Zacks #1 Ranked Stocks Outperform Market

Strategic Insights -

Zacks.com releases a list of stocks currently ranked #1 in the coveted Zacks #1 Ranked list, which has produced an average annual return of +33.7% since inception in 1988 and has gained +100.3% since January 2000, when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today, Claire's Stores, Inc. and Phelps Dodge Corporation are highlighted. The Zacks Rank uses earnings estimate revisions to generate stock recommendations, and since 1988, the #1 Ranked stocks have outperformed the S&P 500 by 21.6% annually.

Key Takeaways:

  • Claire's Stores, Inc. (NYSE:CLE) reported same-store sales for the four weeks ended November 29, 2003, advanced by +6%, compared to a rise of +5% in the same period a year ago. Total sales moved forward by +12% to $91.3 million from $81.6 million last year.
  • Phelps Dodge Corporation (NYSE:PD) posted solid operating results for its third quarter, with earnings of 6 cents per share, which marked an impressive improvement over a year-ago loss. Consolidated sales in the quarter improved to $1.031 billion from $941.2 million.
  • ATI Technologies Inc. (NASDAQ:ATYT) reported first quarter of fiscal 2004 net income of 19 cents per share on revenues of $469.7 million, beating the consensus by a penny, or more than +5%.
  • Ryland (NYSE:RYL) posted a solid third quarter report, including diluted earnings of $2.40 per share that beat the consensus by more than +12%.
  • The Zacks Rank has generated an average annual return of +33.7% since inception in 1988 and has gained +100.3% since January 2000, outperforming the S&P 500 by 21.6% annually.

Statistics:

  • The Zacks #1 Ranked stocks have generated an average annual return of +33.7% since inception in 1988.
  • The stocks have gained +100.3% since January 2000, when the market was in the grips of the worst bear market in 60 years.
  • The S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 170.3% annually (12.1% vs. 4.5% respectively) since 1988.
  • Claire's Stores, Inc. (NYSE:CLE) reported total sales of $91.3 million for the four weeks ended November 29, 2003.
  • Phelps Dodge Corporation (NYSE:PD) reported consolidated sales of $1.031 billion for the third quarter.
  • ATI Technologies Inc. (NASDAQ:ATYT) reported revenues of $469.7 million for the first quarter of fiscal 2004.
  • Ryland (NYSE:RYL) reported revenues of $872.2 million for the third quarter.

Sources:

  • Business Wire, "Zacks.com Releases Another List of Stocks that are Currently Members of the Coveted Zacks #1 Ranked List", January 7, 2004
  • Zacks.com, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions", downloaded on January 7, 2004
  • Zacks.com, "Profit from the Pros" e-mail newsletter, downloaded on January 7, 2004
  • Zacks Investment Research, Inc., http://www.zacks.com, accessed on January 7, 2004.