Zacks Issues Recommendations on 4 Stocks: AU, CAG, HGMCY, and BBBY
CHICAGO, May 28, 2002 /PRNewswire via COMTEX/ -- Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of 34% since inception in 1980 and was up 18.7% in 2001. Among the #1 ranked stocks today we highlight the following companies: AngloGold Limited (NYSE: AU) and ConAgra Foods, Inc. (NYSE: CAG). Further they announced #2 Rankings (Buy) on two other widely held stocks: Harmony Gold Mining Ltd. (Nasdaq: HGMCY) and Bed Bath & Beyond Inc. (Nasdaq: BBBY). To see the full Zacks #1 Ranked list or the rank for any other stock then visit zacksrank1.zacks.com .
(Photo: newscom.com )
Here is a synopsis of why these stocks were added to the Zacks #1 Ranked List:
AngloGold Limited (NYSE: AU) is a gold mining company with operations in Argentina, Brazil, Mali, Namibia, South Africa and the United States. Yesterday, gold continued its stellar advance, rallying 1.4% to $322.80 per ounce, its highest level since June 2000. This has helped the gold stocks beat EPS estimates during the first part of 2002. The question is whether it is expected to last. The Street consensus is yes. In the last 30 days the Street has raised EPS estimates for AU by an amazing +20% after they blew away first quarter estimates. Since raising their EPS, their share price is up 25% and shows little sign of slowing down.
ConAgra Foods, Inc. (NYSE: CAG) is a foodservice manufacturer and retail food supplier, competing in multiple segments of the food business and focusing on adding value for customers in the retail food, foodservice, and agricultural product channels. The company has recently taken steps to shore up its balance sheet by selling its fresh red-meat unit, which was cheered by analysts. Recently the company beat the Street by a penny and estimates have been raised for coming quarters. The latest results show the investment world that ConAgra is serious about its financial health and increasing its earnings potential.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy):
Harmony Gold Mining Ltd. (Nasdaq: HGMCY): As the spot price of gold increases, this company looks to be in harmony with the marketplace. It is not hedged and is benefiting from currency differentials; both of which are driving analyst sentiment and estimates straight upward. By announcing first quarter EPS numbers better than the Street's estimates by +18%, analysts are seeing an improved bottom line for HGMCY and expect earnings to increase throughout 2002 as the demand and price for gold keeps heading upward.
Bed Bath & Beyond Inc. (Nasdaq: BBBY) is the largest specialty retailer of domestic's merchandise and home furnishings. The performance of the core Bed Bath & Beyond stores continues to lead industry growth, as evidenced by the recently reported fourth quarter results, in which same-store sales grew an impressive 11.9% versus company guidance of only 3%. Analysts are awaiting first quarter EPS numbers, but the feeling is very positive as consumers continue to shop and summer sales are right around the corner.
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About the Zacks Rank
For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Ranked stocks have generated an average annual return of +34.0% since inception in 1980 compared to the *S&P 500 return of only +14.7%. Plus this exclusive stock list generated a +18.7 in 2001 and +16.2% in 2000; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1980 the #5 Ranked Strong Sells are up only 1.5% annually vs. +14.7% for the S&P 500. As opposed to Wall Street Brokerage firms where only 1% of all recommendations are to Sell stocks, you can truly use the Zacks Rank system to effectively manage the stocks in your portfolio.
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