(CI) - CIGNA Corp - 27.8% year-over-year earnings improvement - 2007 estimates rising

CIGNA Corporation (CI), which made its debut as a Value pick on Aug 8, is still a Zacks #1 Rank stock. Furthermore, it is up 19%. CI beat analysts’ earnings expectations for 16 consecutive quarters. After posting solid third-quarter results, the company raised its full-year earnings per share guidance. Shareholder value has been enhanced through stock repurchases and dividend payments. CI’s return on equity crushes that of the industry average—21% compared to 13%. Full Analysis CIGNA Corporation, through its subsidiaries, provides healthcare and related benefits offered through the workplace. The company offers healthcare products and services, group disability, life and accident insurance, and disability and workers' compensation case management and related services. When we first featured CI as a Value pick on Aug 8, its remarkable history of exceeding analysts’ earnings expectations was noted. Moreover, consensus earnings estimates were trending higher. The company is still a Zacks #1 Rank stock with the above two statements still holding true. A return of 19% since its debut is also quite impressive. When CI beat the Street’s third-quarter earnings estimate on Nov 1, it marked the 16th straight quarter in which the company surprised to the upside. Earnings per share came in at $2.48, topping the consensus estimate of $2.15 by 15.4%. Compared to earnings of $1.94 in the prior-year period, the result represented a 27.8% year-over-year improvement. Revenues climbed 3.0% to $4.14 billion from $4.02 billion in the third quarter of 2005. Chairman and CEO H. Edward Hanway stated, “We are very pleased with our consolidated results for the quarter. Consolidated earnings exceeded our expectations, and membership grew as expected in the quarter.” In addition to posting solid third-quarter results, CI upped its full-year earnings per share guidance to between $8.85 and $9.15. Over the past 60 days, analysts have adjusted their profit forecasts by 4.8%, with the consensus estimate currently sitting at $9.15. Estimates for next year have risen 6.7% to $10.18 over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years. The industry is expected to grow at a 10% clip. During the third quarter, CI bought back approximately 8.4 million shares of its stock at a cost of $931 million. Through October, 22.6 million shares were repurchased for $2.4 billion. On Oct 25, the Board of Directors upped the company’s stock buyback program by $500 million, leaving the company with approximately $820 million of repurchase authority. The Board also declared a quarterly cash dividend of 2.5 cents per share. CI is currently trading at a valuation of 14.4x trailing 12-month earnings and at 14.0x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.8x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.3, compared to 4.8 for the market. CI’s return on equity crushes 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

Click for full article

(JWN) - Nordstrom, Inc - For the first nine months of the year, profits soared 23.5%

Nordstrom, Inc. (JWN) recently raised its full-year earnings per share outlook after reporting solid results for the third quarter. The bullish guidance caused analysts to up their profit forecasts for both this year and next. Earnings per share are expected to grow 14.6% over the next 3-5 years. This Zacks #1 Rank stock has a current dividend yield of 0.85% and a five-year average dividend yield of 1.4%. Full Analysis Nordstrom, Inc. is one of the nation’s leading fashion retailers, offering a selection of apparel, shoes, cosmetics and accessories for women, men and children at stores across the country. The company operates 99 full-line stores, 50 Nordstrom Racks, five Faconnable boutiques, one free-standing shoe store and two clearance stores. JWN also operates 35 Faconnable boutiques in Europe. On Nov 20, JWN beat the consensus earnings estimate by a penny when it reported third-quarter profits of $135.7 million, or 52 cents per share. The result represented an impressive 40.5% year-over-year improvement when compared to earnings of 37 cents in the third quarter of 2005. Total sales jumped 11.8% to $1.9 billion, compared to $1.7 billion in the same period last year. Same-store sales, or sales at stores open one year or more, rose 10.7%. For the first nine months of the year, profits soared 23.5% to $445.7 million, versus $360.9 million for the same period last year. Revenues rose 9.3% to $5.9 billion from $5.4 billion. Same-store sales experienced a 7.2% leap. JWN increased revenues for the past nine years, expanded gross margins for the past four and grew profits for three years running. On Nov 30, November same-store sales advanced 5.4%. Total sales for the four weeks ended Nov 25 gained 6.1% to $749.4 million. The company raised its full-year earnings per share guidance to between $2.46 and $2.51. Previously, JWN was calling for profits between $2.31 and $2.39 per share. The revised outlook includes an estimated six cents a share for stock option compensation. The consensus earnings estimate for this year currently sits at $2.50 and represents a four-cent jump over the past 30 days. Upward revisions were placed by 11 of the 13 covering analysts. Profit forecasts for next year have risen five cents to $2.83 over the same period of time, with 11 of the 15 covering analysts bumping their estimates. Earnings per share are expected to grow 14.6% over the next 3-5 years. During the third quarter, JWN repurchased approximately 896,000 shares of its common stock at a cost of $32.6 million. Management also enhanced shareholder value by approving a quarterly cash dividend of 10.5 cents per share on Nov 16. The company has a current dividend yield of 0.85% and a five-year average dividend yield of 1.4%. JWN’s return on equity crushes the industry average—32% 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

