RS - Reliance Steel & Aluminum Co - Board of Directors declared a 33% boost in the company’s regular quarterly cash dividend

Reliance Steel & Aluminum Co. (RS), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 13 consecutive quarters and in 15 out of the last 16. During the first quarter RS completed three metals service center acquisitions. On Feb 14, the Board of Directors declared a 33% boost in the company’s regular quarterly cash dividend. RS has a price-to-book ratio of 2.3, compared to 4.5 for the market. Its PEG ratio currently sits at 0.51. Full Analysis Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. The company’s network consists of 150 locations in 37 states, Belgium, Canada, China and South Korea. RS distributes a full line of more than 90,000 metal products. These products include galvanized, hot-rolled and cold-finished steel, stainless steel, aluminum, brass, copper, titanium and alloy steel sold to more than 95,000 customers in a broad range of industries. On Apr 19, RS reported first-quarter earnings per share of $1.46. With the Street calling for $1.30 per share, the company topped expectations by 12.3%. Compared to earnings of $1.07 per share in the prior-year period, the result equated to an impressive 36.4% year-over-year improvement. RS has now exceeded analysts’ earnings expectations in 13 consecutive quarters and in 15 out of the last 16. Revenues soared 86.2% to $1.84 billion from $988 million in the year-ago period. CEO David H. Hannah stated, "We are very pleased with our 2007 first-quarter results. Overall, customer demand was steady throughout the quarter at what we consider to be a healthy level." During the first quarter, RS finalized three metals service center acquisitions: Encore Group of metals service center companies (Encore Metals, Encore Metals (USA), Inc., Encore Coils and Team Tube in Canada), Crest Steel Corporation and Industrial Metals and Surplus, Inc. The consensus estimate for this year currently calls for profits of $5.88 per share. Compared to the consensus of 60 days earlier, it jumped 50 cents. Profit forecasts for next year increased 73 cents to $6.17 over the same period of time. Earnings per share are projected to grow 19% over the next 3-5 years. The industry is expected to grow by 14%. On Feb 14, the Board of Directors declared a 33% boost in the company’s regular quarterly cash dividend to eight cents per share of common stock. Its second-quarter dividend is payable on Jun 22 to shareholders of record as of Jun 1. RS distributed regular quarterly dividend payments for 47 straight years. The company has a current dividend yield of 0.56%. RS is currently trading at a valuation of 9.7x current fiscal-year estimated earnings and at 9.2x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x current fiscal-year estimated earnings and at 15.3x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.3, compared to 4.5 for the market. Its PEG ratio currently sits at 0.51. RS’s return on equity surpasses that of the industry average—24% 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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WMI - Waste Management, Inc - earnings beat the Street’s estimate of 36 cents by 19.4%

Waste Management, Inc. (WMI) beat the consensus earnings estimate in seven straight quarters by an average margin of 10.7%. Based on its first-quarter results, WMI raised its full-year 2007 earnings per share guidance to between $2.03 and $2.07. During the first quarter the company returned $613 million to shareholders in the form of dividends and share repurchases. WMI has a current dividend yield of 2.5% and a five-year average dividend yield of 1.6%. Full Analysis Waste Management, Inc. is a waste management firm whose network of operations includes 413 collection operations, 370 transfer stations, 283 active landfill disposal sites, 17 waste-to-energy plants, 131 recycling plants, 95 beneficial-use landfill gas projects and six independent power production plants. WMI offers a full range of environmental services to nearly 21 million residential, industrial, municipal and commercial customers. WMI topped analysts’ earnings expectations in seven straight quarters by an average margin of 10.7%. The company managed to surprise by a double-digit percentage in four of the seven aforementioned quarters. On Apr 27, WMI posted first-quarter earnings per share of 43 cents, beating the Street’s estimate of 36 cents by 19.4%. The company reported profits of 35 cents per share in the prior-year period. Revenues declined slightly to $3.19 billion from $3.23 billion a year prior. CEO David P. Steiner stated, "Our first-quarter 2007 financial performance exceeded our expectations and demonstrated that our pricing and operational excellence programs continue to positively impact our results. We again accomplished our primary financial goals of earnings growth, margin expansion and strong free cash flow." Based on its first-quarter results, WMI raised its full-year 2007 earnings per share guidance to between $2.03 and $2.07. The consensus estimate for this year is up nine cents to $2.05 over the past 60 days. Profit forecasts for next year have risen 10 cents to $2.24 over the same period of time. Earnings per share are projected to grow 12.0% over the next 3-5 years. On May 11, the Board of Directors declared a quarterly cash dividend of 24 cents per share. The dividend is payable on Jun 22 to stockholders of record as of Jun 4. WMI has a current dividend yield of 2.5% and a five-year average dividend yield of 1.6%. In addition to paying dividends to its shareholders, in early March the Board approved the repurchase of up to an additional $600 million in common shares during 2007. During the first quarter the company returned $613 million to shareholders in the form of dividends and share repurchases. WMI 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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EDU - New Oriental Education & Technology Group, Inc - 22 cents per share, well ahead of the 11 cents expected from analysts

New Oriental Education is involved in a hyper-growth market that will provide demand for its services for the foreseeable future. The company is newly public, but has exceeded earnings estimates by an average of 150% over the past two quarters. Earnings estimates have been moving higher for this year as well. Over the past 60 days, this year's estimates have increased five cents to 80 cents per shares. Full Analysis New Oriental Education & Technology Group, Inc. (EDU) provides private educational services based on the number of program offerings, total student enrollments, and geographic presence in China. It offers a range of educational programs, services, and products consisting primarily of English and other foreign language training; test preparation courses for admissions and assessment tests in the United States, the People's Republic of China, and Commonwealth countries; primary and secondary school education; development and distribution of educational content; software and other technology; and online education. In mid-April, the company said its third-quarter profit rose sharply on revenue gains. For the quarter ending Feb. 28, net income rose to 65.3 million yuan ($8.4 million), or 1.72 yuan per share American Depository Share (22 cents per ADS) from 10.2 million yuan in the prior year period. This works out to 22 cents per share, well ahead of the 11 cents expected from analysts. The company said revenue climbed 51% to 255.1 million yuan ($33 million) from 168.6 million yuan in the third quarter of 2006. Analysts predicted revenue of $27.3 million for the quarter. New Oriental said the revenue rise was due to an 8% increase in student enrollments in language training and test preparation courses. "Our strong brand recognition in the Chinese private education market and leading course offering contributed to an increase in student enrollments and guidance-beating top line growth," said Mr. Michael Yu, New Oriental's Chairman and Chief Executive Officer. "In the third quarter of fiscal year 2007, we continued to expand our network by establishing new learning centers in Shanghai, Wuhan, Shenyang, Taiyuan, Jinan and Shijiazhuang, and improved our Elite English and online professional development programs through licensing agreements with leading international educational companies." 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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GMRK - GulfMark Offshore, Inc - return on equity beats that of the industry average - 20% compared to 15%

GulfMark Offshore, Inc. (GMRK), which was first highlighted as a Value pick on Nov 9, 2006, has returned a solid 31%. GMRK exceeded analysts' earnings expectations in four consecutive quarters by an average margin of 38.4%. Consensus estimates have risen over the past 60 days. The company has a price-to-book ratio of 2.0 compared to 4.5 for the market. Full Analysis GulfMark Offshore, Inc., together with its subsidiaries, provides offshore marine services primarily to companies involved in offshore exploration and production of oil and natural gas. The majority of the company's operations are conducted in the North Sea, with the balance in offshore Southeast Asia, Brazil, West Africa and India. GMRK has fleet of 61 offshore support vessels. Since GMRK was first highlighted as a Value pick on Nov 9, 2006, it has returned a solid 29.8%. In the two quarters that have elapsed since its debut, the company posted two more positive surprises. GMRK has now exceeded the consensus estimate in four consecutive quarters by an average margin of 38.4%. The company managed to produce double-digit percentage surprises in all four quarters. Moreover, GMRK continues to trade at a discounted valuation and is still a Zacks #1 Rank stock. On Apr 30, GMRK posted first-quarter profits of 84 cents per share. The result surpassed the consensus estimate of 67 cents by 25.4% and marked a 180.0% year-over-year improvement. Revenues increased to $65.5 million from $47.7 million. Analysts were calling for revenues of $61 million. The company cited stronger results from its vessel fleets based in the North Sea and Southeast Asia as fueling the quarterly results. President and CEO Bruce Streeter stated, �First-quarter results are particularly noteworthy compared to our previous record quarters considering it contained fewer available operating days, generally has the largest impact from seasonality and had a higher number of completed drydocks. Our earnings are a reflection of the continued strong demand in all our market areas." Over the past 60 days, consensus estimates for this quarter and next have risen four cents and 10 cents to $1.08 and $1.38 cents, respectively. Profit forecasts for this year and next have risen 30 cents and 39 cents to $4.35 and $5.04, respectively, over the same period of time. GMRK is currently trading at a valuation of 11.3x current fiscal-year estimated earnings and at 9.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x current fiscal-year estimated earnings and at 15.1x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0 compared to 4.5 for the market. GMRK's return on equity beats that of the industry average - 20% 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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KNL - Knoll, Inc - profits of 30 cents per share, compared to 20 cents per share in the prior-year period

Knoll, Inc. (KNL), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in six straight quarters and in nine out of the past 10. In mid April the company reported solid first-quarter profits and revenues. Consensus earnings estimates for both this year and next are up over the past two months. Earnings per share are projected to grow by a robust 25% over the next 3-5 years. KNL has a current dividend yield of 1.9% and a five-year average dividend yield of 1.5%. Full Analysis Knoll, Inc. engages in the design, manufacture and sale of office furniture products and accessories. The company has operations in the United States, Canada and Europe, and sells its products primarily through its direct sales representatives and independent dealers. KNL exceeded analysts' earnings expectations in six straight quarters by an average margin of 7.3%. Moreover, the company beat the Street's estimate in nine out of the past 10 quarters. On Apr 19, KNL reported first-quarter profits of 30 cents per share, compared to 20 cents per share in the prior-year period. The result also amounted to a 7.1% positive surprise with analysts projecting 28 cents per share. Revenues came in at $247.9 million, up 13.7% versus $218.1 million in the first quarter of 2006. All of the company's product categories experienced double-digit growth. Backlog of unfilled orders as of Mar 31, 2007 was $193.5 million, a jump of 11.1% versus unfilled orders as of Mar 31, 2006. CEO Andrew Cogan stated, "Knoll is firing on all cylinders. Thanks to the breadth and diversity of our growth initiatives, for the third year in a row we are growing our sales faster than the industry. And, importantly in 2007, investments in our operations are resulting in significant improvements in both our gross and industry leading operating margins." KNL announced that it projects second-quarter 2007 revenues to be between $262 million and 272 million, which would represent an increase of 6% to 10% when compared to the second quarter of 2006. Earnings per share are expected to be between 35 cents and 37 cents. The consensus earnings estimate for this year is up four cents to $1.50 over the past 60 days. Profit forecasts for next year have risen by an even greater magnitude - eight cents to $1.81 over the same period of time. Earnings per share are projected to grow by a robust 25% over the next 3-5 years, with the industry expected to grow by only a 15% clip. On May 23, the Board of Directors declared a quarterly cash dividend of 11 cents per share. The dividend will be paid on Jun 29 to stockholders of record as of Jun 15. KNL has a very respectable current dividend yield of 1.9% and a five-year average dividend yield of 1.5%. 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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HAS - Hasbro, Inc - Hasbro has licensed the Star Wars brand from Lucasfilm and Lucas Licensing

Hasbro has been consistently exceeding earnings estimates over the past year. The company has posted four consecutive double-digit percentage surprises. Not surprisingly, this year's earnings estimates have jumped 23 cents to $1.84 per share over the past 60 days. Analysts are projecting 34% long-term earnings growth for the company. The stock has an impressive ROE of 19%. Full Analysis Hasbro, Inc. (HAS) is the world's second-largest manufacturer of toys. The company had total worldwide revenues in 2006 of $3.2 billion. In 2006, the company restructured its reporting segments, which now consist of the North American segment, which is responsible for all development, marketing, and selling operations in the U.S., Canada, and Mexico, the International Segment, which handles the same responsibilities in Europe, Asia, and Latin America, the Global Operations segment, which is responsible for the manufacturing and sourcing of the company's products, and the Hasbro Properties Group segment, which licenses intellectual properties to third parties for promotional and merchandising uses. Hasbro has licensed the Star Wars brand from Lucasfilm and Lucas Licensing, and 2005's sales benefited from the release of the Star Wars Episode III movie. No other product line accounted for more than 10% of total company sales in 2005 or 2006. The company is poised to continue on the success of licensing popular characters going forward. In January of 2006, Hasbro entered into a five-year arrangement with Marvel Characters, Inc. to develop products based on Marvel's library of over 5,000 characters, including Spider-Man, Fantastic Four, XMen and Captain America. Hasbro's first major release of toys and games under the agreement will be based on the Spiderman character, and will be promoted in conjunction with the Spiderman III movie scheduled to be released in May 2007. In addition, Hasbro seeks to leverage the popularity of its franchises by co-branding products, such as Monopoly -- Star Wars Edition and Candy Land -- Dora Edition. Hasbro also attempts to incorporate technological advances into its products by offering DVD versions of many of its classic games. The company also keeps its core brands fresh by introducing new products, such as Trivial Pursuit: 80's Edition and Monopoly Here & Now Edition. On April 23, Hasbro reported first quarter financial results. Revenues increased 34% over the prior year period to $625 million, with solid results across the company's portfolio. Revenue gains in the quarter were balanced between the company's Marvel business and all other company businesses. North American sales were up 36% in the quarter, while international sales were up 29%. 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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RE - Everest Re Group, Ltd - first-quarter earnings easily beat estimates by 34.5%

Everest Re Group, Ltd. (RE), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 20.6%. The company has returned value to its shareholders through both stock buybacks and dividend payments. RE has a price-to-book ratio of 1.3 compared to 4.5 for the market and 1.4 for the industry. Its return on equity tops that of the industry average - 19% compared to 13%. Full Analysis Everest Re Group, Ltd., through its subsidiaries, underwrites reinsurance and insurance products in the United States, Bermuda and internationally. The company underwrites virtually all classes and categories of business in treaty, facultative and specialty lines, both through brokers and directly with ceding companies. On Apr 23, RE reported first-quarter earnings per share of $4.13. The result easily surpassed the consensus estimate of $3.07 by 34.5%. The company posted profits of $2.41 per share in the first quarter of last year. RE has exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 20.6%, with all three amounting to double-digit percentage surprises. Total revenues came in at $1.20 billion, compared to $1.18 billion in the prior-year period. The company’s first-quarter combined ratio, a measure of profitability for insurance companies, improved to 82.4% from 94.5%. 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. Chairman and CEO Joseph V. Taranto stated, "We are extremely pleased with the results we have achieved thus far this year. The strength of our operations affords us the flexibility to sustain the financial strength of the organization while also returning cash to our shareholders in the form of increased dividends and share repurchases." RE bought back 3% of its outstanding shares during the first quarter. Moreover, on May 23, the Board of Directors declared a dividend of 48 cents per share. In late February, the Board boosted the dividend by 100%. RE has a current dividend yield of 1.83% and a five-year average dividend yield of 0.55%. The consensus earnings estimate for this year currently sits at $13.32. When compared to the consensus of 60 days earlier, it jumped 85 cents. Profit forecasts for next year are up 34 cents to $12.92 over the same period of time. The company is currently trading at a valuation of 7.9x current fiscal-year estimated earnings and at 8.1x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x current fiscal-year estimated earnings and at 15.2x next fiscal-year estimated earnings. RE has a price-to-book ratio of 1.3 compared to 4.5 for the market and 1.4 for the industry. Its return on equity tops that of the industry average—19% compared to 13%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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CBE - Cooper Industries, Ltd - leading worldwide manufacturer of electrical products and tools and hardware

