Tag Archives: Zacks Rank

News, Politics, Government

Short Term Be Cautious Of Google

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By Zacks.com, Contributor

Should you buy or sell the monster of the web here at $900? Many institutional growth investors with a long-term horizon will keep their shares and probably even add to holdings here because they don’t want to miss the ride to $1,000. But the recent spate of downward earnings estimate revisions brought the GOOG down to a Zacks #5 Rank this week. And that means, at least in the short-term, there is reason to be cautious. A Quant Model All About EPS Momentum Before I show you the damage to GOOG estimates, let me explain how the Zacks Rank works. We collect all analyst earnings estimate revisions (EER) every day for roughly 4,400 stocks and throw them into our quantitative model. The model classifies the EER based on the percentage of analysts in directional agreement, the magnitude of their changes, and to a lesser degree the potential for upside surprises. The top 5% of stocks with upward revisions (about 220 names) get the coveted Zacks #1 Rank Strong Buy designation. The bottom 5% of stocks with downward revisions (also about 220 names) get the dreaded Zacks #5 Rank Strong Sell mark. This model has beaten the market by over 2-to-1 for the last 3 decades. It has purely numerical inputs and produces purely mathematical outputs that can change every day. But the reason the model and its relationships — discovered in 1978 by Len Zacks, a PhD from MIT — work so well is because earnings momentum is one of the consistently strongest predictors of stock price movement. Why? Because it’s usually the number one input of professional investors into their stock-picking and valuation models. And we all know who moves stocks the most, the institutions with their many billions of dollars all ear-marked for stocks. The GOOG EER Slash & Burn Below are 3 tables we look at every day when evaluating the earnings momentum of stocks. What you see here is the hard data that put GOOG in the cellar relative to the estimate revisions of 4,399 other stocks. (Click image to enlarge) The main take-away here is that the majority of analysts made downward revisions to quarterly and full year estimates for the next 18 months. In aggregate, this year was taken down by 8% and next year by 6.4%. While the longer-term growth story may still be intact here, with 18% EPS growth projected for next year, the recent slash and burn of estimates should alert you to some simple warning signs. First, once a big earnings miss and change in guidance occurs, it often takes time for the analyst community to react and catch up. Here, most of the 14 covering analysts reacted quickly. But it doesn’t mean they are done “adjusting” their growth outlook. Second, if the trend of downward EER continues, it could take another quarter or two of better news from the company before it turns around. The question you have to ask is, “Do I want to accept the risk of …read more

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

High Premiums Put Amerisafe In Safe Territory

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By Zacks.com, Contributor

Amerisafe (AMSF), a provider of Workers’ Comp Insurance focused on small- to mid-sized employers in hazardous industries, delivered strong fourth quarter results on February 27, driven by a big increase in net premiums earned. Earnings per share for the quarter beat the Zacks Consensus Estimate by 25%, prompting analysts to revise their estimates significantly higher for both 2013 and 2014. It is a Zacks Rank #1 (Strong Buy) stock. Although shares of Amerisafe have risen sharply since the fourth quarter beat, the valuation picture still looks reasonable, leaving the stock with plenty of room to run higher. Amerisafe delivered better-than-expected fourth quarter results on February 27. The company reported adjusted earnings per share of 49 cents, beating the Zacks Consensus Estimate by 10 cents. It was a whopping 53% increase over the same quarter in 2011. Special Offer: This special report zeroes in on some huge money-making opportunities as well as some urgent sell alerts that could save you from devastating losses in the year ahead. Get nearly 100 buy and sell calls from almost four dozen of the world’s most successful investing experts all in one place in Forbes’ Best Ideas for 2013. Net premiums earned jumped 19% year-over-year to $78.741 million while the pre-tax underwriting profit increased by 434% to $5.832 million. President and Chief Operating Officer Geoff Banta noted that AMSF “experienced another quarter of premium growth with stronger pricing, while maintaining [its] healthy policy retention levels. Additionally, [its] claims frequency for the 2012 accident year continued its downward trend and prior accident years developed favorably.” For the quarter, return on average equity was 9.8% while book value per share increased 9% to $20.88. Since AMSF reported its fourth quarter results back in late February, analysts have revised their estimates for both 2013 and 2014 significantly higher. This has sent the stock to a Zacks Rank #1 (Strong Buy). Over the last 60 days, the 2013 Zacks Consensus Estimate has jumped from $1.84 to $2.08. This represents growth of 40% over 2012 EPS. The 2014 consensus has risen from $2.10 to $2.38 over the same period, corresponding with 14% annual EPS growth. You can see this dramatic jump in the company’s ‘Price & Consensus’ chart: Although shares of Amerisafe have jumped more than 17% since the fourth quarter report, valuation still looks reasonable with shares trading at just 1.6x book value. The stock also trades at 16x 12-month forward earnings, which is a premium to its peers. But given its above-average growth prospects, this premium seems justified. With rapidly rising estimates, strong growth projects and reasonable valuation, AMSF offers investors attractive upside potential. Todd Bunton is the growth & income stock strategist for Zacks Investment Research and editor of the Income Plus Investor service.

