Zacks #1 Rank Top Performers: Sun Hydraulics, W&T Offshore, Metalico, Encore Acquisition and Comstock Resources

Business Wire, May 14, 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 Sun Hydraulics Corporation (NASDAQ: SNHY), W&T Offshore, Inc. (NYSE: WTI), Metalico, Inc. (AMEX: MEA), Encore Acquisition Company (NYSE: EAC) and Comstock Resources, Inc. (NYSE: CRK). 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.

Sun Hydraulics Corporation (NASDAQ: SNHY) announced solid first-quarter numbers last week, supported by strong orders and sales. Earnings per share advanced 31% year over year to 46 cents from 35 cents - the company's 18th straight quarter of double digit earnings growth. The result also marked an almost 7% surprise over the consensus, continuing SNHY's impressive string of matching or beating Wall Street's quarterly expectations. Net sales improved by 20%, marking the 20th consecutive quarter of double-digit sales growth.

The quarter's results helped Sun Hydraulics become a Zacks #1 Rank Top Performer for the week ended May 9, as shares gained almost 21%. The company expects second-quarter sales at approximately $51 million, or 18% better than the previous year, and earnings per share between 50 cents and 52 cents, compared to 36 cents. Over the past seven days, the earnings estimate for this year and the second quarter have improved approximately 9.4% and 13.6%, respectively. SNHY designs and manufactures high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets.

W&T Offshore, Inc. (NYSE: WTI) earnings estimates continue to move higher after the oil and natural gas company reported strong first-quarter results on May 6. Shares of the company increased 20.6% last week, which gave it a prominent position on the Zacks #1 Rank Top Performers list. Earnings estimates for this year are up 8.9% in the past seven trading days. However, expectations have been rising sharply for several months now, including a jump of 38% in the past 30 days.

High commodity prices led to a favorable environment for WTI's first quarter. Adjusted earnings per share of $1.10 soared from 29 cents a year earlier and beat the consensus by more than 22%. The company has now beaten Wall Street's quarterly earnings expectations for four straight quarters by an average of 38%. Revenues moved higher 45% to $356.5 million. Another highlight of the quarter was production of 5.1 million barrels of oil equivalent, which was above the higher end of its guidance. Earnings estimates for the second quarter are also moving higher.

Metalico, Inc. (AMEX: MEA), capitalizing on high scrap metal prices, made the Zacks #1 Rank Top Performers list last week with a gain of more than 19%. The scrap metal recycler recently reported its best quarter ever with earnings per share of 20 cents on sales of $170.5 million. EPS advanced from last year's 12 cents and eclipsed the consensus by almost 54%. Sales soared 230% from $51.8 million.

Unit volume for its scrap metal segment increased quarter over quarter by about 82% for ferrous and 95% for non-ferrous metals. Furthermore, prices for ferrous metal prices increased 50% quarter over quarter, while prices for non-ferrous jumped 166%. Earnings estimates for this year are up 24% over the past month. Metalico was featured as a Value Stock of the Day at Zacks.com on May 6.

Encore Acquisition Company (NYSE: EAC) announced first-quarter earnings per share, excluding items, of $1.06 last week, which beat the consensus by approximately 27.7%. The company has an excellent history of bettering Wall Street's quarterly earnings expectations, and has put together an average surprise of around 29% over the past four quarters. Oil and natural gas revenues reached a record at $268.8 million, which was up 133% from $115.6 million in the first quarter 2007.

Shares of the company gained almost 19% last week, which was more than enough to put the independent oil and natural gas producer on the Zacks #1 Rank Top Performers List. As with many companies in its industry, earnings estimates have been heading higher, including gains of 24% and 9.8% in the past two months and seven days, respectively, for this year. Encore Acquisition was featured as a Value Stock of the Day at Zacks.com yesterday, May 12.

Comstock Resources, Inc. (NYSE: CRK) made the Zacks #1 Top Performers List with a gain of 16.9%. Earnings estimates for this year are up 58.3% in the past two months, including a gain of 13.6% in just the past seven trading days. The company is an independent energy company that's engaged in oil and gas acquisitions, exploration and development primarily in Texas, Louisiana and the Gulf of Mexico.