Cooper Industries, Ltd. (CBE) topped analysts’ earnings expectations in 16 consecutive quarters. In late May, the company raised its second-quarter earnings per share guidance to between 76 cents and 78 cents. Consensus estimates for both this year and next have been trending higher. CBE has a current dividend yield of 1.6% and a five-year average dividend yield of 2.6%. Full Analysis Cooper Industries, Ltd. is a leading worldwide manufacturer of electrical products and tools and hardware. The electrical products segment manufactures, markets and sells electrical and circuit protection products. The tools segment manufactures, markets and sells hand tools, automated assembly systems and electric and pneumatic industrial power tools. When CBE was first presented as a Growth & Income pick on Nov 29, its strong history of exceeding analysts’ earnings expectations was noted. In the time that has elapsed, the company added two additional positive surprises. CBE has now beaten the Street’s estimate in 16 consecutive quarters. Earnings per share grew 17.7% over the past five years. On Apr 19, CBE reported first-quarter profits of 71 cents per share, compared to 57 cents per share in the prior-year period. In addition to achieving a 24.6% year-over-year improvement, earnings topped the consensus estimate by five cents. Revenues jumped 12.1% to $1.39 billion from $1.24 billion last year. Broken down by business segment, revenues in the electrical products division increased 14.2% to $1.21 billion while the tools segment climbed to $183.4 million from $180.3 million. Chairman and CEO Kirk S. Hachigian stated, "Strong utility demand and solid demand in the core industrial and nonresidential construction markets contributed to our performance in the quarter. Continued execution on international growth programs and ongoing benefits from company-wide strategic initiatives drove our results as well." On May 22, the company raised its second-quarter earnings per share guidance to between 76 cents and 78 cents. Its previous outlook called for profits between 72 cents and 76 cents per share. CBE cited continued strong demand in the utility and international end markets, as well as solid productivity improvements and price realization as fueling the improved guidance. Consensus estimates for both this year and next have been trending higher. Estimates for this year jumped 12 cents to $3.08 over the past two months. Profit forecasts for next year have risen 16 cents to $3.45 over the same period of time. Earnings per share are projected to grow 10.9% over the next 3-5 years. On Apr 24, the Board of Directors declared a quarterly cash dividend of 21 cents per common share of stock. The dividend is payable on Jul 2 to shareholders of record as of May 31. The company has a current dividend yield of 1.6% and a five-year average dividend yield of 2.6%. CBE’s return on equity of 21% betters the industry average of 15%. CBE is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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VLO - Valero Energy Corp - strong earnings and cash flows - current net debt-to-capitalization ratio is only 15%

Valero Energy is sitting in an enviable position in the tight refinery market. Combine this with a deft management, and you have a winner in Valero. The company has exceeded earnings estimates in four straight quarters. This year's earnings estimates have soared over the past 90 days, rising $1.55 to $8.95 per share. The stock has an ROE of 31%. Full Analysis Valero Energy Corporation (VLO) is the largest independent refiner and marketer of petroleum products in the U.S., with 3.3 million barrels per day in refining capacity in its 18 refineries located throughout the U.S., Canada, and the Caribbean. The company is also one of the largest independent retailers of refined petroleum products in the central and southwestern U.S. and eastern Canada, with more than 5,800 retail outlets under various brand names, including Diamond Shamrock, Valero, Ultramar, and Beacon. Valero remains advantageously positioned to capitalize on two major refining industry trends: a favorable supply-demand environment for petroleum products in the U.S. and widening discounts for heavy and sour varieties of crude oil relative to the more in-demand light and sweet varieties such as the U.S. benchmark, the West Texas Intermediate (WTI). Given the size, geographical diversity, and complexity (more than two thirds of its refining capacity is capable of processing heavy/sour crudes) of its portfolio of refining assets, Valero enjoys greater leverage to this favorable macro environment than any other independent refiner. Another positive for the company is its management's impressive track record of achieving profitable growth through acquisitions as well as organic projects. The Premcor acquisition is the most recent in a long line of transactions that have made Valero the largest U.S. refiner. Favorable trends in refined-product and crude oil supply/demand fundamentals have helped strengthen refining margins and widen light-sweet/heavy-sour spreads. Strong demand for refined petroleum products due to a steadily growing economy, coupled with constrained domestic refining capacity operating at an almost full utilization level and international suppliers inability to meet the more stringent product specifications, has helped keep recent refining margins at robust levels. Backed by strong earnings and cash flows, the company's leverage position has also improved steadily in the past few years and its current net debt-to-capitalization ratio is only 15%. Management indicated that the company's current debt level of $5.1 will be brought down to $4.6 billion during the course of the current year. 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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ZEUS - Olympic Steel, Inc - currently trading at a valuation of 10.8x estimated earnings - S&P 500 is 16.3x

Olympic Steel, Inc. (ZEUS) topped the consensus earnings estimate in seven out of the past eight quarters by an average margin of 18.3%. The company is increasing its capital spending in new equipment, facilities and technology solutions to support future growth. ZEUS has a price-to-book ratio of 1.4, compared to 4.5 for the market and 2.6 for the industry. This Zacks #1 Rank stock is currently yielding 0.37%. Full Analysis Olympic Steel, Inc. is a steel service center with its primary focus on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. The company operates as an intermediary between steel producers and manufacturers that require processed steel for their operations. On Apr 27, ZEUS posted first-quarter earnings per share of 49 cents, topping the Street’s estimate by two pennies. The company exceeded analysts’ earnings expectations in seven out of the past eight quarters by an average margin of 18.3%. In four out of the seven aforementioned quarters, ZEUS was able to surprise by a double-digit percentage. Net sales came in at $259.4 million, compared to $238.9 million in the prior-year period. Looking ahead, the company stated that it is increasing its capital spending in new equipment, facilities and technology solutions to support future growth. Chairman and CEO Michael D. Siegal stated, "In 2007, we have placed orders for a new Red Bud stretcher leveler cut-to-length line in Minneapolis, and new laser, plasma, and machining equipment in Cleveland and Chambersburg to support our growing value-add services. We have also broken ground on an expansion to our existing Iowa facility, and our previously announced new IT system project is proceeding on plan." Consensus estimates for this year are up three cents to $3.03 over the past 60 days. Profit forecasts for next year have risen by a larger amount—21 cents to $3.13 over the same period of time. The Board of Directors recently declared a quarterly cash dividend of three cents per share. The dividend will be paid on Jun 15 to shareholders of record as of Jun 1. The company has a current dividend yield of 0.37%. ZEUS is currently trading at a valuation of 10.8x current fiscal-year estimated earnings and at 10.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.3x current fiscal-year estimated earnings and at 15.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.4, compared to 4.5 for the market and 2.6 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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MRK - Merck & Co., Inc - Six analysts submitted upward revisions

