(MKSI) - MKS Instruments, Inc - Four analysts upped their estimates for 2007 - PEG ratio is 0.69

MKS Instruments, Inc. (MKSI), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 13 out of the past 16 quarters. The company recently reported record sales and earnings for the third quarter. Analysts have been upping their profit forecasts for this year and next. The company has a price-to-book ratio of 1.4, compared to 4.7 for the market. Its PEG ratio currently sits at 0.69. Full Analysis MKS Instruments, Inc. develops, manufactures, sells and services instruments, components, subsystems and process control solutions that measure, control, power and monitor parameters of semiconductor and manufacturing processes. MKSI has a rather strong history of topping the Street’s earnings estimate, having done so in 13 out of the past 16 quarters. The company did manage to match the consensus estimate in one of the three remaining quarters, while missing in the other two. Earnings per share grew 28.3% over the past five years. On Oct 26, MKSI beat analysts’ expectations for the third quarter by a penny when it reported profits of 49 cents per share. The result crushed earnings of 17 cents per share in the prior-year period. Net sales soared 67.8% to $205.5 million from $122.5 million in the third quarter of 2005. CEO and President Leo Berlinghieri stated, “I am pleased to report record quarterly results on growth in both semiconductor and non-semiconductor markets. We're on our way to a record year in 2006.” For the first nine months of the year, profits ballooned to $67.7 million from $22.5 million reported in the first nine months of 2005. Net sales increased to $582.9 million from $380.1 million in 2005. On Oct 11, MKSI purchased privately held Novx Corp., a provider of electrostatic charge monitoring technology for semiconductor, data storage, telecommunication, medical device and other markets. The consensus estimate for this year calls for profits of $1.79 per share. The estimate rose four cents over the past 30 days, with four analysts submitting upward revisions. Profit forecasts for next year experienced a nine-cent jump to $1.66 over the same period of time. Four analysts upped their estimates for 2007 as well. Earnings per share are projected to grow 18% over the next 3-5 years. MKSI is currently trading at a valuation of 14.6x trailing 12-month earnings and at 12.0x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.6x trailing 12-month earnings and at 16.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.7 for the market. Its PEG ratio currently sits at 0.69. MKSI’s return on equity, a common measure of profitability, of 10% betters the industry average of 9%. 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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(WMI) - Waste Management, Inc - eight analysts submitting upward revisions

Waste Management, Inc. (WMI) beat the Street’s earnings estimate for five consecutive quarters by an average margin of 10.6%. After reporting solid results for the first nine months of the year, WMI raised its full-year 2006 earnings per share guidance. Analysts upped their profit forecasts as a result. The company has a current dividend yield of 2.3% and a five-year average dividend yield of 1.4%. Full Analysis Waste Management, Inc. is the leading provider of comprehensive waste and environmental services in North America to nearly 21 million residential, industrial, municipal and commercial customers. WMI’s core business includes collection, disposal, transfer, waste-to-energy and recycling services. WMI beat analysts’ earnings expectations for five straight quarters by an average margin of 10.6%. In three of the five quarters, the company managed to surprise by a double-digit percentage. Earnings per share grew 7.7% over the past five years and are projected to grow by a larger magnitude going forward, 11.0% over the next 3-5 years. On Oct 25, WMI reported third-quarter profits of $300 million, or 55 cents per share. The result compares favorably to the 45 cents earned in the prior-year period. Furthermore, with analysts calling for 48 cents, the company surprised to the upside by 14.6%. Revenues increased slightly to $3.44 billion from $3.38 billion in the third quarter of 2005. CEO David P. Steiner stated, “We were very pleased with our results during the quarter as we again exceeded our internal expectations and achieved our primary financial goals of strong earnings growth, margin expansion and strong free cash flow. Our nearly 50,000 employees produced the best quarter I have seen at Waste Management.” For the first nine months of the year, profits came in at $903 million versus $892 million for the first nine months of 2005. Revenues jumped 3.9% to $10.08 billion from $9.70 billion. Based on the company’s solid year-to-date results, along with its expectations for the fourth quarter, WMI raised its full-year 2006 earnings per share guidance to between $1.78 and $1.81. The company’s previous outlook called for profits between $1.69 and $1.75 per share. The consensus estimate for this year calls for profits of $1.81 per share. The estimate rose seven cents over the past 30 days, with eight analysts submitting upward revisions. Profit forecasts for next year experienced a four-cent jump to $1.98 over the same period of time. Five analysts upped their estimates for 2007 as well. The Board of Directors declared a quarterly cash dividend of 22 cents per share on Nov 10. The dividend is payable on Dec 22 to stockholders of record as of Dec 4. WMI has a current dividend yield of 2.3% and a five-year average dividend yield of 1.4%. The company’s return on equity of 16% tops the industry average of 14%. WMI 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. 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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(DNA) - Genentech, Inc - met or exceeded estimates in 16 consecutive quarters, posting robust year-over-year growth in the process

