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 China Techfaith Wireless (Nasdaq: CNTF), Callaway Golf Co. (NYSE: ELY), Axcan Pharma (Nasdaq: AXCA) and The Andersons, Inc. (Nasdaq: ANDE).
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32.2% 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 – China Techfaith Wireless (Nasdaq: CNTF)
China Techfaith Wireless is growing revenues at a healthy clip. It just achieved 20% sequential revenue growth. The stock is actually quite cheap based on 2008 estimates. It is currently trading at only 17.5x times this year's estimates, which is well below it's long-term growth rate of 27.5%, giving it a PEG ratio of 0.6.
Growth & Income – Callaway Golf Co. (NYSE: ELY)
Callaway Golf, a Zacks #1 Rank (Strong Buy) company, declared a dividend of seven cents per share in late November. The company is yielding 1.85%. ELY announced third quarter results in early November. Net sales of $235.5 million increased by 22% year-over-year. Excluding charges, pro forma earnings per share for the third quarter totaled six cents, reversing the previous year’s loss of 16 cents. The company’s pro forma 2007 guidance for earnings ranges between 85 to 89 cents per share, an increase from the previous outlook of 78 to 84 cents. Wall Street is in agreement, forecasting 2007 earnings at 88 cents.
Momentum – Axcan Pharma (Nasdaq: AXCA)
Axcan Pharma reported an excellent quarter on Nov 29, with revenue logging an impressive 27.9% gain from the same quarter last year, jumping to $92.5 million. Axcan also announced on that same day that it was being acquired by TPG Capital for a 28.3% premium, which gave its stock price a very nice pop.
Value – The Andersons, Inc. (Nasdaq: ANDE)
The Andersons is planting profits in shareholders' portfolios. Recent investments in ethanol have been yielding positive results for the company. ANDE has posted an average surprise of 45.6% over the past four quarters. Current year estimates have increased 44 cents to $3.56 per share over the past 90 days.
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." Since inception in 1988, #1 Rank stocks have generated an average annual return of +32.2%. 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 (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
The performance of the Zacks Rank portfolios shown above 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 Jan 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. 2007 returns are for the period of Jan 1 – Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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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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The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.
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.
Contacts:
Aggressive Growth Stocks:
Roopak Chakravarty,
312-265-9188
or
Growth & Income Stocks:
Alex Kolb,
312-265-9149
or
Momentum Stocks:
Michael Vodicka,
312-265-9226
or
Value Stocks:
Roopak Chakravarty,
312-265-9188
pr@zacks.com
www.zacks.com