Merck & Co., Inc. (MRK), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in six out of the past seven quarters. In mid April, MRK posted solid first-quarter profits and sales. Consensus earnings estimates for both this year and next are up over the past month. On May 22, the Board of Directors declared a quarterly cash dividend of 38 cents per share. The company has a current dividend yield of 3.0% and a five-year average dividend yield of 3.7%. Full Analysis Merck & Co., Inc. is a global research-driven pharmaceutical company. MRK discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company, established in 1891, also publishes unbiased health information as a not-for-profit service. On Apr 19, MRK surprised to the upside by 6.3% when it reported first-quarter profits of 84 cents per share. Compared to earnings of 78 cents in the prior-year period, the result marked a 7.7% year-over-year improvement for the company. MRK beat the Street’s earnings estimate in six out of the past seven quarters. Worldwide sales jumped 7.4% to $5.8 billion from $5.4 billion in the first quarter of last year. Analysts were expecting revenues of $5.36 billion. The company benefited from higher sales of its asthma and cholesterol drugs. President and CEO Richard T. Clark stated, "Many of our key products, both established and newly-launched, posted impressive growth and reinforced the underlying strength of our core business. Our performance in the first quarter is further evidence that the path we have charted to return Merck to a leadership position in our industry is the right one." The company has been able to successfully return to growth given the launch of four new vaccine products and the recent approval of Januvia for diabetes. Sales of existing drugs are tracking on plan, with earnings upside being driven by sales of the cholesterol franchise drugs Zetia and Vytorin, and the enormous ramp of HPV vaccine Gardasil. The consensus earnings estimate for this year has risen two cents to $2.93 over the past 30 days, with six covering analysts upping their projections. Estimates for next year are up three cents to $3.10 over the same period of time. Six analysts submitted upward revisions. Earnings per share are projected to grow 10.2% over the next 3-5 years. MRK’s rank in industry, in which stocks in a particular industry are judged by their Zacks Rank, is one out of 124. This clearly shows that MRK is one of the best in its respective industry. On May 22, the Board of Directors declared a cash dividend of 38 cents per share for the third quarter of 2007. The dividend is payable on Jul 2 to stockholders of record as of Jun 8. MRK is currently yielding 3.0% and has a five-year average dividend yield of 3.7%. The company’s return on equity, a common measure of profitability, is 30% compared to negative 8% for 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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ROSE - Rosetta Resources, Inc - acquisition, exploration, development, and production of oil and natural gas properties in the United States

Rosetta Resources has been generating strong earnings growth as evidenced by its recent record first-quarter results. As a result, analysts have been busy raising their earnings estimates. Over the past month, this year's numbers have risen eight cents to $1.35 per share, while next year's estimates have jumped 14 cents to $1.85 per share. The company's net margin is a solid 17.3%. Full Analysis Rosetta Resources, Inc. (ROSE), together with its subsidiaries, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. The company owns and operates properties located in the Sacramento Basin of California, south Texas, the State Waters of Texas, the Gulf of Mexico, and the Rocky Mountains. It has interests in Rio Vista Gas Field, and Sacramento Valley Extension project located in Sacramento Basin of California; the Lobo and Perdido Sand Trends located in south Texas; Vicksburg and Frio Trends in Galveston Bay, and Sabine lake located in State Waters of Texas; DJ and San Juan Basins in the Rocky Mountains; and in certain properties located in Mid-continent. The company announced that production and net income for the first quarter of 2007 was 108 Mmcfe/d and $14 million, respectively, both representing quarterly records for the company. Diluted earnings per share for the first quarter of 2007 were $0.28 versus 2006 earnings per share of $0.19, an increase of 47%. In the first quarter of 2007, production and net income were at their highest levels for the seven quarters that Rosetta has been an independent company. Revenues for Rosetta totaled $75.8 million for the quarter. This represents an 18% increase versus $64.5 million of revenues in the first quarter of 2006. Rosetta has drilled 15 wells in the LOBO play in 2007, two of which were drilling at year-end. Of these wells, 12 were productive with an 80% success rate. Eleven of the 12 successful wells have been completed and are currently producing at a net rate of approximately 8.8 Mmcfe/d. The remaining well is expected to be completed and on production later this month. Bill Berilgen, Rosetta's Chairman, President and Chief Executive Officer said, "The momentum we established in 2006 has continued into the first quarter of 2007 and we expect continued improvement in the upcoming 2007 quarters. We are on track to achieve our target of 125 Mmcfe/d average production for 2007." 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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