Business Services Industry
Zacks #1 Rank Top Performers: FARO Technologies, Walter Industries, Iomega, AK Steel and Agrium
Business Wire, Feb 26, 2008
Shares of the company gained 8.5% for the week ended Feb 22, which made Agrium one of the top-performing Zacks #1 Ranks. Moving forward, the company called its outlook for 2008 "outstanding" as it expects a continuation of tight supply and demand conditions for global nutrient markets. Earnings estimates for this year are up 8% over the past two months and 6.3% in the past 30 days.
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Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of 32%. 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% annually ( 5 % vs. 12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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The performance of the Zacks Rank portfolios for annual and year-to-date periods are the linked monthly total returns (price changes dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from January 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRs and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. These performance numbers have been audited from 1995 through 2003 by Virchow, Krause & Company, LLP.
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