CHICAGO, Oct. 2 /PRNewswire/ -- Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of 34% since inception in 1980 and is up +11.9% through July 1, 2002. Among the #1 ranked stocks today we highlight the following companies: Amazon.com, Inc. (NASDAQ:AMZN)
and Ingram Micro Inc. (NYSE:IM)
. Further they announced #2 Rankings (Buy) on two other widely held stocks: Colgate-Palmolive Company (NYSE:CL)
and Lexmark International, Inc. (NYSE:LXK)
. To see the full Zacks #1 Ranked list or the rank for any other stock then visit http://www.zacksrank1.zacks.com/ .
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Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:
Amazon.com, Inc. (NASDAQ:AMZN)
posted a narrower-than-expected loss in its second quarter, which accounted for a more than +83% earnings surprise. Over the last three quarters, AMZN has averaged an earnings surprise of more than +130%. Sales in the quarter advanced more than +20% due to heavy discounting. In addition, the company expects to post a pro forma profit this year. With the holiday season approaching, analysts have turned some attention to AMZN and raised earnings estimates for this year by 7 cents. About three months ago, analysts were predicting a loss, but now they expect a 5-cent profit. For next year, earnings have advanced by 9 cents. AMZN seems to have some good momentum heading toward Christmas and may be a great investment to put under the tree.
Ingram Micro Inc. (NYSE:IM)
distributes information technology products and services. Despite the struggling market for IT products, IM recently announced that third quarter profit and sales would meet or exceed the high end of its July guidance. The company attributes its success to some effective restructuring. This news comes after IM beat the consensus view in its latest quarterly report, marking a more than +33% earnings surprise. Its small yet meaningful earnings surprises over the past 4 quarters have averaged more than +50%. The company's earnings estimates have advanced by 6 cents for this year and double that for next. Since companies heading in the right direction tend to continue on that course until some disruption, IM should be delivering some worthwhile profits in the future.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:
Colgate-Palmolive Company (NYSE:CL)
are comfortable with analysts' earnings estimates for the third quarter and full year, which assumes that the consumer products giant will eclipse levels set in last year's corresponding periods. In its second quarter, the company reported earnings that surpassed the Street's view and improved on the year-ago quarter by +17%. Analysts have raised earnings estimates only slightly for this year and next, but CL looks like it's headed into the second half with some good momentum. Given its deep footprint in the competitive consumer products industry and its stability during these tough economic times, investors may want to consider turning their attention toward CL.
Lexmark International, Inc. (NYSE:LXK)
is one of the country's leading developers and manufacturers of printing solutions. The company recently entered into a partnership with Dell Computer, the world's leading direct-seller of PCs, to build and sell printers. Furthermore, LXK's second quarter earnings result of 67 cents eclipsed both the consensus estimation and its year-ago performance. Earnings estimates for the company have improved by 4 cents for this year but have remained rather stagnant for next year. Nevertheless, its deal with Dell could be very beneficial to the company and its record of meeting or exceeding the Street has been very respectable.
To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://freezrguide.zacks.com/ .
About the Zacks Rank
For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1980 #1 Ranked stocks have generated an average annual return of +34.0% compared to the *S&P 500 return of only +14.7%. Plus this exclusive stock list has gained +11.9% through 7/1/02, +18.7 in 2001 and +16.2% in 2000; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1980 the #5 Ranked Strong Sells have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.
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