Investment Research Insights

For Immediate Release

Chicago, IL – September 7, 2010 – Zacks.com Analyst Blog features: Dell Inc. (DELL), Hewlett-Packard Co. (HPQ), 3PAR Inc. (PAR), EMC Corp. (EMC) and NetApp Inc. (NTAP ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

HP Wins 3PAR Bid, Dell Loses

After a long, drawn-out bidding battle with rival Dell Inc. (DELL), Hewlett-Packard Co. (HPQ) has managed to secure the 3PAR Inc. (PAR)acquisition.

Bidding wars are rare in the technology sector. In the last notable bidding war in the tech industry, EMC Corp. (EMC) outbid NetApp Inc. (NTAP) last year to buy Data Domain for $2.4 billion.

The bidding closed yesterday with Dell deciding not to top HP’s highest offer. Dell will receive a breakup fee of $72 million as a result of the dissolution of the deal.

The bidding started with Dell offering $18 a share, which was counter-bid by HP and Dell in rapid succession, with the final offer from HP coming in at $33 a share. The acquisition will put HP’s data-center products on par with competing high-end storage products from market leaders, such as EMC Corp. HP expects to close the deal by the end of calendar 2010.

The major shareholders (loyal since its initial public offering) of 3PAR gained a hefty $560.0 million during the bidding war, as the share price closed at $32.88 yesterday. The stock was trading at around $10 this year, until Dell announced its initial bid on August 16.

What the Analysts are Saying

According to one analyst (BofA Merrill Lynch), HP is well positioned to benefit from the 3PAR acquisition given its positive synergies. However, the analyst does not expect a meaningful financial impact on HP’s fiscal 2011 non-GAAP earnings. But the analyst believes that 3PAR will help HP enrich its Storage portfolio and enhance its converged infrastructure strategy.

Contrary to the above opinion, another analyst (Macquarie Research) thinks the deal is a bit expensive. The analyst believes the HP-3PAR deal could turn out to be severely overpriced if it is unable to grow revenues at a 30%+ CAGR over the next 3 years.

Our Take

In today’s technology-driven world, the enterprise storage space is one of the most enviable growth areas. This is drawing in many players and intensifying competitive pressures. HP’s success in the deal will open up new and prospective markets. Moreover, Dell’s endeavors to grow in the space would likely suffer. Simultaneously, HP will effectively free itself of a rival.

Apart from this, we remain positive on HP’s strong business model, as well as its leadership position in both PC and Server segments. The company is also well poised to benefit from the increase in IT spending and PC refresh cycles.

Despite the company’s market position and compelling product line, we remain cautious about its future growth, especially on consumer sentiment and integration issues. We continue to believe in the growth story of the company, but given its recent appetite for big acquisitions, integration issues could be something to watch out for.

We have a short-term Hold rating on HP shares, which equates to a Zacks #3 Rank.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

 
DELL INC (DELL): Free Stock Analysis Report
 
EMC CORP -MASS (EMC): Free Stock Analysis Report
 
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
 
NETAPP INC (NTAP): Free Stock Analysis Report
 
3PAR INC (PAR): Free Stock Analysis Report
 
Zacks Investment Research

For Immediate Release

Chicago, IL – September 7 – Zacks highlights commentary from People and Picks Trader “BioMO”.

For more Voice of the People, visit http://at.zacks.com/?id=5851

Featured Post

New Pick: Cadence Pharma

Candence Pharmaceuticals (CADX) has an early November PDUFA date and expected FDA decision for OFIRMEV (intravenous or IV acetaminophen).

CADX is developing OFIRMEV (acetaminophen) injection in the U.S. market for the treatment of acute pain.

CADX has in-licensed the exclusive U.S. and Canadian rights to OFIRMEV™, an intravenous formulation of acetaminophen that is currently marketed in Europe for the treatment of acute pain and fever by Bristol-Myers Squibb Company, or BMS, under the brand name Perfalgan®. According to IMS data, since its introduction beginning in 2002, over 250 million doses of intravenous acetaminophen have been sold in Europe and it has become the market share leader among injectable analgesics.

Because of delays we can look back at two recent run-ups of CADX.

During its run-up in 2009 CADX hit a high of $11.76 (10/12/09) During its Feb 2010 run-up CADX hit a high of $10.91 (1/7/10)

The stock price as this is written is 7.99.

Our target price, assuming it is dilution-free, is $10.50. This would be a 30% gain.

We are targeting this price prior to the FDA approval date in November 13

Another way to play this stock is via options. $10 November Calls which expire AFTER the FDA date of 11/4/10, allows for speculation on share price if approved. Currently these calls are trading for around $.90, expectations is that the calls should be “in the money” before 11/4/10.

CADX as to the 'game' is being added as an stock pick. Disclosure: I am an alter-ego of MightyMo. ALIGN="left"> To learn more about People And Picks, visit http://at.zacks.com/?id=5957

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5958.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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.

Contact: Brent Billock
People & Picks Manager
Company: Zacks.com
Phone: 312-265-9307
Email: pandp@zacks.com
Visit: www.Zacks.com

 

 
CADENCE PHARMA (CADX): Free Stock Analysis Report
 
Zacks Investment Research

For Immediate Release

Chicago, IL – September 7 – Zacks highlights commentary from People and Picks Trader “BioMO”.

For more Voice of the People, visit http://at.zacks.com/?id=5851

Featured Post

New Pick: Cadence Pharma

Candence Pharmaceuticals (CADX) has an early November PDUFA date and expected FDA decision for OFIRMEV (intravenous or IV acetaminophen).

CADX is developing OFIRMEV (acetaminophen) injection in the U.S. market for the treatment of acute pain.

CADX has in-licensed the exclusive U.S. and Canadian rights to OFIRMEV™, an intravenous formulation of acetaminophen that is currently marketed in Europe for the treatment of acute pain and fever by Bristol-Myers Squibb Company, or BMS, under the brand name Perfalgan®. According to IMS data, since its introduction beginning in 2002, over 250 million doses of intravenous acetaminophen have been sold in Europe and it has become the market share leader among injectable analgesics.

Because of delays we can look back at two recent run-ups of CADX.

During its run-up in 2009 CADX hit a high of $11.76 (10/12/09) During its Feb 2010 run-up CADX hit a high of $10.91 (1/7/10)

The stock price as this is written is 7.99.

Our target price, assuming it is dilution-free, is $10.50. This would be a 30% gain.

We are targeting this price prior to the FDA approval date in November 13

Another way to play this stock is via options. $10 November Calls which expire AFTER the FDA date of 11/4/10, allows for speculation on share price if approved. Currently these calls are trading for around $.90, expectations is that the calls should be “in the money” before 11/4/10.

CADX as to the 'game' is being added as an stock pick. Disclosure: I am an alter-ego of MightyMo. ALIGN="left"> To learn more about People And Picks, visit http://at.zacks.com/?id=5957

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5958.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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.

Contact: Brent Billock
People & Picks Manager
Company: Zacks.com
Phone: 312-265-9307
Email: pandp@zacks.com
Visit: www.Zacks.com

 

 
CADENCE PHARMA (CADX): Free Stock Analysis Report
 
Zacks Investment Research

For Immediate Release

Chicago, IL – September 7, 2010 – Zacks Equity Research highlights O'Reilly Automotive (ORLY) as the Bull of the Day and J.C. Penney Co. (JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald (MCD), Abercrombie & Fitch (ANF) and Petrobras (PBR).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.

Here is a synopsis of all five stocks:

Bull of the Day: 

O'Reilly Automotive (ORLY) continues to benefit from its dual market strategy and strong distribution network. In the second quarter of 2010, the company beat the Zacks Consensus Estimate by $0.07 per share. ALIGN="left"> The CSK acquisition is expected to boost the company's earnings and savings in 2010, and will help the company outgrow its competitors. Moreover, the company's aggressive store opening strategy is well supported by its improving cash flow. ALIGN="left"> The current P/E, which is close to the mean of the historical range, is trading at a 29% discount to the peer group for 2010. Our long-term Outperform recommendation on the stock indicates that it would perform better than the market. Our $59 target price, 20.6X our 2010 EPS, reflects this view.

Bear of the Day:

We believe that J.C. Penney Co. (JCP) will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive.

J.C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales. We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance.

Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results. However, the Sephora concept inspires confidence but a consistent improvement in the stock has yet to be witnessed.

Latest Posts on the Zacks Analyst Blog:

August Employment Report – In-Depth

Looking at the big picture, men have fared far worse than women in this downturn. There are two possible reasons for this. The first is that the industries that have been particularly hard-hit in this downturn tend to be far more male-dominated than the industries that have made it though this recession more or less unscathed. The most glaring example of this would be the construction industry versus the health care industry (more on the industry breakdowns below).

The second explanation is that on average, women tend to still be paid far less than men do, and employers might be more prone to let their relatively high-priced male employees go first before their cheaper female employees. The industry effect is probably the bigger reason, but the two are not mutually exclusive and both might be playing a role.

Teens, regardless of gender, have had a very hard time of it in this recession. Just go to a McDonald's (MCD) and you will see this for yourself. Normally the blemishes you see on the cashier's face is acne, not wrinkles and age spots, as is the case now.

In August, the teen unemployment rate rose to 26.3% from 26.1% in July and 25.7% a year ago. The increase, though, was all due to a big jump in the participation rate, which rose to 35.2% from 34.6% in July, but well below the 37.5% rate of a year ago. The percentage of teens that actually have a job was just 25.9%, up from 25.6% in July but down from 27.8% a year ago.

While for the most part the earnings from teen jobs tend to go towards clothes from Abercrombie & Fitch (ANF) and other teen clothing stores, for many it is a significant part of paying for college. Also, when teens work, they learn important job skills, such as the importance of actually showing up, and doing so on time. The extremely low levels of teens working is not a good sign for the future.

Not surprisingly, Whites have lower unemployment rates that do Blacks or Hispanics. The rate for Whites rose to 8.7% in August from 8.6% in July, but down from 8.9% a year ago. However, the increase in the white unemployment rate this month was entirely due to an increase in the participation rate to 65.2% from 62.1% in July, but down from 66.0% a year ago. The employment rate for Whites has held steady at 59.5% for three straight months now, but that is down from 60.1% a year ago.

The unemployment rate for Blacks rose to 16.3%, a big jump from the 15.6% rate in July and up from 15.2% last year. Here again, it is mostly a story of changes in the participation rate. For the month, the participation rate for Blacks rose to 62.2% from 61.5% in July, and is at the same level it was at a year ago. The employment rate for Blacks actually ticked up to 52.0% from 51.9% in July, but is still well below the 52.7% rate of last year.

For Hispanics, the unemployment rate in August improved to 12.0% from 12.1% in July and down from 13.0% last year. The monthly improvement is mostly a mirage, though, as the participation rate fell to 67.2% from 67.4% in August and 67.6% last year. The employment rate actually fell to 59.1% from 59.2%. However, part of the year-over-year drop in the unemployment rate is for real, as last year’s employment rate was 58.8%.

Petrobras Inks Oil-for-Shares Deal

Brazil's state-run oil company, Petrobras (PBR) and the Brazilian government agreed to an oil-for-shares swap deal. As per the deal, Petrobras agreed to pay the Government $42.5 billion in new stock for the right to develop 5 billion barrels of offshore oil reserves.

Management said that the company’s proved reserves base will be increased by nearly 35% from the current level of approximately 14 billion barrels of oil equivalent. The transaction has set the stage for Petrobras’ multi-billion dollar public issue scheduled later this month.

