Zacks Investment Research #1 Rank (strong buy) stocks have consistently outperformed the S&P 500 since 1988. Here are some their recommended aggressive growth stock picks with a #1 ranking. This list is updated daily.
PetSmart - Aggressive Growth
Fri, 18 May 2012
PetSmart (PETM) has posted
several positive earnings surprises and is now a
Zacks #2 Rank
(Buy).
Company Description
PetSmart operates as a specialty retailer of products and services
for pets. The company offers pet food, treats, and litter. It also
offers hard goods which include pet supplies and other goods
comprising collars, leashes, health care supplies, grooming and
beauty aids, toys, apparel, and pet beds. In addition, the company
operates PetsHotels that offer boarding for dogs and cats;
provides personalized pet care and an on-call veterinarian. As of
January 29, 2012, it operated 1,232 retail stores; 192 PetsHotels;
791 veterinary hospitals under the trade name of Banfield, The Pet
Hospital; and 8 hospitals operated through other third parties in
Canada. The company also offers its products through an e-commerce
and community site, PetSmart.com. PetSmart, Inc. was founded in
1986 and is based in Phoenix, Arizona.
PetSmart Tops Estimates for Five Straight
Quarters
PetSmart has met or topped the Zacks Consensus
Estimate in each of the last five quarters. The average beat has
been $0.03 more than the Zacks Consensus Estimate which works out
to be a 5.2% positive earnings surprise. As a
result of the positive earnings surprises, the stock has
moved higher by an average of 0.3% following the earnings
releases.
The largest price movement in the stock came the day after
the company reported the April 2011 quarter. PetSmart beat the
topline estimate of $1.48 billion by posting
revenues of $1.49 billion. EPS of $0.61 was $0.06 higher than the
$0.55 Zacks
Consensus Estimate and the stock moved higher by more than 7%.
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PetSmart Most Recent Reported Earnings
On February 29, 2012 PetSmart reported revenue of $1.638
billion, approximately $17 million higher than the Zacks Consensus
Estimate
and up from $1.520
billion reported in year ago quarter, an increase of
of 8%. Earnings per
share came in at $0.91, $0.01 higher than
the Zacks Consensus Estimate of $0.90. The beat of 1.1%
didn't help the stock, as investors saw the stock virtually
unchanged following the small positive surprise.
PetSmart Next Earnings Release
On May 22, 2012 PetSmart is expected to report revenue of $1.597
billion, approximately $77 million higher than the year ago
quarter, an increase of
of 7%. The Zacks Consensus Estimate for Earnings per
share is calling for $0.73.
PetSmart Sees Estimates Moving Higher
PetSmart has seen earnings estimates move higher
following the recent positive earnings surprise. The Zacks
Consensus Estimate for 2012 was as low as $2.98 in December 2011
and has since bumped higher to $3.13.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $3.45 in December 2011 and
has since moved to $3.49.
Valuation
The valuation for PetSmart is mostly in line with the
industry average. A 22x trailing twelve months PE multiple is
just below the 23x industry average. The forward earnings
multiple of 18.5X for PETM is just above the 17.9x
industry average. Price to book shows the stock trading at a
slight premium to the industry average and the price to sales
multiple also shows the stock trading at a slight premium.
The Chart
A quick look at the price and consensus chart shows just what
aggressive growth investors are looking for. Consistent growth in
earnings and a stock that responds to those increases. The large
gap in earnings lines for 2011 and 2012 has been replicated in the
2013 line, suggesting that analysts see more of the same for
PetSmart. PetSmart is a
Zacks #2 Rank (Buy).
Brian Bolan is the Aggressive Growth Stock Strategist
for
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
service
Like Brian Bolan on
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This Week's Aggressive Growth Zacks Rank Buy
Stocks
Monotype Imaging (TYPE) has posted
several positive earnings surprises and is now a Zacks #1 Rank
(Strong Buy).
Read Full
Article.
Monster Beverage (MNST) sees growth
in the implied earrings growth rate and has recently become a
Zacks #1 Rank (Strong Buy).
Read Full
Article.
ResMed (RMD) sees 2013
earnings increase and has recently become a Zacks #1 Rank (Strong
Buy).
Read Full
Article.
3D Systems (DDD) sees 2013
earnings increase sharply and is a Zacks #1 Rank (Strong Buy).
Read Full
Article.
PETSMART INC (PETM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Monotype Imaging - Aggressive Growth
Thu, 17 May 2012
Monotype Imaging (TYPE) has posted several positive earnings surprises and is now a
Zacks #1 Rank
(Strong Buy).
