(RY) - Royal Bank of Canada - earnings soared 142.9%

Royal Bank of Canada (RY), a Zacks #1 Rank stock, reported record profits for the full year of 2006. The Board of Directors recently declared a quarterly dividend of 40 cents per common share of stock, leading to a current dividend yield of 2.96%. Consensus estimates for this year are up over the past two months. The company has a price-to-book ratio of 2.7. Full Analysis Royal Bank of Canada is Canada's largest bank as measured by assets and market capitalization and one of North America's leading diversified financial services companies. RY provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. On Nov 30, RY reported fourth-quarter earnings per share of 85 cents, which beat analysts’ expectations by 11.8%. Compared to profits of 35 cents per share in the prior-year period, earnings soared 142.9%. Total revenue from continuing operations amounted to 5.35 billion Canadian dollars ($4.77 billion), compared to 4.8 billion Canadian dollars in the fourth quarter of 2005. For the entire year, profits came in at a record 4.73 billion Canadian dollars ($4.22 billion), which represented the highest annual earnings ever reported by a Canadian bank. Revenues climbed to 20.6 billion Canadian dollars ($18.4 billion) from 19.2 billion Canadian dollars last year. President and CEO Gordon Nixon stated, “Throughout 2006, we continued to build on the momentum we established in 2005. Our record results reflect our growth initiatives across all of our businesses, as well as geographies.” The consensus estimate for this year currently sits at $3.46. Compared to estimates of 60 days earlier, it has jumped 11 cents. Earnings per share are projected to grow 9% over the next 3-5 years. Looking ahead, RY expects “a robust Canadian economy with continued strong consumer spending and solid business investment.” The Board of Directors recently declared a quarterly dividend of 40 cents per common share of stock. The dividend is payable on Feb 23 to common shareholders of record as of Jan 25. RY has a current dividend yield of 2.96% and a five-year average dividend yield of 3.23%. On Jan 11, RY announced that it acquired Daniels & Associates, L.P. According to Thomson Financial, Daniels & Associates completed more M&A transactions within the cable, telecommunications, broadcast and Internet services sectors in the United States from 2000 through 2006 than any other investment bank—nearly double its closest competitor. RY is currently trading at a valuation of 13.4x current fiscal-year estimated earnings and at 12.1x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.9x current fiscal-year estimated earnings and at 14.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.7, 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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(GEF) - Greif, Inc - crushed expectations for five consecutive quarters by an average of 51.1%

Greif, Inc. (GEF), which was last presented as a Growth and Income pick on Sep 14, is still a Zacks #1 Rank stock. Furthermore, the company is up over 37% since mid September. GEF exceeded analysts’ earnings expectations for five consecutive quarters by an average margin of 51.1%. The company reported record profits and net sales in 2006. GEF is currently yielding 1.3%, with a five-year average dividend yield of 1.7%. Full Analysis Greif, Inc. is engaged in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide. The company has over 160 operating locations in more than 40 countries. When GEF was last presented as a Growth and Income stock on Sep 14, it proudly wore the crown of a Zacks #1 Rank stock. Over four months later, not only has it maintained that coveted ranking, it has also returned over 37%. GEF exceeded analysts’ earnings expectations for five consecutive quarters by an average margin of 51.1%. The company managed to surprise by a double-digit percentage on four occasions while posting a triple-digit surprise in its most recent quarter. Earnings per share grew 28.5% over the past five years. On Dec 6, GEF posted fourth-quarter profits of $3.71 per share. The result destroyed the consensus earnings estimate of $1.32 by 181.1%. Its year-over-year improvement was even more spectacular—263.7%. Net sales jumped 18.7% to $735.6 million from $619.7 million in the fourth quarter of 2005. For the entire year, profits experienced a 35.7% leap to $142.1 million from $104.7 million last year. Net sales were $2.6 billion this year compared to $2.4 billion in 2005. Both figures marked new records for the company. Chairman, CEO and President Michael J. Gasser stated, “We are pleased with our record net sales and net income for fiscal 2006. The improvement in operating profit before special items was driven by strong top-line growth, which benefited from generally higher volumes, improved product pricing and margin expansion.” Consensus estimates for this quarter and next are up two cents and five cents, respectively, over the past 60 days. Profit forecasts for this year and next have risen 8.1% and 11.4%, respectively, over the same period of time. Earnings per share are expected to grow 14% over the next 3-5 years, with the industry projected to grow at a 10% clip. During 2006, GEF distributed $34.5 million of cash dividends to its Class A and Class B stockholders, versus $22.9 million last year. On Dec 5, the Board of Directors declared quarterly cash dividends of 36 cents per share of Class A Common Stock and 53 cents per share of Class B Common Stock. GEF is currently yielding 1.3%, with a five-year average dividend yield of 1.7%. The company’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

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(THQI) - THQ, Inc - profit of 19 cents per share when analysts were looking for a 1 cent loss!

The company has exceeded earnings estimates in nine consecutive quarters, with eight of them posting double-digit surprises. Six analysts have raised their 2006 forecasts, while three have lifted their 2007 views. Over the past month, this year's estimates have increased 14 cents to $1.02 per share. Full Analysis THQ, Inc. (THQI) engages in the development and publishing of interactive entertainment software for various game systems worldwide. It offers a portfolio of titles playable on the platforms, such as home video game consoles, handheld platforms, and personal computers. The company's titles span entertainment software genres, including action, adventure, children's, driving, fighting, puzzle, role-playing, simulation, sports, and strategy. It produces products internally based on original and licensed content, as well as contracts with third-party developers to develop products. THQI blew away its second-quarter earnings expectations. The company came in with a profit of 19 cents per share when analysts were only looking for a loss of a penny. Revenue surged 68% from a year ago to $240 million. THQ cited robust sales of owned and internally developed new original properties Saints Row and Company of Heroes, and continued sales of games based on Disney*Pixar's Cars, reflecting the game's wider international release. "THQ's outstanding second quarter results demonstrate the power of our balanced mix of owned properties and games based on world-class brands," said Brian Farrell, THQ president and CEO. "During the quarter, THQ's Studio System delivered two ground-breaking original titles, Saints Row on Xbox 360 and Company of Heroes on PC. We have established two significant new franchises that we view as important pillars of our growth for many years to come." The company has exceeded earnings estimates in nine consecutive quarters, with eight of them posting double-digit surprises. Six analysts have raised their 2006 forecasts, while three have lifted their 2007 views. Over the past month, this year's estimates have increased 14 cents to $1.02 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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(RLI) - RLI Corp - beat expectations in eight out of the past 11 quarters by an average margin of 37.7%

RLI Corp. (RLI), a Zacks #1 Rank stock, topped analysts’ earnings expectations in eight out of the past 11 quarters by an average margin of 37.7%. Consensus estimates for this year and next are up over the past 60 days. RLI recently announced a 5% increase in its quarterly dividend, and continues to repurchase shares. The company has a price-to-book ratio of 2.1, compared to 4.9 for the market. Full Analysis RLI Corp., a specialty insurance company, offers a diversified portfolio of property and casualty coverages and surety bonds serving "niche" or underserved markets. The company distributes its products primarily through branch offices, independent agents, underwriting agencies and e-commerce channels. RLI operates in all 50 states from 25 office locations. RLI topped analysts’ earnings expectations in eight out of the past 11 quarters by an average margin of 37.7%. In five out of the eight quarters the company surprised by a double-digit percentage. On Jan 23, RLI reported fourth-quarter profits of $1.65 per share, which absolutely crushed the consensus estimate of 95 cents by 73.7%. Compared to earnings of 64 cents in the fourth quarter of 2005, the result equated to a 157.8% year-over-year improvement. Net premiums jumped 18.1% to $138.8 million, compared to $117.5 million in the prior-year period. For the entire year, profits came in at $134.6 million, versus $107.1 million reported last year. Net premiums earned experienced a 7.9% increase to $530.3 million from $491.3 million. RLI grew profits for six years running. President & CEO Jonathan E. Michael stated, “2006 was the best earnings year in our company's 41-year history, and we are proud to present our shareholders with these record-setting results.” RLI’s combined ratio, a measure of profitability for insurance companies, was 71.3 in the fourth quarter compared to 100.4 during the fourth quarter of last year. For the entire year, the ratio improved to 84.1 from 86.0. A combined 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. Consensus estimates for this year have risen four cents to $3.91 over the past 60 days. Profit forecasts for next year are up five cents to $3.95 over the same period of time. Earnings per share are projected to grow 13% over the next 3-5 years, slightly better than the 12% expected growth rate of the industry. On Nov 16, RLI announced a 5% boost in its quarterly dividend to 20 cents per share. 2006 marked the 31st straight year that RLI has increased dividends. The company has a current dividend yield of 1.5%. Additional value was provided to shareholders through its share repurchase program—during the fourth quarter, the company purchased 218,559 shares at a cost of $12.0 million. RLI is currently trading at a valuation of 14.0x current fiscal-year estimated earnings and at 13.9x 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 2.1, 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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(SGP) - Schering-Plough Corp - blew out earnings in five out of the past seven quarters by an average margin of 219.5%

