Investors can find such funds by checking out the entire list of Zacks #1 Rank Small Cap Equity Funds.

3 Strong Performers

Artisan Small Cap Value (ARTVX) seeks long-term capital growth. It uses a bottom-up investment process to construct a diversified portfolio of undervalued firms that have attractive business models.

The fund invests primarily in common stocks of small U.S. companies with market capitalizations less than three times the weighted average market cap of companies in the Russell 2000 index.

Maximus Inc. (MMS), Sanderson Farms Inc. (SAFM) and SPSS Inc. (SPSS) are among the fund's top holdings.

Conestoga Capital Advisor Small Cap (CCASX) seeks long-term capital growth through investments in equity securities of small-cap firms, including ADRs, convertible securities, foreign and domestic common and preferred stocks, rights and warrants.

The fund does not expect investment in foreign securities to exceed 20% of the total assets. As of December 2008, its portfolio turnover ratio was 23.12%.

William C. Martindale has been lead manager at the fund since its inception in October 2002. The fund has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Royce Special Equity Fund (RYSEX) seeks long-term growth of capital using a disciplined value approach and is designed for investors looking at a long-term horizon of at least three years.

The fund focuses on companies with market capitalizations of less than $2.5 billion, focusing on inexpensive companies with high returns on invested capital and low leverage. Although it normally focuses on securities of U.S. companies, the fund may invest up to 5% of its assets in foreign securities.

Unit holders have to make a minimum initial investment of $2,000 to enter this Zacks #1 Rank ("Strong Buy") fund. It pays dividends and capital gains annually.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Sanderson Farms Inc.'s (SAFM) share price has moved into oversold territory with a stochastic value of 12.80. Analysts have been boosting their estimates on the Zacks #2 Rank ("Buy") company's fiscal 2009 earnings, with the consensus up $1.39 over the past month to $3.79 per share. The most accurate is even bullish at $3.98 per share.

Advanced Auto Parts (AAP) recently touched and deflected off of its 52-week high on rising estimates and another strong quarter.

The company reported solid first-quarter results on May 20 that were better than expected. Sales were up 10% from last year to $1.68 billion. Income came in at $93.6 million, up from $82.1 million last year, producing earnings of $1.02, 12 cents ahead of the consensus estimate.

Same store commercial sales were up 17.5% from last year.

Estimates Headed Higher

Estimates continue to climb, with the current-year up 15 cents in the last 30 days to $2.96 per share. The next-year estimate is pegged at $3.27, a 10.5% growth projection.

The Chart

Shares of AAP have been on a big rally for most of the last 7 months, but recently pulled back a bit after hitting the 52-week high. Take a look below.

Last Week's Momentum Zacks Rank Buy Stocks

Sanderson Farms Inc. (SAFM) is benefiting from lower costs in its feed supplies, enabling the company to more than triple its second-quarter income from last year. Analysts are bullish, with the next-year estimate projecting 25% earnings growth. Read Full Article.

American Dairy Inc. (ADY) just received a big upgrade from the analyst community, with its next-year earnings growth projected at 34%. Read Full Article.

Ctrip.com International (CTRP) took a steep fall last year when the market weakened. But the company is once again on the upswing, with estimates and its share price rallying. Read Full Article.

Goldman Sachs Group, Inc. (GS) is surging on higher estimates, with the company's share price building on its already impressive gains from the last 7 months. Zacks Investment Research

Chicago, IL - June 12, 2009 - Four free stock picks are being made available today on Zacks.com. The industry's leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Buckle Inc. (BKE), Ross Stores Inc. (ROST), Sanderson Farms Inc. (SAFM) and Big Lots Inc. (BIG).
    
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Growth & Income - Ross Stores Inc. (ROST)
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Momentum - Sanderson Farms Inc. (SAFM)
Sanderson Farms Inc. is benefiting from lower costs in its feed supplies, enabling the company to more than triple its second-quarter income from last year. Analysts are bullish, with the next-year estimate projecting 25% earnings growth.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value - Big Lots Inc. (BIG)
Big Lots Inc., the closeout retailer, recently surprised on estimates for the third time in the last 4 quarters. BIG trades with a forward P/E of 12.3.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

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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.

