Earnings estimate revisions are the most powerful force impacting stock prices. Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy that delivered a +23.3 return in 2006. Four stocks meeting this screen’s exclusive criteria are Deere & Co (NYSE: DE), The Nasdaq Stock Market (NASDAQ: NDAQ), Priceline.com (NASDAQ: PCLN) and Netflix (NASDAQ: NFLX). View the entire list of stocks for the Upgrades and Revisions Profit Track at http://at.zacks.com/?id=1844
Here are details on four companies currently identified by the Upgrades and Revisions Profit Track:
Deere & Co (NYSE: DE) stock price has been on a tear lately, adding more strength to what was an already great year. Much of this recent gusto has been fueled by the company’s latest quarterly earnings report, which was released on Nov 21. Revenue grew to $6.14 billion from $5.12 billion, better than the $5.8 billion expected by analysts. Earnings were $422.1 million, up from $277.3 in the previous year. The $1.88 earnings per share easily outpaced analyst estimates of $1.55. Three covering analysts have increased current quarter earnings estimates within the past 30 days.
The Nasdaq Stock Market (NASDAQ: NDAQ) has rebounded very nicely after a steep sell-off in a very weak overall market in early November. In the company’s most recent quarter it reported very healthy numbers. Revenue increased 22.7%, growing from $171.2 million to $210 million. Excluding one-time items, earnings grew from $30.2 million to $62.1 million. The analyst community has been bullish on the company lately, with two increasing their current quarter earnings projections within the last seven days. The consensus estimate has been steadily increasing for the last 60 days and now stands at 46 cents. The company has beaten analyst estimates for the last four quarters by an average of five cents, or 16.89%.
Priceline.com (NASDAQ: PCLN) is a company on the upswing as it has recently reported a great quarter that seems to have re-energized its stock. On Nov 8, the company announced that in its most recent quarter, revenue had increased 33% to $417.3 million. Income almost doubled, growing from $47.8 million to $104.4, producing earnings of $2.27 per share. This easily trumped analyst expectations. The company has surprised and beaten estimate for four consecutive quarters by an average of 18 cents, or over 38%. Within the last 30 days five covering analysts have increased their current quarter projections, with the consensus estimate now standing at 75 cents, as opposed to 70 cents only last month.
Netflix, Inc (NASDAQ: NFLX) stock price has had a somewhat choppy year but now looks to be gaining strength and headed in the right direction. On Oct 23, the company reported a very nice quarter, with earnings rose 23% year over year, to 23 cents per share on revenue of $294 million. The analyst community was expecting earnings of 15 cents per share. The current quarter consensus trend has increased sharply from just 60 days ago, and now stands at 14 cents compared to the previous six. The stock price appears to have bottomed out recently at just a pinch above $21, and has traded higher, almost touching $24.
Discover all the current stocks currently on the Upgrades and Revisions Profit Track at: http://at.zacks.com/?id=1869
About Profit Tracks
What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838
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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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