Schering-Plough Corporation (SGP) exceeded analysts’ earnings expectations in five out of the past seven quarters. Earnings per share are projected to grow 41% over the next 3-5 years, dwarfing the 18% expected growth rate for the industry. The company has a current dividend yield of 0.87% and a return on equity of 18%. Full Analysis Schering-Plough Corporation engages in the discovery, development, manufacture and marketing of drug therapies. The company specializes in anti-infective, anticancer, allergy/respiratory and cardiovascular products. In addition, the company makes foot-care products under the Dr. Scholl’s brand and sun-care products under the Coppertone label. When SGP beats analysts’ earnings expectations, it usually does so by quite a large margin. The company topped the Street’s estimate in five out of the past seven quarters by an average margin of 219.5%. SGP is scheduled to report its fourth-quarter results on Jan 29. On Oct 20, SGP posted third-quarter earnings per share of 15 cents—matching the consensus earnings estimate and soaring past last year’s result by 87.5%. The company attributed the improved year-over-year earnings to strong sales of its Nasonex allergy treatment and Remicade, a treatment for immune-meditated inflammatory disorders, as well as its cholesterol joint venture with Merck (MRK). Revenues increased 12.7% to $2.57 billion from $2.28 billion in the third quarter of 2005. Consensus estimates for this year currently sit at 84 cents per share, representing a three-cent increase over the past 60 days. Profit forecasts for next year are up by an even larger magnitude—five cents to $1.05 over the same period of time. Earnings per share are projected to grow 41% over the next 3-5 years, dwarfing the 18% expected growth rate for the industry. With SGP forming alliances, acquiring products and maintaining prudent cost control, the company’s future looks bright. On Dec 15, the Board of Directors declared a quarterly dividend of 5.5 cents per common share of stock. Payment will be distributed on Feb 27 to shareholders of record as of Feb 2. The company has a current dividend yield of 0.87%. While the return on equity of the industry currently sits at a negative 10%, SGP shines brightly with an ROE 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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(KMX) - CarMax - Over the past 60 days, this year's estimates have increased 14%

KMX has exceeded earnings estimates in seven consecutive quarters. Year-over-year growth has routinely exceeded 30% over that time period. Five analysts have lifted their 2006 and 2007 forecasts. Over the past 60 days, this year's estimates have increased 23 cents to $1.86 per share. Full Analysis CarMax (KMX) is the nation's largest retailer of used vehicles. The company operates as a specialty retailer of used cars and light trucks. KMX offers its customers a selection of makes and models of used vehicles (generally one to six years in age with less than 60,000 miles), including both domestic and imported cars and light trucks. The company currently operates 71 used car stores in 34 markets, all of which are integrated or co-located with its used car superstores. Sales are improving across geographical regions and store formats, which is an encouraging indication. In terms of comparable store sales, KMX witnessed 12% growth, on top of 5% growth last year. Zacks Equity Research Analyst Paul Raman, CFA, believes the improved trend will continue, as both GM and Ford have cut their production schedules for new vehicles, which tends to favor demand for used vehicles. Furthermore, the company is among the strongest operators in its peer group, with leading liquidity and profitability ratios. In fiscal year 2007, KMX will open approximately 10 used car superstores, including 5 in satellite super stores and 5 standard superstores. This would increase the used car superstore base by 16%, above management's plan of geographical expansion. As these stores mature, earnings and profits should surge due to leveraging upon the fixed cost base. Generally, the company leases its stores, with 55 of 63 being leased. On December 20, CarMax reported third quarter fiscal 2007 earnings. Adjusted earnings were 42 cents per share, compared to 25 cents per share in the same period last year. Analysts only expected 25 cents per share. Sales rose 25% to $1.77 billion, from $1.42 billion in the prior-year period. Same store used unit sales increased 13%, while used unit vehicle sales increased 18%. KMX has exceeded earnings estimates in seven consecutive quarters. Year-over-year growth has routinely exceeded 30% over that time period. Five analysts have lifted their 2006 and 2007 forecasts. Over the past 60 days, this year's estimates have increased 23 cents to $1.86 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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(ACO) - AMCOL International Corp - the Board of Directors raised the quarterly dividend 17%

