Earnings estimate revisions are the most powerful force impacting stock prices. Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy that delivered a +23.3 return in 2006. Four stocks meeting this screen’s exclusive criteria are Arch Capital Group Ltd. (Nasdaq: ACGL), Allis-Chalmers Energy, Inc. (NYSE: ALY), The Chubb Corporation (NYSE: CB) and Layne Christensen Co. (Nasdaq: LAYN). View the entire list of stocks for the Upgrades and Revisions Profit Track at http://at.zacks.com/?id=1844
Here are details on four companies currently identified by the Upgrades and Revisions Profit Track:
Arch Capital Group Ltd. (Nasdaq: ACGL), a Zacks #1 Rank (Strong Buy) company, will release results for the second quarter on July 25, 2007. In late April, the company reported financial results for the first quarter. After-tax operating income available to common shareholders of $2.71 per share improved on last year's first quarter total of $1.89 and exceeded the consensus estimate by 18%. Arch Capital Group Ltd. managed to surpass Wall Street earnings expectations each time over the past five consecutive quarters. ACGL produced earnings per share growth of 46% over the past five years.
Allis-Chalmers Energy, Inc. (NYSE: ALY) recently reached a 52-week high and currently trades slightly below that level. In early May, the company announced first-quarter results, which included earnings per share that beat the consensus estimate by 14% and were ahead of the year-prior result. The company experienced earnings per share growth of 189% over the past five years.
The Chubb Corporation (NYSE: CB) satisfies the criteria for this Profit Track as evidenced by its earnings per share growth of 37% over the past five years. CB will report second-quarter earnings on July 24, 2007. The company declared a regular quarterly dividend of 29 cents per share in early June. Chubb Corporation posted first-quarter earnings of $1.53 per share in late April, topping the previous year's $1.42 and eclipsing analysts' expectations by 11%.
Layne Christensen Co. (Nasdaq: LAYN) produced earnings per share growth of 87% over the past five years. The company announced financial results for the fiscal first quarter in late May. Record revenues of $201.6 million were up 28.6% on a year-over-year basis. First-quarter earnings per share were a record 52 cents, compared to last year’s 30 cents. The earnings per share were above analysts’ expectations by 62.5%.
Discover all the current stocks currently on the Upgrades and Revisions Profit Track at: http://at.zacks.com/?id=1869
About Profit Tracks
What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838
All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report “Top 10 Stock Screening Strategies” at http://at.zacks.com/?id=2156
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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 at http://at.zacks.com/?id=1841
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.
Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR’s.
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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.
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