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 Lockheed Martin Corporation (NYSE: LMT), Mettler-Toledo International, Inc. (NYSE: MTD), Apache Corp. (NYSE: APA), White Mountains Insurance Group Ltd. (NYSE: WTM). 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:
Lockheed Martin Corporation (NYSE: LMT) is enjoying five-year EPS growth of 25.56% and has a Zacks #2 Rank, thus earning its place on the Upgrades and Revisions profit track. The company recently signed a ten-year, $1 billion contract with the FBI to develop the Bureau’s biometrics system. LMT’s fourth quarter included an earnings per share surprise of 11.83%. LMT designs, develops, and manufactures advanced technology systems, products and services.
Mettler-Toledo International, Inc. (NYSE: MTD) reported its fourth-quarter earnings on Feb 7. The precision instrument giant had extensive sales growth in the fourth quarter with a 16% sales rise in Asia and a 6% sales rise in Europe and the Americas. The Zacks #2 Rank company had a fourth-quarter earnings per share surprise of 12.42% and enjoys a five-year annual EPS growth of 19.58%. These factors place it on the Upgrades and Revisions profit track.
Apache Corp. (NYSE: APA) is an energy company that produces crude oils, natural gas, and natural gas liquids. APA reported exceptional results in the fourth quarter, which it attributed to higher oil and gas prices. The company landed on the Upgrades and Revisions profit track with an earnings per share surprise of 17.27% and a 12% increase in earnings estimates. On Feb 15, Apache declared a special cash dividend of 10 cents per share, which will be paid on March 18. This Zacks # 2 Rank company has also experienced a 20.28% growth rate in the past five years.
White Mountains Insurance Group Ltd. (NYSE: WTM) is a Bermuda-domiciled financial services holding company that specializes in property and casualty insurance and reinsurance. WTM ended up on the Upgrades and Revisions profit track with a five-year growth rate of 30.19% and a fourth-quarter EPS surprise of 42.96%. In January of 2008, the insurance company acquired 42% stake of Answer Financial Inc.’s outstanding debt and equity for $30 million. WTM is a Zacks # 1 Rank that has experienced a 1.08% rise in its quarterly earnings estimates.
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
All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report “Top 10 Stock Screening Strategies” at http://at.zacks.com/?id=2156
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