AMCOL International Corporation (ACO) is a Zacks #1 Rank stock that’s beaten analysts’ earnings expectations in six out of the past eight quarters by an average margin of 14.0%. The company recently reported solid fourth-quarter and full-year 2006 results. ACO has returned value to shareholders in the form of dividend payments and share repurchases, including a recent boost in its quarterly dividend to 14 cents per share. ACO’s return on equity, a common measure of profitability, betters that of the industry average—18% compared to 17%. Full Analysis AMCOL International Corporation, through its operating subsidiaries, is a leading international producer and marketer of value-added, specialty minerals and related products. The company’s products serve 12 major markets, including—metalcasting, detergents, pet products, building materials and personal care. ACO operates over 50 facilities in Asia, Australia, Europe and North America. ACO exceeded analysts’ earnings expectations in six out of the past eight quarters by an average margin of 14.0%. In three out of the six quarters the company surprised by a double-digit percentage. Earnings per share grew 35.7% over the past five years. On Jan 19, ACO posted fourth-quarter profits of 36 cents per share, which topped the consensus earnings estimate by two cents. Compared to earnings of 28 cents in the prior-year period, the result marked a 28.6% year-over-year improvement. Revenues increased 15.8% to $155.9 million from $134.6 million during the fourth quarter of last year. For the entire year, ACO’s profits jumped 22.4% to $50.2 million, compared to $41 million in 2005. Revenues increased 14.1% to $611.6 million from $535.9 million. The company’s revenues have advanced for the past five years, while growing profits for the past four. ACO has returned value to shareholders in the form of dividend payments and share buybacks. On Nov 9, the Board of Directors raised the quarterly dividend 17% to 14 cents per share. The company has a current dividend yield of 2.0% and a five-year average dividend yield of 1.7%. In addition to the dividend boost, the Board also authorized a $15 million stock repurchase program over the next two years. ACO is currently trading at a valuation of 15.1x current fiscal-year estimated earnings and at 12.9x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.7x current fiscal-year estimated earnings and at 14.3x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.9, compared to 4.9 for the market. ACO’s return on equity, a common measure of profitability, betters that of the industry average—-18% compared to 17%. 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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(MER) - Merrill Lynch & Co., Inc - earnings surprised by an impressive 27.5%

Merrill Lynch & Co., Inc. (MER), which was last featured as a Growth and Income pick on Sep 22, has returned over 21%. The company topped analysts’ earnings expectations in 15 out of the past 16 quarters. Consensus estimates have been on the rise for this Zacks #1 Rank stock. The Board of Directors recently announced a 40% boost in the company’s quarterly dividend to 35 cents per share. MER is currently yielding 1.0%. Full Analysis Merrill Lynch & Co., Inc., through its subsidiaries, provides broker-dealer, investment banking, financing, wealth management, advisory, asset management, insurance, lending, and related products and services on a global basis. MER has returned over 21% since it was last presented as a Growth and Income pick on Sep 22. The company was a Zacks #2 Rank (Buy) stock at the time and has since elevated itself to a Zacks #1 Rank (Strong Buy) stock. MER’s history of exceeding rising earnings estimates fueled the improvement in its ranking. MER’s penchant for beating the consensus earnings estimate is truly outstanding. The company topped the Street in 15 out of the past 16 quarters, including 10 double-digit earnings surprises. Earnings per share grew 23% over the past five years. On Jan 18, MER reported fourth-quarter profits of $2.41 per share. With analysts calling for $1.89, the company surprised by an impressive 27.5%. The result also represented a 59.6% year-over-year improvement. Revenues soared 26.8% to $8.61 billion, compared to $6.79 billion in the year-ago period. For the full year, MER managed to post record net revenues, net earnings and earnings per share. The strong results were aided by high levels of acquisition activity and unprecedented growth in the global stock markets. The company increased profits for the past five years. Chairman and CEO Stan O'Neal stated, “We are extremely pleased with Merrill Lynch's performance for the year and the fourth quarter. By virtually any measure, our company completed the most successful year in its history. We finished the year positioned better than ever to capitalize on the array of opportunities still emerging around the world.” Consensus estimates for this quarter and next are up 5.0% and 6.3%, respectively, over the past 60 days. Profit forecasts for this year and next have risen 4.6% and 6.4%, respectively, 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. In addition to posting solid results for the full year, the Board of Directors announced a 40% boost in the company’s quarterly dividend to 35 cents per share. The dividend is payable on Mar 1, to shareholders of record as of Feb 7. MER is currently yielding 1.0%, with a five-year average dividend yield of 1.3%. MER bought back 31.1 million shares of its common stock during the fourth quarter for a total cost of $2.8 billion. For the full year, the company repurchased 117 million shares for just over $9 billion. 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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(HEES) - H&E Equipment Services - Income from operations jumped 86.5%

