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 EMS Technologies, Inc. (Nasdaq: ELMG), Casey's General Stores, Inc. (Nasdaq: CASY), StatoilHydro ASA (NYSE: STO) and Buckeye Technologies, Inc. (NYSE: BKI).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32.2% 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 – EMS Technologies, Inc. (Nasdaq: ELMG)
EMS Technologies is experiencing dramatic growth due to strong demand for its products. The defense segment is doing especially well. The company has exceeded earnings estimates in four of the past five quarters. Just over the past week, this year's estimates have increased six cents to $1.11 per share. Analysts expect 21% earnings growth next year.
Growth & Income – Casey's General Stores, Inc. (Nasdaq: CASY)
Casey's General Stores, Inc., Zacks #1 Rank (Strong Buy) company, has seen analysts issue upward revisions of earnings estimates for the year ending April of 2008 as well as the following fiscal year. The company is expected to grow by 13% over the next 3-5 years. In early September, CASY posted an all-time high in earnings for the fiscal first quarter, outpacing the consensus estimate by nearly 26%. The company declared a quarterly dividend of $0.065 per share. CASY is currently yielding 0.9%, which beats the industry average.
Momentum – StatoilHydro ASA (NYSE: STO)
StatoilHydro ASA recently eclipsed its 52-week high after reporting another strong quarter. The company also announced on Oct 1 that it had completed its merger with Norwegian oil and natural gas heavyweight, Norsk Hydro. Energy prices continue to accelerate which places this newly formed conglomerate in an excellent position to continue to reap the benefits.
Value – Buckeye Technologies, Inc. (NYSE: BKI)
Buckeye Technologies is enjoying increasing earnings estimates and low valuations. Over the past three months, next year's estimates have more than doubled to $1.02 per share. The company has exceeded estimates in four of the past five quarters. Analysts expect earnings to grow almost 90% this year over last year. The stock is attractive at less than 14x this year's estimates.
The free special report, “Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions,” provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93.
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 +32.2%. 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 129% annually (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 – Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.
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.
Aggressive Growth Stocks:
Roopak Chakravarty, 312-265-9188
Growth & Income Stocks:
Alex Kolb, 312-265-9149
Roopak Chakravarty, 312-265-9188
Charles Rotblut, 312-265-9352