Zacks Industry Rank Analysis Highlights: Electronic Arts, Hasbro, Mattel, Nucor and WellPoint.CHICAGO Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Electronic Arts (Nasdaq: ERTS ERTS Electronic Arts, Inc. (stock symbol) ERTS Earth Resources Technology Satellite (US NASA) ERTS Embedded Real Time Systems ERTS Enhanced Remote Transit Shed ), Hasbro (NYSE NYSE See: New York Stock Exchange : HAS), Mattel (NYSE: MAT), Nucor (NYSE: NUE NUE Nitrogen Use Efficiency NUE Nuremberg, Germany - Nuremberg (Airport Code) NUE Non-Upset Ends (piping) ) and WellPoint (NYSE: WLP WLP WebLogic Portal (Bea Systems) WLP Wafer Level Packaging WLP Women's Learning Partnership (Bethesda, MD) WLP Workplace Learning & Performance WLP World Library Partnership, Inc. ). To see the Zacks Industry Rank and the trend in earnings estimates revisions for all 208 industry groups, visit http://at.zacks.com/?id=3154. Zacks Industry Rank Analysis is written by Charles Rotblut, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , Senior Market Analyst for Zacks.com. As would be expected for earnings season, the number of earnings estimate revisions for stocks within the Zacks Rank universe(a) is rising. Using a four-week rolling period for 2006 forecasts, there were 5,549 estimate revisions Co nearly a 75% increase from a month ago. Growth expectations are basically unchanged with the average company projected to generate a 21.3% increase in full-year earnings(b). Speaking of revisions, it would not be surprising to see analysts adjust their forecasts for BlueCross BlueShield provider WellPoint (NYSE: WLP) over the next few days given this morning's report. WLP, a Zacks #2 Rank ("Buy") stock, generated adjusted third-quarter profits of $1.24 per share, versus expectations for $1.22 per share. Enrollment was up by 5.2 million, to 34.2 million members, over year-ago levels, primarily because of an acquisition. Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Part D also played a role, adding 42,000 new members during the third quarter. Margins were aided by an improvement in the benefit expense ratio, which rose to 81.3%. Looking ahead, the company projected 2006 profits to total $4.78 per share on an adjusted basis versus the current consensus estimate of $4.75 per share. Per share guidance for 2007 was not provided, although WLP is projecting 15% growth in net income. This forecast appears to be above analysts' current forecast of $5.41 per share. WLP belongs to the Medical-HMO group. This group contains two Zacks #1 Rank ("Strong Buy") stocks and seven Zacks #2 Rank stocks. Toymakers Hasbro (NYSE: HAS) and Mattel (NYSE: MAT) recently gave investors reason to smile with third-quarter earnings that were above expectations. HAS reported profits of 58 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. , seven above expectations. Revenues rose 5%. MAT said third-quarter results totaled 62 cents per share, a penny above expectations. Revenues rose 7% as several product lines showed good growth. Analysts reacted to the reports by raising 2006 and 2007 profit forecasts on both stocks. The full-year estimates for HAS, a Zacks #2 Rank ("Buy") stock, are $1.22 and $1.44 per share, respectively. (A month ago, the estimates stood at $1.16 and $1.41.) Full-year estimates for MAT, a Zacks #1 Rank ("Strong Buy") stock, are $1.28 and $1.40 per share, respectively. (A month ago, analysts were forecasting $1.24 and $1.31 per share.) Both stocks belong to the Toys/Game/Hobby group, which also contains Electronic Arts (Nasdaq: ERTS), a Zacks #1 Rank stock. Metals companies are going to face tough comps over the next several quarters because of the rally in commodity prices that started about year ago. Therefore, analysts are projecting profits to decline for some companies and growth to slow for others. Normally, such a backdrop Backdrop may refer to:
Part of the reason for the relative bullishness is the sustained strength of the economy, both here and abroad. Another factor is that metal prices are still up from a year ago. Better-than-expected earnings don't hurt either, as was the case with Nucor (NYSE: NUE). Last week, NUE reported third-quarter profits of $1.68 per share, surpassing analysts' forecasts by 14 cents per share. Revenues rose 30%, reflecting increases in both average sales price per ton and total tons shipped. Looking forward, NUE predicted that fourth-quarter earnings would be "strong", despite seasonal weakness and efforts by service center customers to reduce inventory levels. Analysts responded by raising their full-year projections for both 2006 and 2007. The new consensus estimates call for profits of $5.77 per share for this year, versus last week's forecast of $5.53, and $4.73 per share next year, versus last week's estimate of $4.70. NUE is one of seven Zacks #1 Rank stocks within the Steel-Producers group. The interactive Zacks Industry Rank List allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. See the list at http://at.zacks.com/?id=3208. (a) Stocks within the Zacks Rank universe that have reported earnings. The Zacks Rank is assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to companies with earnings estimates made available by brokerage analysts. The Zacks' database contains earnings estimates for approximately 4400 companies. (b) Changes made to full-year forecasts within the last four weeks. The average is calculated based on 90% of the companies that have reported to prevent the skewing effect of outliers. The worse 5% of revisions and the best 5% of revisions have been excluded. About Zacks Industry Rank and the Zacks Rank Zacks Industry Rank is calculated by averaging the Zacks Rank for all covered companies within a given industry. The Zacks Rank is assigned to approximately 4400 stocks and ranges from #1 ("Strong Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the Zacks Rank are quantitative indicators designed to cover periods of 1-3 months. 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 +32.4%. 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 145.9% annually (+4.7% vs. +11.6%). 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 the industries and the 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. 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=2564. 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 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=2565. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a) The Zacks Performance 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 decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from if an adviser were actually managing a client's money. (b) 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 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 (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion