BF - BASF Aktiengesellschaft - Consensus estimates for this year are up huge over the past 60 days

BASF Aktiengesellschaft (BF) recently reported solid results for the fourth quarter and full year of 2006. The Zacks #1 Rank company has returned value to shareholders through dividend payments and announced a share repurchase program that will take place in 2007 and 2008. Consensus estimates for this year are up huge over the past 60 days. The company has a price-to-book ratio of 2.7, compared to 4.3 for the market. Full Analysis BASF Aktiengesellschaft is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. The company has customers in more than 170 countries and production sites in 41 countries. BF is headquartered in Ludwigshafen, Germany. On Feb 22, BF reported fourth-quarter profits of EUR 732 million ($962 million), compared to EUR 560 million in the prior-year period. Revenues increased 23.5% to EUR 14.47 billion ($19.02 billion). For the full year, profits came in at EUR 3.2 billion ($4.21 billion), up from EUR 3 billion in 2005. The earnings were backed by higher prices in the oil & gas segment, improved volume and price mix in the plastics segment, partially offset by lower earnings in the agricultural products segment. Revenues jumped 23% to EUR 52.6 billion ($69.1 billion). The rise in sales was mainly attributable to higher prices, especially in the oil & gas segment, improved volumes and the positive impact of acquisitions Chairman Dr. Jurgen Hambrecht stated, "Our ambitious team has achieved this using its own strength. The economic tailwind also aided us. Our value-enhancing acquisitions in the areas of catalysts, construction chemicals and resins for paint and printing systems have helped us to grow in highly innovative areas and have brought us closer to our customers." The Board of Directors recently announced it expects to pay an annual dividend for the full year 2006 of euro3.00 per share. In 2005, BF distributed a dividend of EUR 2.00 per share. The company is currently yielding 1.8%. Moreover, its Board resolved to repurchase shares for a total of EUR 3 billion in 2007 and 2008. Looking ahead, BF's expansion in Asia is likely to be the key driver of its long-term growth. Also, recent acquisitions (Engelhard Corp., Degussa Chemicals and Johnson Polymers) will help to strengthen the company's product portfolio. Analysts are optimistic about the company's future prospects. Consensus estimates for this year are up huge over the past 60 days--83 cents to $8.66 per share. BF is currently trading at a valuation of 12.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.4x current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.7, compared to 4.3 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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BWA - BorgWarner, Inc - Analysts responded to the company's bullish guidance by adjusting their profit forecasts upward

BorgWarner, Inc. (BWA) exceeded analysts� earnings expectations in nine out of the past 11 quarters. In early-February, the company upped its full-year 2007 earnings per share guidance by 10 cents to between $4.70 and $4.90. Analysts responded to the company�s bullish guidance by adjusting their profit forecasts upward. On Nov 16, the Board of Directors authorized a 6% increase in its quarterly cash dividend to 17 cents per share. Full Analysis BorgWarner, Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 63 locations in 18 countries. On Feb 8, BWA posted fourth-quarter profits of 99 cents per share. With the Street looking for 94 cents, the company surprised by 5.3%. Compared to the fourth quarter of last year, however, profits were down as BWA undergoes a restructuring process to counter weakness in the North American market. BWA exceeded analysts' earnings expectations in nine out of the past 11 quarters. Revenues climbed to $1.2 billion from $1.05 billion in the prior-year period. For the entire year, profits came in at $211.5 million, or $3.65 per share, compared to $239.6 million, or $4.17 per share, in 2005. Revenues increased to $4.59 billion from $4.29 billion last year. Chairman and CEO Tim Manganello stated, "Looking ahead, the process of stabilizing our business in North America, while difficult, has left us a stronger, leaner company better equipped to manage the dynamics of that market. Furthermore, powertrain technology trends around the world, which continue to move toward improved fuel economy, lower emissions and better vehicle performance, indicate strong growth for the company." Based on the fourth-quarter restructuring, BWA upped its earnings per share guidance to between $4.70 and $4.90. The outlook was 10 cents per share higher than its previous forecast. Analysts responded to the company's bullish guidance by adjusting their profit forecasts upward. Estimates for this quarter and next are up five cents to $1.17 and $1.31, respectively, over the past two months. Estimates for this year and next jumped 12 cents and 21 cents, respectively, over the same period of time. Earnings per share are expected to grow 12% over the next 3-5 years, with the industry projected to grow by 11%. On Nov 16, the Board of Directors authorized a 6% increase in the company�s quarterly cash dividend to 17 cents per share. BWA is currently yielding 0.90%, with a five-year average dividend yield of 1.0%. BWA 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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LAZ - Lazard, Ltd - company has exceeded earnings estimates in five out of the past six quarters

The company has exceeded earnings estimates in five out of the past six quarters. Earnings estimates for this year have jumped 17 cents to $2.80 per share over the past 60 days. Next year's numbers have risen an impressive 58 cents to $3.18 per share. With the Mergers & Acquisition picture still looking bright, LAZ's earnings should continue to grow nicely. Full Analysis Lazard, Ltd. (LAZ), through its subsidiaries, operates as a financial advisory and asset management firm worldwide. The company operates primarily in two segments, Financial Advisory and Asset Management. The Financial Advisory segment offers a range of services regarding mergers and acquisitions, restructurings, and various other corporate finance matters, which include evaluating potential acquisition targets, providing valuation analyses, evaluating and proposing financial and strategic alternatives, rendering opinions, assisting in the determination of an appropriate capital structure, and evaluating and recommending financial and strategic alternatives. The company reported fourth-quarter earnings that easily exceeded analyst expectations. Net income on a fully exchanged basis for the fourth quarter of 2006 increased by 50% to $85.8 million, or $0.78 per common share (diluted), from $57.3 million, or $0.57 per common share (diluted) for the fourth quarter of 2005. Analysts only expected 62 cents per share. Operating income increased by 49% to $115.2 million for the fourth quarter of 2006, from $77.1 million for the fourth quarter of 2005. Operating revenue for the fourth quarter of 2006 increased by 27% to $491.5 million, from $387.7 million for the fourth quarter of 2005. "Lazard had an exceptional first full year as a publicly traded firm and these results demonstrate the continued effectiveness of our simple business model. We are particularly pleased to have successfully implemented our three-year plan in Asset Management," said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard Ltd. "We are a premium financial services firm that is committed to excellence, intellectual rigor, integrity and creativity for our clients on a global scale." Lazard is also becoming a player with its asset-management business. For example, in 2006, segment revenues increased 18% to $548 million, and net inflows of assets were $2.8 billion. In all, the firm has about $110 billion under management. The company has exceeded earnings estimates in five out of the past six quarters. Earnings estimates for this year have jumped 17 cents to $2.80 per share over the past 60 days. Next year's numbers have risen an impressive 58 cents to $3.18 per share. With the Mergers & Acquisition picture still looking bright, LAZ's earnings should continue to grow nicely. 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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DSX - Diana Shipping, Inc - Upward revisions were submitted by two covering analysts for this year and next

Diana Shipping, Inc. (DSX), a Zacks #1 Rank stock, reported solid results for the fourth quarter in late-February. The Board of Directors recently declared a cash dividend of 46 cents per share of common stock. Consensus estimates have been trending higher for DSX. The company has a price-to-book ratio of 2.7 and its return on equity tops that of the industry average. Full Analysis Diana Shipping, Inc. is a global provider of shipping transportation services, and specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials. The company's combined fleet consists of 13 modern Panamax dry bulk carriers and six Capesize dry bulk carriers. On Feb 21, DSX posted fourth-quarter earnings per share of 37 cents, beating the Street's estimate by a penny. The company posted profits of 34 cents per share in the fourth quarter of last year. DSX topped analysts' earnings expectations in two out of the past three quarters. Voyage and time charter revenues came in at $35.2 million, compared to $24.0 million for the prior-year period. For the entire year, profits amounted to $61.1 million, versus $65.0 million for 2005. Revenues jumped 12.6% to $116.1 million from $103.1 million last year. The Board of Directors recently declared a cash dividend of 46 cents per share of common stock. Chairman and CEO Simeon Palios stated, 'We believe