Feed: Zacks Investment Research - Growth and Income Stocks - AggScore: 45.9

Coca-Cola FEMSA S.A.B. - Growth & Income

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Latin America has been a hot spot for investors. Coca-Cola FEMSA S.A.B. (KOF) is expected to post double digit earnings growth in both 2012 and 2013. Since the financial crisis, this Zacks #2 Rank (Buy) has also rewarded its shareholders with dividend increases.

Most investors probably don't realize there is more than one Coke.

Coca-Cola FEMSA is a Mexico-based producer and distributor of Coca-Cola products like Coke, Fanta, Sprite, and Del Valle. It operates 35 bottling facilities and services 1.7 million retailers in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil and Argentina.

Revenue Jumped 29.7% in Q1

On Apr 26, Coca-Cola FEMSA reported its first quarter results and beat the Zacks Consensus Estimate by a penny. Earnings were $1.01 compared to the consensus of $1.00.

Revenue climbed 29.7% to Ps 33,542 million primarily due to double-digit revenue growth in each division and the integration of new territories in Mexico. Excluding the recently integrated territories and revenue still would have increased 21.6%.

Despite rising commodity costs, it still saw top and bottom-line growth in the quarter.

There may be further expansion coming as it has an exclusivity agreement with The Coca-Cola Company regarding the potential acquisition of its bottling operations in the Philippines. It would be the company's first foray out of Latin America.

Double Digit Earnings Growth Expected

The analysts are bullish on 2012 and 2013.

The Zacks Consensus Estimate for 2012 is calling for $5.23 per share. That is earnings growth of 18.8% as the company only earned $4.40 in 2011.

Double digit growth is expected to last as the 2013 Zacks Consensus is looking for $6.16 which would be a rise of 17.9%.

Dividend Rising

As the company's business has expanded, it has been rewarding shareholders.

Coca-Cola FEMSA's dividend of $2.06 is 4 times higher than that paid in 2009. It currently yields 1.8%.

Shares Too Pricey?

Shares have been on fire the last 2 years and are now at 10 year highs. Check out this beautiful chart.

However, Coca-Cola FEMSA now has a forward P/E of 22. That isn't exactly cheap. Even if you account for the double digit earnings growth, it still has a PEG of 1.7. That's in-line with its industry but that doesn't exactly scream "value" either. Shares are not a bargain at these levels.

But for those investors looking for growth and a dividend with exposure to the emerging markets, Coca-Cola FEMSA is one of the few stocks that fit the bill.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

 COCA-COLA FEMSA (KOF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Cabot Corporation - Growth & Income

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Cabot Corporation (CBT) carried its strong earnings momentum into the second quarter and delivered its 6th consecutive positive earnings surprise. Analysts have continued to raise their earnings estimates for both 2012 and 2013, sending the stock to a Zacks #1 Rank (Strong Buy) stock.

The company also recently raised its quarterly dividend for the first time since 2006. It currently yields 2.2%.

Specialty Chemicals & Performance Materials

Cabot Corp. is a specialty chemicals and performance materials company. Some of its major products include: carbon black, fumed silica, cesium formate drilling fluids, inkjet colorants and aerogels.

Cabot was founded in 1882 and is headquartered in Boston. It has a market cap of $2.4 billion.

Second Quarter Results

Cabot reported better than expected results for its second quarter on May 1. Earnings per share came in at 96 cents, beating the Zacks Consensus Estimate of 79 cents. It was a 68% increase over the same quarter last year.

Net sales rose 14% to $844 million, ahead of the consensus of $809 million. In the company's Core Segment - Rubber Blacks (which accounted for 63% of net sales), revenue was up 17%.

The Rubber Blacks segment and Specialty Fluids segment set new records of quarterly operating income performance. Overall, operating income soared 61% year-over-year.

Outlook

Management provided a positive outlook for the remainder of 2012 in its second quarter earnings release. The company stated that it was "optimistic about the improving conditions in North America and China" and sees "attractive growth in the emerging economies of Asia and South America, both in the short and long-term."

Management did caution that the European macroeconomic environment was "challenging", but it reiterated its long-term target of $4.50 in EPS by 2014 while mainating return on invested capital of over 13%.

Estimates Rising

This bullish guidance prompted analysts to revise their estimates significantly higher for both 2012 and 2013, sending the stock to a Zacks #1 Rank (Strong Buy) stock.

The Zacks Consensus Estimate for 2012 is now $3.34, representing 11% growth over 2011 EPS. The 2013 consensus is currently $3.90, corresponding with 17% growth.

Dividend Rising

On May 11, Cabot announced an 11% increase in its quarterly dividend to 20 cents. This equates to a yield of 2.2%.

This marked the company's first dividend increase since 2006.

Reasonable Valuation

Valuation looks very reasonable with shares trading at just 10.3x 12-month forward earnings, a discount to its 10-year median of 14.7x.

And its price to book ratio of 1.3 is well below the peer group multiple of 2.6.

The Bottom Line

With rising estimates, strong growth projections, a solid 2.2% yield and attractive valuation, Cabot offers investors a lot to like.

Read the February 13 article here.

This Week's Growth & Income Zacks Rank Buy Stocks:

PPG Industries (PPG) recently delivered its 7th consecutive quarter of record earnings, prompting a flurry of positive estimate revisions from analysts. It is a Zacks #1 Rank (Strong Buy) stock. The company also pays a dividend that yields a solid 2.3%. It has paid a remarkable 455 consecutive quarterly dividend payments. Read the full article.

