Zacks #1 Rank Top Performers: FARO Technologies, Walter Industries, Iomega, AK Steel and Agrium

Business Wire, Feb 26, 2008

CHICAGO -- Zacks.com announces the latest list of top performing Zacks #1 Rank ("strong buy") stocks. The stocks on the prestigious list with the highest returns last week were FARO Technologies, Inc. (NASDAQ: FARO), Walter Industries, Inc. (NYSE: WLT), Iomega Corporation (NYSE: IOM), AK Steel (NYSE: AKS) and Agrium (NYSE: AGU). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 32% 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 learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.

Here is a synopsis of the last week's best performing Zacks #1 Rank stocks.

FARO Technologies, Inc. (NASDAQ: FARO) was a top-performing Zacks #1 Rank last week as shares gained 14.6%. The company finished off a strong fiscal 2007 with a fourth-quarter earnings per share surprise of almost 61.3%. FARO earned 50 cents per share against the year-earlier result of 25 cents. Meanwhile, sales in the quarter advanced 35% with new order bookings up 31.3%. EPS for the full year also moved higher from the previous year, while sales topped the company's guidance and improved almost 26%. New order bookings increased almost 22% for the year.

Over the past month, analysts' earnings estimates for this year and next are up 6.4% and 3.2%, respectively. FARO said it continues to enjoy strong demand for its products, despite global challenges. The company maintained its 2008 guidance ranges of about 20% to 25% top line growth and gross margin between 58% and 60%. FARO designs, develops and markets portable, computerized measurement devices and software.

Walter Industries, Inc. (NYSE: WLT) has enjoyed steadily rising earnings estimates for this year, including gains of 7.9% over the past two months and 3.8% in just the past seven sessions. The company also announced a major restructuring for its financing and homebuilding business, JWH Holding Company, LLC. Shares of WLT increased 13.34% for the week ended Feb 22 and reached a 52-week high on Feb 21.

Excluding adjustments, fourth-quarter earnings per share reached 54 cents, which eclipsed the consensus of 48 cents by 12.5%. Revenues, excluding a claim, advanced 5.1% organically and 9.7% in total. One of the highlights from the quarter included progress toward opening the reserves in Mine No. 7 East for near-term production. WLT is confident that it can continue to deliver significant value to shareholders in 2008 and beyond. Walter Industries produces and exports metallurgical coal, and also produces steam coal, coal bed methane gas, furnace and foundry coke and other related products.

Iomega Corporation (NYSE: IOM) revised its 2008 financial guidance during its fourth-quarter report, and now expects revenue of approximately $400 million. That compares to its previous revenue guidance of $383.6 million. Furthermore, non-GAAP net income is now expected at 20 cents, instead of the earlier guidance at 18 cents. Analysts have raised earnings estimates for this year by 31.3% over the past month. Expectations for next year are also up in that timeframe. Iomega shares rose 11.15% last week, making it one of the best-performing Zacks #1 Ranks.

Fourth-quarter revenue soared 58% year over year to $120.6 million from $76.2 million. The increase was mainly attributed to strong growth in consumer storage solutions and network storage systems products. For the full year, net revenue advanced 47% to $336.6 million from $229.5 million. Iomega is a worldwide leader in storage and network security solutions for small- and mid-sized businesses, consumers and others.

AK Steel (NYSE: AKS) gained 10% last week, which was enough to make the Zacks #1 Rank a top performer. Earnings estimates for this year are up 9.4% over the past two months, including a gain of 2.7% in the past 30 sessions. AKS was featured as a Momentum Stock of the Day at Zacks.com on Feb 4. It was also a top performer for the week ended Jan 25.

In late January, AK Steel reported fourth-quarter earnings per share of 95 cents on net sales of $1.69 billion. The earnings result beat the consensus by as much as 61% while net sales advanced 7%. The company also reported that shipments of 1,568,100 tons were up 3% year over year. Full-year EPS, sales and shipments also advanced from the previous year. Earnings estimates for the first quarter are up 6.6% and 28.6%, respectively, over the past one-month and two-month timeframes. AKS produces flat-rolled carbon, stainless and electrical steels.

Agrium (NYSE: AGU) enjoys favorable industry conditions, which led to a strong fourth-quarter report earlier this month. According to the fertilizer company, excellent business fundamentals and strong operating performances helped its three business units to all report solid results in the quarter. AGU announced earnings per share of $1.24, which topped the consensus by 41%. Sales jumped almost 59% to $1.43 billion from $899 million.