DNA routinely exceeds earnings estimates. The company has met or exceeded estimates in 16 consecutive quarters, posting robust year-over-year growth in the process. Three analysts have raised their forecasts for this year, while four have done so for next year. Over the past two months, this year's estimates have risen 7% to $1.99 per share. Also, next year's numbers have jumped 6.4% to $2.51 per share over that time period. Full Analysis Genentech, Inc. (DNA) is one of the world s largest biotechnology companies. It currently manufactures and sells over a dozen biotechnology products in the U.S., and licenses additional products to other companies to earn royalties. The company's leading products are Rituxan (for non-Hodgkin's lymphoma, or NHL), Avastin (for colorectal cancer) and Herceptin (for breast cancer). The company possesses an impressive oncology pipeline, with additional label potential for both Avastin and Tarceva. Additionally, Lucentis (macular degeneration) is expected to reach the market in 2006. New product growth, primarily driven by the launches of Avastin and Tarceva, should lead to impressive revenue growth the next several years. According to Zacks Equity Research Analyst Jason Napodano, CFA, the successful introduction of new products, along with the strength of existing products, should drive Genentech's topline up roughly 21% CAGR through 2009. The company received two high-profile approvals in 2003 for Raptiva and Xolair, and another two in 2004 for cancer drugs Avastin and Tarceva. Raptiva, a niche player in the psoriasis market, generated sales of roughly $94 million in 2005. The true growth driver for DNA is blockbuster Avastin (bevacizumab). The drug received approval in early 2004 for the treatment of first-line metastatic colorectal cancer (CRC) in combination with intravenous 5-FU chemotherapy. Penetration in the first-line use is probably at or above 75%. Over the next few quarters Napodano believes Avastin can achieve near 80% penetration in this indication, allowing for only modest upside. Genentech and Tanox, Inc. announced plans for Genentech to acquire Tanox, a biotechnology company specializing in the discovery and development of biotherapeutics based on monoclonal antibody technology, for $20 per share for a total cash value of approximately $919 million. Genentech and Tanox have been working together in collaboration with Novartis since 1996 to develop and commercialize Xolair, an anti-IgE monoclonal antibody approved by the FDA in 2003 as a treatment for patients with moderate-to-severe allergic asthma. DNA routinely exceeds earnings estimates. The company has met or exceeded estimates in 16 consecutive quarters, posting robust year-over-year growth in the process. Three analysts have raised their forecasts for this year, while four have done so for next year. Over the past two months, this year's estimates have risen 7% to $1.99 per share. Also, next year's numbers have jumped 6.4% to $2.51 per share over that time period. 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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(IPS) - IPSCO, Inc - Upward revisions were submitted by three analysts

IPSCO, Inc. (IPS), which was first presented as a Value stock on Jan 31, continues to exceed analysts’ earnings expectations. When the company surprised to the upside by 16.3% for the third quarter, it marked the seventh straight quarter in which IPS beat the Street’s estimate. This Zacks #1 Rank stock has a price-to-book ratio of 2.0, compared to 4.7 for the market. IPS’s return on equity of 33% betters the industry average of 22%. Full Analysis IPSCO, Inc. is a North American steel and steel pipe producer with facilities and processing equipment located throughout the United States and Canada. IPS’s steelmaking capacity is more than 3.5 million tons per year. The company's tubular facilities produce a wide range of tubular products including oil and gas well casing and tubing, line pipe, standard pipe and hollow structurals. It has been quite some time since IPS was first presented as a Value stock on Jan 31, 2006. At the time, the company exceeded analysts’ earnings expectations for three straight quarters. Four quarters have elapsed since IPS’s debut, and you can add four more earnings surprises to the company’s resume. IPS topped the Street’s estimate by an average margin of 9.1% over this period of time. On Oct 24, the company reported third-quarter profits of $197.1 million, or $4.15 per share. The result marked an all-time high for IPS and easily surpassed the consensus estimate of $3.57 per share by 16.3%. With the company posting earnings per share of $2.76 in the third quarter of 2005, it marked an impressive 50.4% year-over-year improvement. Revenues were also a record and increased 37.3% to $996.9 million. President and CEO David Sutherland stated, “Record sales volume and higher margins driven by record average product pricing pushed earnings above the high end of our guidance for the quarter.” For the first nine months of the year, profits jumped 21.3% to $504.2 million versus the first nine months of 2005. Revenues rose 28.0% to $2.79 billion. IPS expects earnings per share for the fourth quarter between $3.30 and $3.50. This would represent an improvement of between 13.4% and 20.3% when compared to the fourth quarter of 2005. The consensus estimate for this quarter climbed 3.6% over the past 30 days and currently sits at $3.45. Two analysts upped their profit forecasts. The consensus for the full year of 2006 has risen 6.3% to $13.93 over the same period of time. Upward revisions were submitted by three analysts. The Board of Directors declared a cash dividend of $0.20 (Canadian) per common share of stock on Oct 26. IPS has a current dividend yield of 0.79% and a five-year average dividend yield of 1.0%. IPS is currently trading at a valuation of 6.8x trailing 12-month earnings and at 6.6x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.6x trailing 12-month earnings and at 16.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 4.7 for the market. IPS’s return on equity of 33% betters the industry average of 22%. 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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(RBA) - Ritchie Bros. Auctioneers Inc - Topped the Street's estimate by an impressive 64.7%

Ritchie Bros. Auctioneers Incorporated (RBA) exceeded analysts’ earnings expectations for seven consecutive quarters by an average margin of 28.6%. Earnings per share are projected to grow 15.5% over the next 3-5 years. Consensus estimates for both 2006 and 2007 have been trending higher. This Zacks #1 Rank stock has a current dividend yield of 1.6% and a five-year average dividend yield of 0.82%. Full Analysis Ritchie Bros. Auctioneers Incorporated is the largest industrial auctioneer in the world. The company sells, through unreserved public auctions, a range of used and unused assets, including trucks and equipment used in the construction, transportation, mining, forestry, petroleum, material handling, marine and agricultural industries. RBA conducts over 150 auctions every year at locations throughout North and Central America, Europe, Asia, Australia, Africa and the Middle East. RBA beat analysts’ earnings expectations for the past seven quarters by an average margin of 28.6%. Over this period of time, the company produced double-digit percentage surprises in six quarters. Earnings per share grew 19.5% over the past five years. On Oct 31, RBA topped the Street’s third-quarter earnings estimate of 17 cents per share by an impressive 64.7% when it posted profits of $9.7 million, or 28 cents per share. Furthermore, the result amounted to a 115.4% year-over-year improvement when compared to profits of $4.6 million, or 13 cents per share, in the prior-year period. Auction revenues soared 45.1% to $55.7 million from $38.4 million a year earlier. For the first nine months of the year, profits jumped 20.3% to $47.4 million, while auction revenues rose 24.6% to $190.3 million when compared to results for the first nine months of 2005. RBA increased revenues and expanded gross margins for the past seven years. Analysts have been raising their earnings estimates for the full years of 2006 and 2007. The consensus estimate for 2006 has risen 6.6% to $1.78 over the past 30 days and reflects upward revisions by five analysts. Profit forecasts for 2007 climbed 5.2% to $2.03 over the same period of time. Five analysts also submitted upward earnings revisions for 2007. Earnings per share are projected to grow 15.5% over the next 3-5 years. The Board of Directors announced a quarterly cash dividend of 21 cents per common share of stock on Oct 31. RBA has a current dividend yield of 1.6% and a five-year average dividend yield of 0.82%. The company’s return on equity of 17% tops the industry average of 11%. The stock is currently trading at 23.7x next year's estimates, above the long-term growth rate of 15.4%, giving the stock a PEG ratio of 1.54. 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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(COGN) - Cognos, Inc - Seven analysts have raised their estimates for this year and next year

Cognos has exceeded earnings estimates in 12 out of the past 13 quarters, with nine of those periods registering double-digit surprises. Seven analysts have raised their estimates for this year and next year. Over the past 60 days, this year's estimates have jumped 11% to $1.41 per share. Next year's estimates have risen 8.9% to $1.71 per share. Full Analysis Cognos, Inc. (COGN) develops business intelligence (BI) and performance planning software. The company s products enhance corporate performance through better planning, monitoring, analyzing and reporting. Cognos has an expanding global customer base of more than 23,000 customers in over 135 countries. The company focuses on developing business ties with leading global enterprises and large public sector organizations. The company has organized its business into three segments: Product Licenses (39% of the fiscal 2006 revenue), Product Support (42%), and Services (19%). Cognos operates in North America, Europe, and Asia/Pacific. In the area of business intelligence, the company recently launched Cognos 8. This application can analyze an assortment of data in order to discover the underlying causes of performance. Also, it offers a sophisticated time trending capability. Cognos 8's dashboards convey complex information rapidly. According to Zacks Equity Research Analyst Lawrence Orlowski, CFA, there continues to be strong demand for business intelligence products. Surveys indicate that the purchase of business intelligence software remains a priority for CIO's. And Cognos offering is seen as the standard. Furthermore, regulatory compliance continues to stimulate demand for planning products. Cognos has exceeded earnings estimates in 12 out of the past 13 quarters, with nine of those periods registering double-digit surprises. Seven analysts have raised their estimates for this year and next year. Over the past 60 days, this year's estimates have jumped 11% to $1.41 per share. Next year's estimates have risen 8.9% to $1.71 per share. The stock is currently trading at 23.7x next year's estimates, above the long-term growth rate of 15.4%, giving the stock a PEG ratio of 1.54. 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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(RNR) - RenaissanceRe Holdings, Ltd - 81.9% positive earnings surprise!