Company Description
Monotype Imaging Holdings Inc., through its subsidiaries, provides
end-user and embedded text imaging solutions for use in print, Web
and mobile environments that enable people to create content on
various devices worldwide. It offers a collection of approximately
14,000 typefaces consisting of owned and licensed fonts; monotype,
linotype, and ITC typeface libraries; custom font design services
for corporate branding and identity purposes; and PCL 6 and
PostScript 3 font collections. The company's customers include
consumer electronic device manufacturers, independent software
vendors, and content creators. Monotype Imaging Holdings Inc. is
headquartered in Woburn, Massachusetts.
Monotype Imaging Meets or Beats Estimates Seven Straight
Quarters
Monotype Imaging has met or topped the Zacks Consensus
Estimate in each of the last seven quarters. The average beat has
been $0.02 more than the Zacks Consensus Estimate which works out
to be a 14% positive earnings surprise. That is among the larger
average surprises that has been profiled here in some time. As a
result of the strong positive earnings surprises, the stock has
moved higher by an average of 7.6% following the earnings release.
The largest price movement in the stock came the day after
the company crushed estimates. The December 2010 quarter saw the
company beat the topline estimate of $28 million by posting
revenues of $29 million. EPS of $0.17 was $0.04 higher than the
$0.13 Zacks
Consensus Estimate and the stock moved higher by more than 20%.
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@BBolan1
Monotype Imaging Most Recent Reported Earnings
On May 1, 2012 Monotype Imaging reported revenue of $34
million, approximately $1 million higher than the Zacks Consensus
Estimate
and up from $30
million reported in year ago quarter, an increase
of 13%. Earnings per
share came in at $0.20, $0.01 higher than
the Zacks Consensus Estimate of $0.19. The beat of 5.3%
helped lift the stock higher by about 1% in the session following
the
release. This marked the third straight quarter the company
reported $0.20 per share in earnings.
Monotype Imaging Sees Estimates Moving Higher
Monotype Imaging has seen earnings estimates move higher
following the recent positive earnings surprise. The Zacks
Consensus Estimate for 2012 was as low as $0.85 in February 2011
and has since bumped higher to $0.86.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $0.96 in December 2011 and
has since moved to $1.05.
Valuation
The valuation for Monotype Imaging is mostly in line with the
industry average. A 17x trailing twelve months PE multiple is
just higher than the 16.5x industry average. The same is true of
the forward earnings multiple of 15.5X for TYPE and the 14x
industry average. Price to book shows the stock trading at a
slight discount to the industry average while price to sales show
the stock trading at a slight premium.
The Chart
A quick look at the price and consensus chart shows a stock that
has moved higher as estimates moved higher. The gap between the
2013 line and the 2012 line was probably a bit too much and could
have been a single analyst estimate, so the decrease there
shouldn't be too much of a cause of concern. More to that point,
the 2013 line has been heading in the direction that an aggressive
growth investor is looking for. Monotype Imaging has moved to a
Zacks #1 Rank (Strong Buy) as of May 2, 2012.
Brian Bolan is the Aggressive Growth Stock Strategist
for
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
service
Like Brian Bolan on
Facebook
MONOTYPE IMAGNG (TYPE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Monster Beverage - Aggressive Growth
Wed, 16 May 2012
Monster Beverage (MNST) sees growth in the implied earrings growth rate and has recently become a Zacks #1 Rank
(Strong Buy).
Company Description
Monster Beverage makes alternative beverage category beverages.
The company's Direct Store Delivery segment offers carbonated
energy drinks, non-carbonated dairy based coffee plus energy
drinks and ready-to-drink iced teas.
This segment sells its products through a distributor network. The
company was formerly known as Hansen Natural Corporation and
changed its name to Monster Beverage Corporation in January 2012.
Monster Beverage Corporation was founded in 1985 and is based in
Corona, California.
Monster Beverage Meets or Beats Estimates in Five of Last Seven
Quarters
Monster Beverage has met or topped the Zacks Consensus
Estimate in five of the last seven quarters. The four beats have
come in on average more than $0.03 higher than the Zacks Consensus
Estimate. Those three cents translate into positive earnings
surprises of more than 9.5%. The stock has generally reacted
positively when the company beats expectations. The stock was up
3.2% on average following the four beats.
The second largest price movement in the stock came the day after
the company met estimates. The September 2011 quarter saw the
company beat the topline estimate of $461 million by posting
revenues of $475 million. EPS was in line with the Zacks
Consensus Estimate and the stock moved higher by 8.3%.