The value of the oil rights may clear some of the uncertainties surrounding the company's public offer. Notably, shareholders of the company had approved the sale of up to $85 billion in new shares earlier this year.

Petrobras will require huge capital expenditure to develop the deep pre-salt layers as part of the company’s strategic initiative to ramp up production to 3.9 million barrels of oil equivalent per day (MMBOE/d) in 2014 and 5.4 MMBOE/d in 2020.

We continue to have a positive medium-to long-term outlook on Petrobras due to its encouraging portfolio of investments, particularly in Brazil’s pre-salt reservoirs that lie below the Espírito Santo, Campos and Santos basins in deep and ultra-deep water. The company is the operator in most of these exploration areas and holds interests ranging from 20% to 100% in them.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7159.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 
ABERCROMBIE (ANF): Free Stock Analysis Report
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
MCDONALDS CORP (MCD): Free Stock Analysis Report
 
O REILLY AUTO (ORLY): Free Stock Analysis Report
 
PETROBRAS-ADR C (PBR): Free Stock Analysis Report
 
Zacks Investment Research

For Immediate Release

Chicago, IL – September 7, 2010 – Zacks Equity Research highlights O'Reilly Automotive (ORLY) as the Bull of the Day and J.C. Penney Co. (JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald (MCD), Abercrombie & Fitch (ANF) and Petrobras (PBR).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.

Here is a synopsis of all five stocks:

Bull of the Day: 

O'Reilly Automotive (ORLY) continues to benefit from its dual market strategy and strong distribution network. In the second quarter of 2010, the company beat the Zacks Consensus Estimate by $0.07 per share. ALIGN="left"> The CSK acquisition is expected to boost the company's earnings and savings in 2010, and will help the company outgrow its competitors. Moreover, the company's aggressive store opening strategy is well supported by its improving cash flow. ALIGN="left"> The current P/E, which is close to the mean of the historical range, is trading at a 29% discount to the peer group for 2010. Our long-term Outperform recommendation on the stock indicates that it would perform better than the market. Our $59 target price, 20.6X our 2010 EPS, reflects this view.

Bear of the Day:

We believe that J.C. Penney Co. (JCP) will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive.

J.C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales. We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance.

Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results. However, the Sephora concept inspires confidence but a consistent improvement in the stock has yet to be witnessed.

Latest Posts on the Zacks Analyst Blog:

August Employment Report – In-Depth

Looking at the big picture, men have fared far worse than women in this downturn. There are two possible reasons for this. The first is that the industries that have been particularly hard-hit in this downturn tend to be far more male-dominated than the industries that have made it though this recession more or less unscathed. The most glaring example of this would be the construction industry versus the health care industry (more on the industry breakdowns below).

The second explanation is that on average, women tend to still be paid far less than men do, and employers might be more prone to let their relatively high-priced male employees go first before their cheaper female employees. The industry effect is probably the bigger reason, but the two are not mutually exclusive and both might be playing a role.

Teens, regardless of gender, have had a very hard time of it in this recession. Just go to a McDonald's (MCD) and you will see this for yourself. Normally the blemishes you see on the cashier's face is acne, not wrinkles and age spots, as is the case now.

In August, the teen unemployment rate rose to 26.3% from 26.1% in July and 25.7% a year ago. The increase, though, was all due to a big jump in the participation rate, which rose to 35.2% from 34.6% in July, but well below the 37.5% rate of a year ago. The percentage of teens that actually have a job was just 25.9%, up from 25.6% in July but down from 27.8% a year ago.

While for the most part the earnings from teen jobs tend to go towards clothes from Abercrombie & Fitch (ANF) and other teen clothing stores, for many it is a significant part of paying for college. Also, when teens work, they learn important job skills, such as the importance of actually showing up, and doing so on time. The extremely low levels of teens working is not a good sign for the future.

Not surprisingly, Whites have lower unemployment rates that do Blacks or Hispanics. The rate for Whites rose to 8.7% in August from 8.6% in July, but down from 8.9% a year ago. However, the increase in the white unemployment rate this month was entirely due to an increase in the participation rate to 65.2% from 62.1% in July, but down from 66.0% a year ago. The employment rate for Whites has held steady at 59.5% for three straight months now, but that is down from 60.1% a year ago.

The unemployment rate for Blacks rose to 16.3%, a big jump from the 15.6% rate in July and up from 15.2% last year. Here again, it is mostly a story of changes in the participation rate. For the month, the participation rate for Blacks rose to 62.2% from 61.5% in July, and is at the same level it was at a year ago. The employment rate for Blacks actually ticked up to 52.0% from 51.9% in July, but is still well below the 52.7% rate of last year.

For Hispanics, the unemployment rate in August improved to 12.0% from 12.1% in July and down from 13.0% last year. The monthly improvement is mostly a mirage, though, as the participation rate fell to 67.2% from 67.4% in August and 67.6% last year. The employment rate actually fell to 59.1% from 59.2%. However, part of the year-over-year drop in the unemployment rate is for real, as last year’s employment rate was 58.8%.

Petrobras Inks Oil-for-Shares Deal

Brazil's state-run oil company, Petrobras (PBR) and the Brazilian government agreed to an oil-for-shares swap deal. As per the deal, Petrobras agreed to pay the Government $42.5 billion in new stock for the right to develop 5 billion barrels of offshore oil reserves.

Management said that the company’s proved reserves base will be increased by nearly 35% from the current level of approximately 14 billion barrels of oil equivalent. The transaction has set the stage for Petrobras’ multi-billion dollar public issue scheduled later this month.

The value of the oil rights may clear some of the uncertainties surrounding the company's public offer. Notably, shareholders of the company had approved the sale of up to $85 billion in new shares earlier this year.

Petrobras will require huge capital expenditure to develop the deep pre-salt layers as part of the company’s strategic initiative to ramp up production to 3.9 million barrels of oil equivalent per day (MMBOE/d) in 2014 and 5.4 MMBOE/d in 2020.

