(PROS) - ProCentury Corp - PEG ratio currently sits at 0.79

ProCentury Corporation (PROS) beat analysts’ earnings expectations for the past four quarters by an average margin of 14.0%, helping this insurance holding company retain its Zacks #1 Rank status. On Nov 15, the company’s Board of Directors declared a quarterly cash dividend of four cents per share. ProCentury has a price-to-book ratio of 1.8 and its PEG ratio currently sits at 0.79. Its return on equity of 16% tops the industry average of 13%. Full Analysis ProCentury Corporation is a specialty property and casualty insurance holding company. It markets and underwrites general liability, commercial property and multi-peril insurance for small and mid-sized businesses, such as habitational risks, hospitality businesses, artisan contractors, daycare facilities, retail and wholesale stores, fitness centers and special event providers. PROS is the parent company of Century Surety Company. PROS beat analysts’ earnings expectations for the past four quarters by an average margin of 14.0%. Two of those four quarters surprised by a double-digit percentage. Earnings per share are projected to grow 14% over the next 3-5 years, while the industry is expected to grow at an 11% clip. On Nov 1, PROS posted third-quarter profits of $5.1 million, or 39 cents per share, compared to a net loss of $1.8 million, or 14 cents per share, for the prior-year period. The result topped the consensus earnings estimate of 35 cents by 11.4%. Gross premiums written soared 29.5% to $69.3 million, compared to $53.5 million for the third quarter of 2005. For the first nine months of the year, profits came in at $14.8 million, versus $5.3 million for the first nine months of last year. Gross premiums written were $193.0 million, a jump of 23.4% from $156.4 million for the same period in 2005. The combined ratio, a measure of profitability for insurance companies, was 94.7% for the third quarter of 2006 compared to 113.9% for the third quarter of 2005. It was 94.5% for the first nine months of 2006 compared to 101.4% for the same period in 2005. (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.) On Nov 15, the Board of Directors declared a quarterly cash dividend of four cents per share. The company has a current dividend yield of 0.85%. PROS is currently trading at a valuation of 12.5x trailing 12-month earnings and at 11.3x 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 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at 0.79. The company’s return on equity of 16% 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

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(TSS) - Total System Services, Inc - obliterated the Street’s fourth-quarter earnings estimate of 24 cents by 83.3%

Total System Services, Inc. (TSS) is a Zacks #1 Rank stock that has either matched or beat the consensus earnings estimate for the past 16 quarters. The company recently reported impressive results for both the fourth quarter and the full year. TSS has a current dividend yield of 0.94% and a five-year average dividend yield of 0.68%. The company’s return on equity nearly doubles that of the industry average—20% compared to 11%. Full Analysis Total System Services, Inc. provides electronic payment processing and related services to financial and non-financial institutions throughout the United States, Canada, Mexico, Honduras, Puerto Rico and Europe. TSS topped analysts’ earnings expectations over the past three quarters by an average margin of 31.5%. The company has succeeded in either meeting or beating the consensus earnings estimate for the past 16 quarters. Earnings per share grew 16.0% over the past five years. On Jan 16, TSS obliterated the Street’s fourth-quarter earnings estimate of 24 cents by 83.3% when it reported profits of 44 cents per share. Compared to earnings of 25 cents in the fourth quarter of last year, the result ballooned 76.0%. Revenues increased nearly 19.8% to $503.9 million from $420.7 million in the prior-year period. For the entire year, profits came in at $249.2 million, versus $194.5 million last year. Revenues jumped 11.9% to $1.79 billion from $1.60 billion in 2005. The company increased revenues and grew profits for the past 10 years. Chairman and CEO Philip W. Tomlinson stated, “We exceeded our goals for 2006 with another record year and we are pleased to announce an improvement in our guidance for 2007, which is a direct result of the TSYS team approach of focusing on our growth strategy while streamlining costs.” TSS now expects fiscal 2007 profits to decline only 3% to 5% year-over-year. Previously, the company anticipated a sharper drop of between 7% and 9%. The guidance includes a one-time contract-termination fee of about $68.9 million and the acceleration of amortization of contract acquisition costs of around $6 million. Taking these items out of the equation, profits should grow between 14% and 17%, versus the company’s previous forecast for 8% to 10% growth. Analysts responded to the company’s bullish guidance by raising their earnings estimates. The consensus estimate for this year jumped two cents to $1.18 over the past week. Profit forecasts for next year rose three cents to $1.32 over the same period of time. Earnings per share are projected to grow 13.0% over the next 3-5 years. On Nov 21, the Board of Directors declared a quarterly cash dividend of seven cents per share. The company has a current dividend yield of 0.94% and a five-year average dividend yield of 0.68%. TSS’s return on equity nearly doubles that of the industry average—20% 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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(ADSK) - Autodesk, Inc - emerging economies contributed robust growth in revenues

