CPO Ingredion, Inc.

Although the markets were seeing mostly red on Tuesday, there were several Zacks #1 Rank (Strong Buy) stocks that finished in the green.

One of those stocks was VeriFone Systems, Inc. (PAY), which rose 3.9%.

The company reported its results for the first quarter of fiscal 2011 on March 1. EPS came in at 35 cents, beating the Zacks Consensus Estimate by 2 cents. Revenues were up 27% year-over-year to $284 million.

Estimates have been trending higher over the last several months as VeriFone has delivered 5 straight positive earnings surprises:

Analysts expect big growth from PAY over the next two years. The Zacks Consensus Estimate for 2011 is $1.57, representing 49% EPS growth. The 2012 consensus estimate is 24% higher at $1.94.

VeriFone has soared more than 185% since July 2010. As a result, valuations have become a bit elevated with shares trading at 34.4x forward earnings, a premium to the industry average of 21.3x. Its PEG ratio is 1.7.

VeriFone makes point-of-sales equipment. It is headquartered in San Jose, California and has a market cap of $4.6 billion.

Corn Products International, Inc. (CPO) was also up strong in the weak market. Shares rose 3.4% to close near their 52-week high.

Corn Products International is one of the world's leading corn refiners. The company provides various ingredients to more than 60 diverse industries including food, beverage, pharmaceutical, corrugating, animal feed, and health and wellness.

CPO has been benefiting from soaring sugar prices soaring, as corn sweeteners have become comparatively more attractive. The company has delivered 7 consecutive positive earnings surprises, prompting analysts to significantly raise their estimates over the last several months:

The Zacks Consensus Estimate for 2011 is $4.07, representing a 26% increase over 2010 EPS.

Valuation is attractive with shares trading at just 12.5x forward earnings, a discount to the industry average of 16.6x.

Other top performing Zacks #1 Rank stocks from Tuesday include: Deutsche Lufthansa (DLAKY), which rose 3.7%, Tempur Pedic International (TPX), which was up 2.8% and Air Methods Corp. (AIRM), which gained 2.7%.

To see the full list of Zacks #1 Rank (Strong Buy) stocks click here.

Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.

 
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