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@BBolan1
Monster Beverage Most Recent Reported Earnings
On May 9, 2012 Monster Beverage reported revenue of $455
million, approximately $8 million higher than the Zacks Consensus
Estimate
and up from $356
million reported in year ago quarter, an increase
of 28%. In
addition, earnings per
share came in at $0.41, $0.03 higher than
the Zacks Consensus Estimate of $0.38. The beat of 7.9%
helped lift the stock higher by 8.6% in the session following the
release.
Monster Beverage Sees Estimates Moving Higher
Monster Beverage has seen earnings estimates move higher
following the recent positive earnings surprise. The Zacks
Consensus Estimate for 2012 was as low as $1.85 in December 2011
and has since moved to $2.03. That represents an
increase of more than 9.7%.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $2.21 and
has since moved to $2.41. The increase of 12% for 2013 is part of
the key driver for the stock. Better than the 12% increase in
2013 earnings expectations is the 22% implied growth rate for
earnings from 2012 to 2013. That is the type of growth that
aggressive growth investors look for.
Valuation
The valuation for Monster Beverage can be summed up as double the
industry average. The trailing twelve months PE multiple of 43x is
more than double the 19x industry average. The forward PE sports
a similar premium at a 35x multiple compared to a 17x industry
average. Price to book is 11.5x compared to 5.2x industry average
and the price to sales multiple is 6.9x, more than double the 3x
industry average. The "double" the industry average is justified,
in that MNST has grown revenue by 28% on year over year basis
while the industry average is a mere 5.4%. EPE growth of 39% is
also well above the industry average of negative 4.6%. Multiples
of a growth stock are generally on the high side for good reason,
and MNST supports its high multiples with growth.
The Chart
A quick look at the price and consensus chart shows a stock that
has done nothing by move higher. Earnings estimates have also
pretty much continuously moved higher, but the stock is well above
the earnings lines implying a rich valuation. The multiples for
this stock are on the high side for good reason, and MNST supports
its high multiples with revenue and earnings growth. Monster
Beverage has moved to a
Zacks #1 Rank (Strong Buy) as of May 11, 2012.
Brian Bolan is the Aggressive Growth Stock Strategist
for
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
service
Like Brian Bolan on
Facebook
To read this article on Zacks.com click here.
Zacks Investment Research
ResMed - Aggressive Growth
Tue, 15 May 2012
ResMed (RMD) sees 2013
earnings increase and has recently become a Zacks #1 Rank
(Strong Buy).
Company Description
ResMed Inc., through its subsidiaries, engages in the development,
manufacture, and distribution of medical equipment for treating,
diagnosing, and managing sleep-disordered breathing and other
respiratory disorders. It offers various products for the
treatment of obstructive sleep apnea and other respiratory
disorders, including airflow generators, diagnostic products, mask
systems, headgear, ventilation devices, and other accessories,
such as cold pass over humidifiers, carry bags, and breathing
circuits.
ResMed Tops Estimates in Five of Last Seven Quarters
ResMed has topped the Zacks Consensus
Estimate in five of the last seven quarters. The five beats though
not consecutive, have been increasing in both absolute and
percentage terms. The average beat works out to be $0.035 more
than estimated or a 9.2% positive surprise. When the misses are
added into the average the beat amount slides to $0.02 or 5.4%.
The stock moved higher by nearly 2% on average following just the
beats, but moved lower by an average of 1.2% when the misses are
added in.
The biggest price impact came following the December 2011 quarter,
the stock rose more than 9%
following
a
10% positive earnings surprise. The company reported earnings of
$0.42, $0.04 more than the Zacks Consensus Estimate. Revenues of
$333 million were approximately $7 less than
the Zacks Consensus Estimate and represented a 9% increase from
the year ago period.
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@BBolan1
ResMed Most Recent Reported Earnings
On April 26, 2012 ResMed reported revenue of $349
million, roughly $9 million higher than the Zacks Consensus
Estimate
and up from $310
million reported in year ago quarter, an increase
of 62%. In
addition, earnings per
share came in at $0.46, $0.05 higher than
the Zacks Consensus Estimate of $0.41. The beat of 12%
helped lift the stock higher by 7.5% in the session following the
release.
ResMed Sees Estimates Moving Higher
ResMed has seen earnings estimates move higher
following the recent positive earnings surprise. The Zacks
Consensus Estimate for 2012 was as low as $1.55 in December 2011
and has since moved to $1.70. That represents an
increase of more than 9.6%.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $1.81 and
has since moved to $1.95. The increase of 7% for 2013 is good by
aggressive growth investors who are really keying in on the 14.7%
expected earnings growth rate from 2012 to 2013. With another
solid beat, that growth rate is likely to increase to more than
20%.