Autodesk has beaten earnings expectations in each of the last 14 quarters. Nine of the surprises have been over 10%. Year-over-year growth has been explosive over this time period. Three analysts have raised their estimates for both this year and next. 2007 estimates have increased eight cents to $1.29 per share over the past 90 days. Similarly, next year's estimates have risen 11 cents to $1.60 over that time period. Full Analysis Autodesk, Inc. (ADSK) operates as a design software and services company worldwide. Its solutions enable its customers to create, manage, and share their data and designs digitally. The company operates in two segments, Design Solutions and Media and Entertainment. The company reported third-quarter revenues of $457 million, an increase of 21% over the same period last year. Autodesk has delayed reporting earnings due to the options accounting issue that has affected many technology companies. However, the fundamentals of the company are quite strong. "Autodesk had a very solid quarter," said Carl Bass, Autodesk president and CEO. "Customers around the world increasingly recognize the innovation and productivity that Autodesk products provide. Customer adoption of Autodesk's industry-leading 3D products is increasing and customer demand for our 2D solutions remains very strong. Revenues from emerging economies increased to 15 percent of total revenue. Long term market trends favor Autodesk and we continue to gain share as we execute our key strategies." ADSK's performance was driven by strong increases in revenues from 3D products, products for the media and entertainment market and strong increases in revenue from AutoCAD new seats and subscriptions. In addition, total revenues from new seats, subscriptions and emerging economies showed strong growth. Once again, emerging economies contributed robust growth in revenues. Revenues from the emerging economies in Asia Pacific, Eastern Europe, Latin America and the Middle East increased 38% over the third quarter of fiscal 2006 and represented 15% of total revenues in the third quarter. Autodesk has beaten earnings expectations in each of the last 14 quarters. Nine of the surprises have been over 10%. Year-over-year growth has been explosive over this time period. Three analysts have raised their estimates for both this year and next. 2007 estimates have increased eight cents to $1.29 per share over the past 90 days. Similarly, next year's estimates have risen 11 cents to $1.60 over that time period. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(WLSC) - Williams Scotsman International, Inc - return on equity of 14% betters the industry average of 10%

Williams Scotsman International, Inc. (WLSC), a Zacks #1 Rank stock, topped analysts’ earnings expectations for the past four quarters by an average margin of 32.6%. In early November, the company reported solid results for the third quarter and first nine months of the year. Earnings per share are projected to grow 16% over the next 3-5 years. The company has a price-to-book ratio of 2.3 and a PEG ratio of 1.02. Full Analysis Williams Scotsman International, Inc., through its subsidiary, Williams Scotsman, Inc., offers mobile and modular space solutions for the construction, education, healthcare, utilities, commercial and industrial, chemical and pharmaceutical, and government markets principally in North America. The company’s products include mobile offices, single-wide modular space units, section modulars, classrooms, sales offices, storage products and multiunit modular structures. WLSC topped analysts’ earnings expectations for the past four quarters by an average margin of 32.6%. In each of the four quarters the company managed to surprise by a double-digit percentage. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 15% clip. On Nov 1, the company reported third-quarter earnings per share of 30 cents, which beat the consensus estimate of 24 cents by an impressive 25.0%. WLSC lost 59 cents per share in the prior-year period. Revenues came in at $187.6 million, a 14.7% jump from $163.5 million in the third quarter of 2005. For the first nine months of the year, profits were $38.2 million, compared to a loss of $18.2 million for the first nine months of 2005. Revenues rose 20.5% to $511.7 million from $424.6 million in the same period last year. Chairman, President and CEO Gerry Holthaus stated, “We produced another outstanding quarter of financial results. We are making excellent progress in achieving our goals for 2006 and look forward to continued growth for Williams Scotsman.” On Nov 30, Moody's Investors Service stated that it is placing WLSC’s ratings under review for a potential upgrade. The company’s recent strong financial performance was cited as fueling such a statement. Moody’s also pointed to the company’s substantial increases in leasing rates, leading to strong cash flow generation. Furthermore, WLSC has demonstrated “a disciplined approach” toward the use of debt. WLSC is currently trading at a valuation of 16.0x current fiscal-year estimated earnings and at 13.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.8x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.3, compared to 4.9 for the market. Its PEG ratio currently sits at 1.02. WLSC’s return on equity of 14% betters the industry average of 10%. 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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(EL) - The Estee Lauder Companies, Inc - company crushed the consensus estimate by 42.1%

