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 Life Partners Holdings, Inc. (NASDAQ: LPHI), PharmaNet Development Group, Inc. (NASDAQ: PDGI), Fresh Del Monte Produce Inc. (NYSE: FDP), Huron Consulting Group Inc. (NASDAQ: HURN) and Cooper Tire & Rubber Company (NYSE: CTB). Each of these stocks easily outperformed the S&P 500.
Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.8% 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.
Life Partners Holdings, Inc. (NASDAQ: LPHI) is engaged in the secondary market for life insurance. The company gained almost 27.5% last week to become the top-performing Zacks #1 Rank company. It was also a top performer in the week ended Apr 20. Over the past month, earnings estimates for the year ending February 2008 are up approximately 22.7%.
Life Partners Holdings began this month by reached 52-week highs each day from May 2 through May 4. Last month, the company announced that it expects net income to surge 215% for fiscal 2007. This is attributed to an exceptional increase in net income beginning in the third quarter and continuing into the fourth quarter. For its fiscal fourth-quarter, earnings per share are expected at 22 cents, which would mark significant advances from both the year-ago performance and Wall Street expectations. The company plans to officially report its earnings later this month.
PharmaNet Development Group, Inc. (NASDAQ: PDGI) reported solid first-quarter numbers last week, leading to 52-week highs on May 3 and May 4 for the global drug development company. It also became one of the best-performing Zacks #1 Rank companies with an advance of 20.4%.
Earnings per share and revenue improved on a year-over-year basis in the first quarter. Furthermore, EPS also topped the consensus. PDGI has experienced an operating performance improvement in its early stage segment, record direct revenues in its late stage segment and significant backlog growth. The company said this reflects its organizational and operational improvements, business development initiatives and capacity expansions.
Fresh Del Monte Produce Inc. (NYSE: FDP) announced an earnings per share surprise of 110% for its first quarter, fueled by product line restructuring and tighter cost controls. Adjusted earnings per share of 84 cents jumped from the prior year’s 28 cents and eclipsed the consensus of 40 cents. Net sales decline slightly due to aggressive efforts to improve the North American performance of its “Other Fresh Produce” business segment.
Shares of the fruit and vegetable company gained approximately 16.5% last week as 52-week highs were reached on Apr 30 and May 1. Earnings estimates for this year have moved forward in the past seven days to $1.06. Fresh Del Monte Produce is encouraged by its best quarter in two years, and believes it is seeing the beginning of a turnaround that will leave it well-positioned for long-term growth.
Huron Consulting Group Inc. (NASDAQ: HURN) is a leading provider of financial and operational consulting services that gained 15.4% last week. The company reported first-quarter earnings per share of 55 cents on revenues of $116 million. Earnings bettered the consensus by approximately 7.8% and surged from the previous year, while revenues soared 87% from the first quarter of 2006’s $62.2 million. Huron Consulting Group reached a 52-week high on May 3 while earnings estimates for this year improved 1.3% in the past seven days.
The company continues to experience increased demand across its service offerings, and is optimistic that it will continue for the remainder of 2007. Huron Consulting Group believes it is well-positioned for this year and beyond, as evidenced by the decision to boost its full year outlook.
Cooper Tire & Rubber Company (NYSE: CTB) reversed a year-ago loss with first-quarter earnings of 33 cents. The result also bettered the consensus by as much as 312%. Total sales moved forward 16% to $689 million, versus $597 million in the first quarter of 2006. Cooper Tire & Rubber said it continued to benefit from the cost reduction and profit improvement initiatives announced last September. Furthermore, it was helped by improved price and mix in North America, and increased tire unit sales in Europe and Asia.
Shares of the company gained 12% last week, making it one of the top-performing Zacks #1 Rank companies. It also reached a 52-week high on the day of its report. Looking forward, Cooper Tire & Rubber expects to build on the momentum of the first quarter, as conditions and opportunities suggest a strong 2007. Over the past seven days, earnings estimates for this year have moved forward approximately 25% to 98 cents.
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 +31.8%. 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 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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