Zacks.com announces the latest list of top performing Zacks #1 Rank (“strong buy”) stocks. The stocks on the prestigious list with the highest returns last week were LaBranche & Co. Inc. (NYSE: LAB), McMoRan Exploration Company (NYSE: MMR), Big Lots, Inc. (NYSE: BIG), Martek Biosciences Corporation (NASDAQ: MATK) and Stone Energy Corporation (NYSE: SGY). Each of these stocks easily outperformed the S&P 500.
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32% 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 learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.
Here is a synopsis of the last week’s best performing Zacks #1 Rank stocks.
LaBranche & Co. Inc. (NYSE: LAB) reported first-quarter earnings per share of 13 cents last week, excluding a loss on its shares of NYSE Euronext, Inc. The result marked a sharp year-over-year advance from last year’s five-cents, and beat the consensus’ one-cent expectation by 1200%. Also excluding items, revenue increased to $56.6 million compared to $42.1 million in the first quarter 2007.
Shares for this specialist in exchange-listed securities advanced approximately 17.4% last week, which made it one of the top-performing Zacks #1 Rank stocks. Earnings estimates for this year jumped to 28 cents from three cents over the past seven trading days – accounting for a rise of about 833%. A month ago, analysts were expecting LAB to report a loss for the year.
McMoRan Exploration Company (NYSE: MMR) makes its second consecutive appearance on the Zacks #1 Rank Top Performers list. Shares for the oil & gas explorer advanced 11.5% for the week ended Apr 25. In the preceding week, MMR had gained almost 26%. Over the past month, earnings estimates for this year soared about 282% to $1.87, including a gain of approximately 5.6% in the past seven trading days.
On Apr 17, MMR reported first-quarter earnings per share that reversed a year-ago loss while topping the consensus by almost 47%. Total revenue advanced to $295.5 million. Production averaged 294 million cubic feet of natural gas equivalents per day (MMcfe/d) during the quarter, compared to 70 MMcfe/d in the first quarter 2007.
Big Lots, Inc. (NYSE: BIG) was one of few retailers to reach a prominent position on the top performers list in this tough environment. In fact, with a gain of almost 10.8%, it was the only Zacks #1 Rank in its sector to reach a double-digit gain last week. Earnings estimates for the year that ends in January 2009 are up 8.8% from two months ago.
On Apr 24, Big Lots was featured as an Aggressive Growth Stock of the Day at Zacks.com, due to its operating profits and ample cash flow in the face of a challenging retail landscape. For its fiscal fourth quarter, the company reported an earnings per share surprise of 10.7% above the consensus, marking another better-than-expected performance. Over the past four quarters, BIG has put together an average surprise of almost 40%. The company credited its WIN strategy for a solid fiscal year performance overall, which included a record EPS performance.
Martek Biosciences Corporation (NASDAQ: MATK) is a leader in the innovation and development of omega-3 DHA products that promote health and wellness through every stage of life. The company reached a fresh 52-week high a couple of times last week, and made the top performers list with a gain of almost 6.6%. Over the past two months, earnings estimates for the year ending October 2008 are up 9.6%.
Last month, Martek Biosciences announced a solid start to its fiscal year, including first-quarter earnings per share of 26 cents that beat the consensus by more than 18%. That marked the second straight quarter that MATK beat analyst expectations by double digits. (The company has a good record of beating or meeting estimates.) Revenues moved higher by 18% to $82.9 million from $70.3 million.
Stone Energy Corporation (NYSE: SGY) is scheduled to report its first-quarter results next week. Shares of the oil and natural gas producer advanced 6% for the week ended Apr 25, which was enough to place it on the Zacks #1 Rank Top Performers list. Analysts are looking forward to the report as well, boosting full-year expectations by 42.4% and first-quarter estimates by 22.5% over the past month.
In its fourth-quarter, Stone Energy continued an impressive string of better-than-expected quarterly results. The company surprised to the upside by as much as 57%. It surpassed Street expectations by double digits in each quarter of 2007, accounting for an average surprise of 50% over the four quarters. Revenue advanced to $201.6 million from $179.2 million.
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%. 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 % vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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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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