The Estee Lauder Companies, Inc. (EL), a Zacks #1 Rank stock, topped the Street’s earnings estimate over the past four quarters by an average margin of 21.1%. EL has increased revenues for eight years running. The Board of Directors recently authorized an increase in the company’s dividend to 50 cents per share. EL is currently yielding 1.2% and has a five-year average dividend yield of 0.81%. Full Analysis The Estee Lauder Companies, Inc. engages in the manufacture, marketing and sale of skin care, makeup, fragrance and hair care products. The company's products are sold in over 130 countries and territories. EL distributes its products through department stores, specialty retailers, perfumeries, pharmacies, and prestige salons and spas, as well as freestanding company-owned stores and spas, its own and authorized retailer Web sites, stores on cruise ships and duty-free shops. EL exceeded analysts’ earnings expectations over the past four quarters by an average margin of 21.1%. In three out of the four quarters the company was able to surprise by a double-digit percentage. On Oct 25, EL posted first-quarter fiscal 2007 profits of 27 cents per share. With analysts calling for 19 cents, the company crushed the consensus estimate by 42.1%. Compared to the prior-year period, earnings were down a penny. Net sales climbed 6.0% to $1.59 billion from $1.50 billion in the first quarter of fiscal 2006. The company is scheduled to report its second-quarter financial results on Jan 31. President and CEO William P. Lauder stated, “This quarter we invested in our fast-moving businesses to accelerate momentum, while prudently controlling costs in other areas. The result was top line growth above the industry average and a better than expected bottom line performance.” EL increased revenues for the past eight years, while expanding gross margins for the past four. Earnings per share grew 14% over the past five years. Going forward, earnings per share are projected to grow 13%, with the industry expected to grow by 12%. EL forecasts second-quarter net sales growth between 6% and 8% in constant currency. For the full fiscal year, the company’s net sales growth is anticipated to be between 5% and 7% in constant currency. The Board of Directors recently authorized an increase the company’s dividend to 50 cents per share. The move represented a 25% boost over the previous annual rate of 40 cents per share that was paid in December 2005. EL is currently yielding 1.2% and has a five-year average dividend yield of 0.81%. The company’s return on equity nearly triples that of the industry average—-26% compared to 10%. 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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(DENN) - Denny’s Corp - educed its outstanding debt in 2006 by $100 million, or 18%

The stock has been performing very well on hopes that the company's turnaround will gain steam. DENN is barely off of its 52-week high of $5.50. Over the past month, 2007 earnings estimates have increased over 6% to 17 cents per share. The company's average broker recommendation has improved to 1.75 from 2.33 over the past month as well. Full Analysis Denny’s Corporation (DENN), through its subsidiaries, engages in the ownership and operation of restaurants primarily in the United States. Its restaurants offer traditional American-style food, such as breakfast items, appetizers, sandwiches, dinner entrees, and desserts. As of December 28, 2005, Denny’s Corporation operated 1,578 restaurants under the brand name Denny's. For all of last year, the company's same-store sales increased by 2.5%, thanks to a 4.4% increase in customer checks, which was partially offset by a 1.8% drop in customer traffic, the company said. Denny's also reduced its outstanding debt in 2006 by $100 million, or 18%, the company said, thanks to the proceeds from asset sales and operating cash flow. The company said it swung to a profit in the third-quarter, helped by better-than-expected revenue, real estate sales and income tax gains. Quarterly income totaled $25.5 million, or 26 cents per share, versus a loss of $3.4 million, or 4 cents per share during the year-ago period. Results include gains from asset sales and income taxes. Excluding these benefits, net income was $100,000. Revenue climbed 4% to $258.2 million, up 3.8% from $248.7 million last year. "During the third quarter, we made significant progress towards our goal of reducing long-term debt. Through the sale of non-core real estate we reduced our debt by $80 million. Denny's is stronger financially than at any time in the past 15 years, carrying less debt and lower interest costs. As a result, Denny's is better positioned to reinvest in this great brand and to focus its efforts on new unit development in the coming years," Marchioli concluded. The stock has been performing very well on hopes that the company's turnaround will gain steam. DENN is barely off of its 52-week high of $5.50. Over the past month, 2007 earnings estimates have increased over 6% to 17 cents per share. The company's average broker recommendation has improved to 1.75 from 2.33 over the past month as well. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(WRNC) - Warnaco Group, Inc - PEG ratio currently sits at 0.95