We continue to have a positive medium-to long-term outlook on Petrobras due to its encouraging portfolio of investments, particularly in Brazil’s pre-salt reservoirs that lie below the Espírito Santo, Campos and Santos basins in deep and ultra-deep water. The company is the operator in most of these exploration areas and holds interests ranging from 20% to 100% in them.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7159.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 
ABERCROMBIE (ANF): Free Stock Analysis Report
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
MCDONALDS CORP (MCD): Free Stock Analysis Report
 
O REILLY AUTO (ORLY): Free Stock Analysis Report
 
PETROBRAS-ADR C (PBR): Free Stock Analysis Report
 
Zacks Investment Research

Read full story for details.

Medifast, Inc. (MED) estimates continue to trend higher following the company's sixth consecutive earnings surprise.

Company Description

Medifast offers weight-loss programs based on clinically proven, portion-controlled meals. The plans offer customers to choose from 70 different meals, which are bought directly from Medifast. Additionally, the company offers coaching and support groups for its dieters

Another Surprise

On Aug 5 Medifast reported its sixth consecutive earnings surprise on a 60% increase in revenue. Sales were up to $66.7 million, from $41.7 million a year ago. Net income almost doubled, to $5.6 million from $3.0 million.

Earnings per shares came out to 38 cents, 18 cents better than last year and 4 cents better than Wall Street expected.

Analyst Revisions

Following the earnings surprise, the Zacks Consensus Estimate for 2010 jumped 13 cents, to $1.44. Next year's forecasts are averaging $1.75, up a dime on the news.

If Medifast can meet these expectations, year-over-year growth rates will be 78% and 21%, respectively. And you won't be overpaying for those rates, as shares are trading with a PEG ratio of just 0.8.

The Chart

The recent estimate revisions are nothing new for MED analysts. You can see below that the full-year estimates have been steadily increasing for more than 2 years.

Read the July 7th Feature Here

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Last Week's Aggressive Growth Zacks Rank Buy Stocks

UFP Technologies, Inc. (UFPT) posted record results in the last quarter after growing through acquisition and organically. Read Full Article.

Albany International Corp (AIN) analysts are feeling bullish after the latest earnings report. Estimates are up and the stock is a great entry point. Read Full Article.

Magellan Health Services, Inc. (MGLN) is up sharply since its latest earnings surprise. Thanks to estimate revisions, shares are still a good value and are showing stability in a rough market. Read Full Article.

AutoNation, Inc. (AN) analysts are raising estimates following the latest earnings surprise. Industry sales continue to improve and AutoNation is making the most of it. Read Full Article.
 
Zacks Investment Research

Jo-Ann Stores, Inc. (JAS) recently raised fiscal 2011 earnings per share guidance for the second time this year after better than expected second quarter results.

Jo-Ann Stores has seen strong sales growth as consumers have tended to stay home and have engaged in projects around the house.

The company is a fabric and craft retailer with stores in 48 states. It sells craft projects, fabrics, frames, paper crafting material and home accents.

Jo-Ann Stores Swung to a Profit in the Second Quarter

On Aug 25, Jo-Ann Stores reported its fiscal second quarter 2011 results which crushed the Zacks Consensus by 900%. Analysts were only expecting 2 cents but Jo-Ann came in with 20 cents per share.

It was the first time in five years the company generated positive results for the second quarter, which is usually a weak period. It lost 13 cents in the year ago quarter.

Net sales jumped 4.7% to $439.3 million from $419.4 million as same store sales rose 4.4%. Last year, same store sales rose just 1.8%. All segments saw sales growth in the quarter with Internet sales on joann.com seeing the biggest increase, jumping 16% to $8.7 million.

Cash is King

The company's cash position is solid. It had a cash balance of $126.1 million at the end of the second quarter, an increase of $45.9 million from the year ago quarter. It also got rid of its outstanding debt, which had totaled $50.5 million at the end of the second quarter last year.

The company's cash position gives it a lot of operating power.

Given the improving market conditions it expects to open even more stores in fiscal 2012 than it previously anticipated. While it will open 30 stores in fiscal 2011, it expects to open 50 in fiscal 2012.

Full Year Guidance Raised

For the second time this year, Jo-Ann Stores raised its fiscal 2011 guidance. Same store sales are expected to be stronger than expected, in the range of 3% to 4%, up from the previous range of 2.5% to 3.5%.

Earnings per share are now forecast in the range of $3.20 to $3.35, up from the previous guidance of $2.95 to $3.10.

As expected with the big beat, the fiscal 2011 Zacks Consensus has jumped by 22 cents to $3.44 per share which is higher than the company's guidance range. All 6 estimates moved higher.

This is earnings growth of 38.8% compared to fiscal 2010.

Value Fundamentals

Jo-Ann Stores still has attractive value characteristics.

When I last reviewed it in June, it was trading at 13.7x forward estimates and is now cheaper, at 12.4x. This is a value as compared to the S&P 500 which is trading just over 13x forward estimates.

Jo-Ann Stores is a Zacks #1 Rank (strong buy) stock.

Read the June 22, 2010 article.

Update to Previous Value Zacks Rank Buy Stocks

Diodes Inc. (DIOD) has been riding the tech revival to record revenue in 2010. DIOD is also a rare company that has both value but also a high growth rate, with a PEG ratio of just 0.5. Read the full article.

Sotheby's (BID) had a hot first half of the year as the rich returned to the art world. Yet the company still has attractive valuations with a PEG ratio of just 0.7. Read the full article.

Sirona Dental Inc. (SIRO) is one of those rare companies that has both value and growth characteristics as its PEG ratio stands at just 0.8. Read the full article.

SKECHERS USA, Inc. (SKX) has seen its stock slide in the last 2 months making it an extremely attractive value stock at just 7x forward estimates. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

 
JO-ANN STORES A (JAS): Free Stock Analysis Report
 
Zacks Investment Research

O'Reilly Automotive (ORLY) continues to benefit from its dual market strategy and strong distribution network. In the second quarter of 2010, the company beat the Zacks Consensus Estimate by $0.07 per share.

The CSK acquisition is expected to boost the company's earnings and savings in 2010, and will help the company outgrow its competitors. Moreover, the company's aggressive store opening strategy is well supported by its improving cash flow.

The current P/E, which is close to the mean of the historical range, is trading at a 29% discount to the peer group for 2010. Our long-term Outperform recommendation on the stock indicates that it would perform better than the market. Our $59 target price, 20.6X our 2010 EPS, reflects this view.
 
O REILLY AUTO (ORLY): Free Stock Analysis Report
 
Zacks Investment Research

We believe that J.C. Penney Co. (JCP) will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive.

J.C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales. We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance.

Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results. However, the Sephora concept inspires confidence but a consistent improvement in the stock has yet to be witnessed.
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
Zacks Investment Research

CARBO Ceramics, Inc. (CRR) is once again pressuring its all-time high after reporting another great quarter in late July that included a 27% earnings surprise. With a next-year estimate of 21%, the longer-term picture looks good too.

Second-Quarter Results

Revenue for the period was up 61% from last year to $112 million. Earnings also came in strong at 81 cents per share, 27% ahead of the Zacks Consensus Estimate. In spite of one small miss two quarters ago, the company now has an average earnings surprise of 25% over the last four quarters.

As sales continue to grow at a brisk pace, CARBO's biggest challenge has been keeping pace with demand, a problem many companies would love to have. On that front, CARBO noted that a third line at its facility in Toomsboro, Georgia, with production capabilities of 250 million pounds of ceramic proppant, is on schedule for completion in November. ANother line is scheduled for completion in 2011, with the two new lines expected to increase production capacities by 40%.

Balance Sheet

Although CARBO's cash position is down about $20 from last year to $73 million, it has a pristine balance sheet, with no long-term debt against the industry's 22.5% average debt-to-equity ratio.

Estimates

Estimates took a nice jump on the good quarter, with the current year up 34 cents since the release to $3.16. The next-year estimate is up 32 cents in the same time to $3.82, a 21% growth projection.

Valuation

With a PEG ratio (PE/Growth) of 1.0, shares of CRR look reasonably priced to go along with some very solid upward momentum.

2-Year Chart

CRR is once again pressuring the all-time high after rebounding from a key long-term trend line in late August. The MACD below the chart is bullish too, with the short-term average crossing ahead of the long-term average. Take a look below.

Read the July 9 CRR article here

Last Week's Momentum Zacks Rank Buy Stocks

Kraton Performance Polymers, Inc.'s (KRA) share price is up more than 100% since going public in December of 2009. The company's recent Q2 earnings surprise and rising estimates make this Zacks #1 rank stock a solid momentum pick. Read Full Article.

JinkoSolar Holding Co. Ltd. (JKS) is off to a hot start as a publicly traded company, with its share price up more than 200% since its May IPO. With a 41% Q2 earnings surprise driving shares, this Zacks #1 rank stock has plenty of upward momentum. Read Full Article.

Aliance Resource Partners LP (ARLP) recently hit a new multi-year high at $55.54 on a 32% earnings surprise from late July. With estimates climbing on the back of growing demand, this Zacks #1 rank stock has some solid upward momentum. Read Full Article.

Genesis Energy LP (GEL) continues to pressure its multi-year high after reporting better than expected Q2 results in early August that included a 38% earnings surprise. With the next-year estimates projecting 25% growth, the longer term picture looks good too. Read Full Article.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
CARBO CERAMICS (CRR): Free Stock Analysis Report
 
Zacks Investment Research

Medifast, Inc. (MED) estimates continue to trend higher following the company's sixth consecutive earnings surprise.

Company Description

Medifast offers weight-loss programs based on clinically proven, portion-controlled meals. The plans offer customers to choose from 70 different meals, which are bought directly from Medifast. Additionally, the company offers coaching and support groups for its dieters

Another Surprise

On Aug 5 Medifast reported its sixth consecutive earnings surprise on a 60% increase in revenue. Sales were up to $66.7 million, from $41.7 million a year ago. Net income almost doubled, to $5.6 million from $3.0 million.

Earnings per shares came out to 38 cents, 18 cents better than last year and 4 cents better than Wall Street expected.

Analyst Revisions

Following the earnings surprise, the Zacks Consensus Estimate for 2010 jumped 13 cents, to $1.44. Next year's forecasts are averaging $1.75, up a dime on the news.

If Medifast can meet these expectations, year-over-year growth rates will be 78% and 21%, respectively. And you won't be overpaying for those rates, as shares are trading with a PEG ratio of just 0.8.

The Chart

The recent estimate revisions are nothing new for MED analysts. You can see below that the full-year estimates have been steadily increasing for more than 2 years.

Read the July 7th Feature Here

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Last Week's Aggressive Growth Zacks Rank Buy Stocks

UFP Technologies, Inc. (UFPT) posted record results in the last quarter after growing through acquisition and organically. Read Full Article.

Albany International Corp (AIN) analysts are feeling bullish after the latest earnings report. Estimates are up and the stock is a great entry point. Read Full Article.

Magellan Health Services, Inc. (MGLN) is up sharply since its latest earnings surprise. Thanks to estimate revisions, shares are still a good value and are showing stability in a rough market. Read Full Article.

AutoNation, Inc. (AN) analysts are raising estimates following the latest earnings surprise. Industry sales continue to improve and AutoNation is making the most of it. Read Full Article.
 
MEDIFAST INC (MED): Free Stock Analysis Report
 
Zacks Investment Research

Caterpillar Inc. (CAT) is still a hot stock as growth in the emerging markets remains strong.

Caterpillar manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.

It is usually among the first to see a recovery and also among the first to anticipate a coming slowdown. So far, the company is not signaling a slowdown is imminent. Actually, to the contrary.

Expanding in Brazil

The emerging markets are where it's at and Caterpillar signaled as much when it announced on Sep 1 that it was expanding its manufacturing operations in Brazil by buying a 50,000 square meters facility in Compo Largo, Parana State and increasing its capacity at the flagship facility in Piracicaba.

The investment will total $180 million and will add 1,000 new jobs. The new facility is expected to be running by 2011.

It will manufacture backhoe loaders and small wheel loaders, which are currently produced at Piracicaba.

Zacks Consensus Estimates Rise

Analysts have revised their estimates higher for 2010 and 2011 in the last month since the company reported its second quarter results.

The 2010 Zacks Consensus is up by a penny in the last 30 days to $3.73 per share. This is earnings growth of 71%.

For 2011, analysts expect another great year for growth, with another 37% earnings growth.

The 2011 Zacks Consensus is up 5 cents to $5.11 per share.

Surprised on Earnings 6 Quarters in a Row

The company has recently put together a string of estimate surprises as the global recovery has taken hold.

These surprises have followed along with the increases in the stock price.

Solid Dividend

Caterpillar pays a dividend with a yield of 2.6%. This is much higher than the industry, which pays just 0.2%, on average.

Caterpillar is a Zacks #1 Rank (strong buy) stock. It is scheduled to report third quarter earnings on Oct 19.

Read the July 26, 2010 article.

Update to Previous Growth & Income Zacks Rank Buy Stocks

Rollins Inc. (ROL) is keeping a watchful eye on the news as fears about bed bugs grows. The company is expected to see double digit earnings growth in 2010 and 2011. Read the full article.

Inter Parfums, Inc. (IPAR) saw sales rise 22% on record results for the second quarter as consumers resumed purchases of luxury perfumes. Read the full article.

The Gorman-Rupp Company (GRC) is expected to grow sales by an average of 19.3% over the next 5 years, well ahead of the industry average of 16.5%. Read the full article.

Coach Inc. (COH) is making a big move into China as its U.S. and Japanese operations face more difficult growth trends. COH saw double digit revenue growth in its Chinese retail stores in the fiscal fourth quarter. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

 
CATERPILLAR INC (CAT): Free Stock Analysis Report
 
Zacks Investment Research

Jo-Ann Stores, Inc. (JAS) recently raised fiscal 2011 earnings per share guidance for the second time this year after better than expected second quarter results.

Jo-Ann Stores has seen strong sales growth as consumers have tended to stay home and have engaged in projects around the house.

The company is a fabric and craft retailer with stores in 48 states. It sells craft projects, fabrics, frames, paper crafting material and home accents.

Jo-Ann Stores Swung to a Profit in the Second Quarter

On Aug 25, Jo-Ann Stores reported its fiscal second quarter 2011 results which crushed the Zacks Consensus by 900%. Analysts were only expecting 2 cents but Jo-Ann came in with 20 cents per share.

It was the first time in five years the company generated positive results for the second quarter, which is usually a weak period. It lost 13 cents in the year ago quarter.

Net sales jumped 4.7% to $439.3 million from $419.4 million as same store sales rose 4.4%. Last year, same store sales rose just 1.8%. All segments saw sales growth in the quarter with Internet sales on joann.com seeing the biggest increase, jumping 16% to $8.7 million.

Cash is King

The company's cash position is solid. It had a cash balance of $126.1 million at the end of the second quarter, an increase of $45.9 million from the year ago quarter. It also got rid of its outstanding debt, which had totaled $50.5 million at the end of the second quarter last year.

The company's cash position gives it a lot of operating power.

Given the improving market conditions it expects to open even more stores in fiscal 2012 than it previously anticipated. While it will open 30 stores in fiscal 2011, it expects to open 50 in fiscal 2012.

Full Year Guidance Raised

For the second time this year, Jo-Ann Stores raised its fiscal 2011 guidance. Same store sales are expected to be stronger than expected, in the range of 3% to 4%, up from the previous range of 2.5% to 3.5%.

Earnings per share are now forecast in the range of $3.20 to $3.35, up from the previous guidance of $2.95 to $3.10.

As expected with the big beat, the fiscal 2011 Zacks Consensus has jumped by 22 cents to $3.44 per share which is higher than the company's guidance range. All 6 estimates moved higher.

This is earnings growth of 38.8% compared to fiscal 2010.

Value Fundamentals

Jo-Ann Stores still has attractive value characteristics.

When I last reviewed it in June, it was trading at 13.7x forward estimates and is now cheaper, at 12.4x. This is a value as compared to the S&P 500 which is trading just over 13x forward estimates.

Jo-Ann Stores is a Zacks #1 Rank (strong buy) stock.

Read the June 22, 2010 article.

Update to Previous Value Zacks Rank Buy Stocks

Diodes Inc. (DIOD) has been riding the tech revival to record revenue in 2010. DIOD is also a rare company that has both value but also a high growth rate, with a PEG ratio of just 0.5. Read the full article.

Sotheby's (BID) had a hot first half of the year as the rich returned to the art world. Yet the company still has attractive valuations with a PEG ratio of just 0.7. Read the full article.

Sirona Dental Inc. (SIRO) is one of those rare companies that has both value and growth characteristics as its PEG ratio stands at just 0.8. Read the full article.

SKECHERS USA, Inc. (SKX) has seen its stock slide in the last 2 months making it an extremely attractive value stock at just 7x forward estimates. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

 
Zacks Investment Research

Jo-Ann Stores, Inc. (JAS) recently raised fiscal 2011 earnings per share guidance for the second time this year after better than expected second quarter results.