HEES has met or exceeded earnings estimates in each of the past three quarters, with two of those periods registering surprises of 40% or more. Two analysts have raised their forecasts for this year, while one has done so for next year. Over the past week, the stocks average broker recommendation has jumped to 2.00 from 2.50. Additionally, earnings estimates have increased about 10% over the past three months for 2006. Full Analysis H&E Equipment Services an equipment services company, provides heavy construction and industrial equipment in the United States. It rents, sells, and offers parts and service support for four categories of specialized equipment: hi-lift or aerial platform equipment; cranes; earthmoving equipment; and industrial lift trucks. The company also sells new and used equipment and parts, as well as provides maintenance and repair services for the customers? equipment. In addition, H&E Equipment offers Orion Energy Systems' lighting systems to industrial and commercial facilities in Utah and surrounding areas. HEES reported a strong third quarter in which revenues jumped 37% and EBIDTA soared 66.7%. Income from operations jumped 86.5% to $34.9 million. The CEO had glowing things to say about the quarter: "The momentum in our business clearly continued through the third quarter," said John Engquist, H&E Equipment Services' president and chief executive officer. "While the loss on early extinguishment of debt significantly impacted our earnings this quarter, the core fundamentals of our operations remain very strong. Non-residential construction is extremely active in the markets we serve and we believe spending on the equipment and services we provide will remain strong as these positive trends are currently forecasted to continue." "Total revenue increased $55.6 million from a year ago to another record level and our Adjusted EBITDA also reached record level, increasing $23.0 million to $57.5 million. Income from operations increased 86.5% to $34.9 million. Overall, our performance this quarter was consistent with the expectations for our business. We believe we are in the right markets with the right construction equipment and services, and the right business model, and the outlook for H&E remains strong." HEES has met or exceeded earnings estimates in each of the past three quarters, with two of those periods registering surprises of 40% or more. Two analysts have raised their forecasts for this year, while one has done so for next year. Over the past week, the stocks average broker recommendation has jumped to 2.00 from 2.50. Additionally, earnings estimates have increased about 10% over the past three months for 2006. 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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(HGIC) - Harleysville Group, Inc - topped the Street’s estimate for the past six quarters by an average margin of 12.1%

Harleysville Group, Inc. (HGIC), a Zacks #1 Rank stock, topped the Street’s estimate for the past six quarters by an average margin of 12.1%. Consensus estimates for both this year and next have risen over the past month. HGIC paid a dividend for 82 consecutive quarters. The company has a current dividend yield of 2.3% and a five-year average dividend yield of 2.8%. HGIC has a price-to-book ratio of 1.5, compared to 4.9 for the market. Full Analysis Harleysville Group, Inc. is a leading regional provider of insurance products and services for small and mid-sized businesses, as well as for individuals. The company underwrites property and casualty insurance in both the personal and commercial lines of insurance. The personal lines of insurance include both auto and homeowners, and the commercial lines include auto, commercial multi-peril and workers compensation. HGIC’s recent history of exceeding analysts’ earnings expectations has been quite impressive. The company has topped the Street’s estimate for the past six quarters by an average margin of 12.1%. On Oct 26, HGIC reported third-quarter profits of 69 cents, which beat the consensus estimate by 6.2%. Compared to earnings of 54 cents in the prior-year period, the result marked a 27.8% year-over-year improvement. Revenues climbed to $241.1 million from $239.2 million, while net written premiums rose slightly to $207.3 million from $206.6 million in the third quarter of last year. The combined ratio, a measure of profitability for insurance companies, was 98.5% for the third quarter of 2006 compared to 102.5% for the third quarter of 2005. It was 98.8% for the first nine months of 2006 compared to 102.8% 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.) Consensus estimates for this year jumped five cents to $2.66 over the past 30 days. Profit forecasts for next year are up by an even larger magnitude—eight cents to $2.87 over the same period of time. On Nov 14, the Board of Directors declared a regular quarterly cash dividend of 19 cents per share. Since HGIC went public in 1986, the company has issued a dividend each and every quarter. The company has a current dividend yield of 2.3% and a five-year average dividend yield of 2.8%. HGIC is currently trading at a valuation of 12.9x trailing 12-month earnings and at 11.7x 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 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.5, 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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(GLDN) - Golden Telecom, Inc - return on equity of 12% compares quite favorably to the negative 23% for the industry