RenaissanceRe Holdings, Ltd. (RNR) beat the Street’s third-quarter earnings estimate by 81.9% when it posted profits of $3.42 per share. The company’s average margin of surprise over the past three quarters has been 49.5%. Consensus estimates have been on the rise for this Zacks #1 Rank stock. The company has a current dividend yield of 1.5%. RNR’s price-to-book ratio is 1.8, compared to 4.7 for the market. Full Analysis RenaissanceRe Holdings, Ltd., through its subsidiaries, provides reinsurance and insurance products and services worldwide. The company’s principal business is property catastrophe reinsurance. RNR has a strong history of exceeded analysts’ earnings expectations. Of late, the company has absolutely crushed the Street’s estimate, having done so by an average margin of 49.5% over the past three quarters. On Oct 30, RNR reported third-quarter earnings per share of $3.42. The result amounted to an 81.9% positive surprise with analysts calling for $1.88. The company lost $4.63 per share in the prior-year period. Net premiums earned grew to $367.1 million from $348.3 million in the third quarter of 2005. CEO Neill A. Currie stated, “We are very pleased to report another strong quarter with record results. We currently expect the demand for capacity to continue into 2007.” RNR's combined ratio for the third quarter was 36.5%. A ratio below 100% indicates that a company is turning an underwriting profit, while a ratio greater than 100% represents a company that it is paying out more money in claims than it is receiving in the form of premiums. Consensus estimates continue to trend higher for RNR. Estimates for this quarter and next are up 2.8% and 8.7%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 have risen 20.8% and 2.9%, respectively, over the same period to time. The Board of Directors on Aug 9 declared a quarterly dividend of 21 cents per common share of stock. The company has a current dividend yield of 1.5% and a five-year average dividend yield of 1.6%. The Board raised the company’s quarterly dividend from 20 cents per share on Feb 22. RNR is currently trading at a valuation of 10.7x trailing 12-month earnings and at 5.6x 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 1.8, compared to 4.7 for the market. RNR’s return on equity, a key indicator of profitability, is well above that of the industry average—21% compared to 13%. 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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(BEN) - Franklin Resources, Inc - beat the Street’s earnings estimate for the past eight quarters by an average margin of 10.2%

Franklin Resources, Inc. (BEN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for eight consecutive quarters, most recently by 10.4% in the fourth quarter of fiscal 2006. Earnings per share are projected to grow 15% over the next 3-5 years. The Board of Directors announced a quarterly cash dividend of 12 cents per share on Sep 20. Full Analysis Franklin Resources, Inc. operates as a global investment management organization. The company offers investment solutions under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust and Darby Overseas names. BEN manages investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients. The company has offices in 29 countries and offers investment solutions and services in more than 100. One would have to go all the way back to the second quarter of fiscal 2003 to uncover a quarter in which BEN produced a negative earnings surprise. The company beat the Street’s earnings estimate for the past eight quarters by an average margin of 10.2%. Moreover, the company met or topped the consensus estimate for 14 consecutive quarters, producing 12 positive surprises during this period of time. On Oct 26, BEN reported fourth-quarter fiscal 2006 profits of $381.7 million, or $1.49 per share. The result amounted to a 10.4% positive earnings surprise and a 16.4% year-over-year improvement when compared to the $1.28 earned in the fourth quarter of fiscal 2005. Revenues rose to $1.30 billion from $1.16 billion last year. Assets under management jumped 12.8% to $511.3 billion. BEN increased revenues for the past seven years while growing profits for four years running, most recently by 17.2% and 19.9%, respectively, in fiscal 2006. Earnings per share are projected to grow 15% over the next 3-5 years. The industry is expected to grow at a 14% clip. On Nov 8, BEN reported preliminary October month-end assets under management of $526.8 billion. In October of last year, assets under management were $442.0 billion. The consensus estimate for this quarter currently sits at $1.45. Compared to the consensus of 60 days earlier, it has risen 2.8%. For fiscal 2007, profit forecasts increased 4.1% to $6.05 over the same period of time. The Board of Directors announced a quarterly cash dividend of 12 cents per share on Sep 20. The distribution represents a 20% increase over the quarterly dividend paid for the same quarter last year. The company is currently yielding 0.45% and has a five-year average dividend yield of 0.65%. BEN’s return on equity of 22% 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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(TKLC) - Tekelec - Over the past month, this year's estimates have increased 32%

