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You know that buying a stock makes you part owner of a company, theoretically with millions of other people. But, while ownership has its privileges (at minimum you get a neat stock certificate and an invitation to the annual meeting), being an owner doesn't necessarily pay. Sure, you make money if the stock goes up, but only if you sell, and you can, in theory, lose all the value of your investment if the stock tanks.
Enter the dividend. Here, you get money simply from holding the stock. Companies pay a yield, which is expressed in a percentage based on the stock's price. For example, if a stock trades at $10, and pays a 10% annual yield, your dividend payment would be a $1. (Usually, companies break out the payments quarterly, so, using our example, you¿d get, well, a quarter each quarter.)
Companies that pay dividends fall into a few categories. First, you've got your big, stable companies that generate enough cash that it makes sense to throw some back to shareholders. Next, there are businesses, like real estate investment trusts, that are in the business of sitting back and receiving cash, then distributing it to holders. And, then there are companies that need to dangle a high dividend yield like a carrot to ease investor fears. Cigarette-maker Altria has been doing this for years.
Simply because a company pays a dividend doesn't make it a good investment. After all, you may want to take a chance on a growth stock that can move higher in price than dividend payers are known to do. But, you can¿t beat the safety of knowing that, even if a stock doesn't move in a year, you¿re at least making something off your investment.
Home / Markets / Industries / Energy
Wednesday, July 02, 2008
Zacks #1 Rank Top Performers: FTI Consulting, Alpha Natural Resources, Walter Industries, Fuel Systems Solutions and Petrobras
Comtex
CHICAGO, Jul 02, 2008 (BUSINESS WIRE) ----Zacks.com announces the latest list of top performing Zacks #1 Rank ("strong buy") stocks. The stocks on the prestigious list with the highest returns last week were FTI Consulting, Inc. (NYSE: FCN), Alpha Natural Resources, Inc. (NYSE: ANR), Walter Industries, Inc. (NYSE: WLT), Fuel Systems Solutions, Inc. (NASDAQ: FSYS) and Petrobras (NYSE: PBR). Each of these stocks easily outperformed the S&P 500.
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32% 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 learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.
Here is a synopsis of the last week's best performing Zacks #1 Rank stocks.
Shares of FTI Consulting, Inc. (NYSE: FCN) gained 9.3% last week, which was enough to put the consulting services firm on the Zacks #1 Rank Top Performers List. Earnings estimates for this year are up approximately 4.9% over the past two months. In addition, next year's earnings per share are currently expected to be about 23% better than this year's. Over the past four quarters, FCN has put together an average surprise of more than 14%.
Last month, FCN announced its plan to acquire Attenex Corporation for about $88 million in cash. Attenex, which had revenue of about $25 million last year, is an eDiscovery software provider. According to FCN, this acquisition extends the range of its proprietary software technologies, enhances its position in the corporate market for eDiscovery products and services, and enhances the contribution of its scalable software licensing and processing revenues.
Many analysts expect coal prices to continue rising this year and beyond, which is good news for Alpha Natural Resources, Inc. (NYSE: ANR) and other coal producers. Shares of this company advanced 8.5% for the week ended Jun 27. The last two months have seen analysts boost this year's earnings estimates by as much as 55%. Underscoring the lofty expectations for coal prices moving forward, analysts currently anticipate next year's earnings per share to be more than 300% better than this year's.
In its first quarter, ANR earned 39 cents per share, which beat the consensus by almost 130% while trouncing the year-ago result. Coal sales advanced 17% year over year to $445.7 million. The company said it achieved the highest quarterly price realization in its history, thanks to rising metallurgical coal exports and price levels.
Walter Industries, Inc. (NYSE: WLT) is another company getting a boost from rising coal prices. Over the past 30 days, earnings estimates for this year have risen by more than 12%. The past two months have seen a gain of about 19%. Furthermore, analysts expect next year's earnings per share to be about 138% better than this year's.
WLT, which will be added to the Russell 1000, made the Zacks #1 Rank Top Performers List last week with a gain of 8.1%.
Fuel Systems Solutions, Inc. (NASDAQ: FSYS) is enjoying strong demand for its products that allow internal combustion engines to operate on natural gas. Shares gained 6.6% during a tough environment last week. Earnings estimates for this year are up 33% over the past two months, including a gain of 2.3% in the past seven trading days. Expectations for next year have also improved in those timeframes.
In May, the company announced strong first-quarter results, including earnings per share of 40 cents on revenues of $94.6 million. The earnings result topped the consensus by as much as 150% while revenues increased from $54.8 million a year earlier. Due to favorable market trends, Fuel Systems Solutions raised its full year 2008 revenue guidance to $320 million.
Petrobras (NYSE: PBR) is an oil company based in Brazil, which are both attractive factors given high oil prices and that country's growing economy. The company is getting a lot of attention from the Street due to its future potential. (In fact, over the weekend Barron's stated that PBR could become one of the world's top three oil companies with potential for a 25% gain in price this year.) Analysts have boosted earnings estimates for this year by 21% over the past two months, and 7.3% in the past 30 days.
PBR made the Zacks #1 Rank Top Performers List for the week ended Jun 27 with a gain of 6.1%. The company also received an upgrade from a major brokerage firm last Friday.
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%. 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 % vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
To view the current Zacks #1 Rank List and to see additional Zacks Rank resources, go to http://at.zacks.com/?id=3173.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=3168.
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 by going to http://at.zacks.com/?id=3169.
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.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
SOURCE: Zacks.com
Zacks.com Jim Giaquinto Phone: 312-265-9268 Email: pr@zacks.com Visit: www.Zacks.com
Copyright Business Wire 2008 ********************************************************************** As of Saturday, 06-28-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated an UPTREND on 03-26-2008 for ANR @ $42.34. As of Saturday, 06-28-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated an UPTREND on 06-18-2008 for FCN @ $63.67. As of Saturday, 06-28-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated an UPTREND on 03-20-2008 for FSYS @ $11.98. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.
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