TRA - Terra Industries, Inc - exceeded expectations in two of the past three quarters by an average of 97.7% - 39% increase in estimates for next year

Terra Industries, Inc. (TRA) exceeded analysts’ earnings expectations in two out of the past three quarters by an average margin of 97.7%. Consensus earnings estimates for both this quarter and the full year have risen over the past week. This Zacks #1 Rank stock is authorized to repurchase 9.5 million shares by Jun 30, 2008. TRA is currently trading at a valuation of 14.8x current fiscal-year estimated earnings and at 11.7x next fiscal-year estimated earnings. Full Analysis Terra Industries, Inc., together with its subsidiaries, engages in the production and marketing of nitrogen and methanol products for agricultural and industrial markets in the United States, Canada, and the United Kingdom. On Apr 26, TRA posted first-quarter earnings per share of 32 cents, topping the Street’s estimate of 22 cents by 45.5%. The company exceeded analysts’ earnings expectations in two out of the past three quarters by an average margin of 97.7%. TRA lost 27 cents per share in the first quarter of last year. Revenues came in at $502.3 million, compared to $398.9 million in the prior-year period. Sales volume of nitrogen products and ammonium nitrate soared 52% and 42%, respectively, while Ammonia volume jumped 5%. President and CEO Michael Bennett stated, "We're pleased to report results that are so much improved over those of last year's first quarter. This outcome results not only from a very positive environment for nitrogen products, but also from Terra's successful execution of its strategies to capitalize on these market conditions." Consensus earnings estimates for this quarter are up 11 cents to 72 cents over the past seven days. Profit forecasts for this year have risen by 22 cents to $1.60 over the same period of time. Looking ahead to next year, analysts are calling for profits of $2.03 per share—a 57-cent improvement over the past week. TRA is authorized to repurchase 9.5 million shares by Jun 30, 2008. During the first quarter, the company did not buy back any shares. Since announcing its repurchase authorization, TRA has bought back 2.7 million common shares. TRA currently ranks number one out of five companies in the Fertilizers industry based on the Zacks Rank in Industry. It is clearly the top company in its respective industry as judged by the Zacks Rank. TRA is currently trading at a valuation of 14.8x current fiscal-year estimated earnings and at 11.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x current fiscal-year estimated earnings and at 15.2x next fiscal-year estimated earnings. The company has a price-to-book ratio of 4.3, compared to 4.5 for both the market and 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

Click for full article

TBSI - TBS International - third consecutive quarter that earnings surpassed analysts’ estimates by a double-digit percentage

TBS International (TBSI) has skyrocketed a mind-blowing 209% year-to-date. Growing cargo volumes and new businesses have helped TBS International exceed earnings estimates by double-digit percentages for three straight quarters. Full Analysis TBS International is an ocean transportation services company that offers worldwide shipping solutions through liner, parcel and bulk services, and vessel chartering. TBS has developed its business around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa and the Caribbean. TBS provides frequent regularly scheduled voyages in its network, as well as cargo scheduling, loading and discharge for its customers. Its services primarily carry steel products, salt, sugar, grain, fertilizers, chemicals, metal concentrates, aggregates and general cargo. As of month-end March, its controlled fleet consisted of 33 vessels. On May 14, the Zacks #1 Rank stock reported first-quarter earnings of 54 cents per share, up from 26 cents in the year-ago period and 14 cents above expectations. The 35% surprise marked the third consecutive quarter that earnings surpassed analysts’ estimates by a double-digit percentage. Driving the strong earnings growth, revenues climbed 11% to $70.8 million due to strong demand in the bulk cargo market. The company has also benefited from expanding cargo volumes and new business, such as a new parcel trade shipping timber and steel parcels from Brazil and Argentina to the Mediterranean, and coal from the north coast of Latin America to Brazil and Argentina. In addition, average charter rates have increased 35.8% to $16,740 per day from $12,330 per day a year ago. In 2006, the company generated over 55% of its international revenues from key South American countries including: Brazil, Chile, Peru, and Venezuela. Continued economic growth in this region should result in further earnings momentum for this niche shipping player. Following the company’s impressive first-quarter results, full-year 2007 estimates were increased by 61 cents to $2.35. Also, next year’s estimates were summarily raised by 78 cents to $3.19, implying earnings growth of 35.7%. Lastly, the company is currently rated a number one out of 44 companies in the Transportation-Shipping category. TBSI has risen an astonishing 209% year-to-date after gaining an impressive 31.6% in 2006. On Jun 5, TBSI rose to record highs before slipping roughly 19%. The stock then proceeded to rally over 34% to current levels. As the dry bulk market continues to grow, the direction of future momentum should remain positive. However, due to the amazing gains this stock has already delivered, investors should exercise caution and monitor their positions closely. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

TDW - Tidewater, Inc - beat the Street’s earnings estimate for 10 straight quarters

Tidewater, Inc. (TDW) exceeded analysts’ earnings expectations for 10 consecutive quarters by an average margin of 8.1%. TDW reported solid fourth-quarter and full-year results in late April. This Zacks #1 Rank stock has a current dividend yield of 0.85% and a five-year average dividend yield of 1.68%. Earnings per share are projected to grow 56% over the next 3-5 years. Full Analysis Tidewater, Inc. provides offshore supply vessels and marine support services to the global offshore energy industry. The company’s vessels can be found in virtually every area of the world where there is significant oil and gas exploration, development or production. TDW owns 463 vessels, the world's largest fleet of vessels serving the global offshore energy industry. TDW beat the Street’s earnings estimate for 10 straight quarters by an average margin of 8.1%, including four double-digit percentage surprises. Earnings per share grew 29.6% over the past five years and are forecasted to grow by a much larger magnitude going forward—56% over the next 3-5 years. The industry is expected to grow by only 10%. On Apr 26, TDW reported fourth-quarter fiscal 2007 profits of $1.56 per share. Compared to the prior-year period, earnings soared 40.5%. Analysts were calling for $1.47, leading to a positive surprise of 6.1%. Revenues of $293.5 million were up 19.1% versus $246.5 million posted in the fourth quarter of last year. For the entire year, earnings jumped to $356.6 million, or $6.31 per share, from $235.8 million, or $4.07 per share in fiscal 2006. Revenues came in at $1.1 billion, compared to $877.6 million last year. Chairman, President and CEO Dean E. Taylor stated, "With another quarter of outstanding financial results, this fiscal year ended March 31, 2007, was the very best in the 51-year history of this company. These results are reflective of our recent efforts to execute on our strategic plan to renew and upgrade our fleet to be better positioned to service the growing international marine transportation needs of our customers." On May 31, the Board of Directors declared a quarterly cash dividend of 15 cents per share. TDW has a current dividend yield of 0.85% and a five-year average dividend yield of 1.68%. TDW’s level of profitability, as measured by its return on equity, tops that of the industry average—19% 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

Click for full article

BVN - Compania de Minas Buenaventura S.A.A - solid first-quarter results that grew 38% on an operating income basis

Buenaventura is taking positive steps to increase shareholder value. The company recently unwinded a portion of its gold hedge book, which will allow it to take advantage of rising gold prices. Earnings estimates for this year have risen 21 cents to $3.28 per share over the past 90 days. Next year's estimates have jumped an even more impressive 54 cents to $3.32 per share. The stock has a terrific ROE of 28%. Full Analysis Compania de Minas Buenaventura S.A.A. (BVN) engages in the exploration, mining, and processing of gold, silver, and various metals in Peru and internationally. It primarily produces refined gold, and various metal concentrates, including silver-lead concentrate, silver-gold concentrate, zinc concentrate, and lead-gold-copper concentrate. The company operates four mines comprising Julcani, Recuperada, Uchucchacua, and Orcopampa; and holds controlling interests in mining companies, which own the Ishihuinca, Antapite, Shila-Paula, and Colquijirca mines. Compania de Minas Buenaventura also owns an electric power transmission company; an engineering services consulting company; and interests in various mining companies. BVN reported solid first-quarter results that grew 38% on an operating income basis. Net income fell, but only due to an un-winding of 483,000 ounces of gold from the hedge book in March. This has a one time negative effect of $55 million. In 1Q07, net sales were US$150.8 million, a 47% increase when compared to the US$102.7 million reported in 1Q06 mainly due to higher volumes of lead and zinc sold, as well as an increase in the realized prices of gold, silver, zinc and lead. In late-May, the company completed an additional partial reduction of its gold hedge book by unwinding a total of 248,000 ounces for all of its 2009 gold commitments. Total payment for this transaction was US$87 million, which will be partially financed via local debt. On May 15, 2007, the Company eliminated all of its 2007 and 2008 gold commitments (240,000 ounces). The total reduction in gold commitments for both transactions totals 488,000 ounces, which represents 35% of the total Hedge Book. This is important because it should be accretive to earnings and also accretive to the company's net present value in an environment where gold is rising. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

PCZ - Petro-Canada - fourth consecutive double-digit earnings surprise, full-year estimates were raised

Petro-Canada (PCZ) is trading at a discount to both the market, as represented by the S&P 500, and the industry average. The stock is up over 25% for the year, reflecting the company’s powerful earnings momentum and increasing estimates. Full Analysis Petro-Canada is a major Canadian oil and gas company with a strong reputation for environmental stewardship and corporate responsibility. With a portfolio of businesses that span the upstream and downstream sectors, the company is a leader in the Canadian petroleum industry. In the upstream, the company explores for, develops, produces and markets crude oil, natural gas and associated liquids. In the downstream, Petro-Canada refines, distributes and markets petroleum products and related goods and services. On Apr 24, the Zacks #1 Rank stock reported first-quarter earnings of 99 cents per share, up from 95 cents in the year-ago period and 19 cents above expectations. Furthermore, the company averaged 405,000 barrels of oil equivalent a day, up from 355,000 barrels last year and in-line with the target of increasing production by 15% in 2007. The higher rate was the result of new or increased production in the North Sea, from the eastern coast of Canada and from Canadian oil sands. Following the company’s fourth consecutive double-digit earnings surprise, full-year estimates were raised by 69 cents to $4.64. Since then, estimates have been revised by an additional three cents to $4.67. Furthermore, the company is ranked a number one out of five companies in the Integrated Oil-Canadian category. PCZ is currently trading at a valuation of 11.05x current fiscal-year estimated earnings, well below the comparable S&P 500 market and industry average multiples 16.2x and 16.3x, respectively. In addition, the company is trading at 11.08x next fiscal-year estimated earnings, also below the market multiple and industry average. Lastly, the company has a price-to-book ratio of 3.71, compared to 4.5 for the market and 6.6 for the industry. Year-to-date, PCZ has gained over 25%, handily outperforming the S&P 500 return of 5.2%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

CEL - Cellcom Israel Ltd. - Following the company’s 64.5% earnings surprise, full-year 2007 estimates were increased

Cellcom Israel Ltd. (CEL) has climbed over 36% since its IPO in early February. The recent earnings surprise and strong fundamentals should further the stocks underlying momentum. Full Analysis Cellcom Israel Ltd. provides cellular communication services in Israel. The company’s technological infrastructure allows it to offer our many value added services including nationwide video streaming services, JAVA games, Multi Media Messages and more. In addition, Cellcom offers a range of wireless communication services to both the private and business sectors including virtual private network (VPN), global roaming, voice-activated dialing, conference calling, content and multimedia services. Cellcom provides services to more than 2.8 million subscribers, representing 34% market share. On May 14, the Zacks #1 Rank stock reported first-quarter earnings of 51 cents per share, exceeding expectations by 20 cents. Overall revenues rose 7% to $346 million, while revenues from content and value added services soared 42%. According to Tal Raz, CFO, “The higher profitability overall follows a 17% increase in total airtime, growth in revenues from content and the ongoing efficiency measures. As an outcome of the efficiency measures, sales, marketing, general and administrative expenses decreased and their percentage out of revenues dropped by 8%.” According to leading research, Israeli cell phone users use approximately 320 minutes on average per month, not as many as Americans, but more than users in Western Europe, Japan and Korea. In fact, during the first quarter, Cellcom’s subscribers averaged a record high of 350 minutes, up 8.4% from the prior-year quarter. Following the company’s 64.5% earnings surprise, full-year 2007 estimates were increased by 13 cents to $1.46. Next year’s estimates were similarly raised by 12 cents to $1.66, implying earnings growth of 13.7%. CEL has risen an impressive 36.8% since the company’s IPO in early February. The stock is currently trading around record highs, above the 21-day and 50-day moving averages. CEL is clearly in a bullish uptrend and the company’s strong fundamentals should spur further momentum in the coming months. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

AB - AllianceBernstein Holding L.P. - investment management and related services to institutional clients, retail clients, and private clients

AllianceBernstein is experiencing strong growth due to rising assets under management and a steady equity market. The stock appeals to a variety of investors, including income-seeking investors by paying a 4.3% dividend. This year's earnings estimates have increased 11 cents to $4.81 per share over the past 60 days, while next year's numbers have risen 11 cents to $5.62 per share. The stock has a nice ROE of 23%. Full Analysis AllianceBernstein Holding L.P. (AB) and its subsidiaries provide investment management and related services to institutional clients, retail clients, and private clients in the United States and internationally. It offers institutional investment services, including separately managed accounts, sub-advisory relationships, structured products, group trusts, mutual funds, and other investment vehicles to unaffiliated corporate and public employee pension funds, endowment funds, domestic and foreign institutions, and governments and affiliates. The company's retail services individual investors comprise retail mutual funds sponsored by AllianceBernstein, its subsidiaries, and its affiliated joint venture companies, sub-advisory relationships with mutual funds sponsored by third parties, and separately managed account programs sponsored by various financial intermediaries. In late-April, the company said its first-quarter profit rose 19.6% on strong sales at the operating company, AllianceBernstein LP, in which it holds a minority stake. The holding company reported net income of $79.8 million, or 91 cents per share, compared with $66.7 million, or 78 cents per share, in the year-ago quarter. Sales at the operating company rose to $1.04 billion from $895.7 million last year largely due to a roughly 24% jump in investment advisory and services fees to $775.5 million. Looking forward, the company said it expects year-end earnings of between $4.65 and $5 per share, "with the fourth quarter accounting for a disproportionate share of the total." At the time, analysts polled expected $4.76 per share. "The company's earnings are becoming more seasonal, owing primarily to the growing pool of assets under management with performance fee arrangements and other factors affecting expense ratios," according to an AllianceBernstein release." To boot, the company raised its dividend 17%. Assets under management (AUM) growth remains strong at the company. AB reported May-end AUM of $794 billion, up 3.1%. High net inflows and a healthy equity market contributed to the good numbers. Non-U.S. clients accounted for much of the growth. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

AKAM - Akamai Technologies, Inc - increasing popularity of online commerce and momentum in online media and entertainment

Akamai is enjoying explosive organic growth driven by increasing broadband usage. Over the past week, this year's earnings estimtates have increased seven cents to $1.00 per share. Earnings are expected to more than double this year, and increase another 33% for 2008. The company's net profit margin is a solid 13.6%, and its ROE is 13%, above the industry average of 3%. Full Analysis Akamai Technologies, Inc. (AKAM) is a global provider of distributed e-business infrastructure services and solutions. Its services include dynamic content and application delivery, application performance technologies, traffic management, identification of end-user location, online storage, and load balancing. The company's solutions allow its customers to operate their web transactions anywhere anytime with cost-effective outsourced infrastructure, and to carry on predictable, scalable, and secure e-business at low costs. These solutions are built on Akamai EdgePlatform, which is the technological platform for Akamai's business solutions. Akamai's solutions allow customers to provide better experiences to their users by addressing the challenges of bandwidth constraints and Internet traffic, while delivering content closer to the end-user. This reduces the need for additional hardware to manage the load of traffic and enables its customers to host more content rich sites than they would be able to with traditional delivery technologies. Recent growth has been fuelled by the increasing popularity of online commerce and momentum in online media and entertainment, driven primarily by sports programming. On the media side, Akamai has a successful relationship with Apple as a client for its iTune Music Store, and has since signed a multi-year contract extension. Increased federal spending on information technology solutions, largely due to security concerns, bodes well for Akamai. The company's alliance with eTouch Systems, which provides NASA with its Web content management system, further expands its federal pipeline. The company's alliance with more than 50 leading resellers, which together accounted for 20% of the company's 2006 revenue, also provides it with a competitive edge. Organically growing at 40%, with 50% overall growth, management expects its revenue base to expand considerably and reach $1 billion by 2010, given the strong progress in broadband usage. Foresters estimate the total number of U.S. households with broadband will grow 42% by 2010 while PWC believes global broadband adoption will increase by 86% over the same period. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

OIS - Oil States International, Inc - exceeded analysts’ earnings expectations for nine straight quarters by an average margin of 15.3%

