The five best performing stocks on the Zacks #1 Rank List last week were: Terra Industries (TRA), CF Industries Holdings, Inc. (CF), Massey Energy Company (MEE), Innophos Holdings, Inc. (IPHS) and Bucyrus International, Inc. (BUCY).
Earnings estimates for Terra Industries (TRA) have gained 9.2% in two months and 1.4% in the past 7 trading days. In addition, analysts currently expect next year's EPS to advance approximately 21.2% from this year. Shares of TRA increased 13.6% for the week ended Aug 22, making this fertilizer company one of the top performing Zacks #1 Rank companies.
Despite lower commodity prices, agribusiness remains a hot sector, as evidenced by TRA's second-quarter report from late July. Fueled by higher selling prices for nitrogen products, the company announced that revenues jumped almost 22% year over year to $843.1 million from $692.5 million. Furthermore, earnings per share easily topped both the consensus and year-ago result. As for the future, TRA believes that strong demand will continue for the rest of this year.
CF Industries Holdings, Inc. (CF) is another fertilizer company that had a strong performance last week. Its stock price has been quite volatile of late, but was able to rise approximately 12% and make the Zacks #1 Rank Top Performers List. Over the past month, earnings estimates for this year moved higher by 24%. Also, analysts currently expect 2009 EPS to be about 26% better than that of 2008.
In its second quarter, CF announced that price increases for all products helped net sales surge to a record $1.16 billion, or 37% better than the previous year. Excluding items, earnings per share of $4.10 marked an EPS surprise of almost 15.2% over the consensus. It also accounted for a solid advance from the year-earlier performance. CF has an excellent record of beating Wall Street's quarterly earnings expectations, and has amassed an average surprise of almost 29% over the past 4 quarters.
Massey Energy Company (MEE) had a good week ended Aug 22, as shares advanced approximately 10.9%. Investors snagged shares after the company's price moved lower in reaction to a correction within the commodities markets. MEE also enjoyed a brokerage upgrade during the week. Earnings estimates for this year are up 7.3% in the past month.
Excluding a charge, the company announced second-quarter earnings per share of $1.15 late last month, compared to 43 cents a year earlier. The result bettered the consensus by as much as 42%. In addition, produced coal revenue gained 38% to $710.3 million and produced coal tons sold advanced 8% to 10.8 million.
Innophos Holdings, Inc. (IPHS) announced a strong second quarter in late July, which included an earnings per share surprise of almost 215%. The phosphate producer reported $2.74 per share, while analysts were only expecting 87 cents. The result also reversed a year-ago loss. Meanwhile, selling price increases led to revenue growth of almost 74% to $264 million.
Earnings estimates have been trending higher for IPHS. Expectations for this year are up approximately 146% in two months, which includes a jump of 34% in just the past 7 trading days. The company made the Zacks #1 Rank Top Performers List for last week with a gain of 10.1%. IPHS was also featured for the week ended Aug 1.
Bucyrus International, Inc. (BUCY) reported second-quarter earnings per share of 83 cents in late July, versus the year-earlier result of 40 cents. The result marked an almost 26% surprise over the consensus. Sales rose to $621 million from $374.8 million. The company is enjoying strong demand from its products and services, thanks to high international commodity prices and strong markets for commodities mined by its machines. BUCY also benefited from its acquisition of DBT GmbH last year.
BUCY shares moved higher by 9.7% during the week ended Aug 22, which was enough to put this mining equipment company on the Zacks #1 Rank Top Performers List. Earnings estimates for this year are up 12.5% in the past month. Also, analysts are expecting next year's earnings per share to improve upon this year's by as much as 32%.
