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Contents
Introduction 2
EMCORE (EMKR) 4
ePlus (PLUS) 7
What to Do Next 10
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 compa-
nies 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.
After better than expected results and revised guidance, analysts have raised estimates for
the company. The stock has a very juicy dividend yield of 4.2% as of now. In November last
year, they increased the dividend rate by 10.7% from $0.42 per share to $0.465 per share.
This is the 49th consecutive quarterly dividend declared since their IPO in October 2004.
A big reason for the favorable rank is the recent bullish moves analysts have made with
regards to their earnings estimates for the current quarter, next quarter and the current
year. Four analysts have increased their estimates for the current quarter, while three have
done so for the current year. The moves have pushed our current quarter Zacks Consensus
Estimate from 5 cents to 10 cents and have increased our current year number from 23
cents to 34 cents. It was these estimates along with a fantastic quarterly report that set
EMKR off on a huge spike higher.
The most recent reports were both beats and they each helped drive the stock price higher
by more than 16.7% in each of the sessions following the report.
Earnings estimates are also on the rise, which underscores its status as a Zacks Rank #1
(Strong Buy).
The December 2016 quarter will be reported in the second or third week of March. Its
forward multiple of only 9x compares to the 15x industry average.
The discount is present in most multiples, including price to sales, with FSAM sporting a 0.5x
price to sales multiple while the industry average is a solid 4.4x..
Earnings were $0.91 versus the consensus of $0.71. In November, it maintained its outlook
for fiscal 2017 with earnings expected between $1.40 and $1.55 per share. The Zacks
Consensus Estimate has actually risen in the last 30 days, underscoring MOVs status as a
Zacks Rank #1 (Strong Buy).
Movado pays a dividend, which is currently yielding a healthy 1.9%. It also has been repur-
chasing shares. It repurchased about 18,000 shares during the fiscal third quarter. As of Oct
31, 2016, it still had $46.7 million of the $50 million share repurchase authorization in place.
Big top and bottom line beats reported in early November for their fiscal 2017 second-quar-
ter have estimates rising into next year and consequently the stock is back to a Zacks #1
Rank (Strong Buy). While the Wall Street consensus was looking for EPS of $2 on revenues
of $339 million, ePlus delivered EPS of $2.47 on sales of $371.5 million.
Wall Street analysts are forecasting that the broker hits a record $8.66 billion on the top line this
year. That math is driven by three factors: interest rates, deregulation, and the natural climb in
trading accounts and volume in a strong bull market. The financial sector definitely got a face
lift since the election for two obvious reasons. First, the yield curve steepened as long-term
Treasuries sold off fast and furious. Second, there was the overwhelming sense that the new
administration would do serious damage to financial regulations like Dodd-Frank.
They have been profitable every year since their founding in 1980, so thats 36 consecutive years
of profitability in different business cycles. Analysts have raised their estimates for the company
after excellent earnings. Management expects double-digit growth in revenues and improve-
ments in earnings throughout fiscal 2017. The stock has a VGM score of B and a Zacks Industry
Rank of 4 out of 265 (top 2%).
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