Zacks #1 Rank Top Performers: Switch & Data Facilities, LaBranche & Co, Flowserve, Big Lots, and Central European Distribution

CHICAGO--(BUSINESS WIRE)--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 Switch & Data Facilities Company, Inc. (NASDAQ: SDXC), LaBranche & Co. Inc. (NYSE: LAB), Flowserve Corporation (NYSE: FLS) Big Lots, Inc. (NYSE: BIG) and Central European Distribution Corporation (NASDAQ: CEDC). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32% 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.

Switch & Data Facilities Company, Inc. (NASDAQ: SDXC) announced strong first quarter results last week as growth in IP traffic continues. Total revenues reached $39.8 million, or 27% higher than the previous year’s $31.4 million. Earnings per share advanced sharply year over year and was in line with the consensus. Switch & Data Facilities made the Top Performers List for the week ended May 2 as shares gained 15.1%. The company is a leading provider of network neutral interconnection and collocation services.

Analysts still expect a loss for this year, but it has narrowed significantly in the past seven days to a loss of only a penny from a loss of approximately 15 cents. Expectations are also on the rise for the second quarter and for next year. SDXC believes that its first-quarter momentum, along with the completion of its financing, provide a solid foundation for the future. The company increased its financial guidance for 2008 and now expects total revenues of $168 million.

LaBranche & Co. Inc. (NYSE: LAB) made its second consecutive appearance on the Zacks #1 Rank Top Performers List. The specialist in exchange-listed securities gained 11.7% in the week ended May 2. In the previous week, shares of LAB advanced 17.4%. Over the past month, analysts have sharply raised their earnings estimates for this year, and now expect a profit instead of a loss.

LAB continues to benefit from a solid first-quarter performance that was announced on Apr 22. Earnings per share reached 13 cents, excluding a loss on its shares of NYSE Euronext. That result easily beat the consensus by as much as 1200% while also eclipsing the year-ago loss. Also excluding items, revenue increased to $56.6 million compared to $42.1 million in the first quarter 2007.

Flowserve Corporation (NYSE: FLS) enjoyed continued strength in its end markets during the first quarter, which led to a strong quarterly report and an enhanced guidance for the year. The company, which is a leader in the fluid motion and control industry, was a Top Performer last week as shares gained 10%. In the wake of its strong performance, analysts have boosted earnings estimates for this year by 12.5% in just the past seven days. Expectations for the second quarter are also up in that timeframe.

FLS announced earnings per share of $1.53 for the quarter, which bettered the consensus and year-ago result by approximately 61% and 159%, respectively. Over the past four quarters, the company has amassed an average surprise of about 32%. Sales improved 24% to $993 million and bookings were up 31% to $1.43 billion. Record bookings were attributed to continued strength in all of its core markets globally, along with strong growth of both the original equipment business and aftermarket business. FLS also raised its full year EPS outlook, and now expects between $5.90 and $6.20. Previously, it had expected $5.10 to $5.40.

Big Lots, Inc. (NYSE: BIG) recently updated its fiscal first quarter same-store sales guidance, and now expects an increase in the low-to-mid 3% range. Previously, the retailer was expecting a rise of 1% to 2%. This helped Big Lots to once again reach the Zacks #1 Rank Top Performers List in spite of a difficult environment for retailers. Shares of the company gained 9.94%. In the previous week, BIG shares made the list with a gain of 10.8%.

Earnings estimates continue to move in an upward direction. In addition to a 10% rise over the past two months, earnings estimates for this fiscal year have increased a further 1.1% in the past seven days. The company also enjoyed an upgrade from a major brokerage firm. BIG has an excellent record of beating Wall Street’s quarterly EPS expectations, and has put together an average surprise of 40% over the past four quarters. For its fiscal fourth quarter, the company reported an earnings per share surprise of 10.7% above the consensus.

Central European Distribution Corporation (NASDAQ: CEDC) reported solid first-quarter numbers last week, including net sales that advanced 37% year over year to $313.6 million. Earnings per share also improved from last year while topping the consensus. CEDC has now beaten Wall Street’s quarterly earnings estimates in three out of the past four quarters. Shares of the company gained 7.14% last week, which was enough to make it one of the top performing Zacks #1 Rank companies.

Central European Distribution also raised its outlook for the full year, and now expects net sales between $1.47 billion and $1.57 billion. Previously, the company expected between $1.42 billion and $1.52 billion. Furthermore, earnings per share are now anticipated at $2.30 to $2.45, instead of $2.25 to $2.40. Earnings estimates for this year are up 8.7% from two months ago, including a rise of 1.3% in just the past seven trading days. CEDC is a leading importer and distributor of alcoholic beverages in Poland.

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 +32%. 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 129% annually (+5 % vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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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.