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Homebuilder Rally Builds Up DR Horton

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By Zacks.com, Contributor

Did you miss the homebuilder rally last year? It’s not too late. DR Horton (DHI) is a Zacks Rank #1 (Strong Buy) that is expected to grow earnings by 30% in 2013. DR Horton is one of the largest homebuilders in the United States with operations in 77 markets in 26 states. Its homes are priced from $100,000 to $600,000. The housing market has been recovering in 2013 but having been burned during the peak of the boom, the homebuilders have been more conservative about rolling out new product. At the end of Fiscal 2012, DR Horton’s backlog had risen 49.2%. Special Offer: We asked some of the most successful investors in the country to name their #1 pick for 2013. Get details on their top 10 stocks in this free report, Forbes Top Stocks for 2013…10 to Buy Now. Low Inventory Equals Higher Prices Interestingly, DR Horton finds itself in competition not so much with other homebuilders but with existing home sellers. That’s where the good news comes in. Inventories of existing homes have been plummeting the last few months. For instance, Las Vegas saw inventories fall 24% in March year-over-year. If you count only the houses that are not already under contract, the existing home inventory actually plunged 42% to less than a month’s supply. When there is less than 6-month inventory that means it is a sellers market. With just 1-month worth of inventory that puts it in an extreme sellers market. In a sellers market, buyers are faced with limited options so they will turn to new construction. That’s good news for DR Horton. Increased demand but limited inventory means it can raise prices. The analysts are even more bullish on DR Horton now than 3 months ago as the Zacks Consensus for fiscal 2013 has jumped to $1.01 from 88 cents in that time. That is earnings growth of 30% over 2012. 2014 is still seen as equally bullish with another 42% earnings growth expected. But What About Valuations? There has been a lot of complaining that the homebuilder stocks have gotten ahead of themselves and are now overvalued. But that’s simply not the reality. DR Horton has a forward P/E of 23.1 which is slightly higher than its peers which average a P/E of 21.6. Historically, DR Horton traded as high as 26x in 2007, just before the crash. In 2011, when the company struggled to find earnings, it traded as high as 97x. Even last year, as the housing market picked up, its forward P/E was as high as 29. Compared to its recent history, DR Horton’s valuation isn’t excessive. The rising earnings estimate is also keeping its P/E in check. It’s not too late to make money in the homebuilders. Many are still expected to see big earnings growth this year. DR Horton is a company that should be front and center for those looking for a way to play the improving housing market. Tracey Ryniec is the value stock strategist for Zacks.com. She

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

No Fairytale End In Sight For Scholastic

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By Zacks.com, Contributor

Earnings estimates have fallen sharply for Scholastic (SCHL) following disappointing fiscal 2013 third quarter results and lower management guidance. It is a Zacks Rank #5 (Strong Sell) stock. Although shares have sold off since the third quarter report making valuation look a bit more attractive, investors may want to hold off on this stock until earnings momentum improves. Scholastic is the world’s largest publisher and distributor of children’s books. Scholastic delivered disappointing results for the third quarter of its fiscal 2013 on March 21. It reported a loss of -63 per share, which was well below the Zacks Consensus Estimate of -39 cents. It was also well below last year’s loss of -32 cents. Sales slid -19% to $380.5 million, missing the consensus of $384.0 million. It was the company’s third straight top-line miss. This quarter’s decline was driven mostly by the children’s book publishing & distribution segment, which saw sales plunge -30% due to a sharp drop in sales of The Hunger Games trilogy. Special Offer: Stock picks from Forbes Dividend Investor are up 15% since July. Average yield on buys is 5.8%. Click here now to try Forbes Dividend Investor free for 30 days. Management lowered its guidance for the remainder of 2013 following disappointing third quarter results, prompting analysts to revise their estimates significantly lower for both 2013 and 2014. This sent the stock to a Zacks Rank #5 (Strong Sell). The Zacks Consensus Estimate for 2013 is now $1.09, down from $1.53 just 30 days ago. The 2014 consensus has fallen from $2.35 to $2.20 over the same period. You can see the big decline in earnings estimates over the last several months in the company’s ‘Price & Consensus’ chart: Scholastic also carries a long-term ‘Underperform’ Zacks Recommendation. Shares of SCHL are down about -15% since the third quarter earnings release, bringing valuation down with it. The stock currently trades at 13x 12-month forward earnings, which is in-line with the industry median. But investors may want to wait to establish a position in the stock until earnings momentum turns around. While investors might want to avoid Scholastic for now, there are other stocks within the publishing/books industry that investors might want to consider based on their positive earnings momentum. John Wiley & Sons (JW.A) and Reed Elsevier (ENL) , for instance, both carry a Zacks Rank of 2 (Buy). Todd Bunton is the growth & income stock strategist for Zacks Investment Research and editor of the Income Plus Investor service.

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Low-Profile Newcomer Ambarella May Make A Big Splash

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By Zacks.com, Contributor

Ambarella (AMBA) is a semiconductor company that makes the chips that allow cameras to capture high definition video. Analysts have started to get better clarity into the earnings outlook for the company and have increased their estimates. Today, its the this Zacks Rank #2 (Buy) stock is the Bull of the Day. …read more

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Strong Fourth Quarter, Higher Estimates Puts Auto Supplier Stock In High Gear

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By Zacks.com, Contributor

Visteon Corp. (VC) delivered a big fourth quarter earnings and sales beat on February 28, and management provided bullish guidance for 2013. This prompted analysts to revise their estimates significantly higher for both this year and next, sending the stock to a Zacks Rank #1 (Strong Buy). Despite the strong earnings momentum, the valuation picture still looks very reasonable with shares trading at just 1.4x book value. Visteon is a global automotive supplier that specializes in climate, electronics and interiors systems, modules and components for the major automotive manufacturers around the globe. More than 80% of its sales come from outside of North America. Visteon delivered a big fourth quarter beat with adjusted earnings per share came in at $1.17, beating the Zacks Consensus Estimate by 20 cents. Sales rose 5% to $1.823 billion, well ahead of the consensus of $1.782 billion. This increase was primarily driven by higher sales in the ‘climate’ segment, which saw higher production volumes in Asia and North America. The gross profit margin expanded 253 basis points to 10.9%. Meanwhile, selling, general and administrative expenses held steady at 5.6% of total sales. These factors led to a solid 27% increase in earnings before interest, taxes, depreciation and amortization (EBITDA). Special Offer: Stock picks from Forbes Dividend Investor are up 15.9% since July. Average yield on buys is 5%. Click here now to try Forbes Dividend Investor free for 30 days. Estimates Rising Following strong fourth quarter results, management provided encouraging sales and EBITDA guidance for 2013. This prompted analysts to revise their estimates higher for both 2013 and 2014, sending the stock to a Zacks Rank #1 (Strong Buy). The 2013 Zacks Consensus Estimate is now $3.98, representing 37% growth over 2012. The 2014 consensus is currently 38% higher at $5.50. The two biggest factors of the Zacks Rank are the ‘Agreement’ and ‘Magnitude’ of the analysts’ estimates. As you can see in the chart below, both of these factors are moving in the right direction: Reasonable Valuation The valuation picture looks reasonable for Visteon with shares trading at 13x forward earnings, inline with its historical median. Its price to book ratio is just 1.4, which is also inline with its historical multiple. With strong earnings momentum and reasonable valuation, Visteon offers investors attractive upside potential. Todd Bunton is the growth & income stock strategist for Zacks Investment Research and editor of the Income Plus Investor service. …read more
Source: FULL ARTICLE at Forbes Latest

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Olive Garden, Red Lobster Still Looking To Turn Things Around

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By Zacks.com, Contributor

Have you eaten at an Olive Garden lately? Fewer people are. Darden Restaurants (DRI) has been struggling to turn around its flagship Italian restaurant chain while sales are also down at its Red Lobster and LongHorn Steakhouse chains. Earnings are expected to slide 12.1% in fiscal 2013 while it attempts to right the ship. Darden operates 2,000 of the most recognizable casual dining restaurants in the United States, including Olive Garden, Red Lobster, LongHorn Steakhouse, Bahama Breeze and the Capital Grille. Olive Garden, its flagship restaurant, hit a rough patch in recent years as a stale menu and higher prices turned consumers off. The company has been forthright in acknowledging the problems, though, and is making changes, including remodeling old restaurants and offering new menu items. Although, the changes won’t come soon enough to save this fiscal year. In February 2013, Darden shocked analysts with a bearish outlook for its fiscal third quarter. It projected same store sales down 4.6% with all three of its main restaurant brands getting hit hard. It also offered third quarter EPS guidance between $1.00 and $1.02, which was much lower than the Zacks Consensus Estimate of $1.13. In response, all the analysts cut their estimates for the quarter and the full fiscal year. The Zacks Consensus for Fiscal 2013 has fallen to $3.15 from $3.37 since the announcement. Special Offer: This special report zeroes in on some huge money-making opportunities as well as some urgent sell alerts that could save you from devastating losses in the year ahead. Get nearly 100 buy and sell calls from almost four dozen of the world’s most successful investing experts in Forbes’ Best Ideas for 2013. Not surprisingly, given the cuts on the estimates from the analysts, the Zacks Rank also fell to a Zacks Rank #5 (Strong Sell). Fiscal Third Quarter Results In Line On March 22, Darden released the actual third quarter results. Same store sales did decline 4.6%, which was the preliminary forecast in February. Some of the individual chains performed a bit better than expected, however. Red Lobster same store sales were down 6.6% but Darden had pre-announced them as declining 7%. Olive Garden, though, fell slightly more than expected at a decline of 4.1% compared to the 4.0% forecast. Darden made on the high end of its quarterly guidance range of $1.00 to $1.02, as it posted $1.02 in the quarter. Darden re-confirmed the full year guidance between $3.06 and $3.22. The company said it was seeing traffic improvement in the fiscal fourth quarter due to new menu categories at the Olive Garden like the lighter Italian fare menu. Consumers want to eat healthier and cheaper. Items under $15 are also selling better at the Red Lobster. Darden is also targeting the lunch crowd at both Olive Garden and Red Lobster, thinking that it was an untapped market. It is rolling out new menu options specifically for this market segment. Darden is a turnaround story but the earnings just aren’t there yet. Check out …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Quanex Shares Sag But Still Not Cheap

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By Zacks.com, Contributor

Earnings estimates have fallen sharply for Quanex Building Products (NX) following disappointing first quarter results on March 7. It is a Zacks Rank #5 (Strong Sell) stock. Although shares have sold off since the first quarter report, the stock still doesn’t look cheap at 34x forward earnings. Investors may want to hold off on this stock until earnings momentum improves. Quanex Building Products manufactures engineered materials, components and systems primarily for window and door original equipment manufacturers (OEMs). It reports is operations in two segments: …read more
Source: FULL ARTICLE at Forbes Latest

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Push Toward Homebuilding Builds Up NVR Shares

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By Zacks.com, Contributor

The homebuilders were hot in 2012 and it looks to continue in 2013 as the housing market recovers. NVR (NVR) is one that you don’t hear about as much as the big housing names like Pulte and Lennar. But this Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in both 2013 and 2014. NVR might not be familiar but its homebuilding segments probably are. It is a holding company that operates Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes in 15 states. It also operates NVR Mortgage out of Virginia. It’s best known for Ryan Homes, which was founded in 1948 in the post-World War II boom and has built 365,000 single family homes, townhouses and condos across the country. On Jan. 24, NVR reported fourth quarter results and confirmed just how good the housing recovery really is. These are the kind of numbers you want to see out of the homebuilders right now. This recovery is no fluke.  Fourth quarter revenue jumped 27% to $943 million. New orders rose 22% to 2,625 units. The backlog also climbed by 35% to 4979 units. Not surprisingly, it was dark days following the Great Recession of 2008 and 2009. In 2010, the company managed to grow earnings by 7.7% but then they fell 30% in 2011. 2012 marked the start of a the earnings turnaround, however. Earnings grew 51% in 2012 and are expected to grow another 51% in 2013 and 39% in 2014. Special Offer: We asked some of the most successful investors in the country to name their #1 pick for 2013. Get details on their top 10 stocks in this free report, Forbes Top Stocks for 2013…10 to Buy Now. Share Price Over $1,000 No, you’re not reading that wrong. NVR trades with a share price above $1,000. But don’t let that stop you from considering the stock. Google trades above $800 and Priceline is right around $700. Share price isn’t indicative of value (or lack thereof.) There’s no doubt some of the homebuilders have ridden too far, too fast. Check out NVR‘s 2 year chart. The industry has a collective P/E of 139. That’s not exactly cheap. But NVR has attractive valuations, comparatively. It has a forward P/E of just 19.9 and a price-to-book ratio of 3.5. There is a lot of good news in the housing market right now. The industry is ranked 21 out of 265 by Zacks. NVR, however, is the only company out of 16 in the residential/commercial building industry with a Zacks Rank #1 (Strong Buy). It is scheduled to report first quarter results on April 18. It has surprised 3 out of the last 4 quarters so it’s earnings surprise track record has been improving as well. If you’re looking for a leader in housing, NVR is it. Tracey Ryniec is the value stock strategist for Zacks.com. She is also the editor of the Turnaround Trader and Value Investor services. You can follow her on twitter …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Earnings Bonanza Has Macy's Looking Good

