Earnings estimate revisions are the most powerful force impacting stock prices. Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy that delivered a +23.3 return in 2006. Four stocks meeting this screen’s exclusive criteria are Administaff, Inc. (NYSE: ASF), Buckeye Technologies Inc. (NYSE: BKI), Dawson Geophysical Co. (Nasdaq: DWSN) and The Manitowoc Company, Inc. (NYSE: MTW). View the entire list of stocks for the Upgrades and Revisions Profit Track at http://at.zacks.com/?id=1844.
Here are details on four companies currently identified by the Upgrades and Revisions Profit Track:
Administaff, Inc. (NYSE: ASF) declared a quarterly dividend of 11 cents per share in early August. Earlier that month the company posted record quarterly results. Second-quarter earnings of 50 cents per share outpaced the previous year's 37 cents and exceeded the consensus estimate by 28%. Revenues for the second quarter jumped 11.5% on a year-over-year basis. Administaff stated that its strong operating results have positioned it well to take advantage of new market and product opportunities over the second half of 2007 and into next year. ASF generated earnings per share growth of 100% over the past five years.
Buckeye Technologies, Inc. (NYSE: BKI) announced fiscal fourth-quarter results in early August, stating that it is pleased with its improved results, both for the quarter and fiscal year. BKI, a leading manufacturer and marketer of specialty fibers and nonwoven materials, added that it credits its improved earnings to strong demand across all of its businesses and to the combination of higher prices, better mix and cost reductions. The company produced earnings per share growth of 519% over the past five years.
Dawson Geophysical Co. (Nasdaq: DWSN) is a Zacks #1 Rank (Strong Buy) company, that has been hitting 52-week highs recently and currently trades slightly below that level. In early August, the company reported fiscal third-quarter earnings of 98 cents per share, eclipsing the year-prior 56 cents and exceeding the consensus estimate by 26%. DWSN experienced earnings per share growth of 93% over the past five years.
The Manitowoc Company, Inc. (NYSE: MTW) released second-quarter results in late July, calling it another record-setting quarter of net sales, earnings and backlog. On a two for one split-adjusted basis, the company’s earnings per share from continuing operations before special items totaled 76 cents per share. The result outpaced the year-ago 41 cents and topped the consensus estimate by approximately 23%. Net sales reached $1.019 billion, the first time that Manitowoc's quarterly revenue exceeded $1 billion and an increase of 37% form last year's second quarter. MTW sports earnings per share growth of 45% over the past five years.
Discover all the current stocks currently on the Upgrades and Revisions Profit Track at: http://at.zacks.com/?id=1869
About Profit Tracks
What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838
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