(LII) - Lennox International, Inc - exceeded analysts’ earnings expectations over the past five quarters by an average margin of 15.1%

Lennox International, Inc. (LII), a Zacks #1 Rank stock, topped analysts’ earnings expectations for five straight quarters by an average margin of 15.1%. Consensus estimates for both this quarter and the full year of 2006 have risen over the past 60 days. The company has a price-to-book ratio of 2.5, compared to 4.9 for the market. Its return on equity of 19% betters the industry average of 18%. Full Analysis Lennox International, Inc. and subsidiaries engage in the design, manufacture and marketing of climate control solutions for the heating, ventilation, air conditioning and refrigeration markets. The company serves distributors, installing dealers, homeowners, national accounts and original equipment manufacturers. LII exceeded analysts’ earnings expectations over the past five quarters by an average margin of 15.1%. In four out of the five aforementioned quarters, the company surprised by a double-digit percentage. On Oct 26, LII posted third-quarter profits of 69 cents per share, which beat the consensus earnings estimate by two cents. Compared to the prior-year period, earnings were up 4.5%. Revenues were a new record for the company, coming in at $1 billion, compared to $927.5 million in the third quarter of 2005. For the first nine months of the year, profits jumped 10.7% to $120.6 million from $108.9 million for the first nine months of 2005. Revenues rose 12.0% to $2.8 billion from $2.5 billion. Commenting on the softening in the residential new construction market, Chief Executive Officer Bob Schjerven stated, “We believe we can offset the downturn by adding new builder accounts and increasing sales in the larger, and more profitable, replacement business.” Consensus estimates for this quarter currently sit at 45 cents and mark a 9.8% improvement when compared to the consensus of 60 days earlier. Profit forecasts for the full year of 2006 jumped 10 cents to $2.12 over the same period of time. On Jul 24, the Board of Directors declared a quarterly cash dividend of 11 cents per common share of stock. LII has a current dividend yield of 1.5% and a five-year average dividend yield of 2.3%. According to the recently published J.D. Power and Associates/McGraw-Hill Construction 2006 HVAC and Water Heater/Boiler Subcontractor Satisfaction Study, LII holds the top spot among HVAC manufacturers in satisfying subcontractors. The study is based on performance in seven factors: warranty and repair service, sales and marketing support, ordering process, product, credit/billing, delivery and price. LII is currently trading at a valuation of 13.6x both trailing 12-month earnings and current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.7x trailing 12-month earnings and at 16.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 4.9 for the market. Its return on equity of 19% betters the industry average of 18%. 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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(ARG) - Airgas, Inc - analysts have been upping their earnings estimates

Airgas, Inc. (ARG), which was first presented as a Growth & Income pick on Mar 31, exceeded analysts’ earnings expectations over the past six quarters by an average margin of 7.9%. After posting solid results for the second quarter, the company upped its full-year earnings per share guidance. ARG has a current dividend yield of 0.66% and a five-year average dividend yield of 0.55%. Full Analysis Airgas, Inc., through its subsidiaries, is the largest distributor of industrial, medical and specialty gases and related hardgoods, such as welding supplies, in the United States. The company is also the third-largest U.S. distributor of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast as well as a leading distributor of process chemicals, refrigerants and ammonia products. When ARG was first highlighted as a Growth & Income pick on Mar 31, the stock was a Zacks #2 Rank (buy). The company has since moved up the Zacks Rank ladder and now holds the coveted states of a Zacks #1 Rank stock (strong buy). ARG is up 9% since its debut. The company beat analysts’ earnings expectations for six consecutive quarters by an average margin of 7.9%. Earnings per share grew 21.7% over the past five years. On Oct 25, ARG reported second-quarter fiscal 2007 profits of 49 cents per share. Analysts were expecting 47 cents, thus, the company surprised to the upside by 4.3%. Compared to the prior-year period, earnings were up an impressive 22.5%. Revenues increased 12.6% to $790.7 million from $702.2 million in the second quarter of fiscal 2006. Total same-store sales, or sales at stores open one year or more, rose 11%. Chairman and Chief Executive Officer Peter McCausland stated, “Our core and growth strategies are yielding outstanding results for shareholders. Sales growth remains strong across our core markets and strategic products.” Citing strong business conditions across the board, ARG raised its full-year earnings per share guidance to between $1.93 and $1.98. The company’s previous outlook called for profits between $1.85 and $1.92 per share. As a result of the company’s bullish guidance, analysts have been upping their earnings estimates. The consensus estimate for fiscal 2006 jumped six cents to $1.97 over the past 60 days. Profit forecasts for fiscal 2008 experienced a 14-cent leap to $2.33 over the same period of time. Earnings per share are projected to grow 13% over the next 3-5 years. The industry is expected to grow at an 8% clip. On Nov 22, the Board of Directors declared a regular quarterly cash dividend of seven cents per share. The dividend is payable on Dec 29 to shareholders of record as of Dec 15. ARG has a current dividend yield of 0.66% and a five-year average dividend yield of 0.55%. During the month of November, ARG carried out two purchases: Dallas, TX-based Union Industrial Gas Group and the U.S. bulk gas business of Linde AG. The operations that were acquired in the Union Industrial Gas Group purchase had annual sales of $38 million, while the bulk business generated $154 million in revenues. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(GLYT) - The Genlyte Group Inc - beat the Street’s earnings estimate for 16 consecutive quarters

The Genlyte Group Incorporated (GLYT) beat the Street’s earnings estimate for 16 consecutive quarters, with eight of those periods registering double-digit surprises. The company, which was first featured as an Aggressive Growth pick on Sep 12, is up an impressive 25%. Analysts have been upping their profit forecasts for both this year and next. GLYT is trading at 19.1x this year's estimates, below the projected long-term growth rate of 20.0%, giving the stock a PEG ratio of 0.96. Full Analysis The Genlyte Group Incorporated engages in the design, manufacture, marketing and sale of lighting fixtures, controls and related products in North America. Its products include incandescent, fluorescent, light emitting diodes and high-intensity discharge lighting fixtures; lighting controls; poles; and accessories for commercial, residential, industrial, institutional, medical, entertainment, hospitality, and sports markets and task lighting for various other markets. The company sells its products to distributors, electrical wholesalers, mass merchandisers and national accounts. GLYT markets its products through independent sales representatives and company direct sales personnel primarily in the United States, Canada and Mexico. GLYT, which was first highlighted as an Aggressive Growth stock on Sep 12, is up an impressive 25% since its debut. Furthermore, the company is still a Zacks #1 Rank stock, due primarily to earnings estimate revisions trending higher along with its impeccable history of beating analysts’ earnings expectations. GLYT beat the Street’s earnings estimate for 16 consecutive quarters, with eight of those periods registering double-digit surprises. On Nov 6, the company posted record third-quarter profits of $1.32 per share. With analysts calling for $1.07, GLYT surprised to the upside by 23.4%. The result marked a 71.4% year-over-year improvement when compared to earnings of 77 cents achieved in the third quarter of 2005. Revenues hit an all-time high at $410.4 million, versus $325.6 million reported for the same period last year. For the first nine months of the year, profits nearly doubled to $122.5 million from $61.4 million for the first nine months of 2005. Revenues rose 16.6% to $1.1 billion from $943.2 million. GLYT increased revenues and expanded gross margins over the past three years. The company grew profits for nine years running. Analysts have been upping their profit forecasts for both this year and next. The consensus estimate for this year currently sits at $4.39, which marks a 7.6% improvement when compared to the consensus of 30 days earlier. Six analysts upped their estimates. The consensus estimate for next year jumped 6.3% over the same period of time. Six analysts also submitted upward revisions for next year. The stock is relatively cheap given the company's growth prospects. GLYT is trading at 19.1x this year's estimates, below the projected long-term growth rate of 20.0%, giving the stock a PEG ratio of 0.96. The company’s return on equity exceeds that of the industry average—19% compared to 11%. 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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(AHL) - Aspen Insurance Holdings - topped analysts’ earnings expectations in three out of the past four quarters and in eight out of the past 11

Aspen Insurance Holdings Limited (AHL) exceeded analysts’ earnings expectations in eight out of the past 11 quarters. The company recently beat the third-quarter consensus estimate by 15.0%. On Nov 8, the Board of Directors authorized the repurchase of up to $300 million of its common stock over the next two years. This Zacks #1 Rank stock has a price-to-book ratio of 1.3, compared to 4.9 for the market. Full Analysis Aspen Insurance Holdings Limited operates in four segments: property reinsurance, casualty reinsurance, specialty insurance and reinsurance, and property and casualty insurance. AHL is a Bermuda holding company, operating in three jurisdictions: the United Kingdom, Bermuda and the United States. AHL topped analysts’ earnings expectations in three out of the past four quarters and in eight out of the past 11. When the company achieves a positive surprise it usually does so by a large margin. In seven out of the eight quarters in which it beat the Street’s estimate, it did so by at least a double-digit percentage. This is obviously a very impressive track record. On Oct 25, AHL posted third-quarter profits of 92 cents per share. The result amounted to a 15.0% positive surprise with analysts projecting 80 cents per share. The company reported a loss of $5.22 per share in the prior-year period. Gross written premiums came in at $457.5 million, down from $494.0 million achieved in the third quarter of 2005. However, net premiums written jumped 25.8% to $433.5 million from $344.5 million. The company’s combined ratio for the quarter, a measure of profitability for insurance companies, was 81.0%. A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums. CEO Chris O'Kane stated, “Our diversified business model has performed very well again in this quarter. We are well placed to produce attractive returns in 2006 and beyond.” For the full year of 2006, two analysts upped their earnings estimates over the past 30 days. The consensus estimate currently resides at $3.44, versus $3.39 a month earlier. Profit forecasts for next year experienced a 19-cent jump to $3.69 over the same period of time. Five analysts submitted upward revisions for 2007. On Nov 8, the Board of Directors authorized the repurchase of up to $300 million of its common stock over the next two years. AHL’s return on equity of 16% betters the industry average of 13%. AHL is currently trading at a valuation of 9.0x trailing 12-month earnings and at 7.7x 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 16.5x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.3, compared to 4.9 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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(LTD) - Limited Brands, Inc - sales 17% increase at Victoria's Secret and 15% at Bath & Body Works

Limited Brands, Inc. (LTD), a Zacks #1 Rank stock, beat or matched analysts’ earnings expectations for the past six quarters. The company is up nearly 23% since it was first featured on Jul 11. Consensus estimates for both this quarter and the full year have increased over the past month. On Nov 13, the company’s 128th consecutive quarterly dividend was declared by its Board of Directors. LTD has a current dividend yield of 2.0% and a five-year average dividend yield of 2.3%. Full Analysis Limited Brands, Inc. sells women's intimate apparel, personal care and beauty products, and women's and men's apparel through its retail stores and direct response businesses. The company’s seven retail brands include: Victoria’s Secret, Express, Bath & Body Works, The Limited, The White Barn Candle Co., Henri Bendel and C.O. Bigelow. LTD is up nearly 23% since it was first highlighted as a Growth and Income stock on Jul 11. With consensus earnings estimates trending higher, coupled with its strong history of exceeding analysts’ expectations, the company still holds the coveted status of a Zacks #1 Rank stock. Over the past six quarters, LTD beat the Street’s earnings estimate on four occasions while matching in the remaining two. In three out of the four quarters in which the company surprised, it did so by a double-digit percentage. Earnings per share grew 12.4% over the past five years. On Nov 15, LTD reported third-quarter profits of six cents per share, which matched the consensus earnings estimate. The company posted a loss of three cents per share in the third quarter of 2005. Net sales jumped 11.8% to $2.115 billion compared to $1.892 billion in the prior-year period. Same-store sales, or sales at stores open for a year or more, increased 10%. The improvement was fueled by a 17% increase at Victoria's Secret and 15% at Bath & Body Works. For the first nine months of the year, same-store sales climbed 7% and net sales came in at $6.646 billion versus $6.157 billion for the first nine months of 2005. LTD stated that it expects fourth-quarter earnings per share between $1.07 and $1.14. Analysts responded by raising their estimates to $1.13 from $1.11 a month earlier. Nine analysts submitted upward revisions. For the full year, the company expects profits between $1.66 and $1.73 per share. The consensus estimate currently resides at $1.72 and represents a seven-cent jump over the past month, with 13 analysts upping their profit forecasts. Earnings per share are forecasted to grow 11.4% over the next 3-5 years. LTD agreed to acquire La Senza Corporation, a leading Canadian and international intimate apparel specialty retailer, on Nov 15. As of Nov 14, La Senza owned and operated 318 stores in Canada, with licensees operating an additional 327 stores in 34 other countries. The Board of Directors recently declared quarterly cash dividend of 15 cents per share. This distribution represents LTD's 128th consecutive quarterly dividend. The company has a current dividend yield of 2.0% and a five-year average dividend yield of 2.3%. LTD’s return on equity tops that of the industry average—26% compared to 18%. 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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(FMD) - First Marblehead Corp - Profit forecasts for this year and next jumped 17.0% and 17.4%, respectively

The First Marblehead Corporation (FMD), first highlighted as an Aggressive Growth stock on Aug 22, is up over 41%. The company exceeded analysts’ earnings expectations in nine out of the past 10 quarters, most recently by 52.7%. Consensus estimates have been shooting upward. FMD is trading at 13.95x this year's estimate of $5.30 per share, well below the projected long-term growth rate of 43.33%, giving the stock a PEG ratio of 0.32. Full Analysis The First Marblehead Corporation provides outsourcing services for private education lending in the United States. It offers design and marketing, borrower inquiry and application, loan origination and disbursement and loan securitization services. Student loan programs are tailored to meet the needs of the respective customers, students, employees and members of national and regional financial institutions and educational institutions, as well as businesses and other enterprises. The company primarily focuses on loan programs for undergraduate, graduate and professional education, as well as on the primary and secondary school market. It also offers services such as private label programs and the guaranteed access to education programs. FMD has strategic relationship with The Education Resources Institute. First-quarter fiscal 2007 profits soared ahead of analysts’ estimates. Quarterly profit rose to $141.0 million, or $2.23 per share, from a net loss of $5.4 million, or eight cents per share, in the year-ago period. Analysts only expected $1.46, which was exceeded by 52.7%. Total service revenues ballooned to $301.8 million, compared to $35.1 million during the first quarter of fiscal 2006. Looking ahead, President and CEO Jack L. Kopnisky stated, “With our continued addition of new clients and expanded programs, we are poised to seize future growth opportunities and will continue our relentless focus on delivering optimal value to our shareholders.” Analysts’ optimism has grown as a result of the company’s strong first quarter. Consensus estimates for this quarter and next have risen 18.8% and 9.9%, respectively, over the past 60 days. Profit forecasts for this year and next jumped 17.0% and 17.4%, respectively, over the same period of time. The company exceeded analysts’ earnings estimates in nine out of the past 10 quarters, with five of those reports registering a double-digit surprise. Given its explosive growth prospects, the stock is quite cheap. FMD is trading at 13.95x this year's estimate of $5.30 per share, well below the projected long-term growth rate of 43.33%, giving the stock a PEG ratio of 0.32. On Sep 7, the Board of Directors declared a regular quarterly cash dividend of 15 cents per share. This represented a 25% increase from its previous quarterly dividend of 12 cents per share. FMD is yielding 0.65%. 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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(CMC) - Commercial Metals Co - Profit forecasts for fiscal 2007 have risen 13.9% over the past 60 days

Commercial Metals Company (CMC), which was first highlighted as a Value stock on Mar 24, recently reported record annual and quarterly earnings. Consensus estimates for this quarter and for fiscal 2007 have been on the rise. The Board of Directors recently upped its quarterly cash dividend by 50% to nine cents per share. This Zacks #1 Rank stock has a price-to-book ratio of 2.7, compared to 4.9 for the market. Full Analysis Commercial Metals Company engages in the manufacture, recycle, marketing and distribution of steel and metal products, and related materials and services in the United States and internationally. CMC, which was first presented as a Value pick on Mar 24, continues to trade at a discounted valuation. More importantly, the company is still a Zacks #1 Rank stock. On Oct 24, CMC reported record annual and quarterly earnings. Fourth-quarter fiscal 2006 profits came in at $128.7 million, or $1.04 per share. The company crushed analysts’ expectations of 73 cents per share by 42.5%. Furthermore, compared to earnings of 69 cents in the prior-year period, the result equated to a 50.7% year-over-year improvement. Net revenues jumped 29.4% to $2.2 billion from $1.7 billion in the fourth quarter of fiscal 2005. For the entire year, profits rose 24.5% to $356 million from $286 million in fiscal 2005. Net revenues experienced a 15.2% leap to $7.6 billion, compared to $6.6 billion last year. CMC increased revenues for the past five years. The company expanded gross margins and grew profits for three years running. Chairman Stanley A. Rabin stated, “Fiscal year 2006 was our third consecutive record, a superlative year by any standard, and it closed with the best quarter ever. We continued to benefit in the fourth quarter from favorable market conditions for most of our businesses and achieved excellent performance in all of our segments.” The consensus estimate for this quarter currently sits at 74 cents and marks a 7.3% improvement over the past 60 days. Profit forecasts for fiscal 2007 have risen 13.9% to $2.95 over the same period of time. CMC has increased shareholder value through its stock repurchase programs. After completing its previous buyback plan, the Board of Directors authorized the repurchase of up to five million additional shares on Jul 19. Furthermore, the Board upped its cash dividend by 50% in early November to nine cents per share from six cents. The company has a current dividend yield of 0.87%. The bump represented the third boost to the company's dividend this year, tripling the payout as a result. CMC is currently trading at a valuation of 9.6x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 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 2.7, compared to 4.9 for the market. CMC’s return on equity, a common measure of profitability, of 32% exceeds 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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(CBE) - Cooper Industries, Ltd - estimates for both this year and next have been trending higher

Cooper Industries, Ltd. (CBE) exceeded analysts’ earnings expectations for the past 14 quarters. In addition to posting solid results for the third quarter, the company raised its full-year earnings per share guidance. Consensus estimates for this year and next have been trending higher. The Board of Directors recently declared a quarterly cash dividend of 37 cents per common share of stock. CBE is currently yielding 1.6%. Full Analysis Cooper Industries, Ltd. is a leading worldwide manufacturer of electrical products and tools and hardware. The electrical products segment manufactures, markets and sells electrical and circuit protection products. The tools segment manufactures, markets and sells hand tools, automated assembly systems and electric and pneumatic industrial power tools. CBE’s history of exceeding analysts’ earnings expectations is extremely impressive. The company beat the Street’s estimate in 14 consecutive quarters. Earnings per share grew 15.0% over the past five years. On Oct 24, CBE reported third-quarter profits of $128.2 million, or $1.37 per share, compared to $102 million, or $1.08 per share, in the prior-year period. In addition to achieving a 26.9% year-over-year improvement, earnings topped the consensus estimate by 3.0%. Revenues jumped 8.3% to $1.31 billion from $1.21 billion last year. Broken down by business segment, revenues in the electrical products division increased 9.7% to $1.13 billion while the tools segment climbed 2.4% to $187.2 million. For the first nine months of 2006, profits rose 16.8% to $335.4 million from $287.1 million for the first nine months of 2005. Revenues experienced an 8.5% leap to $3.84 billion. CEO Kirk S. Hachigian stated, “Our businesses continue to deliver excellent results, powered by continued strong demand in the key industrial, utility and nonresidential construction end-markets.” The company raised its full-year 2006 earnings per share guidance to between $5.04 and $5.10, compared to its prior outlook which called for profits between $4.90 and $5.05 per share. CBE cited the strength of its diversified portfolio of businesses and products along with the continued favorable global economic outlook as fueling the revision. Consensus estimates for both this year and next have been trending higher. Estimates for 2006 jumped eight cents to $5.09 over the past two months. Profit forecasts for 2007 have risen nine cents to $5.78 over the same period of time. Earnings per share are projected to grow 10.6% over the next 3-5 years. On Nov 7, the Board of Directors declared a quarterly cash dividend of 37 cents per common share of stock. The dividend is payable on Jan 2 to shareholders of record as of Nov 30. The company has a current dividend yield of 1.6% and a five-year average dividend yield of 2.8%. CBE’s return on equity of 20% betters the industry average of 16%. CBE 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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(APH) - Amphenol Corp - topped analysts’ expectations in 15 out of the past 16 quarters

Amphenol Corporation (APH), first featured as an Aggressive Growth stock on May 2, exceeded analysts’ expectations in 15 out of the past 16 quarters. The company recently raised its fourth-quarter revenue and earnings per share guidance. As a result, analysts have been upping their profit forecasts. The Board of Directors recently declared a quarterly cash dividend in late October and extended its share repurchase program in early August. Full Analysis Amphenol Corporation designs and manufactures connectors and interconnect systems that are used primarily to conduct electrical and optical signals for a wide range of sophisticated electronic applications. The company is one of the leaders in developing interconnect products for factory automation, machine tools, instrumentation and medical systems. APH competes in two business segments: Interconnect Products & Assemblies and Cable Products. APH, first highlighted as an Aggressive Growth stock on May 2, has a strong history of exceeding analysts’ earnings expectations. Since its debut, the company has added two more earnings surprises to its impressive track record. APH has now topped analysts’ expectations in 15 out of the past 16 quarters. On Oct 18, the company beat the Street’s third-quarter estimate of 71 cents by 8.5% when it posted profits of 77 cents per share. The result also represented a 35.1% year-over-year improvement when compared to the 57 cents earned in the third quarter of 2005. Revenues ballooned 42.4% to $636.4 million from $447 million in the prior-year period. Chairman and CEO, Martin H. Loeffler stated, “It was another strong quarter and we look to the future with great enthusiasm. We have an outstanding management team, excellent technological capabilities, leading positions in diversified markets and an increasing presence with the major companies in these markets.” For the first nine months of the year, profits increased 17.8% to $177.3 million, versus $150.5 million for the first nine months of 2005. Revenues soared 38.5% to $1.8 billion from $1.3 billion. Furthermore, APH announced that it has raised its fourth-quarter 2006 revenue guidance to between $640 million and $650 million and its earnings per share outlook to between 80 cents and 82 cents. Consensus estimates for this quarter and next have risen 6.6% and 6.7%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 jumped 3.6% and 6.5%, respectively, over the same period of time. On Oct 27, the Board of Directors declared a quarterly cash dividend of three cents per share. The dividend is payable on or about Jan 3, 2007 to shareholders of record as of Dec 13, 2006. Furthermore, back in early August, the Board authorized the extension of its share repurchase program through Dec 31, 2008. The program was previously scheduled to terminate on Sep 30, 2006. APH’s return on equity of 32% absolutely crushes the industry average of 12%. 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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(ASI) - American Safety Insurance Holdings, Ltd - PEG ratio currently sits at 0.72

American Safety Insurance Holdings, Ltd. (ASI), a Zacks #1 Rank stock, topped analysts’ earnings expectations for the third quarter by 6.4% when it posted profits of 50 cents per share. Furthermore, both gross and net premiums written were up for the quarter. Since the release of ASI’s third-quarter results, analysts have been upping their earnings estimates for both this quarter and the full year. ASI has a price-to-book ratio of 1.1, compared to 4.9 for the market. Its PEG ratio currently sits at 0.72. Full Analysis American Safety Insurance Holdings, Ltd., together with its subsidiaries, engages in the development, underwriting and management of casualty insurance and reinsurance programs for specialty risks in the alternative insurance markets. On Nov 1, ASI reported third-quarter profits of $5.4 million, or 50 cents per share, compared to $3.3 million, or 47 cents per share in the prior-year period. In addition to the 6.4% year-over-year improvement, the company managed to surprise to the upside also by 6.4% with analysts expecting 47 cents per share. Total revenues experienced a 28.6% increase to $45.0 million, when compared to the third quarter of 2005. Gross premiums written jumped 4.4% to $61.6 million, while net premiums written soared 38.2% to $42.3 million. The company’s combined ratio, a measure of profitability for insurance companies, for the third quarter improved to 97.7% from 98.6%. A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums. For the first nine months of the year, profits increased 39.6% to $14.1 million and total revenues increased 10.2% to $125.5 million. Gross premiums written declined slightly by 1.6% to $175.8 million but net premiums written rose 14.6% to $117.1 million. Since the release of ASI’s third-quarter results, analysts have been upping their earnings estimates for both this quarter and the full year. The consensus estimate for this quarter currently resides at 57 cents. This represents a 21.3% jump when compared to the consensus of 30 days prior. Profit forecasts for the full year have risen 7.7% to $2.23 over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. ASI is currently trading at a valuation of 8.4x trailing 12-month earnings and at 8.7x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.7x trailing 12-month earnings and at 16.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.1, compared to 4.9 for the market. Its PEG ratio currently sits at 0.72. The company’s return on equity, a common measure of profitability, of 13% is equal to that of 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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(FMS) - Fresenius Medical Care AG & Co. - Consensus estimates for this quarter jumped 15.9% to 51 cents over the past 30 days

Fresenius Medical Care AG & Co. (FMS) recently raised its full-year revenue and profit guidance after posting solid results for the third quarter. Analysts reacted to the company’s bullish outlook by upping their profit forecasts for both this quarter and the full year. This Zacks #1 Rank stock has a current dividend yield of 0.92% and a five-year average dividend yield of 1.3%. Its return on equity of 13% crushes the industry average of 4%. Full Analysis Fresenius Medical Care AG & Co. is the world's largest provider of products and services for individuals with chronic kidney failure. The company’s network consists of approximately 2,085 dialysis clinics in North America, Europe, Latin America and Asia-Pacific. FMS provides dialysis treatment to approximately 161,433 patients around the world. On Oct 31, FMS reported third-quarter earnings per share of 47 cents, which beat the Street’s estimate by a penny. Compared to earnings of 40 cents in the prior-year period, the result represented a 17.5% year-over-year improvement. Net revenues jumped 29.7% to $2.23 billion from $1.72 billion in the third quarter of 2005. For the first nine months of the year, profits rose 13.4% to $384.7 million from $339.4 million for the first nine months of 2005. Net revenues increased 23.0% to $6.15 billion. The company increased revenues and expanded gross margins for the past six years. Profits have grown for four years running. As of Sep 30, FMS operated a total of 2,085 clinics worldwide. This represented a 34% rise in North America and a 6% leap in the International segment. CEO Ben Lipps stated, “Our third quarter and nine months financial results were excellent and exceeded expectations. We continue to see strong growth in both our renal products and services business segments worldwide.” Due to its strong third-quarter results, FMS raised its full-year revenue and profit guidance. The company now expects net revenues of about $8.4 billion, compared to its previous outlook which called for $8.3 billion. Profits are now projected to come in at $557 million, versus its previous forecast of $542 million. FMS also raised its guidance for the full year back in early August due to its strong performance for the first half of the year. Analysts reacted to the company’s bullish outlook by upping their profit forecasts for both this quarter and the full year. Consensus estimates for this quarter jumped 15.9% to 51 cents over the past 30 days. Estimates for the full year experienced a four-cent increase to $1.91 over the same period of time. Earnings per share are projected to grow 11.5% over the next 3-5 years. FMS has a current dividend yield of 0.92% and a five-year average dividend yield of 1.3%. Its return on equity of 13% crushes the industry average of 4%. 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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(VSEA) - Varian Semiconductor Equipment Associates, Inc - exceeded analysts’ earnings expectations for seven consecutive quarters

Varian Semiconductor Equipment Associates, Inc. (VSEA), which was first presented as an Aggressive Growth pick on Aug 3, is up nearly 22%. The company has exceeded analysts’ earnings estimates in each of the past seven quarters. VSEA recently announced record fourth-quarter and full-year 2006 results. Over the past month, this year's estimates have increased 8.5%, representing upward revisions by seven analysts. The stock is cheap given the company's growth prospects. VSEA is trading at 17.8x this year's estimates, below the projected long-term growth rate of 21.3%, giving the stock a PEG ratio of 0.84. Full Analysis Varian Semiconductor Equipment Associates, Inc. engages in the design, manufacture, marketing and servicing of semiconductor processing equipment used in the fabrication of integrated circuits. The company provides ion implantation systems to build the transistors that are the basis of integrated circuits. It offers a range of ion implantation systems for medium and high current, and high energy implant sectors. Since we first featured VSEA as an Aggressive Growth stock on Aug 3, the company is up nearly 22%. Furthermore, the stock is still a Zacks #1 Rank, thanks to continually exceeding analysts’ earnings expectations, coupled with consensus estimates trending higher. On Oct 26, VSEA reported record fiscal 2006 and fourth-quarter results. The company posted fourth-quarter profits of $32.9 million, or 58 cents per share, compared to profits of $13.6 million, or 24 cents per share for the prior-year period. The result amounted to a 141.7% year-over-year improvement and a 3.6% positive earnings surprise. VSEA has now exceeded analysts’ earnings expectations for seven consecutive quarters by an average margin of 6.3%. Revenues soared 45.7% to $213.1 million from $146.3 million in the fourth quarter of fiscal 2005. For the entire fiscal year, profits ballooned 31.5% to $94.7 million, versus $72.0 million in fiscal 2005. Revenues jumped 21.7% to $730.7 million from $600.5 million the previous year. VSEA increased revenues and grew profits for the past four years. CEO Gary Dickerson stated, “The fourth quarter of 2006 was particularly strong for us as we set a company record for single wafer high current revenue. For fiscal year 2006, we had our highest total revenue ever.” The consensus estimate for fiscal 2007 currently sits at $2.31. This represents an 8.5% jump over the past month. Seven analysts upped their profit forecasts. The stock is cheap given the company's growth prospects. VSEA is trading at 17.8x this year's estimates, below the projected long-term growth rate of 21.3%, giving the stock a PEG ratio of 0.84. 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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Paul Tracy, StreetAuthority Market Advisor newsletter - An Overreaction? - (WFMI) - (IGT) - (KMX) - (LTM)

Paul Tracy, editor of the StreetAuthority Market Advisor newsletter, provides an update on Whole Foods and its recently released results for the fourth quarter. Find out what this featured expert has to say about the upscale grocer and its performance. Afterward, take a look at a few of the other names from Tracy’s "Beat The S&P" Portfolio. "Beat The S&P" Portfolio from November 21 Whole Foods Market (WFMI): Earlier this month, upscale grocer Whole Foods was slammed after the company delivered fourth-quarter results and near-term guidance that suggested a bit of a cool-down from the firm's red-hot pace of recent years. Earnings for the period quadrupled to $40 million (or $0.28 per share) on revenues that climbed +16% to $1.3 billion. While those numbers were essentially in-line with Wall Street's lofty targets, shareholders were disappointed with the firm's same-store sales (or "comps") results. After posting consistent double-digit quarterly improvements in that key department for the past three years, comps for the period were only up +8.6% -- down from a torrid +13.6% growth rate in last year's fourth quarter. And with the company gearing up to face more competition, management is anticipating same-store sales growth of just 6%-8% in fiscal 2007 -- down from the +11% gain delivered this past year. That cautious outlook sent the shares tumbling nearly -25% to a new 52-week low of $46.26. Paul Tracy and his team feel this overreaction is shortsighted. After flying high for more than three years, it should not be alarming that the company's year-over-year comparisons have begun to moderate somewhat. Furthermore, while fiscal 2007 is expected to be a "transitional" year, shareholders have much to look forward to from Whole Foods over the long haul. Aggressive expansion plans should continue to fuel solid top-line growth -- the firm currently has around 90 leases signed to develop new locations, which will increase its store space by approximately five million square feet. That square footage under development represents approximately 75% of the store space the company currently manages. In other words, Whole Foods is already planning to nearly double its square footage in the coming years. In addition, the firm has ambitious plans to expand its footprint in faster-growing markets overseas. As a result, management is confident that by 2010 it can double annual sales from the current $5.6 billion to as much as $12 billion. And while expenses associated with new store openings could bite into earnings over the next few quarters, Tracy and his team believe the company is well positioned to continue generating healthy cash flows in the years ahead. Given the firm's extremely shareholder-friendly policies, much of that wealth will be returned to stockholders. After dishing out more than $350 million in dividends last year, management recently boosted its quarterly dividend payment by another 20% to $0.18 per share. The company has also stepped up its share repurchase program, and CEO John Mackey has voluntarily agreed to waive any stock option compensation and reduce his annual salary to just $1. Tracy and his team plan to take advantage of the sharp pullback in shares of WFMI by adding another 20 shares of the stock to their "Beat the S&P" Portfolio at the opening bell on Tuesday, November 21st. Other "Beat The S&P" Portfolio stocks include: Intl. Game (IGT) is one of the largest manufacturers of computerized casino gaming products and operators of proprietary gaming systems in the world and was the first to develop computerized video gaming machines. CarMax (KMX) is a subsidiary of Circuit City Stores, Inc. The company is one of the nation's largest retailers of brand-name consumer electronics and major appliances, and a leading retailer of personal computers and music software. The company is adding value to this industry with a consumer offer that includes extraordinary selection; everyday low prices marked clearly on every car; quality gaurantees; and exceptional customer service. L.T. Fitness (LTM) operates distinctive and large sports, athletic, fitness and family recreation centers. The Company also provides consumers with nutritional products and supplements, the award-winning healthy lifestyle magazine, Experience Life, world-class athletic events, full-service spas, cafes, personal training consultation, health and nutrition education, and corporate wellness programs. | Blog Home| VitalStocks Home

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John Reese, Validea Hot List newsletter - (BP) - British Petroleum - (TWGP) - Tower Group, Inc - (THO) - Thor Industries, Inc

John Reese, editor of the Validea Hot List newsletter, provides the latest Hot List performance results. Take a look at how well the returns stack up against the S&P 500. Then find out what this featured expert has to say about an oil giant that is favored by the James P. O'Shaughnessy guru strategy. Afterward read about two more companies. Validea Hot List Performance from November 17 Since inception, the Validea Hot List has increased 179.0 percent, versus 39.9 percent for the S&P 500. Year to date, the Validea Hot List has risen 25.7 percent compared with an increase of 12.1 percent for the S&P 500. Since John Reese and his team’s last issue of the newsletter two weeks ago, the Validea Hot List is up 4.7 percent, while the S&P 500 is up 2.4%. Detailed Analysis British Petroleum (BP) This company is favored by two guru strategies. One of the gurus is James P. O'Shaughnessy. One of the strategies that strongly favors this oil giant is the one based on the thinking of James P. O'Shaughnessy. It likes the fact that BP is very large, has cash flow per share in excess of the mean of the market's cash flow per share (BP's is $10.06 while the market's is $2.26), has more shares outstanding than the market average, has trailing 12 month sales way more than the market's mean trailing 12 month sales ($370 billion versus $18 billion), and, among those stocks that have passed the previous criteria, BP is one of the 50 with the highest dividend yield (3.49 percent). Other Hot List stocks include: Tower Group, Inc. (TWGP) offers a range of specialized property and casualty insurance products and services to small to mid-sized businesses and to individuals in New York State and the surrounding areas through its wholly owned subsidiaries, Tower Insurance Company of New York (TICNY), Tower National Insurance Company (TNIC) and Tower Risk Management Corporation (TRM). TICNY is a property-casualty insurance company. TNIC is a property and casualty insurance company. TRM is a non-risk-bearing insurance services company that produces, through its managing general agency, business on behalf of other insurance companies. The Company's commercial lines products provide insurance coverage to businesses, such as retail and wholesale stores, grocery stores, restaurants, artisan contractors, and residential and commercial buildings, while its personal lines products focus on modestly valued homes and dwellings. Tower operates in three segments: Insurance, Reinsurance and Insurance Services. Thor Industries, Inc. (THO) produces and sells a range of recreation vehicles, and small and mid-size buses in the United States and Canada. The Company's principal recreation vehicle operating subsidiaries are Airstream, Inc. (Airstream), CrossRoads RV (CrossRoads), Dutchmen Manufacturing, Inc. (Dutchmen), Four Winds International, Inc. (Four Winds), Keystone RV Company (Keystone), Komfort Corp. (Komfort), Citair, Inc. (Citair), Thor California, Inc. (Thor California) and Damon Corporation (Damon). Its principal bus operating subsidiaries are Champion Bus, Inc. (Champion), ElDorado National California, Inc. (ElDorado California), ElDorado National Kansas, Inc. (ElDorado Kansas) and Goshen Coach, Inc. (Goshen Coach). On May 27, 2005, the Company acquired Goshen Coach Division of Veritrans Specialty Vehicles, Inc. The Company operates through three reportable segments: towable recreation vehicles, motorized recreation vehicles and buses. | Blog Home| VitalStocks Home

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Dennis Slothower, On the Money-E newsletter - Remain Cautious and Largely Neutral

Dennis Slothower, editor of the On the Money-E newsletter, provides analysis of today’s markets and economy. Read this featured expert’s commentary and find out why he recommends remaining cautious and largely neutral. Also, discover what Slothower has to say about the Nikkei 225. Market Commentary: November 20 Dennis Slothower doesn’t expect too much out of the stock market this holiday week as traders and investors take a few days off. There is often thin trading volume, though, and sometimes this translates into extra volatility. In the meantime, the market remains short term overbought and very much in need of a short-term breather. On the other hand, usually the day before and after Thanksgiving is generally supportive for stocks. By next Monday, after this holiday week, we’ll hear how well retail sales were following Thanksgiving. The day after Thanksgiving is the best day of the year for retailers and reflects how well the retailers will do for the season. It is also a good consumer spending measure and a barometer for the economy, which right now has a lot of question marks. It has been Slothower’s experience that when retail sales are robust the stock market responds favorably, but if sales come under par, the first couple of weeks of December can be rough. Retail sales are suspect right now. Carolyn Baum of Bloomberg.com explains: “For two months now, the commentary following the retail-sales report has been that apart from gasoline-station sales, which are depressed because of falling fuel prices, consumer spending is holding up well.” How can that be? Retail sales fell 0.2 percent in October after a revised 0.8 percent decline in September. Sales at gasoline stations fell 6 percent and 11.1 percent, respectively. “If consumers are using the savings from the sharp fall in gasoline prices to purchase other items, overall sales should not be declining,'' says Joe Carson, director of economic research at AllianceBernstein LP in New York. “How are you going to get any nominal GDP when retail sales are falling?” Retail sales are suspect and if they hugely disappoint in December, Slothower doubts the stock market can advance much further. Slothower hates to keep harping on housing but this is where the economy is most vulnerable, so we need to keep a close eye on this sector. On Bloomberg.com: “To expect the slump in housing to be contained, with no spillover effect into other parts of the economy, is unrealistic given its broad reach and generation of wealth over the past decade. “Since 2001 the market value of households' real-estate investments has increased $9 trillion, a leap of 70 percent,'' Joe Carson says. “The gain in market value the last five years is roughly equal to the outstanding market value of housing when the boom started a decade ago.'' “The value of the household sector's real-estate holdings equaled its stock-market and mutual-fund assets in the late 1990s, according to the Federal Reserve's Flow of Funds report. Now real estate is twice as large”. A lot of wealth is being lost right now. Morgan Stanley’s US-based chief economist Stephen Roach argues that most of damage of a housing recession to the overall economy is still before us. In the US, personal income will come down as the housing recession deepens and it will certainly affect consumer spending and employment. Roach argues that so far, only about 12% of the employment that was added in the home building sector over the past five years as the market expanded has been reduced. To quote Stephen Roach; “We have 88% more to go. When Greenspan tells you that the housing market adjustment is almost over, I think that is a widely optimistic assumption on his part and the bursting of bubble has yet to have a major impact on consumption.” Roach explains that, “The home building impact will knock 1 percentage point off US GDP. Related industries like housing, furniture and appliances, real estate brokerage and mortgage financing will knock another half percentage point off and the consumer wealth effect probably another point.” This is a 2 ½ percentage points headwind so it is anybody’s guess how this is going to pan out in the fourth quarter. While the M2 money supply has been growing the last six weeks at 7%, there is usually a lag affect by a quarter or two. So it is quite possible that the GDP could come in near zero, as economist Nouriel Roubini argues! This has Slothower cautious and focused on risk management. The odds of a recession in the United States next year are now greater than 50-50, according to a simplified version of a model developed by the Fed’s own economist, Jonathan Wright. The recession odds have been above 50% eight times in the past 45 years. Six times, a recession followed within a year. The only occasions the economy avoided a recession were in the mid-1960s and the mid-1980s, both periods when the federal government flooded the economy with fiscal stimulus, noted David Rosenberg, chief North American economist for Merrill Lynch. To the Fed’s credit they are expanding the money supply, but it is still premature to say they are flooding the economy with fiscal stimulus that would cause the GDP to grow at a healthy growth rate of 4% to 6% at the same time they are talking of raising interest rates again! Even the Fed has made it clear they expect the GDP to come in under their target growth rate of 3%. How much longer the stock market can continue to advance at this pace, while the economy is teetering and tottering on recession is very questionable and very risky. Dennis Slothower doesn’t like the fact that investors are starting to exit the Japanese Nikkei 225, which has recently made a major bearish head-and-shoulders formation. The Nikkei 225 has broken down through its weekly middle Bollinger Band line and is nearing its September lows. The emerging markets are also starting to look highly overbought here, too. Remain cautious and largely neutral. | Blog Home| VitalStocks Home

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