Printer Friendly

Zacks.com Announces that Kelley Wright Highlights the Following Stocks: MAF Bancorp, Pinnacle West Capital, and Weis Markets.

CHICAGO -- Kelley Wright says the market is overvalued, which is prohibiting an advance in the averages. In such an environment, investors must concentrate on specific companies that are undervalued, and Wright can help with his market and stock analysis. Read about MAF Bancorp (NASDAQ:MAFB), Pinnacle West Capital (NYSE:PNW), and Weis Markets (NYSE:WMK). Kelley Wright is editor of the Investment Quality Trends newsletter. Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Here are the highlights from the Featured Expert column:

Investment Outlook from July 1

The Dow continues to retreat every time it rises to the 10,450 area. Perhaps it is coincidental with the release of economic data; perhaps it is caution and the lingering concerns about terrorism. Many pundits speculated the market would take off after the Fed meeting and the turnover of sovereignty to Iraq, yet here we are with a triple digit decline. Kelley Wright's thought, as he has opined previously, is the market is simply overvalued, which is all the deterrence required to prohibit an advance in the averages. His internal indicator of value is going on almost three years at extreme levels of overvalue. If not for extremely low interest rates, he has no doubt the averages would fully reflect the paucity of value.

MAF Bancorp's (NASDAQ:MAFB) history can be dated back to the founding of its principal holding, MidAmerica Bank. Started in 1922, MidAmerica has historically served residents in various immigrant communities throughout Chicago. Over its history, the bank expanded into a number of other businesses including an insurance agency and a residential real estate developer. At current levels, MAFB remains attractive based on its historic high levels of yield. Increasing earnings projected for the next year will further protect the dividend, which is already more than covered with a payout ratio of only 26%. As banks scramble to find alternate income streams to compensate for lost origination fees, investors keeping a close eye on fundamentals should find value amidst the tides of emotion.

Despite its name, Pinnacle West Capital (NYSE:PNW) is best known as the parent company to Arizona's oldest and largest public utility, APS. Pinnacle's current list of subsidiaries includes a regulated utility, a wholesale energy producer, a real-estate development company, and an investment company. These subsidiaries are organized respectively into three segments known as regulated electricity, marketing and trading, and real estate. A number of emerging factors may yet drive shares closer to the company's historic high yield of 5.0%. These include a changing interest rate environment, recent "grid disturbances" which forced the shutdown of a power plant, and the pending rate matter before the Arizona Corporation Commission. Because of these factors, Wright and his team are reluctant to settle for the company's current price, but will find it increasingly attractive should the price drop further.

Weis Markets (NYSE:WMK) began over 92 years ago as "Weis Pure Foods." Modern Weis Market stores are operated not only under the company's namesake banner, but also under the names of Mr. Z's Food Mart, King's Supermarkets, and Cressler's Marketplace. The company's current 154 locations offer groceries, floral arrangements, bakery items, and health & beauty products. At the end of the first quarter, WMK announced its sales had increased 2.3%, bringing total revenue for the quarter to $520.7 million. Shareholders were pleased to see a corresponding increase in earnings, raising EPS up to $0.60. The company's ongoing campaign of share repurchase was expanded with the authorization of a new program to buyback one million shares of common stock. New construction will include seven new superstores, to be completed in 2005. In addition, the company will remodel 14 existing stores, and expand floor space at nine other locations.

Read Kelley Wright's complete investment outlook, and make sure to get a lot more information on the above-mentioned companies, by clicking: http://at.zacks.com/?id=85

About Zacks Featured Experts

To be a successful investor you need professional advice. Experts who know what they're talking about and can help you achieve your financial goals in good markets...and especially in bad ones will help you improve your portfolio. That is why Zacks Investment Research has assembled the best investment experts in the business to offer their powerful advisory newsletters to you on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.

Recommendations from Featured Experts Highlighted in FREE Investment Newsletter

The best way to tap into the powerful advice from these experts is through our free weekly e-mail newsletter, "Profit from the Pros". Each week we highlight several Featured Experts in this free e-mail newsletter. Get your free subscription to "Profit from the Pros" at: http://at.zacks.com/?id=86

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit http://at.zacks.com/?id=87

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.

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.
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jul 8, 2004
Words:965
Previous Article:Zacks Buy List Highlights: CSG Systems Int'l, Dick's Sporting Goods, Black & Decker, and Tibco Software.
Next Article:Zhone to Report Second Quarter 2004 Results.


Related Articles
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Bank of America, Merck, FleetBoston, BellSouth, and Pinnacle West.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Abbott Labs and Bristol-Myers Squibb.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Claire's Stores and Fulton Financial.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Florida Rock Industries and Hewlett-Packard.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Archer Daniels and Atmos Energy.
Zacks.com Announces that Kelley Wright Highlights the Following Stocks: LSI Industries and Genuine Parts.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: American Int'l Group and Hewlett-Packard.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Old National Bancorp and Superior Industries.
Zacks.com Announces that Kelley Wright Highlights the Following Stocks: Fulton Financial and Wal-Mart.
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Masco Corporation and McDonald's Corporation.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters