Cato Corporation (CATO), the women's fashion specialty retailer, reported third quarter results on Nov 19 that surprised on the Zacks Consensus Estimate by 11.11%, or 1 cent a share. It was the company's fourth consecutive earnings beat.

Earnings per share for the third quarter rose 233% to 10 cents from 3 cents in the year ago period. The Zacks Consensus called for 9 cents.

The company bucked the negative retail trend by increasing sales by 6% to $191 million from $179.8 million in the year ago period. Same store sales also rose 4%, surprising even the company.

The gross margin rate also rose to 34.8% from 29.3% in the year ago quarter mainly due to better merchandise margins and lower freight costs.

The company is being cautious about the fourth quarter given the economic uncertainties even though it outperformed in the third quarter. It is still forecasting same store sales down 3% to flat and maintained its original guidance of between 8 to 13 cents. Guidance for the full year is expected to be up 21% to 25% from 2008 to $1.38 to $1.43 per share.

Analysts have not yet adjusted their earnings estimates to reflect the third quarter results. The Zacks Consensus Estimate for 2009, however, has risen a penny to $1.42 per share in the last 7 days which is at the high end of the company's guidance range.

Value Fundamentals

Cato is now a Zacks #2 Rank (buy) stock. It still has attractive value fundamentals. The company is trading with a forward P/E of 14.5 and a price-to-book of 1.97. Cato has a 1-year return on equity (ROE) of 14.74%.

Read the Jul 30 article.

Update to Previous Value Zacks Rank Buy Stocks

Bristow Group Inc. (BRS) has surprised on estimates 3 out of the last 4 quarters by an average of 10.50%. The company is trading at 11.7x forward earnings.Read the full article.

DryShips Inc. (DRYS) is a Zacks #1 Rank (strong buy) stock as estimates rise after a tough year where earnings per share dropped by 90%. The stock is now cheap, trading at just 6.6x forward earnings. Read the full article.

Ameriprise Financial Inc. (AMP) has seen revenue rise as the financial markets have rallied. The company has surprised on estimates 3 out of 4 quarters by an average of 50.73%. Ameriprise is trading with a forward P/E of 14.25. Read the full article.

Cooper Tire & Rubber Company (CTB) has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6. Read the full article.

Zacks Investment Research

Cooper Tire & Rubber Company (CTB) has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6. Company Description Cooper Tire & Rubber manufactures tires for passenger cars, light and medium trucks. It also has subsidiaries that make motorcycle and racing tires. The company [...]

(CTB) Cooper Tire & Rubber Company – Earnings Beat Expectations – Consensus Estimates Jump

For Immediate Release

Chicago, IL – November 20, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Universal Health Services, Inc (UHS), Crane Co. (CR), Nordstrom Inc. (JWN) and Cooper Tire & Rubber Company (CTB).
    
Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +26%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained +43.8%.

Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth – Universal Health Services, Inc (UHS)
Universal Health Services, Inc remains a good value as the Zacks Consensus Estimate continues to climb.

Zacks Guide to Aggressive Growth Investing (free!): http://at.zacks.com/?id=4309

Growth & Income – Crane Co. (CR)
Crane Co., which boasts an industry-leading yield of 2.7%, recently declared a quarterly dividend of 20 cents per share. The company also posted solid results for the third quarter, raising the lower end of its earnings outlook.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum – Nordstrom Inc. (JWN)
Nordstrom Inc. continues to trade near its 52-week high on the heels of better than expected Q3 results.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value – Cooper Tire & Rubber Company (CTB)
Cooper Tire & Rubber Company has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=5607
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

Today, Zacks is promoting its stock recommendations by offering four daily picks free to those who register at http://at.zacks.com/?id=5607 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin. 
  
More Free Stock Picks

Each weekday, new Zacks #1 Rank or Zacks #2 Rank stock picks are released on the free email newsletter, Profit from the Pros. Investors are invited to register for their free subscription at http://at.zacks.com/?id=5642

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

or

Growth & Income Stocks:
Contact: Alex Kolb
Phone: 312-265-9149

or

Momentum Stocks:
Contact: Michael Vodicka
Phone: 312-265-9226

or

Value Stocks:
Contact: Tracey Ryniec
Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
 

 

Zacks Investment Research

Cooper Tire & Rubber Company (CTB) has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6.

Company Description

Cooper Tire & Rubber manufactures tires for passenger cars, light and medium trucks. It also has subsidiaries that make motorcycle and racing tires. The company has facilities in 10 countries.

Cooper Tire Surprised Again in the Third Quarter

On Nov 2, Cooper Tire reported third quarter results and continued its hot streak by beating the Zacks Consensus Estimate by 20.31%. Earnings per share were 77 cents compared to the Zacks Consensus of 64 cents.

Sales rose 1% to $803 million from $794 million in the year ago period. Lower raw material costs, manufacturing improvements and improved utilization of capacity boosted the results.

Quarterly sales volumes, which showed improvement, also helped propel results. However, the company is still seeing unfavorable price and mix and also saw restructuring charges in the quarter.

International tire sales rose 4% to $297 million from a year ago. It was a tale of two markets as Asian sales were strong, increasing 28%, while Europe saw a decline of 13%. North American tire sales fell 2%.

Raw material costs have jumped in recent months but the company doesn't expect levels to return to the 2008 highs which significantly impacted operating results.

Zacks Consensus Estimates Jump

Covering analysts are optimistic about the rest of 2009 and 2010. The fourth quarter Zacks Consensus Estimate is up 1 cent to 38 cents in the last 30 days but is up 55% from 90 days ago.

All 4 covering analysts are bullish on 2009. The full year consensus climbed 19.6% to $1.77 from $1.48 per share in the last month. For 2010, estimates rose to $1.87 from $1.75 per share in the last 30 days.

Value Fundamentals

Cooper Tire & Rubber is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of 2.55. The company has a solid 1-year return on equity (ROE) of 11.7%. It also rewards shareholders with a dividend of 2.24%.

Zacks Investment Research

Cooper Tire & Rubber Co. (CTB) is well positioned to enjoy improved operating costs, greater geographic flexibility and the ability to penetrate international markets through its investments and facilities in low-cost countries. The company continues to realize the benefits of reducing costs in its manufacturing operations. It has also been able to absorb the costs associated [...]

(CTB) Cooper Tire & Rubber – Bull of the Day