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Zacks #1 Rank Top Performers
By: Zacks Investment Research   Monday, December 15, 2008 10:36 PM

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The five best performing stocks on the Zacks #1 Rank List last week were: Powell Industries, Inc. (POWL), Infinity Property and Casualty Corporation (IPCC), Zhongpin Inc. (HOGS), ViroPharma Inc. (VPHM) and Shanda Interactive Entertainment Ltd. (SNDA).


Powell Industries, Inc. (POWL) announced fiscal fourth quarter results last week that included new records for earnings, revenues and orders. The performance made POWL one of the top-performing Zacks #1 Rank companies for the week ended Dec 12, as shares gained 38.4%. The company is a manufacturer of equipment and systems for the management and control of electrical energy and other dynamic processes.

POWL earned 72 cents per share in the quarter, which easily exceeded the consensus of 57 cents by more than 26% while also trouncing the year-ago result of 22 cents. Revenues advanced 11% to $167.1 million from $150.5 million. Earnings estimates for the fiscal year ending September 2009 are on the rise, gaining 11% over the past 2 months and 1.6% in 7 days. POWL said it enters 2009 with a backlog that provides the ability to reach even higher levels of performance.

Infinity Property and Casualty Corporation (IPCC) made the Zacks #1 Rank Top Performers List for last week with shares that advanced 14.3%. Over the past 2 months, earnings estimates for this year and next are up approximately 25% and 9.4%, respectively. IPCC is a national provider of personal automobile insurance.

The company has a solid record of beating Wall Street's quarterly earnings expectations. The past 4 quarters amassed an average surprise of more than 62%. In late October, IPCC announced operating earnings per share of $1.03 for its third quarter, which easily topped the consensus while also inching past the year-ago result of $1. The rise in operating EPS was attributed to stronger-than-expected underwriting results and prudent capital management. As for its fourth quarter, earnings estimates have moved higher over the past month.

Zhongpin Inc. (HOGS) shares moved higher 9.1% for the week ended Dec 12, which was enough to make this Chinese meat and food processing company a top-performing Zacks #1 Rank. On Dec 1, the company announced an agreement to lease a pork production facility in Shenzhou city, beginning from early December 2008.

Earnings estimates for this year are up 5.3% over the past 2 months, while expectations for next year have advanced 3.5%. Analysts currently expect next year's profit to improve about 25% over this year, which is a good sign for the future. For its third quarter, HOGS announced earnings per share of 34 cents, which beat the consensus by 13.3%. Revenues surged 116% to $153.8 million. The quarter's results were attributed to strong demand for its products and the additional capacity added by the Luoyang plant.

ViroPharma Inc.'s (VPHM) earnings estimates for this year and next are higher than levels from 2 months ago by approximately 10% and 25%, respectively. The biopharmaceutical company was a top-performing Zacks #1 Rank company last week with shares that increased 9%. VPHM was also featured as a Value Stock of the Day at Zacks.com earlier this month.

In late October, VPHM announced strong third-quarter sales due to record sales for Vancocin, a gastrointestinal infection treatment. Sales advanced more than 29% to $65.9 million. In addition, earnings per share of 33 cents topped the consensus by more than 43% and beat the year-earlier result of 26 cents. The company has now beaten Wall Street's quarterly earnings expectations in 3 out of the last 4 quarters. For 2008, VPHM expects net Vancocin sales between $235 million and $245 million.

Shanda Interactive Entertainment Ltd. (SNDA) recently reported strong third-quarter results, which helped shares gain 7.4%. That was enough to make this Chinese interactive entertainment media company a Zacks #1 Rank Top Performer for the week ended Dec 12. Earnings estimates for this year and next are up 4% and 3.8%, respectively, over the past 2 months, which includes gains of 2.7% and 2.3% in the past 30 days.

Diluted earnings per ADS reached US68 cents in the third quarter, which topped the consensus by more than 23%. The result also improved upon the year-earlier performance. Consolidated net revenues reached US$137.3 million, marking a year-over-year jump of 42.7%. Analysts expect profit growth of 18.3% for next year over this year.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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