Zacks Issues Recommendations on 4 Stocks: VSEA, CCE, TJX, and SO
CHICAGO, June 24 /PRNewswire/ -- 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: Varian Semiconductors (Nasdaq: VSEA - News) and Coca Cola Enterprises Inc. (NYSE: CCE - News). Further they announced #2 Rankings (Buy) on two other widely held stocks: The TJX Companies, Inc. (NYSE: TJX - News) and The Southern Company (NYSE: SO - News). To see the full Zacks #1 Ranked list or the rank for any other stock then visit zacksrank1.zacks.com .
(Photo: newscom.com )
Varian Semiconductors (Nasdaq: VSEA - News) is the leading producer of ion implantation equipment used in the manufacture of semiconductors. Varian Semiconductors led the ion implant industry with 36 percent overall market share on a unit basis, and 35 percent overall market share on a dollar basis in calendar 2001. Although the downturn in the semiconductor industry has hurt business, things look to be improving. The consensus on the street still sees VSEA within losses of -$.35 this year, but next year should be a robust $1.47. Note that the most accurate analyst covering the stock has the company improving this year to -$.29 and $1.90 by 2003. Does he know something the rest don't?
Coca Cola Enterprises Inc. (NYSE: CCE - News) is the bottler of the world's largest soft-drink Coca Cola. Note that this is a separate entity from Coca Cola Co (KO) who concentrates on everything, BUT bottling. Recently, they announced a return to profitability and increased earnings guidance for full- year 2002 to be between $.83 and $.88. CCE has also managed to beat the Street's EPS estimate by wide margins the last few quarters. The company recently released a new flavor -- vanilla coke, which is a popular soda fountain flavor and is expected to raise sales. Since February when the share price slipped to $16, CCE has since risen almost +50%. If earnings continue to rise, it will not only be a refreshing summer for Coke drinkers, but for shareholders as well.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy):
The TJX Companies, Inc. (NYSE: TJX - News) operates off-price apparel and home fashions retail stores under the names T.J. Maxx, Marshalls, T.K. Maxx, HomeGoods and A.J. Wright Stores. TJX recently reported sales at stores open at least a year increased +3% in May as a soft U.S. economy moved consumers to seek bargains on apparel and housewares. Analysts believe consumers will continue to make purchases through 2002. It is the consensus that discount retailers will be the primary benefactors as consumers look to get the most for their buck. The share price has moved up nicely since the March sales number came out and the company managed to beat the Street's first quarter EPS estimates by a penny. Analysts are looking forward to back to school shopping and the holidays to boost revenues and earnings.
The Southern Company (NYSE: SO - News) is a holding company for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Savannah Electric and Power Company, each of which is an operating public utility company. Recently the Bush administration said it will relax costly air pollution rules, which is good news for the utility companies, as the struggle to reduce costs amid a fluttering economy. This should certainly help current year earnings. Southern will also pay an additional $60 million for New Power's Georgia natural gas inventory, and accounts receivable, and another unspecified amount for the rights to use New Power's risk management system. Southern expects the acquisition to add to earnings in the first few months after the deal closes. This has analysts looking for continued strong earnings through 2002 and into 2003.
To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. freezrguide.zacks.com
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." Since inception in 1980 #1 Ranked stocks have generated an average annual return of +34.0% compared to the *S&P 500 return of only +14.7%. Plus this exclusive stock list gained +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 have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.
For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform the market. zacksrank2.zacks.com
The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.
About Zacks
Zacks.com is a property of Zacks Investment Research (CRD #7874), which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit freeprofit.zacks.com .
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.
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.
For more information, contact: Terry Batey of Zacks.com, 312-630-9880, ext. 307, email, feedback@zacks.com . Visit: www.Zacks.com
SOURCE: Zacks Investment Research |
