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SCHN - Schnitzer Steel Industries, Inc - Ahead of the company's fiscal third-quarter report, brokerage analysts are raising their forecasts

Schnitzer Steel Industries, Inc. (SCHN) exceeded analysts� earnings expectations in three out of the past four quarters by an average margin of 20.4%. Consensus earnings estimates are up over the past 60 days for this Zacks #1 Rank stock. The company has returned value to shareholders through both stock buybacks and dividend payments. SCHN has a price-to-book ratio of 2.7, compared to 4.5 for the market. Full Analysis Schnitzer Steel Industries, Inc. engages in recycling ferrous and nonferrous metal, and used and recycled auto parts, as well as in manufacturing finished steel products in the United States and internationally. The company has 32 operating facilities located in 11 states throughout the country. SCHN's steel manufacturing business produces over 750,000 tons on an annual basis. SCHN topped the Street's earnings estimate in three out of the past four quarters by an average margin of 20.4%. In all three of the aforementioned quarters, the company surprised by a double-digit percentage. On Jul 9, SCHN posted third-quarter fiscal 2007 profits of $1.47 per share. The result easily surpassed the consensus estimate of $1.07 by 37.4%. Compared to earnings of $1.11 per share in the prior-year period, the result marked a 32.4% year-over-year improvement. Revenues ballooned 40.3% to $709.4 million from $505.6 million in the third quarter of fiscal 2006. Ahead of the company's fiscal third-quarter report, brokerage analysts are raising their forecasts. During the past 30 days, the consensus earnings estimate has risen by nine cents to $1.35 per share. Revisions were made by two out of the three covering analysts. SCHN has also returned value to shareholders through stock buybacks. Year to date, the company has repurchased 1.5 million shares, or approximately 5% of its total shares outstanding. Under its current repurchase authorization SCHN may buy back an additional 3.2 million shares. SCHN also yields a dividend of 0.1%. The last quarterly dividend, 1.7 cents per share, was paid on Aug 23. SCHN is currently trading at a valuation of 15.9x fiscal 2008 earnings. The company has a price-to-book ratio of 2.7, compared to 4.9 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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FRPT - Force Protection, Inc - Analysts expect that earnings will soar over 151% next year

Force Protection is winning contracts left and right. It recently won the second biggest contract in its history. This is showing up in higher earnings. The company's second quarter beat expectations by almost 42%. Over the past month, next year's earnings estimates have risen seven cents to $1.53 per share. Analysts expect that earnings will soar over 151% next year. FRPT has no debt and a 17% ROE. Full Analysis Force Protection, Inc. (FRPT) and its subsidiaries engage in the manufacture of ballistic and blast protected vehicles. The company's products are used to protect personnel during transport, removal of unexploded ordnance, route clearance, humanitarian de-mining, and other missions that require protection from landmines and hostile fire. Its products include The Buffalo series, which is designed for route clearing activities; and The Cougar series for troop transport, explosive ordinance disposal, command and control, artillery prime mover, recovery and ambulance duty, urban patrol, route clearance support, utility transport, and special unit activities. The company also offers The Cheetah series for reconnaissance, forward command and control, and urban operations. Earlier this week, the company announced that it received a contract valued at $376 million to build 800 vehicles for the Marine Corps' Mine Resistant Ambush Protected vehicle program. The order for the four- and six-wheel Cougar model vehicles is scheduled to be completed in April. They will be built by Force Dynamics LLC, a joint venture between Force Protection and a division of General Dynamics Corp. Force Protection Chief Operating Officer Raymond Pollard said the order was second biggest in the company's 10-year history. The company reported robust second-quarter results in early-August. Force Protection said it earned $32.8 million, or 17 cents a share, in the second quarter, up from $10.2 million, or a penny a share, a year earlier. Net sales rose to $134.7 million from $56.1 million. Analysts expected 12 cents per share. FRPT also sold 212 of its medium-size Cougar trucks, used for troop transportation. Altogether, the company said it produced 229 vehicles in the recent quarter, compared with 285 produced for all of 2006. The U.S. military has said it wants to purchase thousands of these trucks -- better known as MRAP, or mine-resistant ambush-protected, vehicles -- to use in place of the more vulnerable Humvee. Recently, the Defense Department requested the transfer of $1.2 billion in existing funds for an additional 2,650 MRAP vehicles, bringing the total size of its order to 6,415. 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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GES - Guess? Inc - increased its quarterly cash dividend by 33.3%

Guess? Inc. (GES) posted record results for the second quarter in early September. The quarterly report included an increased annual earnings guidance that ranges between $1.75 and $1.80 per share. Analysts are currently forecasting full-year earnings of $1.89, which is seven cents above the estimates of two months ago. GES is expected to grow by 24% over the next three to five years. The apparel company also increased its quarterly cash dividend by 33.3% to eight cents per share. Guess is yielding 0.6% right now. Full Analysis Guess? Inc. designs, markets, distributes and licenses one of the world's leading lifestyle collections of casual apparel, accessories and related consumer products. The lines include full collections of denim and cotton clothing, including jeans, pants, overalls, skirts, dresses, shorts, blouses, shirts, jackets and knitwear. In addition, it has granted licenses to manufacture and distribute a broad range of products that complement its apparel lines, including clothing for infants and children, activewear, footwear, eyewear, watches, and home products. As of year-end 2006, the company operated approximately 336 stores, including 192 full-price retail stores, 103 factory outlet stores, 25 Marciano stores and 16 Guess Accessories stores in the U.S. and Canada. It also operated 24 stores in Europe and three stores in Mexico through a joint venture. In early September, the company announced record second-quarter earnings per share of 40 cents, exceeding the consensus estimate by 21%. Revenues reached a record $388.3 million, a 48% year-over-year increase. Guess also upped its full-year earnings outlook to a range of $1.79 to $1.84 from a previous range of $1.75 to $1.80. Analysts are currently forecasting full-year earnings of $1.89 per share, which is seven cents above the estimates of two months ago. GES is expected to grow by 24% over the next three to five years. That figure compares favorably to the industry�s growth expectation of 17% over the next three to five years. The apparel company also increased its quarterly cash dividend by 33.3% to eight cents per share. The dividend was paid on October 5, 2007. Guess is yielding 0.6% right now. Paul Marciano, Chief Executive Officer, stated "Strong performance across all of our product lines in our retail business in North America led to a 16.2% same store sales increase for the quarter. This was our 18th consecutive quarter of same store sales growth. Our European segment was especially strong, and contributed nearly half of the Company's revenue growth with a 121% increase in revenues. Strength in our Asian business, driven mainly by our South Korean operation, contributed to a 75% revenue increase in the wholesale segment. Our licensing business also continued to perform well above our expectations - posting revenue growth of 51% in the quarter." The return on equity (ROE) for GES currently resides at 37%, more than tripling the industry�s average of 12%. Guess is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.7% 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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ENB - Enbridge Inc - A number of analysts have raised their quarterly and full-year forecasts in the last 30 days

Shares of Enbridge Inc. (ENB) have traded in a very tight range for most of October but now appear ready to move higher. A number of analysts have raised their quarterly and full-year forecasts in the last 30 days. Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, ENB operates the world's longest crude oil and liquids pipeline system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick and New York State. ENB has a very strong history of beating its earnings estimates, having topped expectation during three out of the last four quarters. The average margin of surprise during this period has been two cents per share, or 5.60% "Earnings for the first half of 2007 were again consistent with our expectations, increasing 7% from the prior year," said Patrick D. Daniel, President and Chief Executive Officer. "The increase reflects steady performance across our diversified business segments. Project execution is currently a high priority with many of our previously announced organic growth projects nearing or entering the construction phase. The investment in these projects will generate decades of favorable cash flow and should support our medium-term goal of 8% to 10% average annual earnings per share growth over the next five years." Both quarterly and full-year estimates have experienced upward revisions in the last 30 days. Notably, forecasts have also been raised for next year as well. The consensus forecast calls for the company to earn $1.74 this year and $1.86 next year. These positive revisions have helped ENB move beyond the range that it had traded in for most of the year and establish a new 12-month high ahead of its Nov 7 earnings report. On Aug 16, ENB bottomed out at $31 per share, but has since put together a very strong run and is now trading above its 12-month high at $39. A very nice trend line that began on Aug 16 and touches the lows of Aug 28 and Sep 10 continues to support current prices. From Oct 5 to Oct 22 ENB traded in a fairly tight range, moving between $38 and $39. On Oct 22, prices brushed against the previously discussed trend line and the 21-day moving average at $38, and responded aggressively, accelerating upward. Yesterday, Oct 23, the stock continued to move higher, advancing beyond its recent trading range and above the $39 level. We have yet to see sustained trading or a close above this level, but the support of the moving average and trend line should continue to apply pressure to this area. This technical formation coupled with a strong earnings report, as historically seen from ENB, should provide a very nice foundation for this stock to head higher and continue to establish new 12-month highs. 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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FPL - FPL Group, Inc - generation, transmission, distribution and sale of electric energy - exceeded estimates in the past four quarters

FPL Group just keeps generating solid earnings growth year after year. Over the past 90 days, this year's earnings estimates have increased two cents to $3.45 per share. Earnings are slated to grow 10.4% next year. The company has exceeded earnings estimates in four straight quarters. The stock has an ROE of 13%, above the industry average of 10%. Full Analysis FPL Group, Inc. (FPL) is a public utility holding company. FPL Group's principal subsidiary, FPL, is engaged in the generation, transmission, distribution and sale of electric energy. FPL Group Capital, a wholly-owned subsidiary of FPL Group, holds the capital stock and provides funding for the operating subsidiaries other than FPL. In addition, FPL Group Capital formed a new subsidiary to sell wholesale fiber-optic network capacity. In late September, the company reaffirmed its earnings outlook for 2007 as well as 2008. FPL expects full-year 2007 earnings to come in the upper half of $3.35 to $3.45 per share. The company sees 2008 earnings ranging between $3.70 and $3.90 per share. Analysts are in agreement as evidenced by 2007 forecasts of $3.45 per share and projections for 2008 of $3.81. Three months ago, Wall street expectations stood at $3.43 for 2007 and at $3.74 for 2008. FPL exceeded analysts’ earnings expectations in the past four consecutive quarters. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. The distribution represents the 247th consecutive quarterly dividend paid to stockholders. FPL has a current dividend yield of 2.6%. On Jul 30, FPL reported second-quarter earnings per share of 86 cents, which topped the Street’s estimate by seven cents and earnings of 66 cents per share in the prior-year period by 30.3%. Operating revenues grew to $3.93 billion from $3.81 billion in the second quarter of last year. In the last 12 months, the average number of FPL accounts rose by 95,000 or 2.2%. Chairman and CEO Lew Hay stated, "FPL Group delivered very good results overall in the second quarter of 2007, despite unfavorable weather impact at both FPL Energy and FPL. Being able to deliver strong earnings growth despite unfavorable weather demonstrates the robustness of FPL Group's business model." The company’s earnings per share are projected to grow 10% over the next 3-5 years, with the industry expected to grow by 7%. The company’s return on equity of 13% tops the industry’s average of 10%. Look for the release of third-quarter results on October 30, 2007. Analysts are expecting $1.22 per share, versus $1.15 last year. FPL has exceeded estimates by at least 7% in each of the past four quarters, so chances are good that it will do so again. 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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NDAQ - NASDAQ Stock Market Inc - very strong history of beating its earnings estimates - average margin of surprise nearly 30%

Shares of NASDAQ Stock Market Inc. (NDAQ) appear ready to test upside resistance levels. The stock has risen as the majority of the covering brokerage analysts have increased their full-year forecasts. The NASDAQ is the world's largest electronic stock market. With approximately 3800 companies, the exchange lists more companies and trades more shares per day than any other U.S. market. NDAQ's leadership has been aided by IPOs - over the last five years, more IPOs have been listed on NASDAQ than any other U.S. exchange. NASDAQ has also achieved new market share highs in the trading of U.S. listed equities, matching a record high 28.8% of traded volume. The company expects to continue growing as technology continues to facilitate market accessibility to potential investors across the world. NDAQ has a very strong history of beating its earnings estimates, having topped expectations during three out of the previous four quarters. The average margin of surprise during this period has been six cents per share, or nearly 30%. Second-quarter income totaled 39 cents per share versus 22 cents per share a year prior. "Our ability to capture market share has grown NASDAQ into the largest single pool of liquidity for trading cash equities, creating a robust platform for growth," said Bob Greifeld, President and Chief Executive Officer of NASDAQ. "To that end, we believe our business is poised to deliver strong results over the second half of the year through continued product innovation and diversification." Full-year profit forecasts have been raised by nine of the 12 covering brokerage analysts during the past 30 days. This revision has occurred as the U.S. equity markets have rebounded. Notably, forecasts have also been raised for next year as well. The consensus forecasts call for the exchange to earn $1.39 this year and $2.00 next year. The positive revisions have pushed the stock towards a 52-week high. NDAQ had previously spent a solid four months, from May to August trading within a fairly tight range of $30 and $34. On Sep 12, the stock pushed beyond this area and has since established a fairly smooth up trend. A very nice trend has developed that seems to be supporting this shorter term drive higher. It begins from the low of Aug 16, touches the lows of Sep 17 and 25, and continues higher to support current prices. Within the last few days prices dipped lower and touched this trend line, found some additional support in the 21-day moving average, and rebounded nicely. Prices now seem poised to challenge two key areas at $42 and $43. $42 seems to be the "real" top, with prices unable to maintain trade above this point, and a higher close coming only once in two weeks. Sustained price action above the $42 level should position NDAQ to advance toward $43, which is the official near-term high as well as the 52-week high. Movement higher should continue to be supported by the shorter term trend line and the 21-day moving average. The MACD histogram study has also bottomed out and it appears that the shorter term average is now moving ahead of its longer term counterpart. A push beyond these key areas at $42 and $43 will establish new short term and 12-month highs, placing NDAQ in position to make a run at its all time high of $46. A positive third-quarter earnings surprise (as is being suggested by the most accurate estimate) could be the catalyst for such a move. 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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ENN -Equity Inns - hotel properties real estate investment trust

Equity Inns, Inc. (ENN) recently declared a pro rated dividend of $0.07065 per share in connection with the closing of a recently announced merger. Equity Inns offers a current dividend yield of 4.4%. Wall Street forecasts have been on the rise for ENN. The company is expected to grow by 14% over the next three to five years, twice the expected growth rate that the industry average currently offers. Full Analysis Equity Inns, a Zacks #1 Rank (Strong Buy) company, is in the business of acquiring equity interests in hotel properties. Equity is a real estate investment trust. They have one wholly-owned subsidiary, Equity Inns Trust. The company recently announced that it expects its previously announced merger with an affiliate of Whitehall Street Global Real Estate Limited Partnership 2007 ("Whitehall") to close on or about Thursday, October 25, 2007. ENN added that in connection with the closing of the merger, it has declared a pro rated dividend, subject to the satisfaction or waiver of the closing conditions to the merger. The record date is expected to be October 24, 2007. The dividend amount is expected to be $0.07065 per share, which will be paid on the third business day after the closing date of the merger. Equity Inns offers a current dividend yield of 4.4%. In mid-September, the third largest hotel real estate investment trust (REIT) declared a quarterly cash dividends for the third quarter 2007 of 25 cents per common share. The record date was September 28, 2007. The payable date will be on the earlier of the third business day after the closing date of the aforementioned merger or on November 1, 2007. Wall Street forecasts have been on the rise for ENN. Current earnings estimates of $1.60 per share moved up by a penny over the past month. Two months ago, analyst expectations stood at $1.57, which was an increase from the three month-ago level of $1.55. ENN is expected to grow by 14% over the next three to five years. That is twice the expected growth rate that the industry average currently offers. The company’s return on equity of 11% exceeds the industry’s average of 7%. 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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DAKT - Daktronics, Inc - visual display solutions for the sports, commercial, and transportation applications

Daktronics could light up the scoreboard for investors. The company is riding higher gross margins into more profits for shareholders. Over the past month, next year's earnings estimates have increased by a penny to $1.00 per share. This would represent 27.5% earnings growth over 2007. The past two quarters have produced an average surprise of 25%. Full Analysis Daktronics, Inc. (DAKT), through its subsidiaries, engages in the design, development, marketing, and support of visual display solutions for the sports, commercial, and transportation applications. Its products include sport and theater products, such as indoor and outdoor scoreboards, timing systems, digit displays, sound systems, statistics software, hoist systems, and other related products; video products consisting of displays comprising a number of pixels capable of creating various levels of video, graphics, and animation. In mid-August, the company reported fiscal 2008 first quarter net sales of $120.9 million and net income of $7.1 million, or $0.17 per diluted share, compared with first quarter net sales of $92.2 million and net income of $5.0 million, or $0.12 per diluted share, one year ago. Analysts expected 14 cents per share in earnings. Backlog at the end of the quarter was approximately $142 million, compared with a backlog of approximately $123 million at the end of the first quarter of fiscal 2007 and $127 million last quarter. The company is providing financial guidance for the second quarter of fiscal 2008. Daktronics expects that net sales for the second quarter of fiscal 2008 will be in the range of $132 million to $144 million and net earnings will be in the range of $0.17 to $0.25 per share. "We were very pleased with this quarter's performance," said Jim Morgan, president and chief executive officer. "Most importantly, we were able to execute at better than expected gross profit margins. The gross margin improvement comes from the benefit of having the capacity expansion mostly behind us and raw material cost savings." The stock is still well below its 52-week high of $40.05, but the prospects look bright for the company. 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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COGT - Cogent Inc - fingerprint biometrics solutions to governments - homeland security play - net profit margin of 28.5% - no debt

Cogent is on the right side of the law. Strong demand from law enforcement agencies sent revenues soaring. Over the past 90 days, this year's earnings estimates have increased almost 10% to 37 cents per share. Analysts are pegging earnings to jump 32% next year. The stock has an amazing net profit margin of 28.5%, with no debt on the balance sheet. Full Analysis Cogent, Inc. (COGT) provides automated fingerprint identification systems (AFIS) and other fingerprint biometrics solutions to governments, law enforcement agencies, and other organizations worldwide. Its AFIS solutions enable customers to capture fingerprint images electronically, encode fingerprints into searchable files, and compare a set of fingerprints to a database of fingerprints. The company offers two primary AFIS solutions, which include Cogent Automated Fingerprint Identification System (CAFIS) and Cogent Live-ID. CAFIS is a networked AFIS solution for local, regional, and national systems. Cogent Live-ID enables its customers to identify individuals who submit their fingerprints for border crossings, background checks, fraud prevention, criminal investigation, document identification, voting stations, and other activities where security is a concern. The stock got a boost in September when the company settled a patent lawsuit against defense contractor Northrop Grumman Corp. Northrop Grumman will pay $25 million to settle the suit, which concerned a fingerprinting system it developed for a British law enforcement group using Cogent fingerprint-matching technology. In early-August, the company said that second-quarter profits nearly tripled as demand from domestic and international law-enforcement agencies sent revenue soaring. Net income jumped to $10.6 million, or 11 cents per share, from $3.6 million, or 4 cents per share, in the year-ago period. The latest period included a $4 million charge to cover legal costs of ongoing intellectual property litigation. The result surpassed estimates on Wall Street, where analysts expected profit of eight cents per share. Revenue more than doubled to $31.3 million to $13.2 million last year. Analysts expected $30 million. "Solid revenue and improved gross margin led to net income growth of 70% from the prior quarter," commented Ming Hsieh, President and Chief Executive Officer of Cogent. "Revenue contribution was driven by a broad set of customers from around the world, and we continue to receive new contract awards in all of our key markets. We are also expanding our presence with new business entities and key personnel in the U.K. and Canada. Over the next 12 months we expect several sizable procurements to be awarded by large government agencies and believe our leading technology gives us a strong competitive position." 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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POT - Potash Corp - return on equity of 22% exceeds the industry’s average of 14%

Potash Corporation of Saskatchewan, Inc. (POT) recently declared a quarterly dividend of 10 cents per share. POT’s dividend yield stands at 0.4%, topping the industry’s average of 0.1%. Potash’s return on equity of 22% exceeds the industry’s average of 14%. In late July, Potash announced second-quarter results, delivering the best quarterly earnings in the history of the company. Current Wall Street 2007 earnings forecasts of $3.27 per share were upped by two cents over the past seven trading days. POT is scheduled to report third-quarter results on October 25, 2007. Full Analysis Potash Corporation of Saskatchewan, Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, third largest in phosphate and fourth largest in nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and the world's largest capacity for production of purified industrial phosphoric acid. The company recently declared a quarterly dividend of 10 cents per share. The dividend is payable on November 12, 2007 to shareholders of record on October 22, 2007. POT’s dividend yield stands at 0.4%, topping the industry’s average of 0.1%. Potash’s return on equity of 22% exceeds the industry’s average of 14%. In late July, POT reported second-quarter profits of 88 cents per share. The result beat the consensus estimate by three cents and soared past earnings in the prior-year period by 55.2%. It represented the best quarterly earnings in the history of the company. Revenues climbed to $1.35 billion from $928.7 million in the second quarter of 2006. President and CEO Bill Doyle stated, "The fundamentals that drive our business have aligned for the foreseeable future, and we are well positioned to capitalize on the growing global need for all three primary nutrients. Our world-class assets and focused long-term strategies have positioned us for strong performance in these market conditions as we demonstrated again this quarter." In addition to posting solid results for the second quarter, POT raised its earnings forecast for the full year. The company now expects profits between $3.00 and $3.25 per share. Its prior outlook called for earnings per share between $2.50 and $2.83. Current Wall Street 2007 forecasts of $3.27 per share were upped by two cents over the past seven trading days. Three months ago, analysts were projecting $3.05. Earnings per share are projected to grow 10% over the next 3-5 years. The company is scheduled to report third-quarter results on October 25, 2007. POT is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.7% 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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AKS - AK Steel Holding Corp - blown away its earnings estimates the last two quarters by 24% and 46%

AK Steel Holding Corporation (AKS) looks positioned for a push to a new 12-month high with a strong chart formation and a pending earnings release on October 23. AKS has blown away its earnings estimates the last two quarters by 24% and 46%, respectively. AK Steel produces flat-rolled carbon, stainless and electrical steel products, for automotive, appliance, construction and manufacturing markets. The company is the only full-line domestic producer of energy efficient electrical steels for power generation, power and distribution transformers, lighting systems and electrical motors. AK Steel is a fortune 500 company with over $6 billion annually in sales. The company is scheduled to report third-quarter earnings on Tuesday, Oct 23. The consensus esitmate is calling for earnings of 82 cents per share, though the most accurate consensus is more bullish at 84 cents per share. AKS has a history of positive earnings surprises. During the second-quarter, the company beat expectations by a whopping 46%, delivering 98 cents per share against a projection of 67 cents. Net sales for this quarter were a record $1.869 billion, producing a net income of $109.9 million. This compares very favorably to net income from the second quarter of 2006 which was $29.1 million, on sales of $1.497 billion. Operating profit was $187.4 million compared to $63 million in the second quarter of 2006. This increase in operating profit was driven by higher shipments, higher cash markets and contract selling prices, lower total employment costs, and lower operating and maintenance costs. "AK Steel's excellent second quarter results reflect strong shipment levels and prices for our products, an outstanding operating performance, and our unrelenting efforts to reduce costs," Said James L. Wainscott, chairman, president and CEO of AK Steel. "Consistent with our approach for 2007, we continue to put the pedal to the medal as we accelerate toward realizing AK Steel's potential for our shareholders." AKS has maintained a steady up trend for the past 12 months, moving from a low of $14 to its current price of $50. It now looks ripe for a breakout to the upside and ready to explore higher territory. On October 8 AKS moved above its previous 12-month high of $45 and made an aggressive move higher, trading up to $48. It proceeded to close above its old high and has since traded in a range between $47 and $51. During this time AKS has continued to apply pressure to the upside, deflecting off of its highs four separate times, but failing to muster the strength to make a distinguished close higher on relatively low volume. A very nice shorter term trend has also developed that appears to be applying additional pressure to the upside. It begins from the bottoms of the daily lows established on Oct 5 and Oct 6, and continues upward to touch the daily low on October 16. This classic "wedge" formation is an indicator that prices are getting "squeezed" higher and looking to advance. A push above this area around $51 and a strong close higher should provide AKS with enough gusto to move out of its current trading range, continue advancing along its shorter term trend line, and head for higher ground. 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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VSH - Vishay Intertechnology, Inc - semiconductors and passive electronic components

Vishay is a cheap stock with improving fundamentals. With the notebook and mobile phone markets doing well, the company is reaping the benefits. The stock is currently trading at 11.3x next year's estimates, which is quite attractive. With demand for its products stabilizing, investors should be able to award a higher multiple for its earnings. Full Analysis Vishay Intertechnology, Inc. (VSH) engages in the design, manufacture, and marketing of semiconductors and passive electronic components in the United States, Europe, and Asia. It operates through two segments, Semiconductors and Passive Components. The Semiconductors segment offers diodes; transient voltage suppressors; rectifiers; small signal diodes and transistors; power integrated circuits; line of optoelectronic components, including light emitting diodes, infrared emitters and photo detectors, infrared receiver modules, optocouplers, solid-state relays, optical sensors, and infrared data transceivers. In early-August, the company said that net income for the quarter was $40.7 million, or 26 cents per share, from $42.8 million, or 22 cents per share, for the second quarter of 2006. Revenue for the quarter was $715.9 million, up from $660.5 million in the year-ago period. Net revenues for the six fiscal months ended June 30, 2007 were $1,374.1 million, compared to $1,291.6 million for the six fiscal months ended July 1, 2006. Net income from continuing operations for the six fiscal months ended June 30, 2007 was $92.0 million, or $0.48 per diluted share, compared with net earnings for the six fiscal months ended July 1, 2006 of $81.0 million, or $0.41 per diluted share. Regarding the outlook for the third quarter 2007, Dr. Paul continued, "Our guidance for sales is in the range of $710 million to $730 million. We expect the acquired product lines to continue to grow, whereas our traditional business is expected to experience some softening due to seasonal market conditions in Europe." 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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ULBI - Ultralife Batteries, Inc - Analysts expect earnings to explode 190.1% next year

Ultralife Batteries is recharging the portfolios of its shareholders. One recent success was the nice $24 million contract it received in September from Raytheon. Over the past 90 days, this year's earnings estimates have increased a dime to 27 cents per share. Analysts expect earnings to explode 190.1% next year to 79 cents per share. Full Analysis Ultralife Batteries, Inc. (ULBI) develops, manufactures, and markets a range of non-rechargeable and rechargeable batteries, charging systems, and communications accessories for use in military, industrial, and consumer portable electronic products. It operates in four segments: Non-Rechargeable Products, Rechargeable Products, Communications Accessories, and Technology Contracts. The company operates in the United States, Europe, the People's Republic of China, Hong Kong, Japan, Singapore, and Canada. Ultralife Batteries sells its products directly, as well as through sales agents, distributors, and retailers. In mid-September, the company was awarded a contract valued at approximately $24 million from Raytheon Company to produce and supply SATCOM-On-The-Move (SOTM) satellite communications systems for installation on Mine Resistant Ambush Protected (MRAP) armored vehicles. Deliveries are expected to begin this quarter and be completed in the second quarter of 2008. In October 2006, Ultralife announced the award of a $9 million contract to supply the same system. ULBI reported strong second-quarter results in early-August. Earnings per share came in at eight cents per share versus the estimate of three cents. The company also reported record revenues of $35.2 million, which represented growth of 65%. As a percentage of revenues, gross margin for the second quarter of 2007 was 24%, up from 20% a year ago due to higher sales and production volumes and a shift toward more highly engineered products. "Second quarter results offer solid evidence of the success we have achieved in diversifying the company's government/defense revenue mix and in broadening the range of our product offering, coupled with our commitment to improving operational efficiencies," said John D. Kavazanjian, Ultralife's president and chief executive officer. "Second quarter revenue marked the fourth consecutive quarter of year-over-year growth and surpassed last quarter's record level." 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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FPL - FPL Group, Inc - public utility holding company - exceeded analysts’ earnings expectations in the past four consecutive quarters

