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 Intuitive Surgical, Inc. (Nasdaq: ISRG), Johnson Controls, Inc. (NYSE: JCI), Valero Energy Corporation (NYSE: VLO), and SeaBright Insurance Holdings, Inc. (Nasdaq: SEAB).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.8% 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 – Intuitive Surgical, Inc. (Nasdaq: ISRG)
Intuitive Surgical, Inc. is a company on the cutting edge with very little competition. The company has comfortably exceeded earnings forecasts in 12 straight quarters. Yearly growth has been in the triple digits for several of these quarters. Seven analysts have raised their numbers for this year. Over the past week, this year's estimates have jumped 19 cents to $2.77 per share.
Growth & Income – Johnson Controls, Inc. (NYSE: JCI)
Johnson Controls, Inc., which was first featured as a Growth and Income stock on Jun 23, 2006, has returned over 27%. JCI exceeded analysts’ earnings expectations in six out of the past seven quarters. After posting solid second-quarter fiscal 2007 results, the company raised its full-year profit and revenue guidance. Consensus estimates are on the rise for this Zacks #1 Rank stock. JCI has a current dividend yield of 1.3% and a five-year average dividend yield of 1.6%.
Momentum – Valero Energy Corporation (NYSE: VLO)
On Apr 26, Valero Energy Corporation reported first-quarter earnings of $1.86 per share, up from $1.32 in the prior-year quarter and 10 cents above expectations. The company also announced an expansion of a $2 billion stock repurchase authorization to $6 billion. After rebounding from major support, VLO has been in a consistent uptrend throughout 2007. VLO is currently trading at record highs with first-quarter results fueling the momentum and no resistance to impede further gains.
Value – SeaBright Insurance Holdings, Inc. (Nasdaq: SEAB)
SeaBright Insurance Holdings, Inc., which was first presented as a Value pick on Jan 5, is still a Zacks #1 Rank stock (strong buy). The company continues to exceed the Street’s earnings expectations and consensus estimates are still trending higher. Earnings per share are expected to grow 15% over the next 3-5 years. SEAB has a price-to-book ratio of 1.5, compared to 4.5 for the market.
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About the Zacks Rank
Since 1988, the Zacks Rank has proven that “Earnings estimate revisions are the most powerful force impacting stock prices.” A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.77 million – equivalent to a 31.8% annualized return! 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.
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(a)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, and represents the gross returns before management fees.
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.