Tekelec has easily surpassed earnings estimates in 14 consecutive quarters, with 12 of those periods registering at least a 10% surprise. Three analysts have raised their numbers for this year. Over the past month, this year's estimates have increased 32%. Full Analysis Tekelec (TKLC) designs, manufactures, markets, and supports network signaling systems, switching equipment, and communications software solutions. The company maintains a large customer base, including several large North American and foreign telephone companies. TKLC operates through three groups: Network Signaling, Switching Solutions, and Communications Software Solutions. On July 6, TKLC sold its IEX Contact Center to Nice Systems. The Communications Software Solutions group offers integrated application solutions, a suite of business-oriented applications, service creation systems, and a data acquisition product capturing data from signaling networks. Since TKLC holds approximately 61% of the signaling equipment market, this core offering provides a stable revenue base for the company. The market for signaling equipment is growing at a healthy double-digit clip. TKLC continues to win more than its fair share of business at large telecom carriers. The company won business with several new international customers including Primus Communications, Telmex, Telecom Italia Mobile, Bharti Enterprises, and Orange. The company announced that one of the large Tier1 wireless service providers of western Europe has selected the company's legacy Network Signaling products to be deployed in its network. Western Europe represents a significant revenue opportunity as the market size of enterprise mobile data systems may reach upto $12.7 billion by 2011. Continued penetration into this market will improve TKLC s future sales potential. On November 1, Tekelec announced third quarter 2006 earnings results. Total revenue was $155.2 million, up 43% year-over-year and 3.5% sequentially. This was primarily driven by strong demand for the company s network signaling products. R&D and SG&A expenses were $80.79 million, up 23.1% year-over-year. TKLC has easily surpassed earnings estimates in 14 consecutive quarters, with 12 of those periods registering at least a 10% surprise. Three analysts have raised their numbers for this year. Over the past month, this year's estimates have increased 32%. 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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(RNR) - RenaissanceRe Holdings, Ltd - crushed the Street’s estimate, having done so by an average of 49.5%, the past three quarters

RenaissanceRe Holdings, Ltd. (RNR) beat the Street’s third-quarter earnings estimate by 81.9% when it posted profits of $3.42 per share. The company’s average margin of surprise over the past three quarters has been 49.5%. Consensus estimates have been on the rise for this Zacks #1 Rank stock. The company has a current dividend yield of 1.5%. RNR’s price-to-book ratio is 1.8, compared to 4.7 for the market. Full Analysis RenaissanceRe Holdings, Ltd., through its subsidiaries, provides reinsurance and insurance products and services worldwide. The company’s principal business is property catastrophe reinsurance. RNR has a strong history of exceeded analysts’ earnings expectations. Of late, the company has absolutely crushed the Street’s estimate, having done so by an average margin of 49.5% over the past three quarters. On Oct 30, RNR reported third-quarter earnings per share of $3.42. The result amounted to an 81.9% positive surprise with analysts calling for $1.88. The company lost $4.63 per share in the prior-year period. Net premiums earned grew to $367.1 million from $348.3 million in the third quarter of 2005. CEO Neill A. Currie stated, “We are very pleased to report another strong quarter with record results. We currently expect the demand for capacity to continue into 2007.” RNR's combined ratio for the third quarter was 36.5%. A ratio below 100% indicates that a company is turning an underwriting profit, while a ratio greater than 100% represents a company that it is paying out more money in claims than it is receiving in the form of premiums. Consensus estimates continue to trend higher for RNR. Estimates for this quarter and next are up 2.8% and 8.7%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 have risen 20.8% and 2.9%, respectively, over the same period to time. The Board of Directors on Aug 9 declared a quarterly dividend of 21 cents per common share of stock. The company has a current dividend yield of 1.5% and a five-year average dividend yield of 1.6%. The Board raised the company’s quarterly dividend from 20 cents per share on Feb 22. RNR is currently trading at a valuation of 10.7x trailing 12-month earnings and at 5.6x 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 1.8, compared to 4.7 for the market. RNR’s return on equity, a key indicator of profitability, is well above that of the industry average—21% compared to 13%. 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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(BEN) - Franklin Resources, Inc - beat the Street’s earnings estimate for the past eight quarters by an average margin of 10.2%