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By Zacks.com, Contributor

Macy’s (M) delivered the coveted “triple play” with its latest earnings report. On February 26, the company reported: A positive earnings surprise A positive sales surprise Management guidance above the Zacks Consensus Estimate This prompted analysts to revise their estimates higher for both 2013 and 2014, sending the stock to a Zacks Rank #1 (Strong Buy). Since the Great Recession officially ended in 2009, Macy’s has consistently delivered solid same-store sales growth and expanding profit margins, which has led to annual double-digit earnings growth. And analysts expect this trend to continue over the next couple of years. Despite this, shares trade at just 10.5x 12-month forward earnings, well below the industry median of 14.0x. Tack on a solid 1.9% dividend yield, and this stock looks poised to deliver strong total returns to investors. Macy’s operates about 800 Macy’s department stores in 45 states, the District of Columbia, Guam and Puerto Rico. It also owns and operates the Bloomingdale’s brand, which has 37 department stores in 11 states. On February 26, Macy’s delivered strong results for its fiscal 2012 fourth quarter. Sales increased 7.2% to $9.350 billion, which was ahead of the Zacks Consensus Estimate of $9.327 billion. The company benefited from an extra week in the quarter, but if you strip that out, same-store sales on a comparable 13-week period still rose a solid 3.9%. Online sales were particularly strong, rising 48% over the same period last year (online sales are included in the same-store sales calculation). Meanwhile, adjusted operating income expanded 50 basis points to 14.9% of sales. This led to a 21% increase in adjusted earnings per share for the quarter to $2.05, well ahead of the Zacks Consensus Estimate of $1.98. It was a 21% increase over the same quarter last year. It was also Macy’s 11th consecutive positive earnings surprise; quite an impressive streak for a retailer. Estimates Rising Following the solid fourth quarter results, management provided 2013 EPS guidance of $3.90-$3.95, which was ahead of consensus at the time. Not surprisingly, this prompted several positive earnings estimate revisions from analysts, sending the stock to a Zacks Rank #1 (Strong Buy). The two biggest factors in the Zacks Rank are the ‘agreement’ and ‘magnitude’ of analysts’ estimates. And as you can see in the chart below, analysts unanimously raised their estimates off the strong quarter, and it bumped consensus estimates up for both 2013 and 2014 by a decent amount: Based on current consensus estimates, analysts project 13% EPS growth this year and 12% growth next year. If Macy’s can deliver on these projections, it would mark the company’s 4th and 5th years of consecutive double-digit EPS growth. Special Offer: What you don’t own is just as important as what investments you do own. Top investing experts named names when it comes to securities to avoid in the year ahead. Get the results in this free downloadable report, 24 Widely-Held Investments You Should Sell Now. Attractive Valuation, Dividend Despite the strong growth projections, shares trade at just …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Rare Earnings Miss Drops Estimates For CoStarGroup

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By Zacks.com, Contributor

CoStar Group (CSGP), a provider of information and marketing services to commercial real estate professionals in the United States as well as the United Kingdom, has seen consensus estimates fall meaningfully lower for both 2013 and 2014 following a rare earnings miss on February 27. It is a ZacksRank #5 (Strong Sell). Despite the negative earnings momentum, shares still trade at a premium on a forward price to earnings and price to cash flow basis. This doesn’t bode well for shares over the next several weeks. CoStar reported fourth quarter results on February 27. Adjusted earnings per share came in at 33 cents, missing the Zacks Consensus Estimate by 2 cents. Revenue rose 51% to $100.1 million, but this was driven in large part by an acquisition. Following the fourth quarter earnings miss, analysts revised their estimates meaningfully lower for both 2013 and 2014. This sent the stock to a Zacks Rank #5 (Strong Sell). The 2013 Zacks Consensus Estimate is now $1.71, down from $1.80 thirty days ago. And the 2014 consensus is now $2.28, down from $2.57. You can see this sharp decline in the company’s ‘Price & Consensus’ chart: Despite the negative earnings momentum, shares of CoStar still trade at a frothy 56x 12-month forward earnings, which is a significant premium to the industry median of 17x. Its price to cash flow ratio of 63 is also above its the peer group median of 13. CoStar Group also carries a long-term ‘Underperform’ Zacks Recommendation. Special Offer: This special report zeroes in on some huge money-making opportunities as well as some urgent sell alerts that could save you from devastating losses in the year ahead. Get nearly 100 buy and sell calls from almost four dozen of the world’s most successful investing experts all in one place in Forbes’ Best Ideas for 2013. With negative earnings momentum and premium valuation, investors may want to consider avoiding CoStar Group for now. However, there are other stocks within the IT Services industry that investors might want to check out. Unisys (UIS), for instance, carries a Zacks Rank of 1 (Strong Buy), and Infosys (INFY) has a Zacks Rank of 2 (Buy). Todd Bunton is the growth & income stock strategist for Zacks Investment Research and editor of the Income Plus Investor service. …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

