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Zacks #1 Rank Top Performers: Genco Shipping & Trading, Knoll, Mariner Energy, Green Mountain Coffee Roasters and Parker Drilling

Posted on: Tuesday, 19 August 2008, 15:01 CDT

Zacks.com announces the latest list of top performing Zacks #1 Rank ("strong buy") stocks. The stocks on the prestigious list with the highest returns last week were Genco Shipping & Trading Ltd. (NYSE: GNK), Knoll, Inc. (NYSE: KNL), Mariner Energy, Inc. (NYSE: ME), Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) and Parker Drilling Company (NYSE: PKD). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +30% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.

Here is a synopsis of the last week's best performing Zacks #1 Rank stocks.

Genco Shipping & Trading Ltd. (NYSE: GNK) was a top-performing Zacks #1 Rank company last week as shares gained more than 10.7%. Earnings estimates for this year are up 3% in the past month, and analysts currently expect 2009 EPS to grow approximately 37% from 2008. Meanwhile, GNK has beaten Wall Street's quarterly earnings expectations for 4 consecutive quarters with an average surprise of 14.6%.

Favorable contracts and profit-sharing agreements led to a strong second-quarter performance for GNK, which it reported on Jul 30. Earnings per share of $1.95 beat the consensus of $1.72 by almost 13.4%. Revenues jumped 184% from last year to $104.6 million, thanks to the operation of a larger fleet and the renewal of time charters at higher rates. The average daily time charter equivalent (TCE) surged 95% in the quarter. GNK currently has about 94% of its fleet's available days secured on contracts for the rest of the year, and 60% for 2009.

Knoll, Inc. (NYSE: KNL) - a Zacks #1 Rank Top Performer last week with a gain of 10.4% - announced on Thursday that its Board declared a quarterly cash dividend of 12 cents per share, payable Sep 30 to stockholders of record on Sep 15. Over the past month, earnings estimates for this year and next have advanced 10.5% and 5.5%, respectively.

KNL's second quarter, which was announced in mid-July, continued its streak of meeting or beating Wall Street's quarterly earnings estimates. Adjusted earnings per share of 49 cents topped the consensus by 22.5%, setting up an average surprise of 11.2% over the past 4 quarters. The earnings result was also more than 32% better than the year-earlier total of 37 cents. Net sales advanced 7.5% to $292.5 million. KNL attributed results to its diversification strategy that focused on high design content businesses and away from dependence on North American systems sales.

Mariner Energy, Inc. (NYSE: ME), an independent oil & gas exploration, development and production company, gained 8.5% last week. Earnings estimates for this year have increased 18.6% over the past 2 months, including a rise of 3.4% in 7 days.

For its second quarter, which was announced Aug 7, ME reported earnings per share of $1.39 on total revenues of $429.5 million. The earnings result surpassed the consensus by 19.8% and also significantly improved upon the year-earlier performance of 38 cents. Total revenues advanced approximately 102% from $213.1 million a year earlier. Furthermore, production advanced 48%. The company credited its second-quarter results to production growth, costs control efforts, and drilling success in all areas. It expects another strong year in 2009.

Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) made the Zacks #1 Rank Top Performers List last week with a gain of 7.5%. Late July saw the fiscal third-quarter report for this specialty coffee company, which included earnings per share of 25 cents and net sales of $118.1 million. GMCR beat the consensus EPS estimate by more than 19%, and also marked a solid year-over-year improvement from 15 cents. In addition, net sales increased 43.3%. Other highlights in the quarter included a 61% increase in Keurig brewers shipped, and a 49% advance in K-Cup portion packs shipped.

GMCR was featured as an Aggressive Growth Stock of the Day at Zacks.com on Aug 15. Earnings estimates for this fiscal year, ending September 2008, are up 5.2% in the past month. Analysts currently expect next fiscal year's EPS to improve approximately 54% from this fiscal year's.

Shares of Parker Drilling Company (NYSE: PKD) gained 7.35% last week. Earnings estimates for this year are up 3.8% in 2 months and 1.2% in 7 days. Analysts also currently expect next year's earnings per share to improve about 23% over this year. On the same day as its second-quarter report, PKD announced a new contract to design the drilling package for the Sakhalin-1 Arkutun-Dagi offshore platform.

For its second quarter, the oil drilling contractor reported that revenues jumped 44% to $216.7 million from $150.3 million year over year. Meanwhile, earnings per share of 20 cents came in-line with the consensus. According to the company, results were driven by gains in its targeted growth areas of international drilling, drilling and production rental tools, and project management services.

About the Zacks Rank

Since 1988, 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 +30%. 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 81% annually (+2 % vs. +11%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

To view the current Zacks #1 Rank List and to see additional Zacks Rank resources, go to http://at.zacks.com/?id=3173.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=3168.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=3169.

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.

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

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.

Source: Business Wire

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