Zacks Buy List Highlights Copart, Fossil, Fastenal Company and IBM.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 Ranked list which has produced an average annual return of +33.1% since inception in 1988. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked stocks gained +43.8% while the S&P 500 tumbled -37.6%. Among the #1 ranked stocks today we highlight the following companies: Copart, 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 :CPRT CPRT Copart Inc. (stock symbol) CPRT Citizens for Personal Rapid Transit CPRT Client Perceived Response Time CPRT Coprocessor Register Transfer CPRT Cancer Prevention Research Trust CPRT Classic Professional Racquetball Tour ) and Fossil, Inc. (NASDAQ:FOSL FOSL Finding Of Suitability (for) Leasing FOSL Falling Off Seat Laughing ). Further they announced #2 Rankings (Buy) on two other widely held stocks: Fastenal Company (NASDAQ:FAST) and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) (NYSE NYSE See: New York Stock Exchange :IBM). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88 Here is a synopsis A summary; a brief statement, less than the whole. A synopsis is a condensation of something—for example, a synopsis of a trial record. of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank: Copart, Inc. (NASDAQ:CPRT) operates auctions for salvaged automobiles. The company posted fiscal fourth quarter net income of $21.4 million, or 23 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. , above last year's profit of $13.3 million, or 15 cents per share. Copart reported revenue of $100.1 million, up almost +15% on the year. Copart said that earnings for the latest quarter rose on money it received relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for insurance claims and sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. . This totaled about $3.6 million before taxes, and moved earnings per share higher by 2 cents. The company also reported fiscal 2004 net income of $79.2 million on revenue of $400.8 million. In the same period last year, Copart earned $57.2 million on revenue of $347.4 million. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the past 12 months increased +40% to 87 cents. This positive news sent analysts back to their original estimates for the next fiscal year. Earnings estimates for the year ending in July 2005 have gone up almost +15% over the past 30 days. Investors wanting to salvage some profits from this rocky market should look into Copart. Fossil, Inc. (NASDAQ:FOSL) is a design, development, marketing and distribution company that specializes in consumer products predicated on fashion and value. In the second quarter the company announced that 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 increased +29.2% to $206.1 million compared to $159.6 million in 2003. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose +48.4% to $24.0 million compared to $16.2 million in the second quarter of 2003. Net income also increased +51.9% to $15.8 million compared to $10.4 million in the second quarter of 2003; and diluted earnings per share increased +50% to 21 cents. Fossil experienced sales growth across all brands and geographic regions. Gross profit grew +33.2% to $109.0 million, or 52.9% of sales, compared to $81.9 million, or 51.3% of sales, in the second quarter of 2003. The company also managed a fifth consecutive quarter of beating Wall Street's earnings expectations. Fossil is expecting third quarter 2004 diluted earnings per share of approximately 30 cents, which reflects a +30% growth compared to diluted earnings per share of 23 cents in the third quarter of 2003. Investors should watch this company further and look to pick up shares. Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank: Fastenal Company (NASDAQ:FAST) sells industrial and construction supplies. Earnings estimates for the year ending December 2004 remain above levels from three months ago for Fastenal by 11 cents, or approximately +7%. Earnings per share for the second quarter reached 46 cents, which compared favorably with the year-ago result of 29 cents. It was also more than +12% better than the consensus. In addition to its planned store expansion, Fastenal continued its customer service project, with goals that include the expansion of the products stocked at each store site, along with a more consistent display theme. At the same time of its second quarter announcement, the company's Board of Directors declared a dividend of 25 cents per share. Thanks to the strengthening industrial economy and higher steel prices, Fastenal reported a solid quarter and looks to keep the momentum rolling. IBM (NYSE:IBM) is one of the biggest technology companies and a household name. The company uses advanced information technology platforms to deliver customer solutions. Back in July, IBM announced that second-quarter 2004 diluted earnings per common share were $1.16 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the compared with diluted earnings of 98 cents per share in the same period of 2003, an increase of +18%. Second-quarter income from continuing operations was $2.0 billion compared with $1.7 billion a year ago. Revenues from continuing operations for the second quarter were $23.2 billion, up +7% compared with the second quarter of 2003 revenues of $21.6 billion. IBM delivered another fine quarter, which demonstrated the power of its business model and the advantages of its continued focus on serving enterprises and institutions around the world. Corporate spending looks to be hitting its stride and Big Blue is riding the wave. To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=89 About the Zacks Rank For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +33.1% compared to the (a)S&P 500 return of only +12.0%. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked 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). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 140% annually (12.0% vs. 5.0% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio. For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market. http://at.zacks.com/?id=90 The Zacks Rank, and all of its recommendations, is created by Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc. Zacks.com displays the Zacks Rank with permission from Zacks Investment Research, Inc. on its web site for individual investors. 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Disclaimer: The Zacks Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect 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 dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (a) The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks Noun 1. blue-chip stock - a common stock of a nationally known company whose value and dividends are reliable; typically have high price and low yield; "blue chips are usually safe investments" blue chip , 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 solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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