Oil States International, Inc. (OIS), a Zacks #1 Rank stock, topped the Street’s earnings estimate for nine straight quarters by an average margin of 15.3%. Consensus earnings estimates for both this year and next are up over the past week. OIS has a price-to-book ratio of 2.3, compared to 4.5 for the market and 4.1 for the industry. Its return on equity surpasses that of the industry average—24% compared to 22%. Full Analysis Oil States International, Inc. is a leading provider of specialty products and services to oil and gas drilling and production companies throughout the world. The company operates in three principal business segments—offshore products, tubular services and well site services. OIS exceeded analysts’ earnings expectations for nine straight quarters by an average margin of 15.3%. In five of the aforementioned nine quarters the company succeeded in surprising to the upside by a double-digit percentage. On May 1, OIS posted first-quarter earnings per share of $1.05, beating the Street’s estimate of 98 cents by 7.1%. The company posted profits of 92 cents per share in the first quarter of last year. Its well site services and offshore products segments fueled the solid results. Total revenues came in at $480.5 million compared to $496.2 million in the prior-year period. OIS increased revenues, expanded gross margins and grew profits for the past four years. President and CEO Cindy B. Taylor stated, "Oil States' unique business mix and exposure to secular growth markets resulted in improved profitability in the first quarter of 2007. We continue to realize benefits from our organic spending program, particularly as it relates to assets deployed in the oil sands region." The consensus earnings estimate for this year is up two cents to $3.92 over the past seven days. Profit forecasts for next year have risen six cents to $4.23 over the past week. OIS is currently trading at a valuation of 10.7x current fiscal-year estimated earnings and at 9.9x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x current fiscal-year estimated earnings and at 15.1x next fiscal-year estimated earnings. OIS has a price-to-book ratio of 2.3, compared to 4.5 for the market and 4.1 for the industry. The company’s return on equity tops that of the industry average—24% compared to 22%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

GEO - The GEO Group Inc - outsourced services in the management of correctional, detention and mental health facilities

The GEO Group Inc. (GEO) has soared over 56% year-to-date, reflecting consistent earnings momentum, increasing profit estimates and a strong underlying trend. Full Analysis The GEO Group Inc. provides government-outsourced services in the management of correctional, detention and mental health facilities in the US, Australia, South Africa, the UK and Canada. The company operates correctional and detention facilities, including maximum, medium, and minimum security prisons; immigration detention centers; minimum security detention centers; and mental health and residential treatment facilities. GEO Group operates approximately 67 correctional, detention and mental health and residential treatment facilities and had approximately 59,000 beds under management. On May 1, the Zacks #1 Rank stock reported first-quarter earnings of 22 cents per share, up from 16 cents last year and two cents above expectations. Driving the earnings growth, revenues rose by 28% to $237 million. The following business segments reported double-digit increases in revenue: US Corrections, up 11.9% to $164.3 million; International Services, up 24.7% to $28.8 million; and GEO Care, up 48.3% to $22.1 million. Looking forward, the company increased its full-year 2007 profit forecast to between $2.02 and $2.15 per share, up from prior guidance of $1.96 to $2.11. However, GEO did reduce its full-year operating revenue guidance to between $886 million and $901 million, down from previous estimates of $900 million to $920 million. The lower revenue forecast was the result of a lost contract to manage a federal prison. According to George Zoley, Chairman and CEO, “Our organic growth pipeline remains strong with projects totaling more than 8,700 beds under development representing more than $148 million in projected annual operating revenues. These projects are expected to start between the first quarter of 2007 and the second half of 2008.” GEO Group declared a 2-for-1 stock split on May 1, which became effective Jun 1, 2007. The company’s outstanding shares increased to approximately 51.4 million from roughly 25.7 million. Following the company’s 10.26% earnings surprise, full-year 2007 estimates were increased by three cents to $1.05, the second upward revision in three months. Next year’s estimates are also on the rise, most recently by six cents to $1.31. Furthermore, the company is ranked a number one out of 20 companies in the Safety-Protection category. Year-to-date, GEO has risen over 56%, furthering the company’s stellar 2006 return of 145.5%. The stock is currently trading at record highs, above the 21-day, 50-day and 200-day moving averages. GEO’s underlying trend is bullish and with no resistance to impede the stock’s upward momentum, look for additional gains in the coming months. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

ARG - Airgas, Inc - strong history of exceeding the Street’s earnings estimates, coupled with analysts raising their profit forecasts

Airgas, Inc. (ARG), which was last presented as a Growth & Income pick on Dec 1, exceeded analysts’ earnings expectations for eight consecutive quarters. The company recently raised its first-quarter profit guidance to between 61 cents and 63 cents per share. As a result of ARG’s bullish guidance, analysts have been upping their earnings estimates. On May 8, the Board of Directors increased the company’s quarterly cash dividend to nine cents per share from seven cents. Full Analysis Airgas, Inc., through its subsidiaries, is the largest distributor of industrial, medical and specialty gases and related hardgoods, such as welding supplies, in the United States. The company is also the third-largest U.S. distributor of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast as well as a leading distributor of process chemicals, refrigerants and ammonia products. When ARG was last highlighted as a Growth & Income pick on Dec 1, the stock was a Zacks #1 Rank (buy). Thanks to the company’s strong history of exceeding the Street’s earnings estimates, coupled with analysts raising their profit forecasts, ARG is still a Zacks #1 Rank stock. Moreover, the company is up over 12% since it was last featured. ARG beat analysts’ earnings expectations for eight consecutive quarters. Earnings per share grew 21.1% over the past five years. On May 2, ARG reported fourth-quarter fiscal 2007 profits of 54 cents per share. Analysts were expecting 53 cents. Compared to the prior-year period, earnings were up a solid 14.9%. Revenues increased 14.3% to $853.9 million from $746.9 million in the fourth quarter of fiscal 2006. Total same-store sales, or sales at stores open one year or more, rose 5%. Citing stronger than expected same-store sales, and assuming continued sales momentum through June, ARG recently raised its first-quarter earnings per share guidance to between 61 cents and 63 cents. The company’s previous outlook called for profits between 52 cents and 54 cents per share. As a result of the company’s bullish guidance, analysts have been upping their earnings estimates. Consensus estimates for this quarter and next are up eight cents and three cents to 62 cents and 63 cents, respectively, over the past week. Seven analysts upped their estimates for both periods. Profit forecasts for this year and next have risen 12 cents and 22 cents to $2.52 and $2.95, respectively, over the same period of time. Upward revisions were submitted by six analysts. Earnings per share are projected to grow 14% over the next 3-5 years. The industry is expected to grow at a 9% clip. On May 8, the Board of Directors increased the company’s quarterly cash dividend to nine cents per share from seven cents. The dividend is payable on Jun 29 to shareholders of record as of Jun 15. ARG has a current dividend yield of 0.75% and a five-year average dividend yield of 0.62%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

MON - Monsanto Co - market share gains in the U.S. corn seed market

Monsanto is a company in the right spot at the right time. Surging corn prices have allowed it to beat earnings estimates in seven out of the past eight quarters. Five analysts have raised their estimates for this year. This year's estimates have jumped 21 cents to $1.81 per share over the past 90 days. The stock has an ROE of 12%, above the industry average of 7%. Full Analysis Monsanto Company (MON), together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The company also licenses a package of germplasm and trait technologies to seed companies. Monsanto Company markets and sells its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents to agricultural farmers, agricultural chemical producers, the U.S. dairy farmers, and swine producers. It has a partnership agreement with Athenix Corp. to develop new insect control technology for Monsanto's various crop lines, including corn, soybeans, and cotton. Monsanto recently reached long-term business and licensing agreements on agricultural technologies with Bayer CropScience AG, a division of Bayer AG. Bayer CropScience will grant Monsanto a royalty bearing, non-exclusive license for its LibertyLink herbicide tolerance technology for use in corn and soybeans. The companies said they also amended existing agreements related to herbicide tolerance to provide each other more favorable terms. In mid-June, the company raised profit expectations for the year because of strong corn seed and herbicide sales. After reviewing sales figures from the spring planting season, Monsanto boosted its 2007 earnings per share estimate to a range of $1.75 to $1.80 from the earlier estimate of $1.60 to $1.65. Many farmers place seed orders during spring months, and Monsanto said it is encouraged by an early review of its performance. The company also reported that strong sales for its Roundup brand of herbicide should boost earnings this year. In April, the company reported second-quarter earnings that rose 23% year-over-year. Net income in the quarter that ended Feb. 28 grew to $543 million, or 98 cents per share, from $440 million, or 80 cents per share, in the year-earlier period. Sales climbed 19% to $2.62 billion, from $2.2 billion a year ago, on stronger sales of seeds in the U.S. and herbicides in Brazil, Europe, Africa and Argentina. "While the 2007 agriculture season is shaping up to be an outstanding one, the strong demand that we've seen for our higher-yielding corn seeds and our higher-margin, triple-trait corn technology has translated into an excellent second quarter and first half for our business. For the sixth straight year, our business is poised for market share gains in the U.S. corn seed market. These results, which underscore our continued ability to deliver a higher- yielding corn product to farmers, highlight the value that each of our six growth drivers can contribute to our overall business and, ultimately, our growth trajectory through the end of the decade." Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

DB - Deutsche Bank AG - ROE of 19.7% exceeds the industry average of 16.3%

Deutsche Bank AG (DB) is currently trading at an attractive discount to both the overall market and its investment banking peer group. Furthermore, the company’s strong financial performance is supporting the stock’s year-to-date gain of 10.1%. Full Analysis Deutsche Bank AG provides a range of investment banking products and services worldwide. The company operates through three divisions: Corporate and Investment Bank (CIB), Private Clients and Asset Management (PCAM), and Corporate Investments (CI). Founded in Berlin in 1870, the company has grown from its origins as a trade relation facilitator, to a global investment banking powerhouse with 2006 revenues of €28.3 billion. On May 8, the Zacks #1 Rank stock reported first-quarter earnings of €2.12 billion, up from €1.64 billion in the year-ago period and €320 million above expectations. The firm’s investment banking business contributed significantly to the quarter, with a 10% rise in pretax profit to €2.2 billion. Also, revenues from sales and trading rose 16% to €5.1 billion. While the firm’s consumer banking profit slipped 3%, 558,000 new private clients were added during the quarter, most of which came from the acquisition of Berliner Bank. Chief Executive Josef Ackermann commented, "We saw a particularly strong performance in equity derivatives, credit trading and foreign exchange, where the annual Euromoney poll ranked us number one in the world for the third successive year." Furthermore, “Ongoing consolidation of our industry, including cross-border mergers in Europe, may create changes in our competitive landscape.” Full-year earnings estimates have risen from $13.96 three months ago, to $15.45 currently. In addition, the company is ranked a number one out of 41 companies in the Foreign Banks category, which itself ranks an attractive 38 out of 217 industries. Furthermore, Deutsche Bank’s ROE of 19.7% exceeds the industry average of 16.3%. DB is currently trading at a valuation of 9.5x current fiscal-year estimated earnings, well below the comparable S&P 500 market and industry average multiples 16.2x and 13.3x, respectively. In addition, the company is trading at 8.9x next fiscal-year estimated earnings, also below the market multiple and industry average. Lastly, the company has a price-to-book ratio of 1.8, compared to 4.5 for the market and 2.8 for the industry. Year-to-date, DB has gained over 10%, outperforming both the S&P 500 return of 5.9% and most of its peer group in the investment banking category. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

JASO - JA Solar Holdings Co. Ltd - 25% earnings surprise, full-year 2007 estimates were raised - Next year’s estimates are also on the rise

JA Solar Holdings Co. Ltd. (JASO) is currently trading at record highs and has returned over 65% since its IPO in February of this year. The company’s first quarter earnings surprise, along with increasing trends in 2007 and 2008 estimates, should support the stock in the near future. Full Analysis JA Solar Holdings Co. Ltd. designs, manufactures and sells solar cells primarily in the People's Republic of China. The company offers monocrystalline solar cells. It sells its products primarily through a team of sales and marketing personnel to solar module manufacturers, who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. JA Solar Holdings Co. also sells its products to customers in Germany, Sweden, Spain, South Korea and the US. On May 15, the Zacks #1 Rank stock reported first-quarter earnings of 20 cents per share, or 58.3 million yuan, up from a loss of 2.4 million yuan in the year-ago period and four cents above expectations. Revenues also exceeded estimates, rising to 349.4 million yuan from 3 million yuan last year. Looking ahead, JA Solar reaffirmed its 2007 revenue guidance of 2.13 billion yuan. JA Solar was recently upgraded on news the company doubled the amount of wafers it ordered. Polysilicon, which is a key material in the production of solar cells, has increased in price due to strong demand and short supply. JA Solar’s reinforced supply could lead it to boost capacity, allowing it to better compete with other Chinese solar companies. Following the company’s 25% earnings surprise, full-year 2007 estimates were raised by four cents to $1.00. Next year’s estimates are also on the rise, most recently by five cents to $1.49, the third increase in three months. Furthermore, the company is ranked a number one out of 25 companies in the Energy-Alternative Source category. JASO has risen over 67% since its IPO in February of this year. The company is currently trading at record highs after surpassing $28 resistance on Jun 19. The MACD histogram below illustrates the recent surge in momentum. Look for JASO to continue trending higher; however, due to the volatile nature of alternative energy stocks, investors should exercise caution and monitor their positions closely. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