that our strategy of expanding our fleet, while maintaining a flexible chartering policy that permits the company to benefit from the dynamic nature of the freight market, has driven our strong results and enabled us to continue increasing our dividend for the fourth quarter of 2006 to 46 cents per share.' Consensus estimates for both this quarter and next are each up a penny over the past 30 days. Two of the five covering analysts upped their estimates. Profit forecasts for this year and next have experienced two- and three-cent improvements, respectively, over the same period of time. Upward revisions were submitted by two covering analysts for both periods. On Mar 6, DSX announced the purchase of a dry bulk carrier from an unnamed third party for $110 million. The vessel will be renamed Aliki and is projected to be delivered on or about Apr 30. DSX also stated that it has entered into a time charter contract with Cargill International SA for the Aliki, which should produce gross revenues of around $37 million during the first two years and $32 million during the third and fourth years. DSX is currently trading at a valuation of 11.4x current fiscal-year estimated earnings and at 11.8x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.5x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.7, compared to 4.3 for the market. DSX's return on equity tops that of the industry average - 17% compared to 15%. 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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PRE - PartnerRe, Ltd - absolutely crushed the consensus estimate of $2.46 by 49.2%

PartnerRe, Ltd. (PRE) exceeded analysts' earnings expectations in 11 out of the past 12 quarters by an average margin of 23.0%. Consensus estimates for both this year and next are up over the past two months. On Jan 25, the Board of Directors announced an increase in the company's annual dividend by 7.5% to $1.72 per common share. PRE has a current dividend yield of 2.5% and a five-year average dividend yield of 2.3%. Full Analysis PartnerRe, Ltd., through its subsidiaries, provides reinsurance and risk management solutions worldwide. Risks reinsured include property and casualty/motor, catastrophe, life, alternative risk transfer and specialty lines: agriculture, aviation & space, credit & surety, energy on-shore, engineering, marine and energy off-shore, specialty casualty and specialty property. PRE's history of beating the Street's earnings estimate should catch the attention of investors. The company topped analysts' expectations in 11 out of the past 12 quarters by an average margin of 23.0%. Over the past 16 quarters, PRE surprised to the upside on 14 occasions, matched estimates once and missed once. Earnings per share grew 27.4% over the past five years. On Feb 5, PRE reported fourth-quarter earnings per share of $3.67. The result absolutely crushed the consensus estimate of $2.46 by 49.2%. The company lost $1.42 per share in the fourth quarter of 2005. Net premiums written experienced an 8.3% jump to $721.3 million when compared to the prior-year period. Total revenues increased 7.5% to $1.15 billion. For entire year, net premiums written nudged up slightly to $3.7 billion from $3.6 billion for 2005. Total revenues slipped to $4.19 billion from $4.21 billion, while profits came in at $749.3 million, compared to a loss of $51.1 million for last year. President and CEO Patrick Thiele stated, 'We had a record fourth quarter to close out an exceptional year in 2006. Each of our business units established new records in 2006, and this reflects a combination of excellent underwriting and portfolio construction, growth in those lines and markets with the most attractive risk/return opportunities, and benign loss experience.' The consensus estimate for this year currently sits at $8.34. When compared to the consensus of 60 days earlier, it jumped five cents. Profit forecasts for next year are up 19 cents to $8.60 over the same period of time. Earnings per share are projected to grow 12% over the next 3-5 years, with the industry expected to grow at an 11% clip. On Jan 25, the Board of Directors announced an increase in the company's annual dividend by 7.5% to $1.72 per common share, from $1.60 per share. It represented the 14th consecutive year that PRE has boosted the common share dividend since its inception in 1993. The company has a current dividend yield of 2.5% and a five-year average dividend yield of 2.3%. PRE's return on equity easily surpasses that of the industry average'21% compared to 14%. 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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TIE - Titanium Metals Corp - reported operating income of $109.5 million - an increase of 74%

Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected growth rate of 25%. Full Analysis Titanium Metals Corporation (TIE), together with its subsidiaries, produces titanium melted and mill products for commercial aerospace, military, industrial, and other applications worldwide. It offers titanium sponge, which is the basic form of titanium metal used in titanium products; and melted products, such as ingot, electrodes, and slab that are the result of melting sponge and titanium scrap either alone or with various alloys. The company also provides mill products that are forged and rolled from ingot or slab products, including billets, bars, plates, sheets and strips, and pipes; and fabrications, which comprise spools, pipe fittings, manifolds, and vessels that are cut, formed, welded, and assembled from titanium mill products. Titanium Metals Corporation sells its products directly in the United States and Europe, as well as through independent agents and distributors worldwide. Demand for the company's products are strong as evidenced by the decision to expand production. TIE said it plans to expand production of titanium sponge, the porous metal used in manufacturing titanium alloys, to meet strong demand for its metals products. The company plans to build a new factory with capacity for 10,000 to 20,000 metric tons of titanium sponge, with room for future expansion. Titanium Metals reported operating income of $109.5 million for the quarter ended December 31, 2006 compared to $63.0 million for the quarter ended December 31, 2005, an increase of 74%. The increase in operating income results primarily from increases in average selling prices and sales volume, partially offset by increases in raw material costs. Steven L. Watson, Vice Chairman and Chief Executive Officer, said, "TIMET maintained strong sales volumes and operating margins during the fourth quarter of 2006. We achieved operating income margins of approximately 34% for the fourth quarter and 32% for the full year 2006, despite continued volatility in certain raw material and energy costs. We remain focused on investment in expansion of our productive capacity across all areas of our manufacturing operations to position ourselves to capitalize on the positive outlook for growth in key market segments." Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected growth rate of 25%. 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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USHS - US Home Systems Inc - return on equity of 18.6% betters the industry average of 13.3%

US Home Systems Inc. (USHS) surpassed analyst expectations for the second consecutive quarter. The Zacks #1 Rank stock currently trades at a discount to both the market and its industry. With a strong expansion strategy and new products in the pipeline, US Home Systems seems poised for further growth. Full Analysis U.S. Home Systems, Inc. manufactures or procures, designs, sells and installs custom quality specialty home improvement products for The Home Depot in certain markets. The company's home improvement products are marketed nationally under The Home Depot Kitchen and Bathroom Refacing and The Home Depot Installed Decks brand. The company's product lines include kitchen cabinet refacing products utilized in kitchen remodeling, bathroom tub liners and wall surround products utilized in bathroom remodeling, wood decks and related accessories. The company manufactures its own cabinet refacing products, bathroom cabinetry and wood decks. The business of the company's consumer financing subsidiary is to source and service retail installment obligations. On Mar 19, US Home Systems reported fourth quarter EPS of 19 cents, up 280% from last year, and three cents above expectations. Driving the surprise was a 44% increase in revenues to $32.8 million. For the full year 2006, revenues rose by 23% to $120.8 million, fueling gross profit margins of 52.8%, up from 49.1% the prior year. According to CEO, Murray Gross, "During 2006 we completed a major transformation of our home improvement business. We executed a new expansion program under our Home Depot agreement, opening new sales and installation centers in eight new markets, and expanding our deck product offering to three additional markets where we already had kitchen refacing centers." The company is also working with The Home Depot to introduce a new designer under-deck system, with the pilot program to begin late second quarter 2007. The product is designed to cosmetically present a finished under-deck ceiling. It will also capture and divert water and other materials away from areas below the deck. The latest 18.7% earnings surprise was the second consecutive quarterly surprise for US Home Systems. Prior to the earnings announcement, the covering analyst increased the company's 2007 profit projections by two cents. After the latest earnings report, estimates were raised again by an additional three cents to 93 cents. USHS is currently trading at a valuation of 13.7x current fiscal-year estimated earnings and at 11.2x 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 also trades at a discount to the industry's respective current and next fiscal-year estimated earnings of 19.5x and 16.5x. USHS has a price-to-book ratio of 3.9, compared to 4.2 for the market and 2.2 for the industry in which it participates. The company's return on equity of 18.6% betters the industry average of 13.3%. 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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KNL - Knoll, Inc - Three analysts have raised their forecasts for this year