Franklin Resources, Inc. (BEN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations for eight consecutive quarters, most recently by 10.4% in the fourth quarter of fiscal 2006. Earnings per share are projected to grow 15% over the next 3-5 years. The Board of Directors announced a quarterly cash dividend of 12 cents per share on Sep 20. Full Analysis Franklin Resources, Inc. operates as a global investment management organization. The company offers investment solutions under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust and Darby Overseas names. BEN manages investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients. The company has offices in 29 countries and offers investment solutions and services in more than 100. One would have to go all the way back to the second quarter of fiscal 2003 to uncover a quarter in which BEN produced a negative earnings surprise. The company beat the Street’s earnings estimate for the past eight quarters by an average margin of 10.2%. Moreover, the company met or topped the consensus estimate for 14 consecutive quarters, producing 12 positive surprises during this period of time. On Oct 26, BEN reported fourth-quarter fiscal 2006 profits of $381.7 million, or $1.49 per share. The result amounted to a 10.4% positive earnings surprise and a 16.4% year-over-year improvement when compared to the $1.28 earned in the fourth quarter of fiscal 2005. Revenues rose to $1.30 billion from $1.16 billion last year. Assets under management jumped 12.8% to $511.3 billion. BEN increased revenues for the past seven years while growing profits for four years running, most recently by 17.2% and 19.9%, respectively, in fiscal 2006. Earnings per share are projected to grow 15% over the next 3-5 years. The industry is expected to grow at a 14% clip. On Nov 8, BEN reported preliminary October month-end assets under management of $526.8 billion. In October of last year, assets under management were $442.0 billion. The consensus estimate for this quarter currently sits at $1.45. Compared to the consensus of 60 days earlier, it has risen 2.8%. For fiscal 2007, profit forecasts increased 4.1% to $6.05 over the same period of time. The Board of Directors announced a quarterly cash dividend of 12 cents per share on Sep 20. The distribution represents a 20% increase over the quarterly dividend paid for the same quarter last year. The company is currently yielding 0.45% and has a five-year average dividend yield of 0.65%. BEN’s return on equity of 22% 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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(ROLL) - RBC Bearings Inc - Two analysts have raised their forecasts for this year and next

RBC Bearings Incorporated has an excellent business model with high barriers to entry. This is causing gross margins to expand and earnings to blossom. ROLL has met or exceeded earnings estimates in five straight quarters, with three of them registering double-digit surprises. Two analysts have raised their forecasts for this year and next. Full Analysis RBC Bearings Incorporated (ROLL) engages in the manufacture and marketing of precision plain, roller, and ball bearings in North America, Europe, and Latin America. The company operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Other. The company has an excellent business model with high barriers to entry. This is causing gross margins to expand and earnings to blossom. A good example is the company's latest quartery earnings report. ROLL reported profit of $7.4 million, or 35 cents per share, in the three months ended Sept. 30. That compares to a loss of $2 million, or 18 cents per share, in the year-ago quarter. The year-ago quarter included a charge of $2.3 million for the early extinguishment of debt. Analysts expected 31 cents per share. Net sales for the second quarter of fiscal 2007 were $73.2 million, an increase of 12.1% from $65.4 million in the second quarter of fiscal 2006. Gross margin for the second quarter rose 17.6% to $23.5 million compared to $20.0 million for the same period last year. Gross margin as a percentage of net sales improved to 32.1% in the second quarter of fiscal 2007 compared to 30.6% for the same period last year. "RBC delivered another quarter of strong performance," said Dr. Michael J. Hartnett, Chairman and Chief Executive Officer. "Revenues grew slightly better than expected and gross margins improved as planned, as business continues to exceed the metrics we planned for this fiscal year. In addition, we acquired All Power Manufacturing Co. during the quarter, which was a minor contributor to the quarter's results. All Power's track record with clients, superior processes and high quality products both compliment and extend our product line. Looking ahead, we expect that our performance for the balance of the fiscal year will continue to be strong." ROLL has met or exceeded earnings estimates in five straight quarters, with three of them registering double-digit surprises. Two analysts have raised their forecasts for this year and next. Over the past 60 days, this year's estimates have risen 3.6% to $1.43 per share, while next year's numbers have gone up 3.8% to $1.63 per share. The stock is currently trading at 17.6x next year's estimates, slightly above the company's long-term growth rate of 16.67%, giving the stock a PEG ratio of 1.06. 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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(FHN) - First Horizon - (GY) - Gencorp - (CRDN) - Ceradyne - Richard Rhodes, The Rhodes Report newsletter

