Zacks.com releases the latest list of Zacks Rank Buy Stocks. Everyday on Zacks.com, four stocks are selected based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are MAXIMUS, Inc. (NYSE: MMS), Questar Corporation (NYSE: STR), Priceline.com Incorporated (Nasdaq: PCLN), and ProAssurance Corporation (NYSE: PRA).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.9% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled -37.6%. To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88
Here is a synopsis of today’s Zacks Rank Buy Stocks:
Aggressive Growth – MAXIMUS, Inc. (NYSE: MMS)
MAXIMUS, Inc. has experienced a surge in earnings estimates for both this year and next. Over the past month, this year's estimates have soared 50 cents to 89 cents per share, while next year's numbers have jumped 37 cents to $2.41 per share. MMS has exceeded analyst forecasts in each of the past four quarters.
Growth & Income – Questar Corporation (NYSE: STR)
Questar Corporation exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. The company recently raised its full-year profit and production guidance. Consensus earnings estimates for both this year and next are up over the past two months for this Zacks #1 Rank stock. On May 14, the Board of Directors declared a two-for-one stock split and raised the company’s dividend. STR has a current dividend yield of 0.93%.
Momentum – Priceline.com Incorporated (Nasdaq: PCLN)
On May 8, Priceline.com Incorporated reported first-quarter earnings of 33 cents per share, up from 19 cents per share in the year-ago period and 14 cents above expectations. After reaching a 6-year high on May 8, the first-quarter release caused the stock to tumble roughly 16% before finding support against the 50-day moving average. PCLN has since rebounded on analyst upgrades and appears ready to retest the recent highs.
Value – ProAssurance Corporation (NYSE: PRA)
ProAssurance Corporation, a Zacks #1 Rank stock, topped the consensus earnings estimate in six consecutive quarters and in nine out of the last 10. Since the release of PRA’s first-quarter results, analysts have been upping their earnings estimates for both this year and next. Earnings per share are projected to grow 11% over the next 3-5 years. PRA has a price-to-book ratio of 1.7, compared to 4.5 for the market.
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About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +31.9%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 132% annually (+5.1% vs. +11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR’s.
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About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=91
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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
