Diversify with Three New Buys
11/29/2007 12:00 am EST
Louis Navellier, editor of the Blue Chip Growth Letter, shares three diverse recommendations to round out your portfolio…
Express Scripts (NASDAQ: ESRX) is a North American provider of pharmacy benefit management services. Some of its costumers include third-party administrators, health insurers, and employers. Besides providing customers with home delivery, benefit design consultation, and disease management services, to name a few, it also provides various specialty services like patient care, marketing, and customized logistics solutions.
ESRX’s third-quarter earnings were just what the doctor ordered. Earnings per-share rose 33.3% as the company filled more generic drug prescriptions and reduced retail and home delivery drug purchasing costs. Specifically, Express Scripts earned 56 cents per share compared with 42 cents per share in the same quarter a year ago. Sales rose 4.4% to $4.52 billion. The analyst community expected 57 cents per share, so the company posted a 5.3% earnings surprise. ESRX is a great Moderately Aggressive buy below $69.
Jacobs Engineering Group (NYSE: JEC) evolved from a one-person engineering firm in 1947 to the global provider of diverse professional technical services it is today. The company offers professional, technical, and construction services to clients in the government, as well as in industrial and commercial fields. Jacobs also provides operations services, maintenance services, and consulting services.
JEC recently announced that its earnings rose 38.8% to 68 cents per share from 49 cents per share last year. It also revised its 2008 guidance higher. During the same period, the company’s sales rose 15% to $2.3 billion. The analyst community, on average, was expecting earnings of 65 cents on sales of $2.23 billion, so Jacobs Engineering posted a 4.6% earnings surprise and a 3.1% sales surprise. The stock was recently added to the S&P 500 and is a great Moderately Aggressive buy below $84.
SunPower Corporation (NASDAQ: SPWR) makes solar cells and panels to generate electricity. The company’s leading customers include Conergy, Solon AG, GE/Plexus, and Integration Associates. Cypress Semiconductor, which I recommend in my Emerging Growth letter, owns more than half of SunPower. The analyst community, on average, expects SunPower to have comparable earnings of 36 cents per share in the fourth quarter, $1.18 per share in 2007, and $1.98 per share in 2008. The company, which is the largest pure-play solar-product company based in the US, emphasized its cost-reducing measures and long-term supply agreements for polysilicon, which has become more expensive as demand has surged. SPWR is a great Moderately Aggressive buy below $126.