Richard Rhodes, editor of The Rhodes Report newsletter, discusses the relationship between hedge funds as well as mutual funds versus The S&P 500. This featured expert illustrates how, if history is any indication, stock prices could rally as the year comes to a close. Read his commentary and discover a few holdings from the Paid-to-Play Portfolio. Commentary from November 7 Richard Rhodes and his team have in the past noted that a large and growing force in the stock market given the proliferation of hedge funds is �performance anxiety�. This is simply where many managers have underperformed their respective benchmarks for the year, and will face investor scrutiny as well as reduced payouts. No hedge fund or even mutual fund manager wants to go through this; if you are a hedge fund manager and your gains are +6%, then you are trailing all the possible benchmarks tied to the stock market, with reduced payouts based on a 1% asset/20% of profits type arrangement. The picture is rather clear; catch up through year-end is a high probability; we would relate a goodly portion of the rally from the June/July bottom as performance anxiety driven. This of course begs the question as to what happens in November and December when fund managers are under forming. Rhodes and his team�s friends at the research firm Birinyi & Associates gave Rhodes and the team the answer yesterday; they noted that growth funds comprise about 28% of mutual funds, and they were in fact trailing the S&P 500 by -4.16% year-to-date. In the past, there are 6 occurrences when the S&P has positive gains for the year and managers were behind; this is the 7th such occurrence. And the results thereafter are rather clear � stock prices rally on average by +4.4%. The last 3 times were 1996, 1998 and 2004; and the respective gains were +5.0%, +11.9% and +7.2%. Therefore, if Rhodes and his team were �bettin� men�, then they would have to certainly side with the bulls on this matter given the S&P is only 2 points higher since the beginning of November. Rhodes and his team finds this more than interesting. Holdings in the Paid-to-Play "Long Only" Portfolio include: First Horizon (FHN) provides financial services to individual and business customers through: First Horizon Home Loans, FTN Financial, First Tennessee Bank, and First Horizon Merchant Services. Gencorp (GY) is a major technology-based manufacturing company headquartered in Sacramento, California. Its businesses are concentrated in three principal industries: aerospace and defense, pharmaceutical fine chemicals, and automotive. As GenCorp moves toward its vision to be one of the most respected, diversified companies in the world, it is currently focused on two priorities: operational excellence and value-creating growth. Ceradyne (CRDN) develops, manufactures and markets advanced technical ceramic products and components for industrial, defense, consumer and microwave applications. In many high performance plications, products made of advanced technical ceramics meet specifications that similar products made of metals or plastics cannot achieve. Advanced technical ceramics can withstand extremely high temperatures, combine hardness with light weight, are highly resistant to corrosion and wear, and have excellent electrical insulation capability and other special electronic properties. This article highlights the commentary of Richard Rhodes for the Zacks.com audience. Richard Rhodes provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Rhodes Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Rhodes 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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(RVSB) - Riverview Bancorp - (RBC) - Regal-Beloit - (PWEI) - PW Eagle - Richard Moroney, Upside newsletter

Richard Moroney, editor of the Upside newsletter, explains that small companies are expected to grow earnings considerably faster than large companies in 2007. Take a look at two of the earnings leaders that this featured expert has profiled. Afterward, take a sneak peek into Moroney�s Upside Buy List portfolio. Commentary from November 6 For investors wondering when the oft-predicted rotation away from small-company stocks will finally begin, the answer likely hinges on corporate earnings growth. Despite a sharp slowdown in the economy, the September quarter should be the fifth consecutive period of at least 20% year-to-year profit growth for small companies, according to Prudential Equity Group. Small companies are expected to grow earnings considerably faster than large companies in 2007, and small stocks are likely to remain popular as long as they are delivering superior earnings growth. For investors wondering which small stocks are best-positioned for the year ahead, the answer also hinges on the outlook for profit growth. Wall Street has been merciless in punishing shares of companies missing expectations, and small stocks supported by strong operating momentum have finally begun to outperform over the past month. Below are two of the names that Moroney has listed as companies with strong earnings momentum. All three of Lamson & Sessions' (LMS) business segments delivered double-digit sales growth in the September quarter. The company, a maker of electrical enclosures and fittings, said strong orders for commercial and utility construction offset moderation in the residential and telecom markets. Profitability of the company�s PVC pipe plants is benefiting from high capacity utilization. Sales rose 16% to $148 million. Per-share earnings reached $0.74, up from $0.35. The company�s businesses are cyclical, but management expects demand in its strongest end markets to remain solid. The home-products division is likely to be sluggish because of the downturn in residential construction. Strong loan growth, tight expense controls, and effective balance-sheet management are driving solid results at Nara Bancorp (NARA). September-quarter earnings per share increased 3% to $0.33. Net interest income increased 15% to $23.8 million, driven by 16% growth in average interest-earnings assets. While margins at most banks have been squeezed by higher short-term interest rates, Nara reported an annualized net interest margin of 5.11% in the September quarter, up from 4.95% in the year-earlier period. The average yield on the loan portfolio increased to 9.13%, up from 8.11%, reflecting upward repricing on the substantial part of the loan portfolio that is tied to the prime rate. Total assets climbed 11%, while total deposits grew 7%. Gross loans receivables jumped 16%, primarily driven by the 24% increase of the real estate loan portfolio. Other stocks on Moroney's Upside Buy List include: PW Eagle (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. Regal-Beloit (RBC) manufactures a diverse line of power transmission products and expendable, high-speed steel, rotary cutting tools. Co.'s power transmission products, manufactured by its Power Transmission Group, include standard and custom gearboxes, specialized off-highway transmissions, rigid forklift axles, custom gearing, hi-performance transmissions and ring-and-pinion gear sets, manual valve actuators and fractional horsepower gearmotors. Co.'s rotary cutting tool products are manufactured by its Cutting Tool Group. Riverview Bancorp (RVSB) is a holding company for Riverview Savings Bank. The bank is a community oriented financial institution offering traditional financial services to the residents of its primary market area. The bank is engaged in the business of attracting deposits from the public and using such funds to originate fixed-rate mortgage loans and adjustable rate mortgage loans secured by one- to- four family residential real estate located in its primary market area. The bank is an active originator of residential construction loans and consumer loans. This article highlights the commentary of Richard Moroney for the Zacks.com audience. Richard Moroney provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Upside" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Upside" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we�ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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(MDP) - Meredith Corp - (MCD) - Mc Donald's - (CLE) - Claire's Stores - Kelley Wright, Investment Quality Trends newsletter