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.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

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Phone: 312-265-9226

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Value Stocks:
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Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

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

Company Description

Sanderson Farms, Inc. is an integrated poultry processing company that operates in the United States. The company was founded in 1947 and has a market cap of $966 million.

Second-Quarter Results

Sanderson Farms' share price received a nice boost on May 28 when the company reported strong second-quarter results that were ahead of expectations.

Sales were down 2% from last year to $426.8 million, but income spiked, jumping to $26.2 million from $6.2 million last year. Earnings came in at $1.27 per share, well ahead of the consensus of 58 cents.

Lower Costs Drive Income

The company noted that lower costs of feed supplies drove its income growth, with prices of corn and soybean meal down 23% and 14% from last year respectively.

Sanderson also said the industry has scaled back on its production in order to constrict supplies and keep prices elevated.

Estimates Surge

Even before the solid quarter hit the Street, analyst were upgrading their earnings estimates. The current-year estimate is up $1.17 in the last 30 days to $3.52 per share. The next-year estimate is up to, pegged at $4.38, a robust 25% growth projection.

The Chart

Shares of SAFM have been rallying since bottoming out just above $20 in late November of last year. More recently, shares have surged back to within striking distance of the 52-week high on the good quarter. Take a look at the chart below.

Zacks Investment Research

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Small Cap Equity Funds.

3 Strong Performers

Artisan Small Cap Value (ARTVX) seeks long-term capital growth. It uses a bottom-up investment process to construct a diversified portfolio of undervalued firms that have attractive business economics.

The fund invests primarily in common stocks of small U.S. companies with market capitalizations less than three times the weighted average market cap of companies in the Russell 2000 index.

Maximus Inc. (MMS), Sanderson Farms Inc. (SAFM) and SPSS Inc. (SPSS) are among the fund's top holdings.

Conestoga Capital Advisor Small Cap (CCASX) seeks long-term capital growth through investments in equity securities of small-cap firms, including ADRs, convertible securities, foreign and domestic common and preferred stocks, rights and warrants.

The fund does not expect investment in foreign securities to exceed 20% of the total assets. As of December 2008, its portfolio turnover ratio was 23.12%.

William C. Martindale has been lead manager at the fund since its inception in October 2002. The fund has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Royce Special Equity Fund (RYSEX) seeks long-term growth of capital using a disciplined value approach and is designed for investors looking at a long-term horizon of at least three years.

The fund focuses on companies with market capitalizations of less than $2.5 billion, attempting to find inexpensive companies with high returns on invested capital and low leverage. Although it normally focuses on the securities of U.S. companies, the fund may invest up to 5% of its assets in foreign securities.

Unit holders have to make a minimum initial investment of $2,000 to enter this Zacks#1 Rank ("Strong Buy") fund. It pays dividends and capital gains annually.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

• Acxiom Corp (ACXM)
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• PLATO Learning Inc (TUTR)
• Rent-A-Center Inc (RCII)
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• Sanderson Farms Inc (SAFM)
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The poultry processor's sales fell 2% to $426.8 million, reflecting the impact of production cuts.

"We are cautiously optimistic as we head into the summer months and what is typically a period of better demand for chicken," said CEO Joe F. Sanderson, Jr.

The full-year average forecast has increased by 5 cents to $2.40 per share over the past month as 4 out of 9 covering analysts raised expectations.

SAFM, a Zacks #3 Rank ("Hold") stock, has advanced more than 4.6% today on extraordinarily high volume of 1.6 million, compared to average daily volume of about 242,000.

The company’s new facility, which opened during the fourth quarter of 2007, added 18 percent to the existing capacity. Though construction is currently being delayed, the company plans to build a new feed mill, poultry processing plant, and hatchery in Kinston, North Carolina. The new complex at its full capacity will be equipped to process 6.7 million pounds of dressed poultry meat per week.

Due to the company’s volatile earnings and loss reported in fiscal 2006, the stock is best valued on a price-to-sales basis. During the last five years, the stock has traded in the range of 0.33 to 0.94 times sales. There is considerable commodity risk involved with the production of chicken products, both on the pricing of end-products and the costs of feed, processing, and storage. With stock currently trading at 0.54 times sales, the target is a 0.60 price-to-sales ratio or $48 per share.

Read the full analyst report on SAFM