FPL Group, Inc. (FPL) recently reaffirmed earnings estimates for 2007 and 2008, which are in line with Wall Street expectations. Earnings per share are projected to grow 10% over the next 3-5 years. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. FPL has a current dividend yield of 2.6%. The company delivered a solid second-quarter and will announce results for the third quarter on October 30, 2007. Full Analysis FPL Group, Inc. is a public utility holding company. FPL Group's principal subsidiary, FPL, is engaged in the generation, transmission, distribution and sale of electric energy. FPL Group Capital, a wholly-owned subsidiary of FPL Group, holds the capital stock and provides funding for the operating subsidiaries other than FPL. In addition, FPL Group Capital formed a new subsidiary to sell wholesale fiber-optic network capacity. In late September, the company reaffirmed its earnings outlook for 2007 as well as 2008. FPL expects full-year 2007 earnings to come in the upper half of $3.35 to $3.45 per share. The company sees 2008 earnings ranging between $3.70 and $3.90 per share. Analysts are in agreement as evidenced by 2007 forecasts of $3.45 per share and projections for 2008 of $3.81. Three months ago, Wall street expectations stood at $3.43 for 2007 and at $3.74 for 2008. FPL exceeded analysts’ earnings expectations in the past four consecutive quarters. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. The distribution represents the 247th consecutive quarterly dividend paid to stockholders. FPL has a current dividend yield of 2.6%. On Jul 30, FPL reported second-quarter earnings per share of 86 cents, which topped the Street’s estimate by seven cents and earnings of 66 cents per share in the prior-year period by 30.3%. Operating revenues grew to $3.93 billion from $3.81 billion in the second quarter of last year. In the last 12 months, the average number of FPL accounts rose by 95,000 or 2.2%. Chairman and CEO Lew Hay stated, "FPL Group delivered very good results overall in the second quarter of 2007, despite unfavorable weather impact at both FPL Energy and FPL. Being able to deliver strong earnings growth despite unfavorable weather demonstrates the robustness of FPL Group's business model." The company’s earnings per share are projected to grow 10% over the next 3-5 years, with the industry expected to grow by 7%. The company’s return on equity of 13% tops the industry’s average of 10%. FPL is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.7% 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. Look for the release of third-quarter results on October 30, 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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BG - Bunge Limited - $1.28 per share - Analysts only expected 89 cents per share

Bunge is benefiting from a boom in fertilizer demand and strong agribusiness. This year's earnings estimates have jumped 39 cents to $4.77 per share over the past 90 days. Earnings are slated to rise another 14.1% next year. The chart is looking great the stock is trading near new highs after a nice breakout in September. There is plenty of support near current levels. Full Analysis Bunge Limited (BG) engages in the agriculture and food business. It operates in three segments: Agribusiness, Fertilizer, and Food Products. The Agribusiness segment engages in the purchase, storage, transport, processing, and sale of agricultural commodities that include grains and oilseeds, such as soybeans, sunflower seeds, rapeseed or canola, wheat, and corn; and commodity products, including oilseed meal, hull products, and crude and further processed oils. The Food Products division offers edible oil products and milling products for food processors, foodservice companies, and retail outlets. This segment provides bottled, packaged and bulk oils, shortenings, margarine, and mayonnaise and various products derived from the vegetable oil refining process. In mid-September, the company said it agreed to acquire a Brazilian sugarcane mill and ethanol production plant from the Tenorio Group for an undisclosed sum. This purchase marks the company's entry into the sugar and sugar-based ethanol production businesses. The mill, which started operating last year, is expected to mill as much as 1.6 million metric tons of sugar in the next harvest. In late-July, BG said its second-quarter profits soared on huge fertilizer demand and strong agribusiness results. Net income increased to $168 million, or $1.28 per share, from $30 million, or 25 cents per share, a year earlier. Analysts only expected 89 cents per share. Sales rose 65% to $9.92 billion from $6 billion. Revenue from Bunge's agribusiness, which handles and processes grains and oilseeds, exports sugar from Brazil and produces biofuels, jumped 68% and profits from the division increased by 74%. Fertilizer revenues more than doubled as soybean farmers rushed to plant soybeans amid a climate of higher prices and in anticipation of increased costs later this year. Profit from the segment quadrupled to $157 million. Overall volumes increased by 34% to 35.4 million metric tons from 31.4 million. The company proceeded to raise its guidance for the full year. Bunge now expects to earn $630 million to $650 million, or $4.86 to $5.02 per share, which includes an estimated net gain of $30 million, or 23 cents per share, related to expected gains on sales of assets somewhat offset by restructuring and impairment charges. The company had previously forecast earnings of $590 million to $610 million, or $4.56 to $4.71 per share. "We expect solid performances in the second half of the year in our agribusiness and fertilizer segments, which should more than offset weaker results in edible oils," said Alberto Weisser, chairman and chief executives. 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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AMB - AMB Property - During the third quarter, the REIT bought nearly 1.7 million shares of its stock

AMB Property (AMB) generated FFO of 99 cents per share in the third-quarter, surpassing both its own guidance and the consensus estimate by a wide margin. The Zacks #1 Rank REIT, which trades at less than 17x 2008 FFO, enjoyed improved average occupancy rates and higher rents during the quarter. Full Analysis AMB Property Corporation develops and operates warehouses and distribution facilities. The real estate investment trust's (REIT) portfolio includes properties in North America, Europe and Asia. The specific geographic areas that AMB focuses on are what it describes as "major distribution markets, transportation hubs and gateways". This REIT targets the supply chain niche of real estate, as opposed to other commercial property REITs that may focus on office properties or shopping centers. AMB reported third-quarter results earlier this week. Funds from operations (FFO), a key earnings indicator for REITs, totaled 99 cents per share, up from 72 cents a year prior. The results topped AMB's guidance by 21 cents per and the consensus earnings estimate by 17 cents per share. This was the second consecutive earnings surprise and the third positive surprise in four quarters for AMB. The REIT realized a 50-basis point improvement in average occupancy rates, to 95.4% from 94.9% in the third quarter of 2006. Rents were higher in several markets, contributing to the higher profits. Shareholders also benefited from AMB's share repurchase program. During the third quarter, the REIT bought nearly 1.7 million shares of its stock. Prior to the release of the third-quarter report, two of the covering brokerage analysts revised their forecasts for both 2007 and 2008. The revisions resulted in a one-cent increase in 2007 FFO and a two-cent increase in 2008 FFO to $3.40 and $3.75 per share, respectively. The positive revisions had helped the REIT hit a new a record high late last week. The bullishness has not put AMB out of consideration for value investors, however. The REIT trades at 2.5x book value and less than 17x 2008 FFO. AMB also yields a dividend of 3.16%. 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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AUO - AU Optronics - large-size panels for desktop monitors, notebook PCs and LCD TVs - record revenues for five consecutive months

Shares of AU Optronics (AUO) have surged by more than 25% since the stock was last featured a little over a month ago. Corresponding with the price appreciation has been a 17.2% increase in full-year profit projections. As a result, this Zacks #1 Rank ("strong buy") stock continues to trade at discounted valuation of just 13.4x 2007 earnings. Full Analysis AU Optronics designs and manufactures of thin film transistor liquid crystal display (TFT-LCD) panels and other flat panel displays. The company's products are used in notebook computers and desktop monitors (30% of 2006 production) consumer products - such as digital cameras, portable game consoles, car navigation system and digital camcorders - (62% of 2006 production) and LCD TVs (7% of 2006 production). AUO sells its products to original equipment manufacturers (OEMs) and large computer and electronic companies, including Acer, Dell (DELL), Hewlett-Packard (HPQ) and Samsung. Strong demand for large-size panels for desktop monitors, notebook PCs and LCD TVs are resulting in significant growth for the company. Consolidated revenues reached a record NT$53.7 billion for a sequential monthly increase of 21.8% and a year-over-year increase of 92.6%. AUO has now generated record revenues for five consecutive months. Based on the September results, the company estimates that third-quarter revenues have totaled NT$137.96 billion - an increase of 93.5% over year ago levels. Two of the three covering brokerage analysts raised both their 2007 and 2008 profit forecasts in response. The current consensus earnings estimate for 2007 is $1.45 per share, 21 cents above the forecast of just a month ago. The current consensus estimate for 2008 is $2.07 per share, 37 cents above the forecast of a month ago. The positive news and upward revisions have resulted in the stock surging by more than 25% since we last featured it. Because the price increase has been largely in line with the upward revision in earning estimates, the stock has maintained a discount valuation. Shares of AUO trade at just 13.4x 2007 earnings and 9x 2008 earnings. 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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PDGI - PharmaNet Development Group - analyst upgraded the stock to "Buy" from "Hold" and raised his price target to $39 from $30

PharmaNet Development Group, Inc. is involved with some interesting early and late-stage studies. Next year's earnings estimates have increased by seven cents just over the past week to $1.65 per share. Analysts are projecting earnings to leap another 49.2% next year. The stock just broke out to new highs, which means there is no overhead resistance. Full Analysis PharmaNet Development Group, Inc. (PDGI), a drug development services company, provides clinical drug development services to pharmaceutical, biotechnology, generic drug, and medical device companies worldwide. The company operates in two segments, Early Stage Clinical Development and Late Stage Clinical Development. The company also offers Web-based products that support clinical development activities. PharmaNet Development Group was founded in 1984. It was formerly known as SFBC International, Inc. and changed its name to PharmaNet Development Group, Inc. in 2006. Shares of PharmaNet Development Group Inc. rose after Jefferies & Co. upgraded the stock, citing industry demand and the mix of early and late-stage studies. Analyst David Windley upgraded the stock to "Buy" from "Hold" and raised his price target to $39 from $30. He cited the company's leverage in offering services for both early and late-stage studies, coupled with strong industry demand. In early-August, the company posted a smaller second-quarter loss, amid higher revenue and absent a hefty loss from discontinued operations. The company attributed the results primarily to higher profit in the early stage segment, partially offset by lower profit in the late stage segment. "While the early stage business performed better than expected, late stage earnings were negatively impacted by unrecognized revenue associated with unsigned change orders," commented Jeffrey P. McMullen, president and chief executive officer. "We expect to finalize these change orders and recognize the related revenue in the third quarter 2007." Mr. McMullen continued, "Based on solid business performance in the first half of the year and expectations for the second half of the year, we are confident raising our guidance for 2007." The chart is looking good as the stock just broke to new highs. The old highs around $33 were recently taken out. Shareholders should watch this level to make sure it holds on a pullback, in which case it should be smooth sailing. 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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FPL - FPL Group, Inc - generation, transmission, distribution and sale of electric energy

FPL Group, Inc. (FPL) recently reaffirmed earnings estimates for 2007 and 2008, which are in line with Wall Street expectations. Earnings per share are projected to grow 10% over the next 3-5 years. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. FPL has a current dividend yield of 2.6%. The company delivered a solid second-quarter and will announce results for the third quarter on October 30, 2007. Full Analysis FPL Group, Inc. is a public utility holding company. FPL Group's principal subsidiary, FPL, is engaged in the generation, transmission, distribution and sale of electric energy. FPL Group Capital, a wholly-owned subsidiary of FPL Group, holds the capital stock and provides funding for the operating subsidiaries other than FPL. In addition, FPL Group Capital formed a new subsidiary to sell wholesale fiber-optic network capacity. In late September, the company reaffirmed its earnings outlook for 2007 as well as 2008. FPL expects full-year 2007 earnings to come in the upper half of $3.35 to $3.45 per share. The company sees 2008 earnings ranging between $3.70 and $3.90 per share. Analysts are in agreement as evidenced by 2007 forecasts of $3.45 per share and projections for 2008 of $3.81. Three months ago, Wall street expectations stood at $3.43 for 2007 and at $3.74 for 2008. FPL exceeded analysts' earnings expectations in the past four consecutive quarters. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. The distribution represents the 247th consecutive quarterly dividend paid to stockholders. FPL has a current dividend yield of 2.6%. On Jul 30, FPL reported second-quarter earnings per share of 86 cents, which topped the Street's estimate by seven cents and earnings of 66 cents per share in the prior-year period by 30.3%. Operating revenues grew to $3.93 billion from $3.81 billion in the second quarter of last year. In the last 12 months, the average number of FPL accounts rose by 95,000 or 2.2%. Chairman and CEO Lew Hay stated, "FPL Group delivered very good results overall in the second quarter of 2007, despite unfavorable weather impact at both FPL Energy and FPL. Being able to deliver strong earnings growth despite unfavorable weather demonstrates the robustness of FPL Group's business model." The company's earnings per share are projected to grow 10% over the next 3-5 years, with the industry expected to grow by 7%. The company's return on equity of 13% tops the industry's average of 10%. FPL is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.7% 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. Look for the release of third-quarter results on October 30, 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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SPNC - Spectranetics - past two quarters have produced an average positive surprise of 250%

Spectranetics is enjoying explosive earnings growth. Earnings are slated to grow 220% this year, followed by another 235% in 2008. The past two quarters have produced an average positive surprise of 250%. Over the past 90 days, this year's estimates have gone from breakeven to a profit of six cents per share. Analysts are projecting long-term earnings growth of 40%. Full Analysis The Spectranetics Corporation (SPNC) engages in the development, manufacture, marketing, and distribution of single-use medical devices used in minimally invasive surgical procedures within the cardiovascular system in the United States. Its Excimer laser technology delivers relatively cool ultraviolet energy to ablate or remove arterial blockages, including plaque, calcium, and thrombus. The company offers a range of proprietary laser devices designed for indications, including peripheral laser atherectomy in the upper and lower leg; and coronary laser atherectomy. It also provides devices for the removal of infected, defective, or abandoned pacemaker and implantable cardiac defibrillators leads from the body. In late-July, the company reported strong second-quarter earnings. Earnings per share came in at three cents, 400% above the consensus estimate. Revenue for the second quarter of 2007 reached $20.4 million, up 27% compared with revenue of $16.0 million for the second quarter of 2006. For the quarter, disposable product revenue rose 35% to $17.4 million, laser revenue declined 23% to $1.1 million, and service and other revenue increased 11% to $1.9 million, all compared with the second quarter of 2006. The increase in disposable product revenue for the quarter was driven primarily by a 43% increase in atherectomy product sales as compared with last year, and also included an 18% increase in lead removal revenue. "I'm proud of this quarter's financial performance, which was driven by atherectomy product sales and supported by gains in our lead removal business. The growth in revenue by $3 million as compared with the first quarter of 2007 represents the largest sequential revenue increase we have ever achieved. Our continued strong performance and expanding market share reflect both the advantages of our laser technology in treating PAD and the solid execution of our growth strategy," said John G. Schulte, President and Chief Executive Officer. 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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CB - The Chubb Corp - Almost half of the covering brokerage analysts have raised their 2007 forecasts

The Chubb Corporation (CB) appears poised for another positive earnings surprise when it reports next Tuesday, Oct 23. Brokerage analysts have been raising their forecasts on multiple property and casualty insurers over the past several weeks, including Zacks #1 Rank stock CB. Full Analysis Chubb provides both personal and commercial insurance. Its coverage includes property and casualty (including homeowner, commercial and marine), worker's compensation and multiple peril. The company is also known for providing specialty policies including liability insurance for executives and property and loss insurance for collectible art. CB provides policies worldwide. A drop in net premiums for the reinsurance business, related to a transaction completed in Dec 2005, has resulted in a slight decrease in total net written premiums this year. Outside of reinsurance, however, the dollar amount of premiums written has been increasing. In addition, the combined loss and expense ratio was lower during the first six months of the year, putting the insurer on pace for yet another year of profit growth. During the previous five years, per share earnings have surged from 64 cents to $5.98. Current forecasts suggest CB could earn $6.09 this year. The current full-year consensus estimate is nine cents higher than the average forecast of just a few weeks ago. CB is one of multiple property and casualty insurers that brokerage analysts have grown more bullish on recently. The reasons include the fact that a severe hurricane did not strike the U.S. this year, higher premiums and the rebound in the equity markets. Almost half of the covering brokerage analysts have raised their 2007 forecasts on CB, including one within the past seven days. Regarding third-quarter earnings, six of the 16 covering brokerage analysts have raised their projections, including one within the past seven days. The current estimate calls for per share profits of $1.44 per share, eight cents higher than the forecast of a month ago. If the forecast is achieved, Chubb would have grown profits by 25%. There is good reason to believe that Chubb will not only match the consensus forecast, but exceed it. CB has topped expectations for 16 consecutive quarters. During the past four quarters, the average margin of surprise has been 16 cents per share. The most accurate estimate of $1.54 per share also suggests earnings will surprise to the upside. The combination of upwardly revised forecasts for 2007, history of positive surprises and bullish upside are all reasons why CB is a Zacks #1 Rank stock. The optimism among brokerage analysts has not gone unnoticed as the stock is trading near a 52-week high. Nonetheless, CB's valuation remains rather reasonable at a P/B multiple of just 1.59. On a P/E basis, the stock is trading at about 9x 2007 earnings. Value investors should also note that CB yields a dividend of 2.12%. 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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IVGN - Invitrogen Corp - completed a previous $500 million buyback - authorized a new $500 million stock buyback program

Invitrogen is doing a good job of cloning profits. The company has exceeded analyst estimates by an average of about 25% over the past three quarters. This year's earnings estimates have risen 27 cents to $3.75 per share over the past 90 days. IVGN is also buying back shares at a nice pace. It recently authorized another $500 million program after completing a previous one for the same amount. Full Analysis Invitrogen Corporation (IVGN) engages in the development, manufacture, and marketing of research tools in reagent, kit, and applications forms for the life sciences research, drug discovery, and diagnostics customers, as well as biological products manufacturers. It operates in two segments, BioDiscovery and Cell Culture Systems. The company markets its products directly, and through distributors or agents in approximately 70 countries. It has a strategic collaboration agreement with IDEXX Laboratories, Inc. for the distribution and development of new products for the water testing industry. In early-August, the company said its second-quarter profit doubled on higher revenue from its cell biology and culture systems. The company earned $40.9 million, or $1.00 per share, compared with a profit of $19.7 million, or 35 cents per share, during the same period a year prior. Revenue rose 13% to $321.7 million from $285.4 million. Analysts only expected 75 cents per share. Additionally, IVGN said it authorized a $500 million stock buyback program. The board of directors approved the new three-year program, which authorizes management to repurchases shares at its discretion. The company recently completed a previous $500 million buyback program. "The intense focus we placed on operations, IT infrastructure and integrations during the last twelve months is delivering results," said Greg Lucier, Chairman and Chief Executive Officer of Invitrogen. "Moving forward, the tightly integrated portfolio of technologies we have built in recent years around cellular science makes us well positioned to capitalize on research trends in cell biology and the growth of biologics." In an analyst note following the report, Deutsche Bank's Ross Muken said new products include an engineered cell line for human embryonic stem cells, among a number of others. Muken said sales of the company's cell culture systems were strong during the quarter, highlighted by a turnaround in the company's research sera production product line. 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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CMI - Cummins, Inc - 39% increase in dividend on a year-over-year basis