Golden Telecom, Inc. (GLDN) reported strong financial results for its third quarter in early November. Earnings per share are projected to grow 18% over the next 3-5 years, compared to 10% for the industry average. This Zacks #1 Rank stock is currently yielding 1.6%, with a five-year average dividend yield of 1.5%. Full Analysis Golden Telecom, Inc. is a leading facilities-based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States (CIS). The company also provides mobile services with various features. On Nov 8, GLDN reported a 31.5% leap in third-quarter profits to $24.2 million from $18.4 million in the prior-year period. Revenues soared 34.6% to $228.7 million, compared to $169.9 million in the third quarter of 2005. Commenting on the company’s third-quarter results, Chief Financial Officer Boris Svetlichny stated, “I am especially pleased with the growth of our revenue and net income. Further improvement of cost control and budget discipline will help us to free resources the company needs to fuel its growth in the future.” GLDN increased revenues for the past six years, while growing profits for four years running. Earnings per share are projected to grow 18% over the next 3-5 years, nearly twice that of the 10% expected growth rate for the industry. The company is scheduled to release its results for the fourth quarter and full year on Mar 8, 2007. On Jan 19, GLDN announced that is has acquired two alternative operators in Yekaterinburg and Nizhny Novgorod, the fourth and the fifth largest cities in Russia and Cheboksary. The two cities have a combined population of 3.0 million. The total purchase price consideration amounted to approximately $1.2 million. GLDN kicked off a re-branding campaign in October 2006. A new logo, color scheme and the slogan “Achieve more!” were launched. The company stated that the new brand is mainly targeted at retail customers and maintains various products under one 'master' brand driving up general brand recognition and opportunities for cross-selling of different products. On Nov 8, the Board of Directors declared a quarterly dividend of 20 cents per share. The company is currently yielding 1.6%, with a five-year average dividend yield of 1.5%. GLDN’s return on equity of 12% compares quite favorably to the negative 23% for the industry. 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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(DTV) - DIRECTV Group, Inc - has blown away earnings estimates in each of the past four quarters by a minimum of 15%

DTV has blown away earnings estimates in each of the past four quarters by a minimum of 15%. Eight analysts have lifted their 2006 estimates, while five have done so for 2007. Additionally, DTV sports a return on equity of 18%, well above the industry average. Over the past 90 days, 2007 estimates have risen nine cents to $1.32 per share. Full Analysis DIRECTV Group, Inc. (DTV) is a provider of digital television entertainment, broadband satellite networks & services, global video, and data broadcasting. The company provides advanced communication services and develops a broad range of entertainment, information, and communication services for home and business use, including video, data, voice, multimedia, and Internet services. DTV's efforts to improve the quality of its subscriber base and cut costs is fueling rapid growth in its free cash flow. In the second quarter of 2006, free cash flow quadrupled to $397 million from $99 million in the year-ago quarter. Zacks Equity Research Analyst Ann Northrop, CFA, expects vigorous free cash flow growth for the next several years. Standard & Poor's Ratings Services affirmed its "stable" rating on satellite TV provider DirecTV Group Inc., including its "BB" corporate credit rating. The decision follows Liberty Media Corp.'s planned acquisition of media company News Corp.'s 38.4 percent stake in DirecTV, in a deal valued at about $11 billion. Management is determined to show it is shareholder friendly. On June 1, 2006, the company announced that it has agreed to purchase 15 million shares of its common stock, at $17.15 per share in cash, from General Motors pension trusts. Including this transaction, by the end of 2Q06 DIRECTV Group had repurchased more than 160 million of its shares for an aggregate of roughly $2.56 billion out of its authorized $3.0 billion share repurchase program. DTV has blown away earnings estimates in each of the past four quarters by a minimum of 15%. Eight analysts have lifted their 2006 estimates, while five have done so for 2007. Additionally, DTV sports a return on equity of 18%, well above the industry average. Over the past 90 days, 2007 estimates have risen nine cents to $1.32 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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(AMTD) - Bill Martin, FindProfit newsletter

Bill Martin, editor of the FindProfit newsletter, says TD Ameritrade’s business model continues to be a thing of beauty, as profit margins increased from 41% last quarter to 45% this quarter. Read this featured expert’s update on the financial company and learn about its first-quarter results. QUICK HIT ALERT from January 16 Online brokerage firm TD Ameritrade (AMTD) reported a strong FQ1, sending the stock 6% higher in afternoon trading. For the quarter, earnings came in at $145.6 million, or 24 cents per share, up from $86 million, or 21 cents per share, a year ago. (The relatively small increase in EPS is due to a nearly 50% jump in the number of shares outstanding over the last year.) Excluding one-time items, AMTD reported EPS of 28 cents. Revenue jumped to $535.2 million from $277.3 million last year, in part due to the impact of AMTD's acquisition of TD Waterhouse's U.S. retail securities business last year. The results handily beat analyst estimates of EPS of 22 cents on revenue of $517.4 million. Robust trading volumes during a frothy period for the stock market helped fuel AMTD's results as commissions and transaction fees rose 48%. AMTD handled over 237K trades per day in FQ1, up 16% sequentially and 52% year over year. The addition of the TD Waterhouse business, meanwhile, added significant revenue streams of money market fees, interest revenue, and mutual fund fees, underscoring the company's moves to build up its non-trading revenues. These revenues tend to be more stable and less sensitive to the vagaries of the stock market; also, investors usually value these revenue streams higher (because they're less cyclical), leading to a higher earnings multiple for the stock. The better-than-expected results were tempered somewhat by the company's failure to raise guidance following the strong quarter. Instead, AMTD reaffirmed its FY2007 forecast for EPS of $1.10. AMTD also reaffirmed that it expects to be on a $1.28 annual earnings run rate by the end of this fiscal year (ending September, 2007). CEO Joe Moglia sparked additional investor enthusiasm, however, after remarking on the conference call that AMTD would be an attractive target for a larger bank looking to expand its online presence. Bottom Line: AMTD's business model continues to be a thing of beauty, as profit margins increased from 41% last quarter to 45% this quarter. Management expects that to rise to "above 50%" later this year as it completes the integration of the TD acquisition. Another highlight on the call was management's disclosure that "revenues generated from assets," not trading, "will exceed 100% of the total expenses of TD Ameritrade" (including advertising). This is an impressive accomplishment, and suggests that AMTD's financial foundation is far sturdier than Wall Street gives it credit for. Finally, AMTD said that it bought back 7.7 million shares in the quarter at an average price of $16.88, in lieu of paying down debt. The company used 90% of its net income to buy back stock in the quarter, demonstrating management's confidence in its business and stock. This article highlights the commentary of Bill Martin for the Zacks.com audience. Bill Martin provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "FindProfit" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "FindProfit" 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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(EXEL) - Nadine Wong, BioTech Stock Report newsletter

Nadine Wong, editor of the BioTech Stock Report newsletter, highlights Exelixis. This featured expert explains that with seven compounds in clinical development and another six likely to enter over the next 12 months, Exelixis shares will outperform as multiple candidates progress through clinical testing. Read Wong’s latest commentary and benefit from her biotechnology expertise. Commentary from January 18 Back in December, the FDA placed a partial hold on Exelixis’ (EXEL) Phase II XL999 cancer program due to cardiovascular events and its share price took a dip and has bounced back. Exelixis is optimistic that Phase II studies can resume in the first half of 2007 using lower doses and slower infusion rates in lung cancer and acute myelogenous leukemia patients who have shown benefit from XL999. More importantly, XL999 has shown early Phase II clinical activity. In addition, Exelixis will likely present proof of concept data to GlaxoSmithKline (GSK) by mid-2007 on small molecule cancer drug candidates XL647, XL999, XL784, and XL880. The company expects that GSK will choose one or two of these for further development, with the remaining two to three returning to Exelixis. Upon making a selection, GSK will make a milestone payment to Exelixis of approximately $75 to $85 million and assume all further clinical responsibilities. The Phase II programs for XL880 in papillary or hereditary renal cell carcinoma and XL647 in a subset of first-line non-small cell lung cancer (NSCLC) patients will each generate data in the first half of 2007. Exelixis plans to initiate further Phase II trials with XL880 in head and neck cancers, and with XL647 in first-line NSCLC, Tarceva-refractory NSCLC, and breast cancer in the first half of 2007. Multiple other programs are advancing into clinical development. Among these, the Phase II program for XL784 in diabetic nephropathy is expected to be fully enrolled by mid-2007 with possible data available in the third quarter of 2007. Phase II trials will also be initiated for pipeline drugs XL184 (solid and hematologic cancers) and XL820 (potentially in gastrointestinal stromal tumor, ovarian, and melanoma cancers) in the first half of 2007. Nadine Wong and her team believe the remaining Phase I and preclinical pipeline will also move forward in 2007, and up to eight Phase I trials could be ongoing by mid-2007. With seven compounds in clinical development and another six likely to enter over the next 12 months, Exelixis shares will outperform as multiple candidates progress through clinical testing. Recently, Exelixis has entered into a couple of partnerships. Exelixis agreed to collaborate with Bristol-Myers Squibb on discovery, development and commercialization of cancer treatments. Under the collaboration, Exelixis will use its drug discovery platform and will identify and be responsible for preclinical development of small molecule drug candidates. Bristol- Myers Squibb will have the right to select up to three investigational new drug candidates against three different targets and will lead all global activities. The two parties will co-develop and co-commercialize the programs in the U.S., Bristol-Myers Squibb will pay Exelixis $60 million in cash upfront, and Exelixis will also receive $20 million for each of up to three different drug candidates selected by Bristol-Myers Squibb. The other agreement is with Genentech for the worldwide co-development of XL518, a small-molecule inhibitor of MEK. Exelixis submitted an Investigational New Drug application for XL518 to the FDA on MEK, also known as mitogen activated protein kinase (MAPK), a key component of the AS/RAF/MEK/ERK pathway, which is frequently activated in human tumors. Inappropriate activation of the MEK/ERK pathway can promote tumor growth and survival. Exelixis’ pipeline has great potential. This article highlights the commentary of Dr. Scott W. & Nadine Wong for the Zacks.com audience. Dr. Scott W. & Nadine Wong provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "BioTech Stock Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "BioTech Stock 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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(SPY) - (DIA) - (NYC) - Jack Schannep, Schannep Timing Indicator newsletter

Jack Schannep, editor of the Schannep Timing Indicator newsletter, explains that as long as the market wants to go up investors should go along for the ride. When the market finally stalls out, then might be the time to continue scaling out. Read this featured expert’s market overview and find out why compares his days of being an Air Force Instructor Pilot to today’s market. OVERVIEW: from January 1 As an old, bold pilot, Jack Schannep can hardly even say the words “bail out”, but if the aircraft is crashing then you’d better not only say it, but you’d better DO it! Schannep is reminded of one time as an Air Force Instructor Pilot when a hole popped out of the canopy on a training flight at high altitude – there was a lot of noise and air swirling around the cockpit as we had instant decompression. Schannep told his student to turn his oxygen to 100% and, as a signal to his panicked student, Schannep shook the stick and told him that Schannep himself would take control of the aircraft. Schannep needed to yell to him through the radio so he could hear Schannep over the pandemonium, to explain that they had a “hole in the canopy” which was behind him so he couldn’t see it, to which he answered “blow the canopy?” No, Schannep did NOT want him to blow off the canopy – Schannep wanted him to sit tight even as Schannep rolled over to an inverted position and started a dive down to lower altitude. Without yelling, Schannep, who deals in Spiders (SPY), Diamonds (DIA) and the iShares NYSE Composite Index (NYC), reiterates: low market prices are meant for buying, which Schannep and his team started in 2002, and high prices are meant for selling, which Schannep, suggested is starting to happen now. As long as the market wants to go up you’ve got to go along for the ride. When it finally stalls out, then might be the time to continue scaling out, but for now stay 90% invested. This article highlights the commentary of Jack Schannep for the Zacks.com audience. Jack Schannep provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Schannep Timing Indicator & theDowTheory" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Schannep Timing Indicator & theDowTheory" 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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