Zacks.com releases the latest list of Zacks Rank Buy Stocks. Everyday on Zacks.com, four stocks are selected based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are Amazon.com (Nasdaq: AMZN), Thor Industries, Inc. (NYSE: THO), Xenoport (Nasdaq: XNPT) and Oshkosh Truck Corporation (NYSE: OSK).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32.2% 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%. To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88
Here is a synopsis of today’s Zacks Rank Buy Stocks:
Aggressive Growth – Amazon.com (Nasdaq: AMZN)
Amazon.com is back and in a big way. The company is making boatloads of money now as opposed to the times when it was bleeding red ink. Over the past month, this year's earnings estimates have increased six cents to $1.11 per share. Analysts expect earnings to grow another 40% next year to $1.56 per share. The company has comfortably exceeded analyst views in each of the past four quarters. The stock has an incredible ROE of 80%.
Growth & Income – Thor Industries, Inc. (NYSE: THO)
Thor Industries, Inc. beat the consensus earnings estimate by 30.4% when it recently reported fourth-quarter fiscal 2007 profits of 90 cents per share. Net income and earnings per share in the quarter were the highest ever. Consensus earnings estimates are up over the past week. Earnings per share are projected to grow by 14% over the next 3-5 years. On Aug 6, THO's Board of Directors authorized a special dividend of $2 per share. This dividend was on top of its regular quarterly cash dividend of seven cents per share. This Zacks #1 Rank stock is currently yielding 0.57%.
Momentum – Xenoport (Nasdaq: XNPT)
Xenoport is surprising to the upside in a big way. It reported a big profit for its second quarter even though analysts thought it would lose money. Its treatment for restless legs syndrome has allowed shareholders to get restful sleep of late. Over the past 90 days, this year's earnings estimates have soared $1.12 to a profit of four cents per share. The past two quarters have produced abnormally large positive earnings surprises.
Value – Oshkosh Truck Corporation (NYSE: OSK)
Oshkosh Truck Corporation exceeded analysts’ earnings expectations in 14 out of the past 16 quarters. After reporting strong third-quarter fiscal 2007 results, the company upped its full-year outlook and now projects profits between $3.35 and $3.40 per share. Earnings per share are projected to grow by 20% over the next 3-5 years. This Zacks #1 Rank stock has a price-to-book ratio of 3.5 and its PEG ratio currently sits at 0.67.
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
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 +32.2%. 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 129% annually (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 – Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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About Zacks
Zacks.com is a property of Zacks Investment Research, 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 http://at.zacks.com/?id=91
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The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, 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 to buy or sell any security.
Contacts:
Aggressive Growth Stocks:
Roopak Chakravarty,
312-265-9188
or
Growth & Income Stocks:
Jim Licato,
312-265-9226
or
Momentum Stocks:
Ryan Whitmore,
312-265-9265
or
Value Stocks:
Jim Licato, 312-265-9226
Email:
pr@zacks.com
Visit: www.zacks.com