As Boomers Prepare To Retire, Winnebago Pulls Ahead

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By Zacks.com, Contributor

What’s an indication the economy is back? Consumers are buying RVs again. Winnebago Industries (WGO) managed to make it through the Great Recession, gobbling up market share along the way. This Zacks Rank #1 (Strong Buy) is now poised for triple digit earnings growth in 2013 as RV sales rebound. Winnebago’s brand recognition is so strong that when you think of RVs it’s the first name that comes to mind. Founded in 1958 in Iowa, Winnebago manufactures a variety of recreation vehicles (RVs) including motor homes, travel trailers and fifth wheel products. Given consolidation in the industry during the Great Recession, Winnebago was able to add to its market share and now has about 20% of the RV market. Motor home sales peaked in 2004 at 69,000 and plunged during the Great Recession. By 2011, only 25,000 motor homes were shipped. But that number is expected to slowly rise as the economy improves and the Baby Boomers age. The key segment of RV buyers is 55 to 64 years of age. The Baby Boomers are just on the cusp of reaching that age range right now with more to come in the next few years. That’s a built-in market for RVs. Additionally, the stock market has recovered its pre-recession highs and housing is starting to recover, both which will free up cash for Baby Boomers to take to the road. All of this adds up to good things for the RV manufacturers. The RV and manufactured home industry has a top Zacks Industry Rank of 9 out of 265 industries. Special Offer: What you don’t own is just as important as what investments you do own. Top investing experts named names when it comes to securities to avoid in the year ahead. Get the results in this free downloadable report, 24 Widely-Held Investments You Should Sell Now. On Dec. 20, Winnebago reported fiscal first quarter 2013 results and blew by the Zacks Consensus Estimate by 189%. Revenue surged 46.8% to $193.6 million in the 14-week quarter from $131.8 million in the 13-week quarter a year ago. Inventories at dealerships are low and demand is rising. The company has had to hire additional employees to meet production demands the last two quarters. It also warned that production would slow during the winter holidays due to employees taking time off. Given the grim years of the Great Recession, having too many orders is certainly a problem the company will gladly deal with. The tide is turning in the RV industry. Just 90 days ago, the analysts were not as bullish. The Zacks Consensus Estimate for Fiscal 2013 was just 47 cents. But given the big beat in the first quarter, the estimates surged to 80 cents. That is earnings growth of 220% as Winnebago earned just 25 cents in 2012. While the short term picture looks bright, the longer term outlook past 6 months is also strong for Winnebago. It has a Zacks Recommendation, which looks out further than the Zacks Rank, of …read more
Source: FULL ARTICLE at Forbes Latest

Business, Finance, Occupation & Industry

Polypore Earnings Trickle To A Halt

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By Zacks.com

Polypore International, Inc. (PPO) reported its third consecutive earnings miss on February 20, driven by a 6% decline in sales. This prompted analysts to revise their estimates for both 2013 and 2014 significantly lower, sending the stock to a ZacksRank #5 (Strong Sell).
Despite the negative earnings momentum, shares still trade at a premium on a forward price-to-earnings and price-to-book basis. This doesn’t bode well for shares over the next several weeks.
Company Description
Polypore International is a high technology filtration company that develops, manufactures and markets specialized polymer-based microporous membranes used in separation and filtration processes. Its products are used in two primary segments: energy storage (75% of total sales) and separations media (25%).
The company is headquartered in Charlotte, North Carolina and has a market cap of $1.8 billion.
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Fourth Quarter Results
Polypore reported fourth quarter results on February 20. Adjusted earnings per share came in at 33 cents, falling well short of the Zacks Consensus Estimate of 46 cents. It was the company’s third consecutive earnings miss.
Sales declined 6% to $180.2 million, falling well short of the consensus of $191.0 million. The ‘Electronics and Electric Drive Vehicles (EDVs)’ division within the energy storage segment was particularly soft due to weak end-market demand.
Estimates Falling
Following the Q4 earnings miss, analysts revised their estimates significantly lower for both 2013 and 2014. This sent the stock to a Zacks Rank #5 (Strong Sell). The 2013 Zacks Consensus Estimate is now $1.69, down from $2.08 just 30 days ago. And the 2014 consensus is now $2.21, down from $2.73. You can see this sharp decline in the company’s ‘Price & Consensus’ chart: …read more
Source: FULL ARTICLE at Forbes Markets