Zacks.com announces the latest list of top performing Zacks #1 Rank (“strong buy”) stocks. The stocks on the prestigious list with the highest returns last week were GMX Resources, Inc. (NASDAQ: GMXR), Sohu.com, Inc. (NASDAQ: SOHU), MasterCard, Inc. (NYSE: MA), Alpha Natural Resources, Inc. (NYSE: ANR) and Apogee Enterprises, Inc. (NASDAQ: APOG). 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.
GMX Resources, Inc. (NASDAQ: GMXR) had a strong performance last week as shares gained almost 17.4%. That was enough to put the oil & gas company on the Zacks #1 Rank Top Performers List. GMXR has a partnership with Penn Virginia Corporation in East Texas, and recently a natural gas well showed the potential for a greater-than-expected production rate. The news helped the company to a fresh 52-week high on Friday.
Earlier in May, GMX Resources announced strong first-quarter results, bolstered by the solid market for natural gas and oil. Earnings per share of 40 cents surged 90% year over year from 21 cents, while also beating the consensus by 21.2%. Other highlights in the quarter included a 106% jump in oil and natural gas sales, and a 60% advance in production. Furthermore, GMXR raised its guidance for 2008 revenue, total production and cash flow, along with its capital expenditure budget. Earnings estimates for this year are up 39% from one month ago.
Sohu.com, Inc. (NASDAQ: SOHU) is a Zacks #1 Rank Top Performer for the second time in three weeks. The leading Internet portal in China, which is also a sponsor of the 2008 Beijing Olympics, gained 14.1% for the week ended May 30. Earnings estimates for this year have advanced 33.1% in two months and 5.4% in one month. Analysts currently expect next year’s earnings to be approximately 25% better than this year’s.
In late April, the company announced that each revenue category in its first quarter achieved record highs. Total revenues improved 156%, while earnings per share of US55 cents eclipsed the consensus by 41%. The past four quarters have amassed an average EPS surprise of almost 19%. In addition to rising earnings estimates, the strong first-quarter performance also made SOHU the Zacks #1 Rank Top Performer for the entire month of April.
MasterCard, Inc. (NYSE: MA) reached an all-time high last Thursday as the company gave an encouraging outlook for the rest of 2008 and beyond. Shares increased by 13% last week. Earnings per share for this year are up 13.5% in two months and 1.9% in 30 days.
At an analyst meeting, the company announced that it expects double-digit revenue growth in 2008. Longer term, MA anticipates average annual profit growth between 20% and 30%, including average annual net revenue growth between 12% and 15%. For the second quarter, MA said gross dollar volume growth is likely to slow in the U.S., but should be offset internationally. In its first quarter, the company beat Wall Street’s EPS estimate by 29.5%, and has now put together an average surprise of approximately 22% over the past four quarters.
This year’s earnings estimates for Alpha Natural Resources, Inc. (NYSE: ANR) are up 2.5% in just the past seven trading days, continuing an upward path that this coal company has been enjoying. The past two months have seen analysts raise their expectations by as much as 46%. The rising price of coal has been a boon to this company and its industry, and last week was certainly no exception. ANR made the Zacks #1 Rank Top Performers List with a gain of 11.5%.
ANR has now made the List for three consecutive weeks. The company announced first-quarter earnings per share of 39 cents early in May, topping the consensus by approximately 129%. Coal sales of $445.7 million advanced by 17% year over year. ANR achieved the highest quarterly price realization in its history, due to rising metallurgical coal exports and price levels. Analysts expect next year’s earnings per share to significantly surpass this year’s by about 194%.
Apogee Enterprises, Inc. (NASDAQ: APOG) gained 9.6% last week. The glassmaker is preparing to announce its fiscal first-quarter results later this month. In early April, the company announced an impressive fiscal fourth-quarter performance, which helped its earnings estimates improve by approximately 12.6% over the past two months.
In the fiscal fourth quarter, earnings per share from continuing operations reached 49 cents, which bettered the consensus by almost 16.7%. In the year-ago quarter, APOG reported 32 cents. Revenues jumped 18% to $243.3 million. For the fiscal year, EPS from continuing operations were up 33% on revenue growth of 13%. The company gave credit for much of its success to strong operating income in its architectural and large-scale optical segments. APOG also provided a fiscal 2009 EPS guidance that was ahead of the consensus at the time.
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 129% annually (+5 % vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
To view the current Zacks #1 Rank List and to see additional Zacks Rank resources, go to http://at.zacks.com/?id=3173.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=3168.
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 by going to http://at.zacks.com/?id=3169.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
Contacts:
Jim Giaquinto
312-265-9268
Email: pr@zacks.com
Visit:
www.Zacks.com