Cummins, Inc. (CMI) is a Zacks #1 Rank (Strong Buy) stock, which has been hitting 52-week highs lately and currently trades slightly below that level. The company recently declared a dividend of 25 cents per share. The dividend, which reflects a 39% year-over-year increase, is payable on November 30, 2007 to shareholders of record on November 16, 2007. Cummins’ current dividend yield 0.70% tops the industry’s average of 0.40%. Last month, CMI reaffirmed its 2007 outlook of $7.15 to $7.65 per share, which is in line with analyst estimates. The release of third-quarter results is scheduled for October 25, 2007. Full Analysis Headquartered in Columbus, Indiana, Cummins, Inc. designs, manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. The company serves customers in more than 160 countries through its network of 550 company-owned and independent distributor facilities and more than 5,000 dealer locations. The company is a Zacks #1 Rank (Strong Buy) stock, which has been reaching 52-week highs lately and is trading slightly below that level. CMI recently declared a quarterly dividend of 25 cents per share, which is payable on November 30, 2007 to shareholders of record on November 16, 2007. The company noted that this dividend reflects a 39% increase on a year-over-year basis. Cummins decided to increase the dividend to its current level back in July of 2007. Last month, the Company reaffirmed its financial guidance for 2007. Cummins stated that, based on its strong first half and its projections for the remainder of the year, it expects to earn between $7.15 and $7.65 a share. Analysts are in agreement as evidenced by current forecasts of $7.50 per share. Three months ago, Wall Street estimates stood at 6.43. In late July, CMI released record results for the second quarter. Earnings per share of $2.13 jumped ahead of the consensus estimate by 34%. Second-quarter revenues of $3.34 billion were up 18% on a year-over-year basis. ”This was a tremendous quarter for Cummins and is further proof that the work we have done to diversify our business is paying off," said Cummins Chairman and Chief Executive Officer Tim Solso. "Our strong performance in the first half of the year has put us in a position to make 2007 Cummins' most profitable year ever - which would be a significant feat given the challenges we have faced in the heavy-duty truck engine market.” Earnings per share over the next 3-5 years are expected to grow 14%, which is in line with the forecasted growth rate of the industry. The company’s net margin of 6% is also in line with its industry. CMI is currently yielding 0.70%, above the industry’s average of 0.40%. 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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WBMD - WebMD Health Corp - second-quarter revenue grew to $78.5 million from $56.6 million a year earlier

WebMD Health Corp. has a strong history of exceeding earnings estimates. It has done so in each of the past five quarters by a minimum surprise of 25%. Over the past 90 days, this year's estimates have increased seven cents to 58 cents per share. Analysts expect earnings to grow another 36.1% next year. The company sports a strong balance sheet with no debt. Full Analysis WebMD Health Corp. (WBMD) provides health information services to consumers, physicians, healthcare professionals, employers, and health plans, through its public and private online portals, and health-focused publications primarily in the United States. The WebMD Health Network consists of public portals, such as WebMD Health, a primary public portal for consumers; and Medscape from WebMD, the primary public portal for physicians and other healthcare professionals. In addition, the company offers complementary offline health content, including publications; and conducts in-person medical education. Its publications include The Little Blue Book, a physician directory; ACP Medicine and ACS Surgery medical reference publications; and WebMD the Magazine, a consumer-targeted publication. WebMD Health Corp. has a strategic alliance with Time Warner, Inc., through which it provides healthcare content, tools, and services for use on certain America Online properties. In late-July, the company reported second-quarter profits that easily beat estimates due to increased revenue in several segments of its online services business. For the period that ended June 30, WebMD earned $5.4 million, or 9 cents per share, compared with a loss of $853,000, or 2 cents per share, in the year-ago period. The company's second-quarter revenue grew to $78.5 million from $56.6 million a year earlier. Analysts expected six cents per share. The company said its online services business' sales rose $23.3 million from a year ago to $72.9 million. Within that unit, WebMD's advertising and sponsorship sales increased by $16.2 million to $52.4 million, and the company's licensing revenue also grew, adding $7.5 million to $19.8 million. Wayne Gattinella, President and Chief Executive Officer of WebMD, said: "Our second quarter operating results demonstrate the strong progress that we are continuing to make towards delivering on the Company's overall strategic plan." "We are making the investments necessary to extend our leadership position and deliver the products and capabilities that will position us to continue to achieve substantial long term revenue growth and margin expansion. I am very enthusiastic about the opportunities ahead." 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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HMN - Horace Mann Educators Corp - in 9 of 11 quarters it produced double-digit percentage surprises

Horace Mann Educators Corporation (HMN), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in 11 out of the past 14 quarters. Consensus earnings estimates for both this year and next year are up over the past month. The company has returned value to its shareholders through both dividend payments and share repurchases. HMN has a price-to-book ratio of 1.5. Full Analysis Horace Mann Educators Corporation, an insurance holding company, engages in marketing and underwriting personal lines of property and casualty, and life insurance, as well as retirement annuities in the United States. The company offers its products primarily to educators, and other employees of public schools and their families through its direct sales force. HMN exceeded analysts’ earnings expectations for the past three quarters and in 11 out of the past 14. Moreover, when the company surprises to the upside it usually does so by a rather large margin. In nine of the aforementioned 11 quarters it produced double-digit percentage surprises. On Aug 1, HMN posted second-quarter earnings per share of 53 cents, topping the Street’s estimate of 45 cents by 17.8%. Total revenues came in at $218.0 million, compared to $215.4 million in the prior-year period. The company's total premiums written climbed approximately 2%. HMN’s property and casualty combined ratios, a measure of profitability for insurance companies, were 89.1% and 89.3% for the second quarter and six months, respectively, compared to 83.8% and 86.8% in the prior-year periods. 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. President and CEO Louis G. Lower II stated, "Horace Mann is off to a strong start in 2007. The second quarter represented another solid earnings period for the company, exceeding our expectations in spite of being down somewhat from an exceptionally good second quarter in 2006." The consensus earnings estimate for this year is up 10 cents to $1.95 over the past 30 days. One of the two covering analysts upped his estimate. Profit forecasts for next year have risen by five cents to $1.90 over the same period of time, with an upward revision submitted by the only covering analyst. On Sep 11, the Board of Directors declared a quarterly cash dividend of 10.5 cents per share. HMN is currently yielding 1.9%. The Board also recently approved a $50-million share repurchase plan. HMN is currently trading at a valuation of 11.2x current fiscal-year estimated earnings and at 11.5x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x current fiscal-year estimated earnings and at 15.5x next fiscal-year estimated earnings. The company has a price-to-book ratio 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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NDAQ - The Nasdaq Stock Market, Inc - Analysts expect earnings to jump another 43.6% next year

The Nasdaq Stock Market is benefiting from record trading volume, even when the market went in the tank in August. Over the past 60 days, this year's earnings estimates have increased nine cents to $1.38 per share. Analysts expect earnings to jump another 43.6% next year. The company has exceeded estimates by an average of 20% over the past two quarters. Full Analysis The Nasdaq Stock Market, Inc. (NDAQ), through its subsidiaries, provides securities listing, trading, and information products and services. It operates through two segments, Market Services and Issuer Services. The Market Services segment provides a transaction-based platform that enables the market participants to access, process, display, and integrate orders and quotes in The Nasdaq Stock Market. It also facilitates routing and executing buy and sell orders, and reporting transactions for Nasdaq-listed securities and securities listed on other national securities exchanges. In early October, the company said it will buy the Boston Stock Exchange and related companies for about $61 million. Included in the deal are the exchange's holding company, BSE Group, as well as the Boston Equities Exchange, the Boston Stock Exchange Clearing Corp. and BSE's regulatory authority over the Boston Options Exchange (BOXR). NDAQ is gaining market share as evidenced by its September announcement. It said its matched market share reached a record 30.4 percent in August, more than any other U.S. exchange. Matched market share represents the total share volume of all U.S. equities that are executed on Nasdaq's book as a percentage of the total consolidated Nasdaq market volume. August was the fou