(UBS) - UBS AG - estimates for both this year and next are up over the past 60 days

UBS AG (UBS) has increased shareholder value through both share buybacks and distribution of dividends. In fact, the company increased its annual dividend in July by 7% to CHF1.60 (US$1.28) per share. UBS is currently yielding 2.1%, with a five-year average dividend yield of 2.3%. Over the past year, UBS has been very active making various acquisitions. Consensus estimates have been on the rise for both this year and next. Full Analysis UBS AG, which was formed through the 1998 merger of Union Bank of Switzerland and Swiss Bank Corporation, is one of the largest banks in the world with CHF2.1 trillion in assets (US$1.6 trillion) and a presence in 50 countries. The company organizes its operations into five main business segments: Global Wealth Management and Business Banking, Investment Bank, Global Asset Management, Industrial Holdings and Corporate Center. While UBS posted third-quarter profits that were down compared to the prior-year period, results for the first nine months were up. The company increased profits for the past four years. UBS advised on 285 transactions during the first nine months, with deal volume totaling $473 billion, up 19% from a year ago. UBS has increased shareholder value through both share buybacks and distribution of dividends. The company’s current repurchase authorization, which began on Mar 8, 2006, authorizes the repurchase of up to CHF5 billion shares over the next year. Under the aforementioned program, the company bought back 11.3 million shares for a total cost of CHF778 million. Under its prior share repurchase program which ended Mar 7, 2006, UBS repurchased 74.2 million shares at a total cost of CHF4,026 million. UBS increased its annual dividend by 7% to CHF1.60 (US$1.28) per share on Jul 10, 2006. The company has a current dividend yield of 2.1% and a five-year average dividend yield of 2.3%. UBS’s annualized return on equity of 25.8% in first nine months of 2006 came in well above its target of 20% minimum over the cycle. Consensus estimates for both this year and next are up over the past 60 days. Profit forecasts for this year jumped eight cents to $4.26, while estimates for next year have risen 13 cents to $4.74. Over the past year, UBS has been very active making various acquisitions. On Sep 6, the company announced the US$280 million acquisition of McDonald Investments from KeyCorp, with the deal projected to close in the first quarter of 2007. On Jul 27, UBS announced its intent to acquire 51% of Daehan Investment Management Trust Company—Korea’s largest asset management company. On May 25, the company announced the purchase of ABN AMRO’s global futures and options business for US$386 million. Lastly, on May 9, UBS stated that it will acquire Banco Pactual S.A., a leading player in investment banking and asset management in Brazil. UBS is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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