The Warnaco Group, Inc. (WRNC) topped analysts’ earnings expectations over the past two quarters by an average margin of 40.3%. This Zacks #1 Rank stock surprised to the upside by 64.0% in the third quarter. Management has returned value to shareholders in the form of stock buybacks. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at 0.95. Full Analysis The Warnaco Group, Inc. engages in the design, manufacture, marketing and sale of intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories worldwide. The company’s products are distributed domestically and internationally, primarily to wholesale customers through multiple distribution channels, including major department stores, independent retailers, chain stores, membership clubs, specialty and other stores and mass merchandisers and the Internet. Over the past two quarters, WRNC produced some impressive earnings surprises. Second-quarter earnings per share came in at 70 cents, topping the consensus estimate by 16.7%. Profits of 41 cents per share in the third quarter crushed the Street’s estimate of 25 cents by 64.0%. Compared to the prior-year period, earnings ballooned 215.4%. Net revenues increased 38.5% to $452.0 million, compared to $326.3 million in the third quarter of 2005. Commenting on the company’s third-quarter results, President and CEO Joe Gromek stated, “The implementation of our key strategies for our continuing operations, including geographic diversification and direct to consumer expansion, drove solid gains in our top line and bottom line performance.” Consensus estimates for this year experienced a 15.8% jump to $1.32 over the past 90 days. Profit forecasts for next year have risen 12.2% to $1.65 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 14%. During the third quarter, WRNC bought back 525,000 shares of common stock at a cost of approximately $11.0 million. The company is still authorized to repurchase 1.8 million shares. WRNC is currently trading at a valuation of 15.5x current fiscal-year estimated earnings and at 14.3x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.8x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.9 for the market. Its PEG ratio currently sits at 0.95. 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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(MON) - Monsanto - earnings expectations in six out of the past seven quarters by an average margin of 14.3%

Monsanto Company (MON) topped analysts’ earnings expectations in six out of the past seven quarters by an average margin of 14.3%. Earnings per share for this Zacks #1 Rank company is expected to grow 17.3% over the next 3-5 years. On Dec 12, the Board of Directors announced a 25% increase in the company’s quarterly dividend to 12.5 cents per share. MON is currently yielding 0.98%. Full Analysis Monsanto Company, together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. The company operates in two business segments: Seeds & Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the company's global seeds and traits business, and genetic technology platforms, including biotechnology, breeding and genomics. The Agricultural Productivity segment consists primarily of crop protection products, residential lawn-and-garden herbicide products and the company's animal agricultural businesses. MON exceeded analysts’ earnings expectations in six out of the past seven quarters by an average margin of 14.3%. Earnings per share grew 13.9% over the past five years and are expected to grow by a larger magnitude going forward—17.3% over the next 3-5 years. On Jan 4, MON posted first-quarter fiscal 2007 profits of $90 million, or 16 cents per share. With the Street expecting 10 cents, the company surprised by an impressive 60.0%. Compared to profits of $59 million, or 11 cents per share in the prior-year period, the result represented a 45.5% year-over-year improvement. Revenues climbed 9.2% to $1.54 billion from $1.41 billion a year ago. Chairman, President and CEO Hugh Grant stated, “We remain focused on delivering the next generation of innovation to the farm by offering our farmer customers meaningful seed and trait technologies. Our results in the first quarter are testament to this commitment and the value our products are providing farmers.” The company now believes full-year earnings per share could be toward the upper end of its previously announced range between $1.50 and $1.57. The consensus estimate for this year currently resides at $1.59, up two cents over the past 60 days. Profit forecasts for next fiscal year have risen four cents to $1.88 over the same period of time. On Dec 12, the Board of Directors announced a 25% increase in the company’s quarterly dividend to 12.5 cents per share from 10 cents. Since MON was spun off as an independent company in August 2002, the Board has boosted the dividend on five occasions by a cumulative total of more than 100%. The company has a current dividend yield of 0.98%. MON’s return on equity of 11%, a common measure of profitability, is in line with 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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(VCLK) - ValueClick - reaches an estimated 70% of U.S. online consumers

Valueclick is benefiting from the trend of increased online advertising. VCLK has met or exceeded earnings estimates in 10 out of the past 11 quarters. Nine of the surprises have been over 20%. Six analysts have raised their full-year forecasts for 2006. Over the past 90 days, 2007 estimates have risen four cents to 75 cents per share. Full Analysis ValueClick (VCLK) is an online marketing services company. The company sells targeted and measurable online advertising campaigns and programs for approximately 6,000 advertisers and advertising agency clients, generating qualified customer leads, online sales and increased brand recognition on their behalf. VCLK provides targeted advertising campaigns to reach online consumers its customers are most interested in and performance-based campaigns where marketers only pay for advertising when it generates a lead or sale. The company's customer base consists of direct marketers, brand advertisers, and the advertising agencies that serve these two groups. The company is well positioned with its display advertisement network, which reaches an estimated 70% of U.S. online consumers. According to market research firm comScore, as of July 2006, VCLK's network reaches 127.7 million unique users per month, second only to Yahoo!, which reaches 129.4 million users per month. This makes VCLK's proposition attractive to advertisers as they are able to reach a large audience with one relationship. According to Zacks Equity Research Analyst Steve Biggs, CFA, industry analysts expect 25% growth in online advertising growth in 2006, and a doubling of the market from 2005 to 2009. This bodes well for ValueClick as it benefits from increased online spending, and does not have to worry about attracting traffic to a specific website. VCLK has met or exceeded earnings estimates in 10 out of the past 11 quarters. Nine of the surprises have been over 20%. Six analysts have raised their full-year forecasts for 2006. Over the past 90 days, 2007 estimates have risen four cents to 75 cents per share. 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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(GDI) - Gardner Denver, Inc - beat earnings estimates for the past 12 quarters by an average of 23.9%

Gardner Denver, Inc. (GDI) topped analysts’ earnings expectations for the past 12 quarters by an average margin of 23.9%. In addition to posting solid results for the third quarter and first nine months of the year, GDI upped its 2006 earnings per share guidance. Analysts responded by revising their profit forecasts upward. This Zacks #1 Rank stock has a price-to-book ratio of 2.4, compared to 4.9 for the market. Full Analysis Gardner Denver, Inc. is a leading worldwide manufacturer of reciprocating, rotary and vane compressors, liquid ring pumps and blowers for various industrial and transportation applications, pumps used in the petroleum and industrial markets, and other fluid transfer equipment serving chemical, petroleum, and food industries. GDI has a very strong history of beating analysts’ earnings expectations, having done so for the past 12 quarters by an average margin of 23.9%. Over the past 15 quarters, the company surprised on 14 occasions while meeting once, including double-digit surprises in nine quarters. On Oct 25, GDI posted third-quarter profits of 60 cents per share, topping the Street’s estimate of 55 cents by 9.1%. Compared to earnings of 31.5 cents in the prior-year period, the result marked an impressive 90.5% year-over-year improvement. Revenues came in at $414.0 million, compared to $356.1 million in the third quarter of 2005. Chairman, President and CEO Ross J. Centanni stated, “I am proud of the overall efforts of our employees in achieving another successful quarter. Our results reflect continued strength in our end market segments and my outlook remains positive.” For the first nine months of the year, profits more than doubled to $95.6 million, versus $41.6 million for the same period last year. Revenues soared 42.0% to $1.2 billon from $845.3 million for the first nine months of 2005. GDI upped its 2006 earnings per share guidance to between $2.35 and $2.45. The company’s previous outlook called for profits between $2.20 and $2.40 per share. The company made the revision based on its current economic outlook, existing backlog and expected operational improvements as integration projects are completed. Analysts responded to the company’s bullish guidance by upping their earnings estimates. Consensus estimates for both this year and next are up over the past 90 days. Profit forecasts for this year jumped seven cents to $2.43, while estimates for next year have risen 10 cents to $2.85. Earnings per share are projected to grow 11.0% over the next 3-5 years. GDI is currently trading at a valuation of 16.0x trailing 12-month earnings and at 12.6x 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 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.4, 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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(UBS) - UBS AG - estimates for both this year and next are up over the past 60 days

