Zacks Issues Buy Recommendations -- 9:47 AM EDT
CHICAGO, Jul 18, 2003 (BUSINESS WIRE) -- 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 +33.6% since 1988 and has gained +13.3% annually since 2000 as the markets have been tumbling down. Among the #1 ranked stocks today we highlight the following companies: Leapfrog Enterprises, Inc. (NYSE:LF) and NCR Corporation (NYSE:NCR). Further they announced #2 Rankings (Buy) on two other widely held stocks: Garmin Ltd. (NASDAQ:GRMN) and United Parcel Service, Inc. (NYSE:UPS). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. zacksrank1bw.zacks.com
Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:
Leapfrog Enterprises, Inc. (NYSE:LF) is a leading designer, developer and marketer of innovative, technology-based educational products and related proprietary content, dedicated to making learning effective and engaging. The combination of fun and education that Leapfrog embodies was brought to the forefront again earlier this month with a little help from one of the most successful films of the year. The company will team up with the creators of Finding Nemo, a Walt Disney (NYSE: DIS) Pictures Presentation of a Pixar (NASDAQ: PIXR) Animation Studios Film, to produce a book based on that animated movie. Leapfrog will announce its second quarter 2003 results on July 24. In the first quarter of 2003, the company reported a net loss of 2 cents per share, which was about +84% better than the consensus, on net sales that improved by +32%. Over the past three months, earnings estimates for this year and next have improved by approximately +13% and +9% respectively, with analysts expecting next year's result to be about +19% better than this year's. With results like these, investors may want to consider hopping to a more profitable Lilly pad with a piece of Leapfrog.
NCR Corporation (NYSE:NCR) is a recognized world leader in providing Relationship Technology solutions for the retail, financial, communications, travel and transportation, and insurance markets. Earlier this month, NCR stated that second quarter operating results would beat Wall Street expectations at the time, with net income between 6 cents and 9 cents per share. The company said that its efforts to improve efficiency and profitability are bringing forth positive results, even though they have yet to see an improvement in the economic environment. As a result, the company felt comfortable enough to raise its full-year 2003 expectations as well. Over the past three months, estimates for this year have advanced by approximately +19%, with analysts expecting next year's results to be about +78% on top from this year. NCR knows that it has a lot of work to do, but it appears to be moving in the right direction. Investors may want to rush to the ATM to invest in NCR.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:
Garmin Ltd. (NASDAQ:GRMN) designs, manufactures, and markets navigation and communications equipment for a variety of markets, including aviation, marine, automotive, cellular, OEM, and general recreation. Garmin's products are growing in popularity, and the company recently introduced the StreetPilot 2610 and StreetPilot 2650. These portable automotive navigation systems incorporate touch screen technology, remote control, and voice prompted turn-by-turn navigation to help people find their way easier than ever before. On July 30, the company will release its second quarter 2003 results. For the first quarter 2003, Garmin posted 38 cents per share, which was more than +22% better than the consensus. Over the past four quarters, Garmin has put together an average earnings surprise of about +16%, and analysts expect a +12% improvement from this year to next. If you're searching profits, it might be a good idea to let Garmin navigate.
United Parcel Service, Inc. (NYSE:UPS) is the world's largest express carrier, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Despite a difficult market, UPS put together good first quarter results, with earnings of 54 cents per diluted share that was almost +6% better than the consensus. Furthermore, revenue advanced by +5.8% to $8.02 billion. The company attributed its results to strong revenue growth and record-setting profits in its international and non-package businesses. Earnings estimates for this year and next are about 5 cents and 3 cents better than three months ago respectively, and analysts expect next year's results to be about +12% better than this year. The company will report second quarter results on July 22, and in its first quarter report forecasted 58 cents to 62 cents per diluted share. UPS said it is on track to achieve its stated goal of a 10% to 15% gain in earnings per share for the full year. An investment in UPS may just bring a special delivery to your portfolio.
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. freezrguideprbw1.zacks.com
About the Zacks Rank
For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the (a)S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; 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 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). This is a healthy change from traditional Wall Street Brokerage firms who rarely give stocks Sell ratings even as the share price and earnings forecast tumble. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.
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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.
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