Zacks Industry Rank Analysis Highlights: Gulf Island Fabrication, McDermott International, Aspen Insurance Holdings Ltd. and PartnerRe Ltd.CHICAGO -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Gulf Island Fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. (Nasdaq: GIFI GIFI General Index of Financial Information (Canada) ), McDermott International (NYSE NYSE See: New York Stock Exchange : MDR MDR, n See multidrug resistance. MDR, n the abbreviation for minimum daily requirement, specifically the Minimum Daily Requirements for Specific Nutrients compiled by the United States Food and Drug Administration. ), Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Insurance Holdings Ltd. (NYSE: AHL AHL American Hockey League AHL Action Half-Life (Half-Life modification) AHL Acyl Homoserine Lactone AHL Aramark Harrison Lodging AHL Acylated Homoserine Lactone AHL Association for the History of Language AHL Architects Hawaii Ltd ) and PartnerRe Ltd. (NYSE: PRE). 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. OPEC OPEC: see Organization of Petroleum Exporting Countries. OPEC in full Organization of the Petroleum Exporting Countries Multinational organization established in 1960 to coordinate the petroleum production and export policies of its ministers are scheduled to meet today for a key policy-setting meeting. They are currently mulling mulling (mul´ing), n the final step of mixing dental amalgam; a kneading of the triturated mass to complete the amalgamation. a production cut, which would represent the second in two months. The falling dollar has hurt the purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of oil producing countries, leading to concern about prices. In addition, meteorologists Atmospheric scientists
OPEC members often say one thing and do another. Nonetheless, the factors supporting elevated crude prices remain in place. The Nigerian delta is still unstable. Iran continues to seek nuclear power. Iraqi production remains down. And China's demand continues to grow. This is why, regardless of what OPEC does, brokerage analysts remain bullish on oil field machinery and equipment stocks. Two Zacks #1 Rank ("strong buy") stocks within this group are Gulf Island Fabrication (Nasdaq: GIFI) and McDermott International (NYSE: MDR). GIFI focuses on offshore and floating production platforms. The company exceeded third-quarter expectations by a margin of 87.5% with profits of 75 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. . Revenues more than doubled to $90.5 million. One analyst raised his forecast right after the company reported in early November and a second analyst raised his forecast about two weeks ago. The two revisions resulted in a cumulative 50-cent increase in 2006 full-year forecasts (to $1.88 per share) and a cumulative 42-cent increase in 2007 full-year forecasts (to $2.67 per share). MDR is more diversified, with revenues generated by offshore construction, power generation systems and government operation segments. Like GIFI, MDR surpassed third-quarter expectations by a wide margin. Profits totaled 89 cents per share versus forecasts for 60 cents per share. Revenues more than doubled to $1.12 billion. Analysts responded to the early November report by hiking their forecasts for this year and next. The current 2006 forecast calls for earnings to total $2.77 per share, 53 cents higher than the 60-day old estimate. The current 2007 forecasts call for earnings to total $3.19 per share, 28 cents higher the 60-day old estimate. In October, I highlighted Insurance Property/Casualty as a group that was the beneficiary of positive earnings estimate revisions. The quiet hurricane season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
Two months later, this group remains near the top of the Zacks Industry Rank List. Insurance Property/Casualty contains 11 Zacks #1 Rank stocks and 20 Zacks #2 Rank stocks. There really isn't new news, but rather the strong Industry Rank reflects the magnitude of the revisions for multiple stocks. The Zacks Rank considers changes to earnings estimate projections made over a period of 60 days. Our quantitative model considers the direction of the change, the proportionate amount of the change and the percentage of covering analysts making the change. (Earnings surprises are the fourth factor.) In the case of property insurers, multiple analysts have notably, and some cases materially, raised their forecasts. Aspen Insurance Holdings Ltd. (NYSE: AHL) stands out among the 11 Zacks #1 Rank stocks. The company topped third-quarter expectations by 12 cents with profits of 92 cents per share and analysts raised their forecasts for full-year 2006 earnings as a result. What is really bullish, however, is the trend in earnings for 2007. Four of the six covering analysts have raised their projections within the past 30 days, resulting in a cumulative 27-cent rise in the consensus forecast. The current consensus forecast calls for AHL to earn $3.87 next year (versus $3.43 in 2006). Another notable company in the group is PartnerRe Ltd. (NYSE: PRE). The reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. generated third-quarter profits of $3.55 per share, surpassing analysts' expectations by 70%. PRE saw net premiums rise in both its non-life and life segments. Brokerage analysts have revised their projections for 2006 sharply higher over the past 60 days to $9.90 per share, from $8.48 per share. Forecasts for next year have also been revised higher and the consensus estimate now stands at $8.39 per share. Zacks Equity Research analyst Eric Rothmann rates PRE a long-term Buy, citing its relative earnings stability and firming of premium prices. 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. 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 +31.8%. 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 143.6% annually (+4.8% vs. +11.8%). 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. 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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 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. 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