Zacks Buy List Highlights: Resources Connection, Inc., Toll Brothers, Inc., Finish Line Inc., and Microsemi Corporation.CHICAGO -- Zacks.com releases another list of stocks that are currently members of the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. Zacks #1 Rank (Strong Buy) List. The #1 Rank stocks highlighted today are Resources Connection, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RECN RECN Reconnaissance ) and Toll Brothers, Inc. (NYSE NYSE See: New York Stock Exchange :TOL). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Finish Line Inc. (NASDAQ:FINL FINL Financial Independent Network Limited ) and Microsemi Corporation (NASDAQ:MSCC MSCC Motlow State Community College (Lynchburg, TN) MSCC Morgan Sports Car Club MSCC Manila Sports Car Club MSCC Mission Springs Community Church (Fremont, CA) MSCC Mazda Sports Car Club ). To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88 Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32.8% 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%. Here is a synopsis of why RECN and TOL have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks: Resources Connection, Inc. (NASDAQ:RECN) reported fiscal fourth quarter earnings per share of 31 cents last week on total revenue of $150 million. The result improved upon last year's 22 cents and beat the consensus by almost 11%. Revenue jumped 40.2% from $107 million. Resources Connection stated that its excellent financial results for the year reflect its continuing ability to deliver high-quality service to clients with tremendous flexibility and a true global reach. Earnings estimates for the year ending May 2006 are up 13 cents, or approximately 12%, in the past seven trading days. Toll Brothers, Inc. (NYSE:TOL) will report its fiscal third quarter results early next month. Over the past three months, earnings estimates for the year ending October 2005 are up 22 cents, or about 5%. Late May saw the company put together another solid performance for its fiscal second quarter, with earnings per share of about $1.00 (post-split). That result significantly eclipsed the year-earlier result while also bettering the consensus by almost 13%. Revenues rose 52% to $1.25 billion. In addition, contracts grew 38% to $2.20 billion while backlog surged 57% to $5.87 billion. Toll Brothers stated that its record results in the quarter reflect the strong demand and accompanying pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. , which prompted the company to increase its earnings outlook for fiscal year 2005. Here is a synopsis of why FINL and MSCC have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks ranked by Zacks: Finish Line Inc. (NASDAQ:FINL) posted fiscal first-quarter earnings of 26 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in late June, outpacing last year's result and matching the consensus estimate. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight grew 13% year-over-year, while comparable store net sales increased 2% on top of a 14% increase reported for last year's first quarter. The company stated that it is well positioned and optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op as it approaches the Back-to-School selling season. Earnings estimates for the year ending February 2006 are up one cent, or almost 1%, from two months ago. Microsemi Corporation (NASDAQ:MSCC) will announce fiscal-third quarter earnings on July 28, 2005. In late April, the company released fiscal second-quarter earnings of 16 cents per share, more than doubling last year's seven cents and jumping ahead of the consensus estimate by almost 7%. Net sales were up 27% year-over-year. The company said its strong financial results and solid execution are a direct reflection of its ability to leverage its technical capabilities and bring new products to market. Earnings estimates for the year ending September 2005 are above three months ago levels by two cents, or approximately 3%. Truly taking advantage of the Zacks Rank requires the understanding of how it works. 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 For over 16 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time 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 +32.8%. 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 155.5% annually (+4.65% vs. +11.88%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively. Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks #1 Rank stocks and highlights those stocks poised to outperform the market. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=90. The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). . Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to Profit from the Pros http://at.zacks.com/?id=91 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. (a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion