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 FEI Company (NASDAQ: FEIC), TeleTech Holdings, Inc. (NASDAQ: TTEC), Imperial Sugar Company (NASDAQ: IPSU), Deckers Outdoor Corporation (NASDAQ: DECK) and Pinnacle Airlines (NASDAQ: PNCL). Each of these stocks easily outperformed the S&P 500.
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 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.
FEI Company (NASDAQ: FEIC) reported strong fourth-quarter results last week, including earnings per share from continuing operations of 30 cents on net sales of $140.3 million. EPS reversed a year-ago loss and beat the consensus by almost 58%, while net sales increased 41% year-over-year. FEI Company, which provides instruments for nanoscale imaging, analysis and prototyping, said that earnings and bookings were the highest in its history, while quarterly revenue was the second-highest ever. Given this strong quarterly report, it’s no wonder that this Zacks #1 Rank company gained 26.6% last week. It also reached 52-week highs on Feb 7 and Feb 9.
For its first quarter, FEI Company forecasted earnings per share between 27 cents and 32 cents, which was better-than-the consensus. Net sales are expected between $137 million and $144 million; also ahead of the consensus. Analysts liked what they saw in the company’s performance and guidance, prompting a rise in full-year earnings estimates of 7.9% in the past seven trading days.
TeleTech Holdings, Inc. (NASDAQ: TTEC) was a top-performing Zacks #1 Rank company last week as its shares moved forward approximately 19.4%. Last week, the business process outsourcing provider announced fourth-quarter revenue of $336.7 million, marking an almost 11% year-over-year gain from $304.2 million. It was the highest quarterly revenue in the company’s history. Furthermore, earnings per share improved from the previous year and eclipsed the consensus.
TeleTech Holdings, which reached new 52-week highs on Feb 5 and Feb 8, expects revenue to grow approximately 15% in 2007 and between 12% and 15% in 2008. Over the past seven trading days, earnings estimates for the years ending December 2007 and December 2008 have increased approximately 12.2% and 12.5% respectively.
Imperial Sugar Company (NASDAQ: IPSU) was one of the best-performing Zacks #1 Rank stocks in January, and its momentum appears to be continuing in February. Last week, the refined sugar processor and marketer’s shares gained 10.2%. In its fiscal-first quarter, earnings per share of $1.37 surpassed the consensus by 54% and improved from the previous year. Net sales declined but the company continues to believe a profit outlook for the fiscal year superior to historical averages.
In addition, Imperial Sugar’s Board recently increased its quarterly cash dividend by 16.7% to seven cents per share, payable on Feb 23 to shareholders of record on Feb 13. This was its second annual increase in the dividend paid since the quarterly dividend program was instituted in 2005.
Deckers Outdoor Corporation (NASDAQ: DECK) advanced almost 8% last week, heading into the company’s fourth-quarter and year-end announcement on Feb 27. The innovative footwear company reached 52-week highs on Feb 6 through Feb 8. In the company’s third-quarter report, Decker’s Outdoor raised its fourth-quarter sales guidance to between $107 million and $110 million, compared to its previous guidance of $103 million to $106 million. It also raised its earnings per share outlook to between $1.27 and $1.30, versus its previous expectation of $1.23 to $1.26. Deckers also raised its fiscal 2006 outlook.
For its third quarter, earnings per share of 83 cents improved year over year and beat the consensus by approximately 51%. Net sales advanced 19% to $82.3 million from $69.2 million.
Pinnacle Airlines (NASDAQ: PNCL) is a Zacks #1 Rank company that advanced about 7.3% last week, which made it one of the top performing stocks. The company also reached 52-week highs each day from Feb 7 through Feb 9. Analysts have boosted earnings per share expectations for 2007 by approximately 7.4% over the past two months. In its third quarter, Pinnacle Airlines announced adjusted earnings per share of 62 cents, which topped the consensus by approximately 8.8% while bettering the year-earlier performance.
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 +31.8%. 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.
To view the current Zacks #1 Rank List and to see additional Zacks Rank resources, go to http://at.zacks.com/?id=3173.
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(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.
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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.
