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 Deckers Outdoor Corporation (Nasdaq: DECK), Asbury Automotive Group, Inc. (NYSE: ABG), Chicago Bridge & Iron Company N.V. (NYSE: CBI), and Parker Drilling Company (NYSE: PKD).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.9% 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 – Deckers Outdoor Corporation (Nasdaq: DECK)
On Apr 26, Deckers Outdoor Corporation reported first-quarter earnings of 75 cents per share, up from 44 cents in the year-ago period and 24 cents above expectations. Driving the earnings growth, revenues rose 29.6% to $72.6 million. The latest earnings announcement marked the seventh consecutive quarter the company has exceeded estimates by double-digit percentages. After the release, analysts increased their full-year profit projections by 42 cents to $3.86.
Growth & Income – Asbury Automotive Group, Inc. (NYSE: ABG)
Asbury Automotive Group, Inc. exceeded analysts’ earnings expectations in seven out of the past eight quarters by an average margin of 8.4%. After posting strong first-quarter results, the company boosted its full-year 2007 earnings per share guidance to between $2.20 and $2.28. Analysts have raised their profit forecasts due to ABG’s bullish guidance. The company has a very respectable current dividend yield of 2.9%.
Momentum – Chicago Bridge & Iron Company N.V. (NYSE: CBI)
On May 1, Chicago Bridge & Iron Company N.V. reported first-quarter earnings of 38 cents per share, up from 13 cents in the year-ago period and eight cents above expectations. Driving the earnings surprise was a 33% increase in revenue to $857 million. CBI has exceeded analysts’ expectations by double-digit percentages for four consecutive quarters. Technical indicators may indicate that further price acceleration is likely.
Value – Parker Drilling Company (NYSE: PKD)
Parker Drilling Company, a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in four straight quarters by an average margin of 26.5%. Consensus estimates for both this year and next are up over the past 30 days. PKD recently set a new world record for extended reach drilling. The company has a price-to-book ratio of 2.9, 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." Since inception in 1988, #1 Rank stocks have generated an average annual return of +31.9%. 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 132% annually (+5.1% vs. +11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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.