Click for full article

(NICE) - NICE-Systems, Ltd - Incredible 121% earnings surprise

For the December quarter, earnings estimates have increased 16% to 29 cents per share over the past 60 days. The company has exceeded estimates in nine straight quarters, and 13 out of the past 14. Year-over-year growth has been robust over that time period. It is no surprise the stock has been performing so well. Full Analysis NICE-Systems, Ltd. (NICE) provides Insight from Interactions, offering performance management and interaction analytics solutions for the enterprise and public safety and security markets. It provides solutions for the capture, storage, retrieval, and analysis of customer interactions for the enterprise sector, including contact centers, financial trading floors, and facilities organizations. The company’s primary enterprise product, NICE Perform, is an integrated suite of solutions that combines multiple data sources in an integrated architecture with a centralized data warehouse, allowing interoperability of various data sources to address a range of business issues with a high level of accuracy. NICE reported a sweet third quarter in early November. Adjusted earnings nearly doubled to $16 million, or 31 cents per share, versus $9 million, or 22 cents per share, last year. Analysts only expected 14 cents, which made it a 121% surprise. Revenue rose to $107.5 million versus $82.7 million a year ago, with adjusted sales up to $112.2 million from $82.7 million last year. The company issued a fourth-quarter earnings outlook in the range of 32 cents to 37 cents per share on revenue between $115 million and $120 million. It also lifted full-year earnings guidance to a range of $1.12 to $1.17 per share, up from $1.06 to $1.15 per share previously. Full-year sales are now seen between $413 million and $418 million, up from previous estimates of $408 million to $417 million. Commenting on the results, Haim Shani, Chief Executive Officer of NICE said, "Third quarter results reflect the successful execution of our long term plan and the continually growing demand for our Insight from Interactions solutions both in the enterprise and security sectors. They are also the clearest testament to the success of the paradigm shift we introduced to the enterprise sector with the acquisitions of IEX and Performix and implementation of our best-of-breed strategy for the contact center." For the December quarter, earnings estimates have increased 16% to 29 cents per share over the past 60 days. The company has exceeded estimates in nine straight quarters, and 13 out of the past 14. Year-over-year growth has been robust over that time period. It is no surprise the stock has been performing so well. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

(LTR) - Loews Corp - beat analysts’ earnings expectations in 11 out of the past 12 quarters by an average margin of 16.7%

Loews Corporation (LTR), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 11 out of the past 12 quarters by an average margin of 16.7%. Consensus earnings estimates have risen over the past two months. The company has a price-to-book ratio of 1.4, compared to 4.8 for the market. LTR’s return on equity tops that of the industry average—15% compared to 13%. The company is currently yielding 0.62%. Full Analysis Loews Corporation, a holding company, is one of the largest diversified financial corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (CNA), Lorillard, Inc., Boardwalk Pipeline Partners, LP (BWP), Diamond Offshore Drilling, Inc. (DO), Loews Hotel and Bulova Corporation. LTR beat analysts’ earnings expectations in 11 out of the past 12 quarters by an average margin of 16.7%. In six of the aforementioned 11 quarters, the company surprised by a double-digit percentage. Earnings per share grew 20.2% over the past five years. On Oct 31, LTR posted third-quarter profits of 87 cents per share, topping the Street’s estimate of 82 cents by 6.1%. The year-over-year improvement was exceptional—the company reported profits of 36 cents per share in the third quarter of 2005. The solid profits were fueled by impressive results at two of LTR’s subsidiaries—CNA Financial Corp. and Diamond Offshore Drilling Inc. Revenues jumped 9.8% to $4.5 billion from $4.1 billion in the prior-year period. The consensus earnings estimate for this quarter currently sits at $1.05 per share. This marks a 9.4% improvement over the past 60 days. Profit forecasts for this year climbed 3.6% to $3.76, while estimates for next year have risen 4.8% to $4.39 over the same period of time. On Nov 14, LTR declared a quarterly cash dividend of 6.25 cents per share of common stock. The company has a current dividend yield of 0.62% and a five-year average dividend yield of 1.0%. LTR is currently trading at a valuation of 12.2x trailing 12-month earnings and at 10.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.9x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.8 for the market. LTR’s return on equity tops that of the industry average—15% 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

Click for full article

(TIF) - Tiffany & Co - Exceeded earnings expectations in 6 of 8 quarters by 19.9%

Tiffany & Co. (TIF) exceeded analysts’ earnings expectations in six out of the past eight quarters by an average margin of 19.9%. In addition to posting solid third-quarter results, TIF boosted its full-year earnings per share guidance. Analysts responded by upping their profit forecasts for both this year and next. TIF has a current dividend yield of 1.0% and a five-year average dividend yield of 0.66%. Full Analysis Tiffany & Co. is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry, as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. The company operates more than 150 stores and boutiques in the United States and international markets. TIF also distributes its products through the Internet, catalog and business-to-business sales. TIF exceeded analysts’ earnings expectations in six out of the past eight quarters by an average margin of 19.9%. In four of the six quarters mentioned above, the company surprised by a double-digit percentage. Earnings per share grew 10.0% over the past five years and are expected to grow by a larger magnitude going forward—11.7% over the next 3-5 years. On Nov 29, TIF announced third-quarter profits of $29.1 million, or 21 cents per share. The result crushed the Street’s estimate and earnings in the prior-year period of 16 cents by 31.3%. Revenues rose 9.5% to $547.8 million from $500.1 million in the third quarter of 2005. Worldwide same-store sales, or sales at stores open one year or more, jumped 4%. For the first nine months of the year, profits were down slightly to $113.4 million from $114.4 million for the first nine months of 2005. However, revenues experienced a 7.8% leap to $1.66 billion from $1.54 billion. Worldwide same-store sales climbed 5%. Chairman and CEO Michael J. Kowalski stated, “We are pleased with these overall results. We are now almost one-month into the November-December holiday period and have seen net sales growth higher than we expected. It's a good start to the season, but the vast majority of holiday business is still ahead of us.” In addition to posting solid third-quarter results, TIF boosted its full-year earnings per share guidance to between $1.79 and $1.84. The company previously called for profits between $1.77 and $1.82 per share. The company’s bullish guidance prompted analysts to up their earnings estimates for this year by six cents to $1.82 over the past week. Eight of the nine covering analysts submitted upward revisions. Looking ahead to next year, the consensus estimate rose by three cents to $2.03, and reflects upward revisions by six of the 10 analysts covering the stock. TIF and Luxottica Group SpA (LUX) entered into a 10-year license agreement in which LUX will design, manufacture and distribute prescription glasses and sunglasses using the Tiffany brand name. The collections will represent Tiffany's entrance into the eyewear market, with the first collection of glasses expected to be launched in early 2008. On Nov 16, the Board of Directors declared a quarterly cash dividend of 10 cents per common share of stock. The dividend will be paid on Jan 10, 2007 to stockholders of record as of Dec 20, 2006. TIF has a current dividend yield of 1.0% and a five-year average dividend yield of 0.66%. TIF 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

Click for full article

(CEPH) - Cephalon, Inc - Blew out earnings expectations in the past two quarters by 60%

Earnings estimates have been on the rise, especially over the past two months. Over that time period, this year's estimates have jumped 24.3% to $4.29 per share. CEPH has blown out expectations that past two quarters by an average of 60%. It is no surprise the stock is a Zacks #1 with fundamentals like this. Full Analysis Cephalon, Inc. (CEPH) has global operations that extend to France, Germany, Switzerland and the United Kingdom. The company currently markets four core products: Provigil (for psychological disorders), Gabitril (also for psychological disorders), Fentora (cancer pain management), and Actiq (cancer pain management) in the U.S., and more than 20 products internationally. A new Cephalon has emerged over the past several months. The company has successfully settled with all four generic manufacturers seeking to launch a generic Provigil in 2006. Now, Provigil will be patent protected until October 2011. This risk caused management to slow R&D spending last year and significantly ease up on Provigil based M&A. Provigil, the company's sleep disorder product, is currently used for the treatment of narcolepsy (excessive daytime sleepiness) and obstructive sleep apnea (cessation of breathing during sleep causing sleep break-up). Nearly 100 million Americans suffer from some kind of sleep disorder, and only 5% of those affected seek treatment. The sleep disorder market is perhaps one of the industry's largest and most under-penetrated opportunities. Cephalon has been incredibly active in the past several months acquiring products, forming alliances, and acquiring smaller companies. Earlier in 2005, the company formed a joint-marketing alliance with Alkermes, Inc. for alcohol dependency drug Vivitrol. The FDA granted Vivitrol an approvable letter in late December 2005. In February 2006, Alkermes submitted data in response to the approvable letter. The company reported adjusted sales of $469.1 million during the third quarter of 2006, a 52% increase over the corresponding period in 2005. For the third quarter of 2006, the company reported diluted earnings of $1.61 per share. Results in the third quarter of 2006 were driven by gross sales of Provigil and Actiq. Earnings estimates have been on the rise, especially over the past two months. Over that time period, this year's estimates have jumped 24.3% to $4.29 per share. CEPH has blown out expectations that past two quarters by an average of 60%. It is no surprise the stock is a Zacks #1 with fundamentals like this. 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

Click for full article

(ACGL) - Arch Capital Group - Crushed third-quarter earnings estimate by 44.8%

Zacks #1 Rank Arch Capital Group, Ltd. (ACGL) is up 10% since it was first highlighted as a Value pick on Sep 7. The company exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 12% clip. The company has a price-to-book ratio of 1.5, compared to 4.8 for the market. Its PEG ratio currently sits at 0.47. Full Analysis Arch Capital Group, Ltd. writes insurance and reinsurance on a worldwide basis through its operations in Bermuda, the United States, Europe and Canada. ACGL, which was first highlighted as a Value stock on Sep 7, has held on to its Zacks #1 Rank status. Earnings revisions continue to trend higher for the company, while its remarkable history of exceeding analysts’ earnings expectations has remained intact. Moreover, the stock is up 10% since its debut. ACGL beat the Street’s earnings estimate in 15 out of the past 16 quarters. In 12 out of those 15 quarters, the company surprised by at least a double-digit percentage. On Oct 26, ACGL reported third-quarter earnings per share of $2.62, crushing the Street’s estimate of $1.81 by 44.8%. The company lost $2.36 per share in the prior-year period due primarily to large hurricane-related charges. Revenues climbed 6.4% to $850.3 million from $799 million last year. The company’s combined ratio, a measure of profitability for insurance companies, for the third quarter improved to 84.3% from 117.7%. 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, revenues experienced an 8.7% leap to $2.5 billion from $2.3 billion for the first nine months of 2005. Gross premiums written jumped 13.3% to $3.4 billion compared to $3.0 billion for the prior-year period. Net premiums written rose 4.4% to $2.4 billion from $2.3 billion. The combined ratio improved to 86.3% from 98.9%. Consensus estimates for this quarter and next quarter have risen 12.3% and 13.2%, respectively, over the past 60 days. Profit forecasts for this year and next increased 14.5% and 6.5%, respectively, over the same period of time. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 12% clip. ACGL is currently trading at a valuation of 7.8x trailing 12-month earnings and at 7.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.8x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.5, compared to 4.8 for the market. Its PEG ratio currently sits at 0.47. ACGL’s return on equity of 23% easily surpasses the industry average of 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

Click for full article

(ALB) - Albemarle Corp - Consensus estimates have been on the rise - beat earnings in 9 of 10 quarters by an average of 20.2%

Albemarle Corporation (ALB), which was first presented as a Growth and Income pick on Jul 28, is up 44%. The company exceeded analysts’ earnings expectations in nine out of the past 10 quarters by an average margin of 20.2%. Consensus estimates have been on the rise for this Zacks #1 Rank stock. The Board of Directors raised its quarterly cash dividend to 18 cents from 16.5 cents in mid August. ALB is currently yielding 1.0%. Full Analysis Albemarle Corporation develops, manufactures and markets specialty chemicals worldwide. The company operates in three segments: polymer additives, catalysts and fine chemicals. ALB sells its products to a range of customers, including manufacturers of electronics, building and construction materials, automotive parts, packaging, pharmachemicals and agrichemicals and petroleum refiners. ALB, which was first presented as a Growth and Income pick on Jul 28, is up 44%. The company continues to exceed analysts’ earnings expectations, having done so in nine out of the past 10 quarters by an average margin of 20.2%. Also, earnings revisions are still trending higher, enabling the company to maintain its Zacks #1 Rank status. Third-quarter profits came in at $60.7 million, or $1.25 per share. The result compares quite favorably to profits of $26.3 million, or 55 cents per share, in the prior-year period. ALB crushed the consensus estimate of 87 cents by a hefty 43.7%. Net sales rose 20.0% to a record $607.8 million from $506.6 million in the third quarter of 2005. For the first nine months of the year, profits soared to $138.4 million from $80.5 million for the first nine months of 2005. Net sales increased 20.0% to $1.8 billion compared to $1.5 billion in the prior-year period. The quarterly and year-to-date profit numbers exclude a charge related to the divestiture of the company's facility in Thann, France. President and CEO Mark C. Rohr stated, “Our team executed flawlessly this quarter. All three of our segments saw continued revenue growth and improved profitability. Overall, demand and pricing for our products remains strong. Our fourth quarter has begun on a strong note and we look forward to another successful year in 2007.” Consensus estimates for this quarter and next quarter have risen 22.2% and 27.3%, respectively, over the past 60 days. Profit forecasts for this year and next increased 14.7% and 17.9%, respectively, over the same period of time. Earnings per share are projected to grow 16% over the next 3-5 years—double that of the industry’s expected growth rate. On Oct 31, the Board of Directors declared a quarterly cash dividend of 18 cent per share. The dividend is payable on Jan 1 to shareholders of record as of Dec 15. ALB has a current dividend yield of 1.0% and a five-year average dividend yield of 1.8%. The company raised its quarterly dividend in mid August to 18 cents from 16.5 cents. ALB’s return on equity of 17% 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

Click for full article

(JCP) - J.C. Penney Co - exceeded earnings estimates in nine consecutive quarters

The stock has done very well since it was first profiled in May 2006. JCP is up over 23% since then due to strong sales and earnings trends. A good case in point is the fact that the company has exceeded earnings estimates in nine consecutive quarters. Eight analysts have raised their earnings estimates for this year. Full Analysis J.C. Penney Company (JCP), through its wholly-owned subsidiary J.C. Penney Corporation, sells family apparel, jewelry, shoes, accessories, household goods, and home furnishings through its stores, catalogs and website. The company operates 1,019 department stores in the United States. J.C. Penney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise, and JCPenney.com is one of the largest apparel and home furnishings sites on the Internet. J.C. Penney’s fiscal year ends in January. The stock has done very well since it was first profiled in May 2006. JCP is up over 23% since then due to strong sales and earnings trends. A good case in point is the fact that the company has exceeded earnings estimates in nine consecutive quarters. Eight analysts have raised their earnings estimates for this year. The investment case for J.C. Penney is still the company’s business momentum, improving profit margins, and effective use of cash. The company’s business momentum is being driven by smart merchandising efforts and strong traffic trends. J.C. Penney is improving the quality and fashion consciousness of its private-label merchandise, avoiding apparel price deflation, and further differentiating its merchandise. The company continues to enjoy strength across all merchandise categories including Internet sales and in its new off-mall concept. The increased fashion appeal of the private brands women’s apparel and accessories has boosted sales. Meanwhile, JCP’s gross margin in fiscal year 2005 improved 74 basis points to 39.26% thanks to a reduced number of markdowns, better merchandise transition, and a higher mix of private-label merchandise. During the fiscal year 2005, the company repurchased 44 million shares for $2.2 billion. In fiscal year 2004, the company has repurchased approximately 94 million shares for about $4.1 billion. For fiscal 2006, the company authorized a new $750 million common stock repurchase program, which is expected to be completed by the end of fiscal 2006. J.C. Penney’s declining share count is helping accelerate its earnings per share growth rate. Over the past month, this year's estimates have increased 12 cents to $4.84 per share, while next year's numbers have jumped 11 cents to $5.42 per share. The stock is trading at 14.4x next year's estimates, below the company's long-term growth rate of 16.4%. 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

