The five best performing stocks on the Zacks #1 Rank List last week were: FTI Consulting, Inc. (FCN), Alpha Natural Resources, Inc. (ANR), Walter Industries, Inc. (WLT), Fuel Systems Solutions, Inc. (FSYS) and Petrobras (PBR).
Shares of FTI Consulting, Inc. (FCN) gained 9.3% last week, which was enough to put the consulting services firm on the Zacks #1 Rank Top Performers List. Earnings estimates for this year are up approximately 4.9% over the past two months. In addition, next year's earnings per share are currently expected to be about 23% better than this year's. Over the past four quarters, FCN has put together an average surprise of more than 14%.
Last month, FCN announced its plan to acquire Attenex Corporation for about $88 million in cash. Attenex, which had revenue of about $25 million last year, is an eDiscovery software provider. According to FCN, this acquisition extends the range of its proprietary software technologies, enhances its position in the corporate market for eDiscovery products and services, and enhances the contribution of its scalable software licensing and processing revenues.
Many analysts expect coal prices to continue rising this year and beyond, which is good news for Alpha Natural Resources, Inc. (ANR) and other coal producers. Shares of this company advanced 8.5% for the week ended Jun 27. The last two months have seen analysts boost this year's earnings estimates by as much as 57%. Underscoring the lofty expectations for coal prices moving forward, analysts currently anticipate next year's earnings per share to be more than 300% better than this year's.
In its first quarter, ANR earned 39 cents per share, which beat the consensus by almost 130% while trouncing the year-ago result. Coal sales advanced 17% year over year to $445.7 million. The company said it achieved the highest quarterly price realization in its history, thanks to rising metallurgical coal exports and price levels.
Walter Industries, Inc. (WLT) is another coal producer that's getting a boost from rising prices. In just the past seven days, earnings estimates for this year are up 12%. The past two months have seen a gain of about 27%. As with many other energy companies, analysts expect next year's earnings per share to be dramatically better than this year's. In WLT's case, the improvement is expected at about 138% at the moment.
WLT, which will be added to the Russell 1000, made the Zacks #1 Rank Top Performers List last week with a gain of 8.1%.
Fuel Systems Solutions, Inc. (FSYS) is enjoying strong demand for its products that allow internal combustion engines to operate on natural gas. Shares gained 6.6% during a tough environment last week. Earnings estimates for this year are up 33% over the past two months, including a gain of 2.3% in the past seven trading days. Expectations for next year have also improved in those timeframes.
In May, the company announced strong first-quarter results, including earnings per share of 40 cents on revenues of $94.6 million. The earnings result topped the consensus by as much as 150% while revenues increased from $54.8 million a year earlier. Due to favorable market trends, Fuel Systems Solutions raised its full year 2008 revenue guidance to $320 million.
Petrobras (PBR) is an oil company based in Brazil, which are both attractive factors given high oil prices and that country's growing economy. The company is getting a lot of attention from the Street due to its potential moving forward. (In fact, over the weekend Barron's stated that PBR could become one of the world’s top three oil companies with potential for a 25% gain in price this year.) Analysts have boosted earnings estimates for this year by 25% over the past two months, and 10.6% in the past 30 days.
PBR made the Zacks #1 Rank Top Performers List for the week ended Jun 27 with a gain of 6.1%. The company also received an upgrade from a major brokerage firm last Friday.
James Giaquinto is an Editor at Zacks Investment Research who covers the Zacks #1 Rank Top Performers of the Zacks Rank Buys. The Zacks Rank Buys are stocks with a short-term "Buy" or "Strong Buy" recommendation. To learn more visit www.zacks.com/commentary/7969/Top+Performing+Stocks+for+the+Week+Ended+Jun+27+796900
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