DE - Deere & Company - reported fiscal second-quarter earnings almost 13% above views

Deere & Company has exceeded earnings estimates in seven straight quarters, with five of them posting double-digit positive surprises. Six analysts have raised their forecasts for this year. Over the past 60 days, this year's estimates have increased 35 cents to $6.95 per share. Analysts predict that the company can grow earnings at a 15.49% annualized rate for the next three to five years. The stock also has an impressive 21% ROE. Full Analysis Deere & Company (DE) manufactures and distributes agricultural and commercial equipment worldwide. It operates in four segments: Agricultural Equipment, Commercial and Consumer Equipment, Construction and Forestry, and Credit. The company markets its products and services through independent retail dealer networks and retail outlets. The company is looking to expand operations in China and just made an interesting acquisition. Deere said it has signed a definitive agreement to buy Ningbo Benye Tractor & Automobile Manufacture Co. and is seeking approval from the Chinese government. Deere said the purchase will expand the product line offered to Chinese farmers and enhance its worldwide capacity to produce small tractors. Deere currently builds tractors in the 60 to 120 horsepower range at its China joint venture tractor factory, located in Tianjin. Benye mainly builds tractors in the 20 to 50 horsepower range. The company said there is a growing demand for smaller tractors in China because of the increasing mechanization by rice farmers. Deere said 95% of Benye's current revenues come from sales within China. Management has announced its intentions of being shareholder-friendly by announcing further share buybacks. In late-May, the board of directors authorized plans to repurchase up to 20 million additional shares of common stock. Deere reported fiscal second-quarter earnings that easily beat analyst projections. The company earned $2.72 per share, almost 13% above views, and 36 cents above year-ago results. The company reported improved earnings from continuing operations as strong international demand for farm machinery offset weaker results in North America. Deere also boosted its full-year outlook, predicting growth of biofuels will help boost farm equipment sales. "The company is poised to realize substantial benefits from powerful global economic trends, such as growing affluence, increasing demand for food and the rising use of biofuels," Deere chairman and CEO Robert W. Lane said in a statement. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article

BGC - General Cable Corp - the company forecast second-quarter earnings and sales above Wall Street's expectations

General Cable is a company on a roll. The company has significantly exceeded analyst expectations in nine straight quarters. Year-over-year growth has exceeded 125% in each of the past six quarters. Three of the four analysts covering the stock have raised their forecasts for this year. Over the past 60 days, this year's estimates have increased $1.05 to $4.27 per share. The stock has an impressive 39% ROE to boot. Full Analysis General Cable Corporation (BGC) engages in the development, manufacture, marketing, and distribution of copper, aluminum, and fiber optic wire and cable products in North America and internationally. It offers various electric utility, portable power and control, electrical infrastructure, transportation and industrial harnesses, telecommunications, and networking products. BGC serves industrial power and control, utility/marine/transit, mining, equipment control, oil and gas building management, entertainment, military, residential construction, industrial and medical equipment, automotive aftermarket, enterprise networking, multimedia applications, and telecom local loop markets. The company reported excellent first-quarter results which sent the stock up about 12%. BGC posted net income of $37.8 million, or $1.01 per share, compared to $21.3 million, or 41 cents per share in the year-ago quarter. Analysts had expected earnings per share of 75 cents. Revenues climbed 25% to $1 billion, versus $804.3 million in first-quarter 2006. Analysts had forecast $977.4 million. As would be expected, the company forecast second-quarter earnings and sales above Wall Street's expectations. The company said it expects earnings of $1 per share or higher on close to $1.1 billion in revenue. Wall Street, on average, expects quarterly earnings of 87 cents per share on $1.07 billion in revenue. "The Company continues to experience increasing demand, particularly for overhead transmission cable in the US and Europe, as well as better pricing realization for high voltage products from Silec. Combined with tight supply in the market for utility products, this has produced increasing prices and is allowing manufacturing improvements to fall to the bottom line," CEO Gregory Kenny said. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

Click for full article