Business Services Industry

Zacks Buy List Highlights: Valmont, Tele Norte, A.G. Edwards and Humana

Business Wire, April 3, 2007

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 Valmont Industries (NYSE: VMI), Tele Norte (NYSE: TNE), A.G. Edwards (NYSE: AGE), and Humana (NYSE: HUM).

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 31.8% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To 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 - Valmont Industries (NYSE: VMI)

The company only has one analyst following the stock, but he raised his 2007 estimate from $2.78 to $2.96 per share on February 16. Similarly, next year's estimates have risen 35 cents to $3.40 per share over the past 60 days. The stock is attractively valued at 17.4x next year's estimate.

Growth & Income - Tele Norte (NYSE: TNE)

Investors should be attracted to the company for its growth prospects as well as its healthy dividend payout. The company has completed its major capital expenditures, which should leave it in better shape to pay down debt and increase its dividends. Furthermore, the strong Brazilian economic environment will continue to help the company.

Momentum - A.G. Edwards (NYSE: AGE)

AG Edwards Inc. recently reported a 28% earnings surprise, with every segment posting full-year growth. As a result, the stock is trading at 52-week highs on stronger than average volume, increasing the potential for continued momentum.

Value - Humana (NYSE: HUM)

Humana Inc. recently surpassed fourth quarter expectations by 4.6% on earnings that more than doubled from the previous period. Despite faster growth rates, the stock trades at a discount to both the market and the industry. While possible Medicare Advantage cuts warrant attention, concern may be overblown.

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 $1.77 million - equivalent to a 31.8% 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 143.6% annually ( 4.8% vs. 11.8%). 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

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.

(a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

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.

COPYRIGHT 2007 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning

 

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