have increased 6.5% to 33 cents per share, while next year's numbers have risen 4.5% to 69 cents per share. The stock is trading at 44.9x next year's estimates, above the long-term growth rate of 32.25%, giving the stock a PEG ratio of 1.39. 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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(USAP) - Revenues also hit an all-time high, increasing 27.8%

Universal Stainless & Alloy Products, Inc. (USAP), which was introduced as a Value stock on Apr 27, continues to beat analysts' earnings expectations. The company has now topped the Street's estimate for 11 consecutive quarters by an average margin of 19.9%. Consensus estimates for both this quarter and the full year have increased over the past seven days. This Zacks #1 Rank stock has a price-to-book ratio of 2.1, compared to 5.4 for the market. Full Analysis Universal Stainless & Alloy Products, Inc. manufactures and markets semifinished and finished specialty steel products, including stainless steel, tool steel and other alloyed steels. The company's products are sold to rerollers, forgers, service centers, original equipment manufacturers and wire redrawers. When USAP was first presented as a Value stock on Apr 27, its strong history of exceeding analysts' earnings expectations was noted. At the time, the company topped estimates for nine straight quarters. Since its debut, USAP added two additional surprises, with its average margin of surprise over the past 11 quarters being 19.9%. Moreover, consensus estimates continue to trend higher and the company is still trading at a discounted valuation. On Oct 19, USAP reported third-quarter profits of $5.7 million, or 86 cents per share. The result represented a record for the company and crushed the Street's estimate of 67 cents by 28.4%. Compared to the prior-year period, earnings ballooned 68.6%. Revenues also hit an all-time high, increasing 27.8% to $55.1 million. President and CEO Mac McAninch stated, “Continued robust aerospace demand, coupled with strong petrochemical and power generation markets, enabled us to achieve record results for the third quarter of 2006.” For the first nine months of the year, profits soared 49.5% to $14.2 million and revenues experienced a 15.7% leap to $148.1 million. Both numbers marked new highs for the company. USAP expects favorable conditions in its end markets continuing into 2007 and beyond. The company increased revenues, expanded gross margins and grew profits for the past two years. The consensus estimate for this quarter currently resides at 73 cents. This represents a 7.4% jump when compared to the consensus a week earlier. For the full year, profit forecasts increased 9.1% to $2.88. USAP is currently trading at a valuation of 11.1x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.3x trailing 12-month earnings and at 16.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.1, compared to 5.4 for the market. 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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(POT) - exceeded analysts' earnings expectations in 10 out of the past 12 quarters by an average margin of 23.8%

Potash Corporation of Saskatchewan, Inc. (POT), a Zacks #1 Rank stock, beat the Street's earnings estimate in 10 out of the past 12 quarters, most recently by 41.7%. Earnings per share are forecasted to grow 10% over the next 3-5 years. The Board of Directors authorized a quarterly dividend of 15 cents per share in mid-September. POT is currently yielding 0.53% and has a return on equity of 24%, compared to the industry average of 2%. Full Analysis Potash Corporation of Saskatchewan, Inc. is the largest fertilizer enterprise, by capacity, producing the three primary plant nutrients: potash, phosphate and nitrogen. Living up to its name, POT is the world's largest potash company, with 22% of the world's overall capacity along with 75% of the world's unused capacity. Furthermore, it is the world's third-largest phosphate producer and fourth-largest nitrogen producer. The company's products are used by fertilizer, feed and industrial customers on six continents. POT exceeded analysts' earnings expectations in 10 out of the past 12 quarters by an average margin of 23.8%. In nine of the 10 quarters, POT managed to surprise by a double-digit percentage. The company is expected to release its third-quarter results on Oct 25. On Jul 27, POT posted second-quarter profits of $1.70 per share. The result represented an impressive 41.7% positive earnings surprise and a 16.4% year-over-year improvement. Continued strong nitrogen and phosphate performance led the way. President and Chief Executive Officer Bill Doyle stated, “This quarter demonstrated the importance of our nitrogen and phosphate operations, as well as the effectiveness of our potash strategy as prices remained strong and we achieved record net income.” For the first half of the year, profits came in at a record $300.6 million, compared to $295.5 million for the first six months of 2005. The company increased revenues and expanded gross margins over the past three years, while growing profits for two years running. Earnings per share are forecasted to grow 10% over the next 3-5 years. The industry is projected to grow 8%. The amount of free cash flow at the company's disposal has been on the rise over the past few years. Consequently, the Board of Directors enhanced shareholder value by declaring a quarterly cash dividend of 15 cents per share on Sep 14. The dividend is payable on Nov 13 to shareholders of record as of Oct 23. POT has a current dividend yield of 0.53% and a five-year average dividend yield of 1.1%. POT has been very efficient generating profits given the resources provided by its stockholders. Its return on equity of 24% is considerably higher when compared to the industry average of 2%. 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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(OS) - Oregon Steel Mills, Inc. - exceeded earnings estimates in its second quarter by almost 26%

Oregon Steel exceeded earnings estimates in its second quarter by almost 26%. All five analysts covering the stock lifted their earnings projections both for this year and next. Over the past 90 days, this year's estimates have increased 13.1% to $5.11 per share. Full Analysis Oregon Steel Mills, Inc. (OS), together with its subsidiaries, engages in the manufacture and sale of specialty and commodity steel products in the United States and Canada. The company operates in two divisions, Oregon Steel and Rocky Mountain Steel Mills. OS will report third-quarter earnings in early-November. Analysts currently expect $1.35 per share, up 10 cents from three months ago and more than double the 57 cents earned last year. The company's last quarterly report was stellar. Quarterly net income grew to $43.9 million, or $1.22 per share, from $28.4 million, or 80 cents per share, in the year-ago period. Sales grew to $349.6 million from $335 million last year. During the quarter, Oregon Steel boosted its average sales price per ton to $889 from $882 last year. Jim Declusin, the Company's President and CEO stated, "Oregon Steel is pleased to announce record financial performance during the second quarter. All of our market segments performed well during the second quarter and are forecasted to remain strong through the rest of the year. During the second half of the year, we see our total volume increasing to record levels and our product mix shifting to a greater percentage of higher priced, higher margin energy-related products." Oregon Steel exceeded earnings estimates in its second quarter by almost 26%. All five analysts covering the stock lifted their earnings projections both for this year and next. Over the past 90 days, this year's estimates have increased 13.1% to $5.11 per share. The stock is attractively valued at 9.8x next year's estimates of $5.55 per share, below the long-term growth rate of 15%, giving the stock a PEG ratio of 0.66. 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 Oberweis, The Oberweis Report newsletter - (DTLK) - (SAN) - (SRM) - (OPLK)

Jim Oberweis and his team, from The Oberweis Report newsletter, explain that while year-by-year results can be volatile, disciplined investors who remain fully invested in a portfolio of high-growth equities selected using these featured experts' methodology have historically achieved an exceptional average rate of return over long periods of time. Discover what Oberweis' team has to say about their history of investing. Then take a look at a few holdings from their Current Portfolio. Commentary from October 2 Thirty years ago Jim Oberweis and his team began publishing a model portfolio with a stated objective of outperforming the Dow Jones Industrial Average (DJIA) by an absolute 10 percentage points per year. Oberweis and his team met that objective in 19 of the 29 full calendar years. Note that despite an excellent long term track record, not every year has been a winner. For example, Oberweis and the team trailed in 1993 and 1994 and had a challenging period relative to the index from 1996 through 1998. They experienced isolated one-off years of underperformance like 1984 as well. On the other hand, those challenging times were redeemed by fantastic return years, such as 1980 (+105.0%), 1991 (+87.5%), and 2003 (+74.7%). So far in 2006, Oberweis and his team are trailing the Dow by a fairly wide margin through September 30th and 2006 will likely end up as one of those years in which the types of companies targeted by Oberweis' process did not perform as well as the broader market. Of course, the number that really counts is the long term average return. Over longer periods of time, Oberweis' Model Theoretical Portfolio has substantially exceeded his expectations with a compound rate of return of 23.4% compared to 8.5% for the DJIA, 8.8% for the S&P 500 Index (excluding dividends), and 11.2% for the NASDAQ Composite. Oberweis and his team's return excludes transactions costs and dividends and is for a theoretical portfolio using closing prices on the last Friday of each month. Psychologists have repeatedly documented that the human mind tends to overweight recent experience when forecasting the future. When Oberweis' process works well, his readers think he and the team are heroes. Assets flow into their funds and subscriptions skyrocket. During years in which Oberweis and his team's style falls out of favor, they typically experience much quieter business activity. However, in their opinion, this effect is neither prudent nor rational. If there is a time to overweight, Oberweis and his team believe the most favorable risk/reward opportunities tend to fall after a period in which their style has been out of favor. In other words, in times like the present, when companies within Oberweis' universe seem to be out of style and are trading at below-average P/E valuations. Oberweis and the team believe years like 2006 tend to be great buying opportunities, though ironically such points also tend to be the time most people are least likely to buy. Over the long run, Oberweis and his team believe that these long-term results indicate the use of the “Oberweis Octagon” method of stock selection can help produce superior investment returns. This is the same stock selection process used for The Oberweis Funds, though individual stock selections may differ. Oberweis and his team believe that much of their success over the last thirty years was achieved by looking in areas where others are not. Historically, they have sought out smaller companies in the U.S. which do not tend to attract as much institutional attention. Last year they told you that they would be expanding their efforts into other countries and in October 2005 launched their China Opportunities investment strategy. In 2007, Oberweis and his team are planning to expand their international effort with yet another international strategy. As you will see, they are planning to devote significant resources in the years to come toward applying their same philosophy around the world to discover hidden values. Their research office in Hong Kong represents a significant commitment toward unlocking and discovering value in China, as evidenced in portfolio selections such as Focus Media Holding (FMCN). Through their U.S. team, their China team, and their International team, Oberweis and his team believe their opportunity to find exceptional investment ideas will be even better than it ever has been. The lesson from their long-term record is that, although year-by-year results can be volatile, disciplined investors who remain fully invested in a portfolio of high-growth equities selected using their methodology have historically achieved an exceptional average rate of return over long periods of time. A couple of holdings from the Current Portfolio… DataLink Corporation (DTLK) is an information storage architect focusing on the analysis, implementation, and support of information storage infrastructures that store, protect, and provide continuous access to information. Their core capabilities include: protection against planned/unplanned downtime while providing fast 24/7 access to information and data recovery solutions such as local and remote backup, snapshot and replication; and storage management solutions including consolidation, storage area network (SAN) management, virtualization, and storage resource management (SRM), among others. As an independent architect, the company is not tied to any one platform or set of products, providing their customers the flexibility to choose hardware and software from leading innovators. Revenues in the most recent second quarter increased 39% to $39.8 million vs. $28.7 million in the same year-ago quarter. Earnings per share in the quarter grew to $0.18 from $.04 in the prior-year second quarter. Oplink Communications' (OPLK) principal activity is to provide design, integration, and optical manufacturing solutions for optical networking components and subsystems. The company produces fiber optic subsystems, integrated modules and components for next-generation, all-optical dense wavelength division multiplexing (DWDM), optical amplification, routing, monitoring, and conditioning applications. The products are categorized into two groups: Bandwidth Creation Products which include wavelength expansion and optical amplification products. The Bandwidth Management Products include wavelength performance monitoring, protection and optical switching products. Customers include telecommunications, data communications and cable TV equipment manufacturers such as Huawei, Siemens, Tellabs, Marconi and others. Oplink has manufacturing operations in San Jose, California, Zhuhai and Fuzhou in China. The company also acquired 96% of F3 Inc in fiscal 2006. In the company's latest reported fourth quarter, sales increased 90% to $16.9m from $8.9m in the same period of 2005. Earnings per share during the same period increased 125% to $.09 vs. $.04 in the same period of 2005. Other Current Portfolio stocks include… LifeCell Corp. (LIFC) develops and markets biologic products for the repair or replacement of damaged or inadequate tissues. The company's core preservation technology produces an acellular tissue matrix, which retains the essential biochemical and structural components necessary for normal tissue regeneration. The company's product development programs include a small diameter vascular graft as an alternative to autografted blood vessels, orthopedic applications of its acellular dermal matrix and Thrombosol, a formulation for storage of platelets. Metretek Technologies, Inc. (MEK) designs, manufactures and sells natural gas metering systems and automated systems to monitor and record the energy consumption of industrial and commercial consumers; Southern Flow Companies, Inc., which provides measurement services and equipment to natural gas producers, operators and transporters. Through its two subsidiaries, the company provides a spectrum of measurement technology and services to the energy industry, including applications in field operations, transportation and distribution facilities, and consumers markets. Saba Software, Inc. (SABA) is a provider of software and services that enable businesses and governments to create and deploy global networks over the Internet that connect people to learning. The Internet-based software platform and related services enable organizations to procure and deliver learning and systematically close knowledge and competency gaps across their base of employees, customers, partners and suppliers, known as the extended enterprise. The company offers learning providers an Internet-based global marketing and distribution channel. This article highlights the commentary of James Oberweis Jr. for the Zacks.com audience. James Oberweis Jr. provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Oberweis Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Oberweis Report" 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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Dr. Melvin Pasternak, StreetAuthority Swing Trader newsletter - Despite the recent rally, investor sentiment remains surprisingly pessimistic

Dr. Melvin Pasternak, editor of the StreetAuthority Swing Trader newsletter, discusses two companies that announced better-than-expected earnings and the Fed’s release of its Beige Book report. Discover why this featured expert sees the earnings announcement and the report as catalysts for the recent S&P advance. Then check out a sampling of stocks from Pasternak’s Short-term Trading Ideas section. The Primary Trend from October 16, The S&P 500 continues to grind its way higher. After stalling at the beginning of this past trading week and meandering in a narrow range between 1344.57 and 1354.23, the index broke out strongly on Thursday. There were two catalysts for Thursday's advance. First two consumer stocks -- Yum Brands (YUM) and Costco Wholesale (COST) -- announced better-than-expected earnings. The shares of both shot higher. Next, the Fed released its Beige Book report, which discussed economic trends in all 12 U.S. economic regions. The report appeared to have been authored by Gold E. Locks. It concluded that there while there were pockets of economic strength and weakness across the country, there was little evidence of a significant slowdown in economic growth. Furthermore, it stated there were "few signs of increased price pressure." The market reacted enthusiastically, as the report increased the odds the Fed will not need to raise interest rates further. At the same time, it also showed that economic growth is not going off the edge of a cliff. Friday's release of the headline retail sales number prompted some minor profit taking at the opening. But by the end of trading, the S&P ended nearly three points higher at a new five-year record. The headline retail sales number was deceptive, as a -9.3% plunge in gasoline prices prompted overall retail sales to drop a hefty -0.4%. Excluding gasoline, however, the number actually rose +0.6%, a strong gain. As the S&P's tide continues to rise, the boats of other lagging stock market averages continue to float higher. That increases the odds that the technical divergence between the large-cap S&P 500 and Dow Jones Industrials on the one hand and the small-cap Russell 2000 Index and the Dow Jones Transportation Average will be resolved positively. The Russell 2000 gained nearly 23 points this past week and is now only about 25 points below its spring high. Two weeks ago it was 6% below its May peak, while this week it is about 2.5% below that pinnacle. The Transports likewise gained just over 88 points points. They moved from nearly 10% off their May 5013.67 peak to about 7% below it. Despite the recent rally, investor sentiment remains surprisingly pessimistic. The high level of skepticism on this contrary indicator implies that there is money on the sidelines that can chase stocks higher. Before the current rally comes to an end, the S&P 500 will need to breach three key technical levels. The first is 1340, a level of minor resistance between September 27th and October 3rd. The S&P approached the 1340 level on Wednesday when aluminum giant Alcoa (AA) released earnings that fell below expectations. However, the S&P hit an intraday low of 1343.57 -- well above 1340 support. The next key technical support below that is the May 8th peak of 1326.70. On October 3rd, the S&P tested and held that key breakout level, reaching a low of 1327.10. It has gained nearly 40 points in less than two weeks since that test occurred. The third and most important sign of a breakdown in the current rally would be a violation of the Intermediate uptrend line drawn from the mid-July 1224.54 low. That trendline currently crosses the chart at 1334. As of Friday's close, the S&P was a healthy 30-plus points above that trendline. The weekly chart of the S&P 500 continues to show a strong Intermediate uptrend. Since hitting its mid-June low of 1219.29, the S&P has gained nearly 140 points. It has completed its base in impressive fashion, soaring nearing 40 points beyond its May 8th peak of 1326.70. The S&P 500 is trading above all key moving averages. Most of the moving averages are sloping gently higher, but the 10-week at 1315 is sloping strongly upward, reflecting an Intermediate-term uptrend that is now almost five months long. Because the market is now approaching highs that haven't been seen in more than five years, it is difficult to talk about technical resistance above current prices. On an Intermediate and Major basis, the trend is clearly up. The weekly indicators are bullish. They remain overbought, but so far show no signs of deteriorating. For the third straight week, the S&P 500 has closed outside its upper weekly Bollinger band, which is now at 1359. A close outside the upper band is a continuation signal, so this indicator implies that the index should continue higher. ADX and MACD remain on solid buy signals. The black ADX line is curving higher for the first time in many months -- a bullish sign. Weekly MACD is also approaching its mid-May peak and is close to resolving one of the signs of technical divergence Dr. Melvin Pasternak was concerned about. Stochastics is highly overbought, with %K at 97. This indicator has been above the overbought 80 level since August, but yet the S&P has climbed higher. CCI is at a very overbought level of +172. RSI continues to trend upwards, finishing last week at 67. From the perspective of RSI, the S&P has room to advance somewhat before becoming extremely overbought. Short-term Trading Ideas include… Long Candidates: Kellogg (K) is a well-known maker of breakfast cereals and other packaged foods. The shares remain in a strong uptrend and are trading above several key moving averages. Despite Friday's sell-off the shares remain above rising 150- and 200-day upward sloping moving averages. Intevac (IVAC) provides equipment to manufacturers of hard disk drives. After approaching the $26 level in mid-July, the shares then slipped to a low of $14.66 in early September. Dr. Pasternak entered a long position in the stock at $17.12 on October 2nd. IVAC now appears to be basing. Agilent Technologies (A) is a manufacturer of scientific measuring instruments. The stock peaked in late April at $39.54 and hit a low of $26.96 in August. Agilent is now roaring back and has gone above its 150-day moving average. The stock just completed a base at $33.50. This article highlights the commentary of Dr. Melvin Pasternak for the Zacks.com audience. Dr. Melvin Pasternak provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "StreetAuthority Swing Trader" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "StreetAuthority Swing Trader" 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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Walter Frank, Moneyletter newsletter - The large-cap revival certainly looks solid as the large-cap averages hit new highs

Walter Frank, editor of the Moneyletter newsletter, says large-cap revival certainly looks solid as the large-cap averages hit new highs. Read this featured experts commentary regarding such stocks and learn his outlook in European stocks. Afterward read Frank's profile of the Needham Growth Fund. Commentary As the quarter developed, investors here and abroad became less and less concerned about the Fed as signs of a slowing U.S. economy became more apparent with every new housing number. It was then that investors turned to a long neglected lower risk segment of the market, large-cap stocks, particularly value. Large-cap portfolio managers, such as Larry Puglia of T. Rowe Price Blue Chip Growth, had been pounding the table for months pointing out the relative cheapness of large-cap stocks (relative to small caps, that is). But investors had turned a deaf ear. Now that risk-avoidance was Priority One, they listened. There was one other trend which surfaced that was not exactly a follow-on from May 10. In the overseas markets, European stocks came to life. The developed European markets by their very nature are considered less risky. More important, the Western European economies, led by Germany, are showing solid improvement. Stagnation has turned to growth. You can see what has been happening by looking at the turnover in Walter Frank and his team's portfolios. In their MONEYLETTER portfolios they now hold Morningstar Large Value and Powershares Dynamic Large Cap Value. Gone are Bridgeway Small Cap Value, Janus Orion, and Forward International Small Companies. Large Cap Value is sprinkled through the Fidelity and Vanguard portfolios as well. The question now is will these very short-term trends endure? Looking at the very recent behavior of the markets, Frank and his team do not find one blanket answer. They have recently written (MONEYLETTER, September 22 ) that we believe the commodity selling was a shorter-term speculative spasm. And the commodity markets have just recaptured some lost ground. Liquidation has apparently ended. The large-cap revival certainly looks solid as the large-cap averages hit new highs, and the argument for large caps is convincing. The difficulty is large caps just do not get the blood moving. Frank and his team have argued that there is a lower interest rate ceiling than before on the U.S. market, and that essentially applies to large-caps. Finally, Frank's team sees the tilt to Europe as longer lasting. Of course, they are not talking about the explosive growth of China or India here. Nor has Europe just been discovered. But is appears to them that growth is taking hold, and as it does, undiscovered opportunities in neglected stocks will surely arise. Fund Profile Needham Growth Fund (NEEGX) truly marches to its own drummer. Long equity positions, short equity positions, small-cap, mid-cap, large-cap, substantial cash—Needham has it all. It also has one simple goal: to garner positive after-tax returns. Vince Gallagher and Jim Kloppenburg took the helm of this fund in April 2003 from Peter Trapp, who guided the fund to well-above average returns in most years. And when, in 2004, the new management team landed the fund in the bottom quartile of the small-cap growth category, the doubters were many. Yet, the naysayers have since been silenced. In 2005, a 14.5% total return put Needham Growth above 96% of its peers. And for 2006 through October 13, a 14.7% return outpaces 92% of its Morningstar peers. This article highlights the commentary of Walter S. Frank for the Zacks.com audience. Walter S. Frank provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "MONEYLETTER" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "MONEYLETTER" 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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