Jo-Ann Stores has seen strong sales growth as consumers have tended to stay home and have engaged in projects around the house.

The company is a fabric and craft retailer with stores in 48 states. It sells craft projects, fabrics, frames, paper crafting material and home accents.

Jo-Ann Stores Swung to a Profit in the Second Quarter

On Aug 25, Jo-Ann Stores reported its fiscal second quarter 2011 results which crushed the Zacks Consensus by 900%. Analysts were only expecting 2 cents but Jo-Ann came in with 20 cents per share.

It was the first time in five years the company generated positive results for the second quarter, which is usually a weak period. It lost 13 cents in the year ago quarter.

Net sales jumped 4.7% to $439.3 million from $419.4 million as same store sales rose 4.4%. Last year, same store sales rose just 1.8%. All segments saw sales growth in the quarter with Internet sales on joann.com seeing the biggest increase, jumping 16% to $8.7 million.

Cash is King

The company's cash position is solid. It had a cash balance of $126.1 million at the end of the second quarter, an increase of $45.9 million from the year ago quarter. It also got rid of its outstanding debt, which had totaled $50.5 million at the end of the second quarter last year.

The company's cash position gives it a lot of operating power.

Given the improving market conditions it expects to open even more stores in fiscal 2012 than it previously anticipated. While it will open 30 stores in fiscal 2011, it expects to open 50 in fiscal 2012.

Full Year Guidance Raised

For the second time this year, Jo-Ann Stores raised its fiscal 2011 guidance. Same store sales are expected to be stronger than expected, in the range of 3% to 4%, up from the previous range of 2.5% to 3.5%.

Earnings per share are now forecast in the range of $3.20 to $3.35, up from the previous guidance of $2.95 to $3.10.

As expected with the big beat, the fiscal 2011 Zacks Consensus has jumped by 22 cents to $3.44 per share which is higher than the company's guidance range. All 6 estimates moved higher.

This is earnings growth of 38.8% compared to fiscal 2010.

Value Fundamentals

Jo-Ann Stores still has attractive value characteristics.

When I last reviewed it in June, it was trading at 13.7x forward estimates and is now cheaper, at 12.4x. This is a value as compared to the S&P 500 which is trading just over 13x forward estimates.

Jo-Ann Stores is a Zacks #1 Rank (strong buy) stock.

Read the June 22, 2010 article.

Update to Previous Value Zacks Rank Buy Stocks

Diodes Inc. (DIOD) has been riding the tech revival to record revenue in 2010. DIOD is also a rare company that has both value but also a high growth rate, with a PEG ratio of just 0.5. Read the full article.

Sotheby's (BID) had a hot first half of the year as the rich returned to the art world. Yet the company still has attractive valuations with a PEG ratio of just 0.7. Read the full article.

Sirona Dental Inc. (SIRO) is one of those rare companies that has both value and growth characteristics as its PEG ratio stands at just 0.8. Read the full article.

SKECHERS USA, Inc. (SKX) has seen its stock slide in the last 2 months making it an extremely attractive value stock at just 7x forward estimates. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

 
JO-ANN STORES A (JAS): Free Stock Analysis Report
 
Zacks Investment Research

O'Reilly Automotive (ORLY) continues to benefit from its dual market strategy and strong distribution network. In the second quarter of 2010, the company beat the Zacks Consensus Estimate by $0.07 per share.

The CSK acquisition is expected to boost the company's earnings and savings in 2010, and will help the company outgrow its competitors. Moreover, the company's aggressive store opening strategy is well supported by its improving cash flow.

The current P/E, which is close to the mean of the historical range, is trading at a 29% discount to the peer group for 2010. Our long-term Outperform recommendation on the stock indicates that it would perform better than the market. Our $59 target price, 20.6X our 2010 EPS, reflects this view.
 
O REILLY AUTO (ORLY): Free Stock Analysis Report
 
Zacks Investment Research

We believe that J.C. Penney Co. (JCP) will remain under pressure in the near term. Despite the introduction of new product lines, sales performance has not been impressive.

J.C. Penney hinted that the discontinuation of the publishing of Big Book catalogs in November 2009 has been adversely impacting the sales. We expect a negative sentiment among investors, following the sales results for the second-quarter 2010 that breached its own guidance.

Moreover, the company's sales of home products have remained sluggish for the last few years. This may weigh upon the company's overall results. However, the Sephora concept inspires confidence but a consistent improvement in the stock has yet to be witnessed.
 
PENNEY (JC) INC (JCP): Free Stock Analysis Report
 
Zacks Investment Research

CARBO Ceramics, Inc. (CRR) is once again pressuring its all-time high after reporting another great quarter in late July that included a 27% earnings surprise. With a next-year estimate of 21%, the longer-term picture looks good too.

Second-Quarter Results

Revenue for the period was up 61% from last year to $112 million. Earnings also came in strong at 81 cents per share, 27% ahead of the Zacks Consensus Estimate. In spite of one small miss two quarters ago, the company now has an average earnings surprise of 25% over the last four quarters.

As sales continue to grow at a brisk pace, CARBO's biggest challenge has been keeping pace with demand, a problem many companies would love to have. On that front, CARBO noted that a third line at its facility in Toomsboro, Georgia, with production capabilities of 250 million pounds of ceramic proppant, is on schedule for completion in November. ANother line is scheduled for completion in 2011, with the two new lines expected to increase production capacities by 40%.

Balance Sheet

Although CARBO's cash position is down about $20 from last year to $73 million, it has a pristine balance sheet, with no long-term debt against the industry's 22.5% average debt-to-equity ratio.

Estimates

Estimates took a nice jump on the good quarter, with the current year up 34 cents since the release to $3.16. The next-year estimate is up 32 cents in the same time to $3.82, a 21% growth projection.

Valuation

With a PEG ratio (PE/Growth) of 1.0, shares of CRR look reasonably priced to go along with some very solid upward momentum.

