CHICAGO, Aug. 5, 2011 /PRNewswire/ -- Today, Zacks
Investment Ideas feature highlights Features: Carbo Ceramics,
Inc. (NYSE: CRR), Lululemon, Inc. (Nasdaq: LULU),
Huntsmen Corp (NYSE: HUN), Travelzoo, Inc. (Nasdaq:
TZOO).
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Your Dream Stocks Are Now On Sale
The sell-off in stocks over the last week has been pretty
brutal. The averages have been taking it on the chin due to some
less than stellar economic data, with Q2 GDP coming in soft and
weakness in both manufacturing and services ISM. And when you throw
in problems with the debt ceiling and further weakness in the Euro
zone, bearish sentiment is running strong.
Fear Takes Over
That dynamic has been fueling the action on the Street for the
last few days, where even the best stocks in the best sectors have
been getting hammered as investors rotate out of equities as an
asset class and into more defensive areas. While it's true the move
lower has been painful for anyone who owns stocks, it's also
important to recognize that when the baby gets thrown out with the
bath water, tremendous opportunity is at hand. Or as Warren Buffet
says, "Be greedy when others are fearful."
So on that note, let's use the recent sell off as an opportunity
to look at some momentum high flyers that have traded sharply
lower. The biggest challenge investors have with buying momentum
stocks is buying the 52-week high. So this recent pull back could
be an opportunity to pick up a few high-beta names while the market
is dragging top momentum stocks lower.
4 Momentum High Flyers on Sale
Carbo Ceramics, Inc. (NYSE: CRR) is a specialized energy
services and products company with a market cap of $3.15 billion. CRR has seen a sharp pullback in
the recent sell off, falling from $180 to
$132. That has helped the valuation picture for this Zacks
#2 Rank stock. Beyond that, CRR has an average earnings surprise of
15% over the last four quarters and a bullish 31% growth
projection.
Lululemon, Inc. (Nasdaq: LULU) hasn't pulled back as much
CRR, but its 16% decline presents a solid opportunity to pick up
shares at a discount to last week. LULU is a Zacks #1 Rank stock
with an industry rank of 55 out of 265. The company also has an
average earnings surprise of 23% over the last four quarters.
Huntsmen Corp (NYSE: HUN) took a 31% beating today after
falling one penny short of the Zacks Consensus Estimate. That has
made this chemical maker and Zacks #2 Rank stock a huge value play,
trading at just 10X forward earnings that looks even better when
considering its bullish 22% growth projection.
Travelzoo, Inc. (Nasdaq: TZOO) has been volatile for the
last few weeks, topping off above $100 before recently pulling back to the
$50 area. In the meantime, estimates
are unchanged, with the current year holding at $1.46 after falling from $1.63 and the next-year estimate pegged at
$2.05, a bullish 41% growth
projection.
So as you can see, it doesn't have to be all doom and gloom. The
recent sell off in stocks offers an opportunity for those with
long-term vision and the conviction to go against the herd.
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