UBS AG (UBS) has increased shareholder value through both share buybacks and distribution of dividends. In fact, the company increased its annual dividend in July by 7% to CHF1.60 (US$1.28) per share. UBS is currently yielding 2.1%, with a five-year average dividend yield of 2.3%. Over the past year, UBS has been very active making various acquisitions. Consensus estimates have been on the rise for both this year and next. Full Analysis UBS AG, which was formed through the 1998 merger of Union Bank of Switzerland and Swiss Bank Corporation, is one of the largest banks in the world with CHF2.1 trillion in assets (US$1.6 trillion) and a presence in 50 countries. The company organizes its operations into five main business segments: Global Wealth Management and Business Banking, Investment Bank, Global Asset Management, Industrial Holdings and Corporate Center. While UBS posted third-quarter profits that were down compared to the prior-year period, results for the first nine months were up. The company increased profits for the past four years. UBS advised on 285 transactions during the first nine months, with deal volume totaling $473 billion, up 19% from a year ago. UBS has increased shareholder value through both share buybacks and distribution of dividends. The company’s current repurchase authorization, which began on Mar 8, 2006, authorizes the repurchase of up to CHF5 billion shares over the next year. Under the aforementioned program, the company bought back 11.3 million shares for a total cost of CHF778 million. Under its prior share repurchase program which ended Mar 7, 2006, UBS repurchased 74.2 million shares at a total cost of CHF4,026 million. UBS increased its annual dividend by 7% to CHF1.60 (US$1.28) per share on Jul 10, 2006. The company has a current dividend yield of 2.1% and a five-year average dividend yield of 2.3%. UBS’s annualized return on equity of 25.8% in first nine months of 2006 came in well above its target of 20% minimum over the cycle. Consensus estimates for both this year and next are up over the past 60 days. Profit forecasts for this year jumped eight cents to $4.26, while estimates for next year have risen 13 cents to $4.74. Over the past year, UBS has been very active making various acquisitions. On Sep 6, the company announced the US$280 million acquisition of McDonald Investments from KeyCorp, with the deal projected to close in the first quarter of 2007. On Jul 27, UBS announced its intent to acquire 51% of Daehan Investment Management Trust Company—Korea’s largest asset management company. On May 25, the company announced the purchase of ABN AMRO’s global futures and options business for US$386 million. Lastly, on May 9, UBS stated that it will acquire Banco Pactual S.A., a leading player in investment banking and asset management in Brazil. UBS 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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(HNP) - Huaneng Power Intl - is the largest independent public power producer in China

Huaneng Power's stock has been on a roll and with good reason. The company is experiencing strong growth due to its plan to diversify its business and increase its efficiency. Next year's earnings estimates have jumped 24 cents to $2.30 per share over the past two months. Additionally, the company pays out a nice 3.2% dividend. Full Analysis Huaneng Power International, Inc. (HNP) develops, constructs, operates, manages and owns large thermal power plants in China. The company makes use of modern technology and equipment, as well as financial resources available domestically and internationally. Huaneng is the largest independent public power producers in China. The company provides electricity to customers in China through the power grids in various cities and regions. Huaneng currently owns including recent acquisitions from its parent, Huaneng Group a total generation capacity of 25,267 megawatts (MW). Huaneng's two-tier strategy making acquisitions and constructing power plants is expected to drive top-line growth in the near term. The company's revenue grew at a rate of about 33% in 2005. Huaneng intends to continue its focus on management control, cost reduction, and efficiency enhancement to ensure steady and sustainable growth. Its strategy for the future is to expand its presence to non-coastal provinces, diversify fuel mix to include hydropower and gas-fired power plants, seek more off-conference contracts for coal, and to continue leveraging its relationship with HIPDC and Huaneng Group to facilitate its acquisitions and developments. At all of its power plants, Huaneng is working to increase efficiency and utilization rates. According to Zacks Equity Research Analyst Paul Cheung, CFA, the company should remain competitive in the production of power in China, which, in turn, should lead to continued increases in valuation. Moreover, the company pays generous dividends every year. Huaneng Power's stock has been on a roll and with good reason. The company is experiencing strong growth due to its plan to diversify its business and increase its efficiency. Next year's earnings estimates have jumped 24 cents to $2.30 per share over the past two months. Additionally, the company pays out a nice 3.2% dividend. 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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(GY) - (BOW) - (LLY) - Richard Rhodes, Rhodes Report newsletter