The company has exceeded earnings estimates in each of the past five quarters. Year-over-year growth has averaged over 40% over that time. Three analysts have raised their forecasts for this year. Over the past 60 days, this year's estimates have risen nine cents to $1.46 per share. The stock is attractively valued at 13.4x next year's estimate, well below the 25.4% long-term growth rate. Full Analysis Knoll, Inc. (KNL) operates as a designer and manufacturer of branded office furniture products and textiles. It offers its products in five categories: office systems; specialty products; seating; files and storage; and desks, casegoods, and tables. The company?s office systems include typically modular and moveable workspaces with functionally integrated panels, work surfaces, desk components, pedestal and other storage units, power and data systems, and lighting. Knoll's specialty products line includes classic modern furniture for the workplace, home, hotels, restaurants, and government and educational institutions, which include a range of lounge seating; side, cafe, and dining chairs; barstools; and conference, dining, and occasional tables; upholstery, panel fabrics, wall coverings, and drapery for corporate, hospitality, healthcare, and residential interiors. The company announced fourth-quarter earnings that exceeded analyst expectations. Net sales were $273.0 million for the quarter, an increase of 23.1% from fourth quarter 2005. Operating income was $35.6 million or 13.0%, an increase of 40.2% from the fourth quarter 2005, net income was $18.0 million, an increase of 89.5% over the fourth quarter 2005, and adjusted earnings per share was $0.37 compared to $0.24 per share in the prior year. "2006 was a great year for Knoll," said Andrew Cogan, Chief Executive Officer. "Not only did we expand our industry leading operating margins and deliver very strong double digit growth in sales, operating profit, net income and EPS, but we also continued to build on the initiatives that have helped us generate above industry growth the past 2 years." "In 2006, we were simultaneously able to improve our leverage ratio, reduce our share count and increase our dividend as we put our free cash flow and strengthened balance sheet to work for the benefit of our shareholders." The company has exceeded earnings estimates in each of the past five quarters. Year-over-year growth has averaged over 40% over that time. Three analysts have raised their forecasts for this year. Over the past 60 days, this year's estimates have risen nine cents to $1.46 per share. The stock is attractively valued at 13.4x next year's estimate, well below the 25.4% long-term growth rate. 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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ICFI - ICF International, Inc - blew away fourth-quarter earnings - lifted its forecast for 2007

ICFI has only been public since September, but things are certainly moving in the right direction. Earnings estimates for this year have rocketed higher over the past week, gaining 23 cents to $1.34 per share. Even with the latest surge in the stock, it is still trading at a price/book ratio of 2.2, below the industry average. The stock is also cheap on a price/earnings basis, trading at 12.9x next year's estimates. Full Analysis ICF International, Inc. (ICFI) and its subsidiaries provide management, technology, and policy consulting and implementation services primarily to the U.S. federal government, as well as to other government, commercial, and international clients. Its services primarily address defense and homeland security; energy; environment and infrastructure; and health, human services, and social programs markets. The company's advisory and management consulting services include needs and markets assessment, policy analysis, strategy and concept development, change management strategy, enterprise architecture, and program design. Its implementation services include information technology solutions, project and program management, project delivery, strategic communications, and training. ICFI said last week one of its units received a five-year, $22.1 million contract to provide consulting services on how to allocate federal resources to best protect U.S. infrastructure. The Department of Homeland Security's Office of Infrastructure Protection awarded the pact. ICF said it will provide management, analytical and technical consulting on how government resources should be deployed to "offer the most benefit for mitigating risk" of terrorist attacks on national infrastructure. The stock got a huge boost after the company blew away fourth-quarter earnings and lifted its forecast for all of 2007. Quarterly earnings totaled $9.2 million, or 65 cents per share, compared with a prior-year loss of $1 million, or 11 cents per share. Wall Street, on average, expected quarterly earnings of 31 cents per share. Revenue surged to $113.9 million from $51.8 million, compared with analysts' expectations of $100 million. ICFI has only been public since September, but things are certainly moving in the right direction. Earnings estimates for this year have rocketed higher over the past week, gaining 23 cents to $1.34 per share. Even with the latest surge in the stock, it is still trading at a price/book ratio of 2.2, below the industry average. The stock is also cheap on a price/earnings basis, trading at 12.9x next year's estimates. 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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MS - Morgan Stanley - analysts have increased estimates repeatedly throughout the year

Morgan Stanley (MS) recently surpassed fiscal first quarter expectations by 27% on record revenues, the sixth consecutive double-digit earnings surprise. Despite the consistent earnings momentum, the Zacks #1 Rank stock trades at a discount to both the industry and the overall market. Full Analysis Morgan Stanley Dean Witter is a preeminent global financial services firm that maintains leading market positions in each of its three primary businesses: securities; asset management; and credit services. The company combines global strength in investment banking and institutional sales and trading with strength in providing full-service and on-line brokerage services, investment and global asset management services and primarily through its Discover Card brand, quality consumer credit products. On Mar 21, the company reported fiscal first quarter EPS of $2.40 cents, up from $1.79 the prior year, and 51 cents above expectations. Driving the surprise was a 29% increase in net revenues to $11.0 billion. Particular success could be seen in the Institutional Securities Segment, which includes investment banking and stock and bond sales and trading, as the group reported record pre-tax income of $3.0 billion, up 71% from the year-ago period. In December, the company announced plans to spin-off its Discover unit in order to focus on the core businesses of investment banking and asset management. The credit card company has performed poorly relative to competitors, most recently posting a 22% decline in year-over-year pre-tax income. Concern of late has centered on the bank's exposure to the subprime mortgage sector; however, CFO David Sidwell commented that the mortgage business was a significant contributor in the recent earnings announcement. In addition, he believes the problems in the subprime markets won�t spread. "We believe this could be a reasonably limited event, as we have not seen any signs that the subprime deterioration has spread to other parts of the market." The Mar 21 report marked the sixth consecutive double-digit earnings surprise. As a result of the company's consistent earnings momentum, analysts have increased estimates repeatedly throughout the year. Most recently, expectations have been revised on two occasions and currently stand at $7.83, up 59 cents from pre-earnings release levels. MS is currently trading at 10.4x current fiscal-year estimated earnings, a substantial discount to the S&P 500 multiple of 15.6x and respective industry multiple of 16.2x. Furthermore, the company trades at 10.0x next fiscal-year estimated earnings, still under the respective market multiple of 14.4x. In addition, the company has a Price to Book Ratio of 2.5x, well below the S&P 500 Price to Book of 4.3x. While trading at a discount to both the market and the industry, Morgan Stanley has a ROE of 25.8%, well above the industry average of 14.5%. 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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CHRW - C.H. Robinson Worldwide, Inc - strength in the truckload sector - phenomenal growth in earnings and revenue

