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Contents
Introduction
ABIOMED (ABMD)
Stamps.com (STMP)
What to Do Next
10
Introduction
The predictive ability of the Zacks #1 rank cannot be denied. An average annual gain of
26% since 1988. Beating the S&P 500 by nearly three times during that period. Earning a
43.8% total return from 2000-2002 when the stock markets suffered record declines.
Now, in this report, youll receive highlights on 7 stocks from the more than 200 companies that compose the coveted Zacks #1 Ranked list of Strong Buys. Remember only 5% of
all stocks covered by the proprietary Zacks Rank system have the promise and potential to
beat the market in the next 30 days like these #1 stocks.
Inside this report, youll discover the company financials, earnings data and analysis of
these 7 promising companies.
The return numbers presented assume no transaction costs. Details of how Zacks calculates performance
for the Zacks Rank Portfolios and strategies is available at: www.zacks.com/performance.
ABIOMED
(ABMD)
American
Woodmark
Corporation
(AMWD)
American Woodmark Corporation
(AMWD) makes kitchen cabinets
and vanities for the remodeling
and home construction markets.
The company continues to post
earnings beats and strong sales
as American consumers are in the
home remodeling mood. For its
fiscal third quarter, AMWD blew
past the Zacks Consensus Estimate
for its 7th consecutive beat.
Sales rose 16% to $218.6 million compared to the year ago period. It saw growth in all channels. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in
fiscal 2016. Analysts are also bullish that the good times will last as they raised fiscal 2017
estimates as well. If youre looking for a way to play the hot home remodeling market,
American Woodmark is one to keep on the short list.
Broadcom
Limited
(AVGO)
Broadcom Limited (AVGO) is a
premier designer, developer and
global supplier of a broad range of
analog semiconductor devices and
digital, mixed-signal and optoelectronics components and subsystems.
The stock is back to a Zacks #1 Rank
(Strong Buy) after strong guidance
about the merger between Avago
and Broadcom.
Given the more powerful lineup of Enterprise Wired and Mobile Wireless products, plus the
cost synergies, analysts raised the Zacks Consensus Estimate for the first full fiscal year of the
combined companies (ending October 2017) from $9.66 to $11.10 in the past 60 days. That
15% bump represents over 20% EPS growth in that fiscal year, reflecting a sub-13X P/E multiple for a key Apple supplier in mobile and strong broadband network builder for top global
enterprises. The new AVGO, Broadcom LTD, is one of best Technology names to own in any
market environment.
CryoLife Inc.
(CRY)
Himax
Technologies
(HIMX)
Himax Technologies (HIMX)
designs, develops and markets
semiconductors that are critical
components of flat panel displays.
The stock is a growth play as the
company shows high EPS growth
outlooks, a factor giving it a Zacks
Style Score of B in Growth. In
addition, the company sits in an
industry that is ranked 103 out
of 265 (Top 39%) of the Zacks
Industry Rank.
The companys Q4 earnings came in at $0.04 versus the $0.02 expected and revenue came
in at $178 Million versus the $171 Million expected. In the last four years they have missed
EPS only once. While the beat was nice, the guidance is what got investors excited. Himax
guided Q1 EPS at $0.55-0.75 versus the $.02 expected and revenue at $176.2 Million versus
the $185 Million expected. The guidance and momentum of the stock has no doubt forced
analysts to adjust their numbers. Over the last month, analysts have revised estimates 66%
higher for fiscal year 2016. Recent earnings and improving fundamentals have the stock in
a position to break out over the $10 mark and potentially test the 2014 highs. The 2.75%
dividend gives investors a way to get paid while they wait for the company to breakout.
Sillicon
Graphics (SGI)
Stamps.com
(STMP)
What to Do Next
10