Valuation
The valuation for ResMed is slightly higher than the industry
average on
most of the metrics that aggressive growth investors look to. The
forward PE multiple of 20x is higher than the 15x industry
average, and the trailing twelve months PE of 21x carries a
similar premium to the industry average of 15x. Price to book is
closer
to being in line with the industry at 3x compared to 2.4x, while
price to sales shows a bigger premium with a 3.6x multiple
for ResMed and 2x industry average.
The Chart
A quick look at the price and consensus chart shows a lot of what
aggressive growth investors are looking for. The growth between
the estimated earnings lines shows the good history of earnings
performance, and the recent dip was more or less telegraphed by
earlier reductions in 2013 earnings. With estimates moving back
higher for 2012 and 2013 ResMed has moved to a
Zacks #1 Rank (Strong Buy) as of May 12, 2012.
Brian Bolan is the Aggressive Growth Stock Strategist
for
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
service
Like Brian Bolan on
Facebook
RESMED INC (RMD): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
RESMED INC (RMD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
3D Systems - Aggressive Growth
Mon, 14 May 2012
3D Systems (DDD) sees 2013
earnings increase sharply and is a Zacks #1 Rank
(Strong Buy).
Company Description
3D Systems Corporation, through its subsidiaries, engages in the
design, development, manufacture, marketing, and servicing of 3D
printers and related products, print materials, and services. The
company's principle print engines comprise stereolithography,
selective laser sintering, multi-jet modeling, film transfer
imaging, selective laser melting, and plastic jet printers. 3D
Systems Corporation was founded in 1986 and is headquartered in
Rock Hill, South Carolina.
3D Systems Has Four Straight Positive Surprises
3D Systems has topped the Zacks Consensus
Estimate in four straight quarters. The beats have been very
strong,
with the company posting earnings that are $0.08 higher on
average. The average beat for
3D Systems works out to be nearly 60%, which might make you think
the stock would react positively. That is not the case, with
investors selling more than buying in two of the four beats which
brought the average price impact to just less than zero.
The biggest price impact came following the December 2011 quarter,
the stock rose more than 15%
following
a
56% positive earnings surprise. The company reported earnings of
$0.25, $0.09 more than the Zacks Consensus Estimate. Revenues of
$70 million were approximately $6 more than
the Zacks Consensus Estimate and represented a 34% increase from
the year ago period.
3D Systems Most Recent Reported Earnings
On April 26, 2012 3D Systems reported revenue of $78
million, roughly $7 million higher than the Zacks Consensus
Estimate
and up from $48
million reported in year ago quarter, an increase
of 62%. In
addition, earnings per
share came in at $0.23, $0.10 higher than
the Zacks Consensus Estimate of $0.13. The beat of 77%
pushed the stock higher by 3.6% in the session following the
release.
3D Systems Sees Estimates Moving Higher
3D Systems has seen earnings estimates move higher
following the recent positive earnings surprise. The Zacks
Consensus Estimate for 2012 was as low as $0.79 prior to the most
recent
earnings and has since moved to $1.00. That represents an
increase of more than 26.5%.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $0.76 when 2012 estimates were calling for $0.79, but
have since moved to $1.17. The increase of 48% for 2013 is just
what aggressive growth investors look for, steady increases in
future expectations for earnings. The implied growth rate of
earnings of 17% is a little less than what you might expect, but
with 2013 earnings estimates increase, that growth rate is likely
to expand.
Valuation
The valuation for 3D Systems is well above the industry average on
most of the metrics that aggressive growth investors look to. The
forward PE multiple of 27x is more than double the 12x industry
average, and the trailing twelve months PE of 29x is just less
than double the industry average of 16x. Price to book is closer
to being in line with the industry at 5x compared to 4.4x, while
price to book sports another double of the industry average at 5x
for 3D Systems and 2.5x industry average.
The Chart
A quick look at the price and consensus chart shows the dramatic
growth in expected earnings. But that growth is not without a
bump in the road. 2013 estimates did see a decline, and that is
not something we like to see, but it has since moved sharply
higher. With a premium valuation and some large increases in
recent 2013 estimates,
3D Systems is a
Zacks #1 Rank (Strong Buy).
Brian Bolan is the Aggressive Growth Stock Strategist
for
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor
service Follow Brian Bolan on twitter at
@BBolan1
Like Brian Bolan on
Facebook
To read this article on Zacks.com click here.
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