Business Services Industry
Zacks Buy List Highlights: PDI, Inc., Florida Rock Industries, Inc., Teche Holding Company and Petrobras S.A
Business Wire, June 30, 2006
CHICAGO -- Zacks.com releases the latest list of Zacks Rank Buy Stocks. Everyday on Zacks.com, four stocks are selected based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are PDI, Inc. (Nasdaq:PDII), Florida Rock Industries, Inc. (NYSE:FRK), Teche Holding Company (AMEX:TSH), and Petrobras S.A (NYSE:PBR).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 33% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88
Here is a synopsis of today's Zacks Rank Buy Stocks:
Aggressive Growth - PDI, Inc. (Nasdaq:PDII)
PDI, Inc. has experienced a dramatic increase in earnings estimates over the past 60 days. Analysts had forecasted a loss of 11 cents per share back then, but now predict a profit of 62 cents per share. Similarly, next years estimates skyrocketed from four cents to 35 cents over the past two months. Clearly, last quarter's 1900% earnings surprise accounted for the huge increase in earnings estimates.
Growth & Income - Florida Rock Industries, Inc. (NYSE:FRK)
Florida Rock Industries, Inc. remains a Zacks #1 Rank (Strong Buy) company and maintains its history of exceeding analysts' earnings estimates. Earnings per share topped the consensus forecasts over the past five consecutive quarters and have grown 22% over the past five years. FRK's fiscal second-quarter earnings per share result exceeded Wall Street expectations and beat the year-ago total.
Momentum - Teche Holding Company (AMEX:TSH)
Teche Holding is expected to report earnings for the quarter ended June 2006 on Jul 27. Analysts' consensus estimates for the quarter include EPS of 73 cents, up 12.3% from the same quarter last year. The company also regularly raises its quarterly dividend. In fact, the company announced its thirteenth consecutive quarterly dividend increase last month. TSH has been in a sustained uptrend since March 2000 with only a moderate decline in the aftermath of Hurricane Katrina.
Value - Petrobras S.A (NYSE:PBR)
Petrobras S.A has been experiencing increasing earnings estimates. Over the past 60 days, this year's estimates have increased 7.4%, while next year's have jumped 4.6%. Two analysts raised their numbers for this year. The stock is quite cheap at 7.4x this year's estimates of $11.49 per share, well below the company's long-term growth rate of 11.10%. The stock sports a price-to-book ratio of 2.6, in-line with the industry and a third less than the S&P 500.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions," provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.82 million - equivalent to a 33% annualized return! During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 129.7% annually ( 5.2% vs. 11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=90.
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 http://at.zacks.com/?id=91
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