The company has exceeded earnings estimates in each of the past six quarters. Six analysts have raised their forecasts for this year. Earnings estimates have increased four cents to $1.75 per share over the past 60 days. CHRW sports an excellent 30% ROE, well ahead of the industry average. The stock is trading at about 24x next year's estimates of $2.02 per share. Full Analysis C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation services and logistics solutions worldwide. The company, through its relationships with transportation companies, such as motor carriers, railroads, air freight, and ocean carriers, provides multimodal and appropriate transportation services for its customers' freight needs. It also provides fresh produce sourcing services, including buying, selling, and brokering of fresh produce to grocery retailers, produce wholesalers, restaurants, and foodservice distributors. CHRW has achieved phenomenal growth in earnings and revenue, primarily due to strength in the truckload sector, pricing power from tight carrier capacity, productivity gains, operating expense leverage and acquisitions. The domestic economy is expected to continue to drive domestic freight volume growth. This increase in freight volumes combined with good pricing is expected to generate 15%-plus year-over-year increases in revenue going forward. CHRW is expanding its branch office network and remains committed to its flexible, multimodal business model, which is very advantageous for its transactional Transportation market. Moreover, acquisitions have proved a strong factor in contributing to the company's sustained 15% long-term revenue and earnings growth target. With a cash and securities position of $474 million and no debt at the end of the fourth quarter, the company enjoys a strong liquidity position. There is the possibility of the company using its cash to buy back stock, pay special dividends or both. In fact, the company recently increased its quarterly dividend by 38% to $0.18 from $0.13, and repurchased over $23 million of common stock in the fourth quarter. The company has exceeded earnings estimates in each of the past six quarters. Six analysts have raised their forecasts for this year. Earnings estimates have increased four cents to $1.75 per share over the past 60 days. CHRW sports an excellent 30% ROE, well ahead of the industry average. The stock is trading at about 24x next year's estimates of $2.02 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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BDY - Bradley Pharmaceuticals, Inc - exceeded estimates in 2 of 3 quarters, with surprises averaging 45%

Bradley has exceeded earnings estimates in two out of the past three quarters, with the positive surprises averaging 45%. One of the two covering analysts raised his estimates for this year. Over the past month, this year's estimates have risen eight cents to 97 cents per share. The stock sports an ROE of 9%, well above the industry average of -4%. Full Analysis Bradley Pharmaceuticals, Inc. (BDY), a pharmaceutical company, engages in acquiring, developing, and marketing prescription and over-the-counter products. It offers various dermatologic and podiatric products, including ADOXA and ZODERM for acne; ROSULA AQUEOUS for rosacea and acne; ROSULA NS PADS for antibacterial treatment; KEROL REDI-CLOTHS and KERALAC for mild to severe dry skin; and KERALAC GEL and KERALAC NAILSTIK for mild to severe dry skin and nail disorders. The company also offers CARMOL for mild to severe dry skin, xerosis, nail disorders, and inflammatory skin conditions; VEREGEN for external genital or perianal warts; SOLARAZE for actinic keratoses and pre-cancerous skin lesions; LIDAMANTLE HC for topical anesthetic and anti-inflammatory; ACIDMANTLE, a cosmetic skin pH balancer; ZONALON for topical anesthetic; SELSEB and CARMOL SCALP LOTION for dandruff; and AFIRM and BETA-LIFT for office procedure for chemical peels. BDY said in mid-March it swung to a fourth-quarter profit, as increased product sales helped it offset competition from some cheaper generics. Quarterly earnings totaled $1.1 million, or 7 cents per share, compared with a prior-year loss of $988,683, or 6 cents per share. The company said the recent quarter included a $3.5 million initial licensing fee, which shaved 13 cents per share off its earnings, and a charge of 4 cents per share related to stock-based compensation costs. Revenue rose to $37.7 million from $30.9 million in the prior-year quarter. President and CEO, Daniel Glassman, stated, "During 2006, Bradley's business strategy evolved to a Commercialize, Develop and In-License model. Bradley's experience in bringing brands to market, expertise in product promotion, knowledge of the niche markets we serve and strong relationships with target physicians makes Bradley well-equipped to successfully commercialize innovative, patent-protected therapies. Bradley's transition to its new business strategy offers Bradley opportunities for portfolio expansion as well as increased sales." Bradley has exceeded earnings estimates in two out of the past three quarters, with the positive surprises averaging 45%. One of the two covering analysts raised his estimates for this year. Over the past month, this year's estimates have risen eight cents to 97 cents per share. The stock sports an ROE of 9%, well above the industry average of -4%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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