Ceridian Corporation, and Children's Place
CHICAGO--(BUSINESS WIRE)--July 21, 2005
Zacks.com releases another list of stocks that are
currently members of the coveted Zacks #1 Rank (Strong Buy) List. The
#1 Rank stocks highlighted today are AutoDesk, Inc. (NASDAQ:ADSK) and
Grey Wolf, Inc. (AMEX:GW). Further, Zacks announced #2 Rankings (Buy)
on two other widely held stocks: Ceridian Corporation (NYSE:CEN) and
Children's Place (NASDAQ:PLCE). To see the full Zacks #1 Rank (Strong
Buy) List, or the rank for any other stock, visit:
Stocks ranked #1 (Strong Buy) by Zacks have produced an average
annual return of +32.8% since inception in 1988. During the 2000-2002
bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500
Here is a synopsis of why ADSK and GW have a Zacks Rank of 1. Note
that a #1 Strong Buy rating is applied to only 5% of all the stocks
AutoDesk, Inc. (NASDAQ:ADSK) sports a successful earnings track
record. The company has topped analysts expectations each time over
the past five consecutive quarters. In mid-May, the company posted
fiscal first-quarter earnings of 30 cents per share outperforming its
prior year result and jumping ahead of the consensus estimate by about
7%. Net revenues improved 19% year-over-year. AutoDesk mentioned that
its performance was driven by strong growth in revenues from new seats
and subscriptions, increasing penetration of its vertical and 3D
products and continued improvement in profitability.
Grey Wolf, Inc. (AMEX:GW) will report second-quarter earnings on
July 27, 2005. In late April, the company released first-quarter
earnings of 10 cents per share, reversing last year's loss and
surpassing the consensus estimate by almost 43%. Grey Wolf said it
produced outstanding results for the first quarter as sustained
strength in commodity prices supported increasing U.S. land drilling
activity and dayrates. Earnings estimates for the year ending December
2005 moved up 14 cents, or about 41%, from three months ago.
Here is a synopsis of why CEN and PLCE have a Zacks Rank of 2
(Buy). Note that a #2 Buy rating is applied to 15% of all the stocks
ranked by Zacks:
Ceridian Corporation (NYSE:CEN) reported first-quarter earnings in
mid-May. The result matched the consensus estimate. The company
mentioned that revenue in Human Resource Solutions (HRS) was on plan,
up 14% over last year. CEN added that the major factors driving the
year over year improvement in HRS were tighter cost controls, revenue
growth, and higher interest income on float balances. Regarding
Comdata's performance, CEN said it was better than expected with
revenue up 13% over last year on continued strength in both the retail
and transportation markets. Earnings estimates for the year ending
December 2005 increased one penny, or approximately 1%, over the past
90 trading days.
Children's Place (NASDAQ:PLCE) recently announced that total
consolidated sales for the month of June increased 75% over last
year's total. Comparable store sales for The Children's Place stores
increased 2%, on top of a 9% increase for the same period last year.
The company also reiterated its fiscal 2005 earnings guidance of $2.15
to $2.25 per share. Analysts' most recent estimates are $2.27 per
share, which is above three months ago levels by eight cents, or
almost 4%. PLCE will report financial results for the fiscal second
quarter on August 18, 2005.
Truly taking advantage of the Zacks Rank requires the
understanding of how it works. The free special report, "Zacks Rank
Guide: Harnessing the Power of Earnings Estimate Revisions," provides
an insightful background about this wealth-building tool. Download
your free copy of the report now to prosper in the years to come by
About the Zacks Rank
For over 16 years, the Zacks Rank has proven that "Earnings
estimate revisions are the most powerful force impacting stock
prices." Since inception in 1988, #1 Rank stocks have generated an
average annual return of +32.8%. During the 2000-2002 bear market,
Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%.
Also note that the Zacks Rank system has just as many Strong Sell
recommendations (Rank #5) as Strong Buy recommendations (Rank #1).
Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by
155.5% annually (+4.65% vs. +11.88%). Thus, the Zacks Rank system
allows investors to truly manage portfolio trading effectively.
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Alex Kolb, 312-630-9880 x 149
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