Richard Rhodes, editor of The Rhodes Report newsletter, discusses the Fed Vice-Chairman's recent hawkish comments. Discover what was stated regarding the economy, housing, inflation and interest rates. Then check out some of this featured expert's holdings from his Paid-to-Play Portfolio. THE FED VICE-CHAIRMAN SPEAKS LOUDLY AND CLEARLY: from January 9 And when he does'we listen; we listen very carefully as his comments carry great weight with the investment community. Yesterday, his comments were rather 'hawkish'. He continues to see very few spillover effects from the housing bubble into other demand drivers; and, he also noted that the slowing in housing may be near an end., and he was rather confident that 'the economy appears to be weathering the downturn in housing with limited collateral effects.' On the inflation front, he noted that the U.S. economy is 'poised' for moderate growth and lower inflation; but he further noted that there is 'no guarantee' it will remain as such. He went on to say that a period of 'below-trend' growth may ease tight labor and product market pressures; but that a portion of the recent easing in inflation reflects one-time events such as the drop in energy prices. Richard Rhodes and his team take these comments to mean the FOMC is highly unlikely to lower rates in the foreseeable future ' even though the FOMC minutes from the December 12 meeting were a bit less hawkish than first perceived. Remember, it takes the FOMC quite a bit of time to 'chew the fat' regarding the current condition, and they all appear rather comfortable with interest rates exactly where they are. Holdings in the Paid-to-Play 'Long Only' Portfolio include: Gencorp (GY) is a major technology-based manufacturing company headquartered in Sacramento, California. Its businesses are concentrated in three principal industries: aerospace and defense, pharmaceutical fine chemicals, and automotive. As GenCorp moves toward its vision to be one of the most respected, diversified companies in the world, it is currently focused on two priorities: operational excellence and value-creating growth. Bowater (BOW) is engaged in the manufacture, sale and distribution of newsprint, uncoated groundwood specialties, coated groundwood paper, market pulp, lumber and timber. The company has pulp and paper mills in the United States, Canada and South Korea and North American sawmills that produce softwood and hardwood lumber. Bowater also operates facilities that convert a groundwood base sheet to coated products. Eli Lilly (LLY) discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. The company directs its research efforts primarily toward the search for products to diagnose, prevent and treat human diseases. The company also conducts research to find products to treat diseases in animals and to increase the efficiency of animal food production. This article highlights the commentary of Richard Rhodes for the Zacks.com audience. Richard Rhodes provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Rhodes Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Rhodes Report" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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(GROW) - (ADY) - (AOB) - (BRLC) - Ian Wyatt, Growth Report newsletter

Through the merits of proper diversification, what started out as disappointing year turned into a bearable one with a portfolio return of 11.1%, as of December 15, 2006, for Ian Wyatt, editor of the Growth Report newsletter. Read this featured expert's commentary and learn about some of his recent portfolio additions that could deliver outsized returns in 2007. Commentary January 3 Looking back at 2006, Ian Wyatt and his team are reminded of the importance of portfolio diversification. While concentration in certain industries can lead to outsized returns if that industry is surging, it can also lead to disappointing results if that sector happens to slide. Proper diversification across industries can mitigate some of this downside risk. The Growth Report portfolio started out 2006 heavily invested in the oil and gas services sector, as Wyatt's research team saw impressive financial growth and downright cheap valuations. While the financial performance at these companies continues to be impressive, the performance of their stocks has been less impressive as many investors have exited the sector on fears that lower gas prices will lead to an industry downturn. As the portfolio evolved over the course of the year Wyatt and his team started embracing more Chinese firms, technology companies, and firms from other industries, and the prospects and returns greatly improved for Wyatt's portfolio as a whole. Through the merits of proper diversification, what started out as disappointing year turned into a bearable one, culminating in a portfolio return of 11.1% as of December 15, 2006. One notable highlight is US Global Investors (GROW) an investment advisory and mutual fund management company with nearly $5 billion in assets under management as of September 30, 2006. Since adding US Global to the Growth Report Portfolio on November 8th, 2006, shares had increased approximately 121% at the time of writing, just 40 days after Wyatt's purchase. Another highlight is American Dairy (ADY), added September 5, 2006. American Dairy, one of the leading producers and distributors of milk powder and soybean products in China, had returns in excess of 72% at the time of writing 104 days after Wyatt's purchase, and is poised for further growth as the Chinese middle class grows. This month's additions to the Growth Report portfolio continue in Wyatt's practice of proper diversification across sectors. American Oriental Bioengineering (AOB) develops, manufactures and markets bioengineered and traditional Chinese medicinal products, primarily in China. Partly from astute acquisitions and partly from organic growth, in 2004 and 2005, revenues have increase by 53.2% and 71.2%, respectively, and the company stands poised to double its revenues in 2006. The second addition, Syntax-Brillian Corp. (BRLC) is a growing global pure play in liquid crystal display (LCD) and liquid crystal on silicon (LCoS) widescreen high-definition TVs (HDTV). At the core of the company's business, which stands to benefit from explosive growth in the HDTV and LCD TV markets, is its higher end Olevia brand of widescreen HDTV-ready and HD-built-in LCD TVs. With these recent additions adding to already diverse group of companies in the Growth Report portfolio, Wyatt and his team truly feel they have the appropriate mix of firms to deliver outsized returns in 2007. This article highlights the commentary of Ian Wyatt for the Zacks.com audience. Ian Wyatt provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Growth Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Growth Report" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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(COP) - (PWE) - Jack Adamo, Insiders PLUS newsletter

Jack Adamo, editor of the Insiders PLUS newsletter, explains that he is not one to time the market. This featured expert points out that 64 of the 75 positions he closed are higher today than when he closed them. This is why he plans to withstand the tough times and why he believes he'll beat the market by the end of the year like he has in the past. Check out his commentary and read his portfolio updates. Commentary from January 6 There's no gentle way to put it; we had a terrible week. As Jack Adamo predicted, energy and gold shares are taking a shellacking. The latter because of weak signs in the economy, the former for the same reason, as well as the exceptionally warm winter in the Northeast, where 80% of heating costs occur. Whether the heat is a sign of global warming, or just the El Nino winter, Adamo doesn't know, but if it doesn't turn around within a few weeks, energy stocks will have a very rough quarter. A friend of Adamo's asked him why Adamo and his do not sell their energy stocks and buy them back later since Adamo thinks the outlook is so tough right now. Adamo told him that he doesn't know anyone who is smart enough to get all this in-and-out stuff right. Moreover, Adamo's track shows he does better if he just sticks with the stocks he chooses. Adamo recently reviewed the positions his team closed in the last 6 years. Most of the stocks they sold due to the near-term outlook ended up doing fine anyway. Excluding the bear funds they bought, 64 of the 75 positions they closed are higher today than when they closed them. That's 85%. Observe that even if Adamo and his team had held onto dogs like WorldCom, the mistakes would have been more than compensated for by doubles and triples in stocks like Celgene and Energizer, JC Penney, etc. Despite any near term economic weakness or variables in weather, we are in a demand-driven long-term bull market in energy. Adamo and his team will do best if they stick with it. There isn't one stock in the portfolio now, particularly in the sectors being punished, that Adamo would want to let go. Hence, his strategy here is to stand fast for what might be a painful couple of quarters. By the end of the year, Adamo thinks he'll be fine, and should even beat the market, as Adamo and his team have every year prior to this one. Portfolio Updates include: Conoco-Phillips (COP) reported that refining margins in the fourth quarter fell substantially. That added to the slide in energy stocks. Penn West Energy Trust (PWE) announced a new contract for its natural gas production covering about 25% of its 2007 output. By Adamo's calculations, the price averages about 2' per mcf less than last year's average of $8.68 Canadian. Obviously, this is a very minor difference. Penn West has about one-third of its 2007 natgas production hedged so far. If it keeps getting prices like this, the stock should be due for a big rebound. So far, however, the market is still focused on falling commodity prices. This article highlights the commentary of Jack Adamo for the Zacks.com audience. Jack Adamo provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Insiders PLUS" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Insiders PLUS" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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