Zacks.com announces the list of top performing Zacks #1 Rank (Strong Buy) stocks for the month of April. The stocks on the prestigious list with the highest returns last month were Sohu.com, Inc. (NASDAQ: SOHU), Trina Solar Ltd. (NYSE: TSL), Bunge Limited (NYSE: BG), Inter Parfums, Inc. (NASDAQ: IPAR) and Valassis (NYSE: VCI). Each of these stocks easily outperformed the S&P 500.
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32% 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 learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.
Here is a synopsis of the last week’s best performing Zacks #1 Rank stocks.
Sohu.com, Inc. (NASDAQ: SOHU) had the number one spot on the Top Performers List for April as shares surged 53%. For its first quarter, SOHU announced that earnings per share reached US55 cents, which was up more than 300% from last year’s US12 cents. It also marked a surprise of approximately 41% over the consensus. SOHU has now beaten the Street in four consecutive quarters with an average surprise of almost 19%. Total revenues improved 156% year over year to $84.8 million.
In reaction to this report, earnings estimates for this year have moved higher in the past seven days by 18%. Estimates have been rising for a while now, gaining 37.5% in the past three months. SOHU began April on the Top Performers List as it was highlighted for the week ended Apr 4.
Trina Solar Ltd. (NYSE: TSL) shares gained 37% in April, giving the company a prominent position on the Zacks #1 Rank Top Performers List for the month. Earnings estimates for this year are up approximately 16.7% from two months ago. That includes a rise of 7.1% in the past 30 days. In its fourth quarter, TSL reported a positive earnings per share surprise of almost 39% with year-over-year revenue growth more than 161%.
Trina Solar began the month on the Top Performers List after gaining 17.4% in the week that ended Apr 4. It was also featured as an Aggressive Growth Stock of the Day at Zacks.com on Apr 18, and a Value Stock of the Day on Apr 7. As the month closed out, TSL announced a long-term polysilicon supply agreement with SILFAB S.p.A.
Bunge Limited (NYSE: BG) shares advanced 31% last month. First-quarter earnings per share reached $2.10, compared to five cents a year earlier – that accounts for a 4100% improvement. The result also marked a positive surprise of about 94.4% while continuing a streak of better than expected results. Over the past four quarters, BG’s average surprise is 61%. Sales advanced 70% to $12.47 billion.
Looking forward, Bunge raised its guidance for the full year to $7.40 per share, compared to its earlier forecast of $7.10. Analysts raised estimates for this year by 8.8% over the past seven trading days. Over the past three months, expectations are up 18.4%.
Inter Parfums, Inc. (NASDAQ: IPAR) shares gained 31% during April as the prestige perfumes and cosmetics company prepares to announce first-quarter results later this week. Earnings estimates for the full year and first quarter are both moving in positive directions. Analyst expectations for this year are up approximately 4% in just the past seven trading days and 13% over the past two months. For the first quarter, analysts raised estimates 9.4% over the past week.
On Apr 29, IPAR announced a four-year licensing agreement with Gap. On Apr 25, the company provided a sneak peek at its first quarter results, announcing net sales of $123.2 million compared to $85.1 million a year earlier.
Before reporting solid first-quarter results on May 1, Valassis (NYSE: VCI) announced some bullish expectations for the quarter on Apr 15. Shares for this marketing services company rose 31% in April, securing a spot on the Top Performers List. Earnings estimates for this year are currently at $1.34, which is 3.9% better than one month ago and 6.3% better than three months ago.
The company had announced expectations for earnings per share between 22 cents and 28 cents per share, which was above estimates at the time. Valassis’ actual earnings result was 26 cents, which was at the upper end of this guidance range and above expectations by a penny, or 4%. Furthermore, Valassis also anticipated revenue growth to nearly $600 million. Actual revenue came in at $597.1 million, marking a gain of 65.3% from $361.3 million. Results in the quarter were aided by an acquisition.
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%. 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 131.8% annually (+5.2% vs. +11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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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.
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