Click for full article

(AEG) - AEGON N.V. - Profit forecasts for next year have risen by 14.1%

Profit forecasts for AEGON N.V. (AEG), a Zacks #1 Rank stock, have been on the rise. Shareholder value has been enhanced through dividend payments and share buybacks. The company has a price-to-book ratio of 1.3, compared to 4.8 for the market. AEG’s return on equity of 15% tops the industry average of 13%. Full Analysis AEGON N.V., headquartered in The Hague, Netherlands, is one of the world’s largest life insurance and pension companies, in addition to being a strong provider of investment products. The company’s three major markets are the United States, the Netherlands and the United Kingdom. AEG offers its products through independent agents, registered representatives, financial advisors and specialized marketing organizations On Nov 9, AEG reported third-quarter profits of 679 million euros ($867.4 million), or 0.40 euros per share ($0.51/ADS), compared with 617 million euros, or 0.38 euros per share ($0.46/ADS), in the prior-year period. The solid results were fueled by higher gains from the company's investments, which rose 73% to 348 million euros. Chairman of the Executive Board Donald J. Shepard stated, “Overall, we continued our strategy of enhancing profitability, expanding AEGON's reach and strengthening our broad, multi-channel distribution network.” Analysts have been upping their earnings estimates for both this year and next. The consensus estimate for this year currently sits at $1.78 and represents an 8.5% jump over the past 30 days. Two of the three covering analysts upped their estimates. Profit forecasts for next year have risen by a larger magnitude—14.1% to $1.86 over the same period of time. An upward revision was submitted by one of the two covering analysts. On Nov 29, AEG announced its intention to double new business to 1.1 billion euros by 2010. This equates to an average annual increase of approximately 15%. The company stated that it plans to focus on growing its international pension operations and leveraging its position in the life insurance and pensions business to achieve growth. Shareholder value has been enhanced through dividend payments and share buybacks. When the company announced an interim dividend for 2006 on Sep 15, it gave stockholders the choice of receiving it either in cash or in stock. Those that elected to receive the cash dividend were paid 0.24 euros per common share, while the stock dividend translated into one new AEGON common share for every 62 common shares. AEG also authorized the repurchase of 11.6 million common shares, which will be completed before year-end 2006. AEG is currently trading at a valuation of 9.5x trailing 12-month earnings and at 10.2x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.6x trailing 12-month earnings and at 16.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.3, compared to 4.8 for the market. AEG’s return on equity of 15% tops the industry average of 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

Click for full article

(WW) - Watson Wyatt Worldwide, Inc - Over the past 13 quarters, the company produced 12 positive earnings surprises

Watson Wyatt Worldwide, Inc. (WW), which was first presented as a Growth & Income pick on Aug 15, is up over 22%. The company exceeded analysts’ earnings expectations in 12 out of the past 13 quarters. After reporting strong first-quarter fiscal 2007 results, WW raised its revenue and profit guidance for the full year. Analysts responded by upping their earnings estimates for both fiscal 2007 and fiscal 2008. This Zacks #1 Rank stock has a current dividend yield of 0.66% and a five-year average dividend yield of 0.49%. Full Analysis Watson Wyatt Worldwide, Inc. designs, develops and implements human resource strategies and programs in five principal practice areas, which include benefits; technology and administration solutions; human capital consulting; insurance and financial services; and investment consulting. The company has 6,000 associates in 30 countries. When WW was first highlighted as a Growth & Income pick on Aug 15, the stock closed at $37.96. When the market ceased trading on Dec 4, the stock closed at $46.46, equating to a 22.4% return since its debut. Throw in a decent income return via dividend payments, and this Zacks #1 Rank stock has performed quite well. WW’s history of exceeding analysts’ earnings expectations is truly impressive. Over the past 13 quarters, the company produced 12 positive earnings surprises while matching the Street’s estimate in the remaining quarter. WW’s average margin of surprise during this period of time was 18.5%. In nine out of the 12 quarters in which the company surprised to the upside, it did so by a double-digit percentage. On Nov 8, WW reported first-quarter fiscal 2007 profits of $24.8 million, or 56 cents per share. The company posted profits of $13.9 million, or 36 cents per share, in the prior-year period. In addition to producing a 55.6% year-over-year improvement, WW beat the consensus earnings estimate of 47 cents by 19.2%. Revenues increased 26.4% to $336.0 million from $265.9 million for the first quarter of fiscal 2006. President and Chief Executive Officer John Haley stated, “These results highlight our growing strength in the marketplace. After an impressive fiscal 2006, we continue to build momentum. Our results and our brand have never been stronger.” Based on its strong first quarter, WW raised its revenue and profit guidance for fiscal 2007. The company now projects revenues between $1.40 billion and $1.43 billion, versus its previous outlook of $1.38 billion to $1.40 billion. Earnings per share are expected to be between $2.26 and $2.29, compared to its prior guidance of $2.15 to $2.20. Analysts responded by upping their estimates for both fiscal 2007 and fiscal 2008. The consensus estimate for this year experienced a nine-cent jump to $2.30 over the past 30 days. Five of the six covering analysts submitted upward revisions. Profit forecasts for next year increased by eight cents to $2.52 over the same period of time. Four analysts boosted their estimates. On Sep 19, the Board of Directors declared a quarterly cash dividend of 7.5 cents per share of common stock. WW has a current dividend yield of 0.66% and a five-year average dividend yield of 0.49%. 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

Click for full article

(TMO) - Thermo Fisher Scientific, Inc - Over the past month, next year's estimates have jumped 13.2%

Earnings estimates have increased, especially for 2007. Over the past month, next year's estimates have jumped 13.2% to $2.31 per share. The stock is trading 19.1x those estimates, slightly above the long-term growth rate of 15.2%. Eight analysts have raised their numbers for this year, while five have done so for next year. The company has exceeded earnings estimates in six straight quarters. Full Analysis Thermo Fisher Scientific, Inc. (TMO) provides analytical instruments in the United States and internationally. It operates in two segments, Life and Laboratory Sciences, and Measurement and Control. It was formerly known as Thermo Electron Corporation and changed its name to Thermo Fisher Scientific, Inc. in November 2006. It serves various industries, including oil and gas, petrochemical, pharmaceutical, food and beverage, consumer products, power-generation, metal, cement, minerals and mining, semiconductor, polymer, coatings and adhesives manufacturers, water and wastewater treatment facilities, and pulp and paper manufacturers. The company sells its products through direct sales force, distributors, independent sales representatives, independent agents, and catalogs to end-users and original equipment manufacturers. TMO reported a strong third quarter. Adjusted earnings per share grew 16% to 44 cents per share, including stock option costs. Revenue gained 7% to $725 million from $679.4 million last year. Analysts had expected 43 cents per share. Looking ahead, Thermo Electron raised fiscal 2006 adjusted earnings guidance to a range of $1.74 to $1.77 per share, from previous estimates of $1.68 to $1.73, including 10 cents per share of stock option expense. The company also now forecasts increased revenue of $2.88 to $2.90 billion in 2006, versus the $2.81 to $2.86 billion originally estimated. "New products sparked growth across our business segments," said Marijn E. Dekkers, president and chief executive officer. "In Life and Laboratory Sciences, demand for our leading mass spectrometry technologies for proteomics and small molecule research remained very strong and we also saw increased sales of our iCAP elemental analysis systems used in both research and industrial applications, as well as our reagents and automation systems for clinical laboratories." Earnings estimates have increased, especially for 2007. Over the past month, next year's estimates have jumped 13.2% to $2.31 per share. The stock is trading 19.1x those estimates, slightly above the long-term growth rate of 15.2%. Eight analysts have raised their numbers for this year, while five have done so for next year. The company has exceeded earnings estimates in six straight quarters. 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

Click for full article