2-Year Chart

CRR is once again pressuring the all-time high after rebounding from a key long-term trend line in late August. The MACD below the chart is bullish too, with the short-term average crossing ahead of the long-term average. Take a look below.

Read the July 9 CRR article here

Last Week's Momentum Zacks Rank Buy Stocks

Kraton Performance Polymers, Inc.'s (KRA) share price is up more than 100% since going public in December of 2009. The company's recent Q2 earnings surprise and rising estimates make this Zacks #1 rank stock a solid momentum pick. Read Full Article.

JinkoSolar Holding Co. Ltd. (JKS) is off to a hot start as a publicly traded company, with its share price up more than 200% since its May IPO. With a 41% Q2 earnings surprise driving shares, this Zacks #1 rank stock has plenty of upward momentum. Read Full Article.

Aliance Resource Partners LP (ARLP) recently hit a new multi-year high at $55.54 on a 32% earnings surprise from late July. With estimates climbing on the back of growing demand, this Zacks #1 rank stock has some solid upward momentum. Read Full Article.

Genesis Energy LP (GEL) continues to pressure its multi-year high after reporting better than expected Q2 results in early August that included a 38% earnings surprise. With the next-year estimates projecting 25% growth, the longer term picture looks good too. Read Full Article.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
CARBO CERAMICS (CRR): Free Stock Analysis Report
 
Zacks Investment Research

Medifast, Inc. (MED) estimates continue to trend higher following the company's sixth consecutive earnings surprise.

Company Description

Medifast offers weight-loss programs based on clinically proven, portion-controlled meals. The plans offer customers to choose from 70 different meals, which are bought directly from Medifast. Additionally, the company offers coaching and support groups for its dieters

Another Surprise

On Aug 5 Medifast reported its sixth consecutive earnings surprise on a 60% increase in revenue. Sales were up to $66.7 million, from $41.7 million a year ago. Net income almost doubled, to $5.6 million from $3.0 million.

Earnings per shares came out to 38 cents, 18 cents better than last year and 4 cents better than Wall Street expected.

Analyst Revisions

Following the earnings surprise, the Zacks Consensus Estimate for 2010 jumped 13 cents, to $1.44. Next year's forecasts are averaging $1.75, up a dime on the news.

If Medifast can meet these expectations, year-over-year growth rates will be 78% and 21%, respectively. And you won't be overpaying for those rates, as shares are trading with a PEG ratio of just 0.8.

The Chart

The recent estimate revisions are nothing new for MED analysts. You can see below that the full-year estimates have been steadily increasing for more than 2 years.

Read the July 7th Feature Here

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Last Week's Aggressive Growth Zacks Rank Buy Stocks

UFP Technologies, Inc. (UFPT) posted record results in the last quarter after growing through acquisition and organically. Read Full Article.

Albany International Corp (AIN) analysts are feeling bullish after the latest earnings report. Estimates are up and the stock is a great entry point. Read Full Article.

Magellan Health Services, Inc. (MGLN) is up sharply since its latest earnings surprise. Thanks to estimate revisions, shares are still a good value and are showing stability in a rough market. Read Full Article.

AutoNation, Inc. (AN) analysts are raising estimates following the latest earnings surprise. Industry sales continue to improve and AutoNation is making the most of it. Read Full Article.
 
MEDIFAST INC (MED): Free Stock Analysis Report
 
Zacks Investment Research

Caterpillar Inc. (CAT) is still a hot stock as growth in the emerging markets remains strong.

Caterpillar manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.

It is usually among the first to see a recovery and also among the first to anticipate a coming slowdown. So far, the company is not signaling a slowdown is imminent. Actually, to the contrary.

Expanding in Brazil

The emerging markets are where it's at and Caterpillar signaled as much when it announced on Sep 1 that it was expanding its manufacturing operations in Brazil by buying a 50,000 square meters facility in Compo Largo, Parana State and increasing its capacity at the flagship facility in Piracicaba.

The investment will total $180 million and will add 1,000 new jobs. The new facility is expected to be running by 2011.

It will manufacture backhoe loaders and small wheel loaders, which are currently produced at Piracicaba.

Zacks Consensus Estimates Rise

Analysts have revised their estimates higher for 2010 and 2011 in the last month since the company reported its second quarter results.

The 2010 Zacks Consensus is up by a penny in the last 30 days to $3.73 per share. This is earnings growth of 71%.

For 2011, analysts expect another great year for growth, with another 37% earnings growth.

The 2011 Zacks Consensus is up 5 cents to $5.11 per share.

Surprised on Earnings 6 Quarters in a Row

The company has recently put together a string of estimate surprises as the global recovery has taken hold.

These surprises have followed along with the increases in the stock price.

Solid Dividend

Caterpillar pays a dividend with a yield of 2.6%. This is much higher than the industry, which pays just 0.2%, on average.

Caterpillar is a Zacks #1 Rank (strong buy) stock. It is scheduled to report third quarter earnings on Oct 19.

Read the July 26, 2010 article.

Update to Previous Growth & Income Zacks Rank Buy Stocks

Rollins Inc. (ROL) is keeping a watchful eye on the news as fears about bed bugs grows. The company is expected to see double digit earnings growth in 2010 and 2011. Read the full article.

Inter Parfums, Inc. (IPAR) saw sales rise 22% on record results for the second quarter as consumers resumed purchases of luxury perfumes. Read the full article.

The Gorman-Rupp Company (GRC) is expected to grow sales by an average of 19.3% over the next 5 years, well ahead of the industry average of 16.5%. Read the full article.

Coach Inc. (COH) is making a big move into China as its U.S. and Japanese operations face more difficult growth trends. COH saw double digit revenue growth in its Chinese retail stores in the fiscal fourth quarter. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

 
CATERPILLAR INC (CAT): Free Stock Analysis Report
 
Zacks Investment Research