Kelley Wright, editor of the Investment Quality Trends newsletter, suggests that inflation and market volatility are two of the more important portfolio risks that require the thoughtful attention of every investor. Discover which one of the two is the greater risk to one's portfolio and why. Afterward, take a look at some of the stocks this featured expert has in his Timely Ten portfolio. Investment Outlook from November 1 Kelley Wright was editing the part of the new book, Dividends Still Don�t Lie, over the weekend and thought subscribers would find the passage below cogent in light of the current preoccupation with the market averages and how it affects the typical investor. �In the Internet Age where information (and disinformation) is disseminated at fiber-optic speed, investor attention to the fundamental details can be easily distracted by the trivial and salacious, which, while entertaining, are completely divorced from meeting important investment goals and objectives. By example, Wright would suggest that inflation and market volatility are two of the more important portfolio risks that require the thoughtful attention of every investor. He would further suggest that one of these risks is the greater over time and moreover, is the one risk that is most often underestimated. Which of these two do you think is the greater risk to your portfolio? Before you answer let�s consider both. Inflation is a constant in any fiat or paper currency system. This is just the reality because the money supply must always be increased. While it is true that the rate of inflation has been fairly modest the last twenty years, inflation nonetheless eats away at purchasing power. Below Wright will illustrate this in a hypothetical situation. Consider an investor that is 50 years old, of average health and has a reasonable life expectancy of another 30 years. Let's further assume he invests $400,000 into a fixed income security that pays 5% ($20,000 of annual interest income) and the prevailing inflation rate is 3%. Let's further assume that he never touches the principal, but uses all of the interest income for living expenses. Over the next 15 years the purchasing power of the $400,000 will be reduced to approximately $260,000 and the $20,000 income stream will only purchase about $13,000 of goods and services. In the next 15 years the purchasing power of the initial $400,000 drops to approximately $165,000 and the annual income stream of $20,000 will be capable of purchasing only about $8,250 of goods and services. Obviously this is not the optimum outcome for the investor; so why pursue this strategy? Because the effects of inflation take time to be recognized, like termite damage to a house. The volatility in the stock markets, however, is trumpeted on a daily basis. If CNBC had a segment each day that detailed the loss of purchasing power on fixed instruments purchased 5, 10 and 15 years ago, it might be a different story. Since this isn't the case, though, many investors continue to focus on the nominal returns from their fixed investments and see them as a safe haven instead of concentrating on their real (inflation adjusted) returns. So how do Wright and his team help investors focus on the advantages of generating real (inflation adjusted) returns? By focusing on what is important in investing; protecting principal, earning an immediate and growing return on investment via dividends, and harvesting long-term capital gains at overvalued price/yield levels. Yes, over short time periods, the stock market�s fluctuations are unpredictable and vary considerably. Why is this? The simple answer is emotion; market participants react to economic, political and world events by buying and selling securities which causes markets to move. Negative and destabilizing news causes temporary market declines. For the enlightened investor, then, the key is to focus on the market of stocks that helps them achieve their investment goals and objectives and ignore the daily machinations of the stock markets. Purchasing a high-quality, dividend paying stock with a long-term rising dividend trend at its historic area of undervalue has, in Wright and his team's experience, generated sufficient growth of capital and growth of income to not only meet, but exceed, the long-term loss of buying power that accompanies inflation. In the end, it is truly what you keep, not what you make, that matters.� The Timely Ten include: Claire's Stores (CLE), through its wholly-owned subsidiaries, is a leading mall-based retailer of popular-priced fashion accessories and apparel for pre-teens and teenagers. The Company's operations are divided into three principal product categories: Jewelry, Accessories, and Apparel. Jewelry consists of costume jewelry, including earrings and ear piercing services, while Accessories consists of other fashion accessories, hair ornaments, totebags and novelty items. Apparel includes name-brand as well as private label shirts and pants. Mc Donald's (MCD) develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people. Meredith Corp. (MDP) has two business segments: publishing and broadcasting. The publishing segment includes magazine and book publishing, integrated marketing, interactive media, brand licensing, and other related operations. The broadcasting segment includes the operations of network-affiliated television stations and syndicated television program marketing and development. Virtually all of the company's revenues are generated and assets reside within the United States. This article highlights the commentary of Kelley Wright for the Zacks.com audience. Kelley Wright provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Investment Quality Trends" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Investment Quality Trends" 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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