Monsanto (MON) has topped the Zacks Consensus Estimate in each of the last six quarters. It also pays a dividend that yields a solid 1.6%. Read the full article.

Lithia Motors (LAD) has topped the Zacks Consensus Estimate in each of the last seven quarters, with an average beat of 47% over that time. It also pays a dividend that yields 1.7%. Read the full article.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 CABOT CORP (CBT): Free Stock Analysis Report CABOT CORP (CBT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

PPG Industries - Growth & Income

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PPG Industries (PPG) recently delivered its 7th consecutive quarter of record earnings, prompting a flurry of positive estimate revisions from analysts.

It is a Zacks #1 Rank (Strong Buy) stock.

Based on current consensus estimates, analysts expect double-digit EPS growth from PPG over the next few years. On top of this, the company pays a dividend that yields a solid 2.3%. It has paid a remarkable 455 consecutive quarterly dividend payments.

Company Description

PPG Industries is a leading coatings and specialty products company. Sales for the first quarter of 2012 were divided as follows:

Performance Coatings: 31%
Industrial Coatings: 29%
Architectural Coatings - EMEA: 14%
Optical and Specialty Materials: 9%
Commodity Chemicals: 11%
Glass: 7%

The company was founded in 1883 and is headquartered in Pittsburgh. It has a market cap of $15.6 billion.

First Quarter Results

PPG Industries reported better than expected first quarter results on April 19. Earnings per share came in at $1.81, beating the Zacks Consensus Estimate of $1.79. It was a 29% increase over the same quarter in 2011.

Net sales rose 6% to $3.752 billion, ahead of the consensus of $3.696 billion. The Performance Coatings segment experienced a 9% increase in sales year-over-year while the Industrial Coatings segments saw a 5% increase.

Meanwhile, gross profit expanded from 39.8% of sales to 40.6% of net sales.

Estimates Rising

Following strong Q1 results, analysts revised their estimates significantly higher for both 2012 and 2013, sending the stock to a Zacks #1 Rank (Strong Buy).

The 2012 Zacks Consensus Estimate is now $7.99, up from $7.29 before the earnings release, and representing 18% growth over 2011 EPS. The 2013 consensus estimate is currently $8.86, corresponding with 11% growth.

Stable Dividend

PPG Industries also pays a dividend that yields a solid 2.3%. The company recently announced a 4% increase in its quarterly dividend to 59 cents per share. This also marks the company's 455th consecutive dividend payment (going all the way back to 1899).

Since 2000, the company has increased its dividend at a compound annual rate of 3%:

Reasonable Valuation

Valuation looks very reasonable for PPG with shares trading at just 12.6x 12-month forward earnings, a discount to its 10-year median of 13.9x.

Its PEG ratio is 1.0 based on a consensus 5-year EPS growth rate of 12.2%.

The Bottom Line

With positive earnings momentum, strong growth, a stable 2.3% yield and reasonable valuation, PPG Industries offers investors attractive total return potential.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 PPG INDS INC (PPG): Free Stock Analysis Report PPG INDS INC (PPG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Monsanto - Growth & Income

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Monsanto (MON) sees growth in earrings estimates and could see a dividend hike in 2013. The stock is a Zacks #1 Rank (Strong Buy). Company Description Monsanto Company provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces corn, soybean, canola, and cotton seeds, as well as vegetable seeds, including tomato, pepper, melon, cucumber, pumpkin, squash, beans, broccoli, onions, and lettuce seeds. The Agricultural Productivity segment offers glyphosate- based herbicides for agricultural, industrial, ornamental and turf applications as well as lawn-and-garden herbicides for residential applications and other herbicides for the control of annual grass and small seeded broadleaf weeds in corn and other crops. The company was founded in 2000 and is headquartered in St. Louis, Missouri. Monsanto posts Six Straight Positive Earnings Surprises Monsanto has topped the Zacks Consensus Estimate in each of the last six quarters. The six beats have come in on average more than $0.07 higher than the Zacks Consensus Estimate. On average, the positive earnings surprises were a healthy 27%. The stock has generally reacted positively when the company beats expectations. The stock was up 3.4% on average following the positive earnings surprises. The largest price movement in the stock came the day after the company posted its second strongest surprise. The August 2011 quarter saw the company beat the topline estimate of $2 billion by posting revenues of $2.2 billion. The company posted an EPS loss of $0.22 was $0.05 higher than the Zacks Consensus Estimate. In the session following positive earnings surprise the stock increased by 12.7%.

Follow Brian Bolan on twitter at @BBolan1 Monsanto's Most Recent Earnings On April 4, 2012 Monsanto reported revenue of $4.7 billion, approximately $140 million higher than the Zacks Consensus Estimate and up from $4.1 billion reported in year ago quarter, an increase of 15%. In addition, earnings per share came in at $2.28, $0.16 higher than the Zacks Consensus Estimate of $2.12. The beat of 7% didn't end up helping the stock, which fell 3.4% in the session following the release. Monsanto Sees Estimates Moving Higher Monsanto has seen earnings estimates move higher following the recent positive earnings surprise. The Zacks Consensus Estimate for 2012 was as low as $3.42 in December 2011 and has since moved to $3.56. Estimates for 2013 have also seen an increase following the most recent quarterly release. Over the same time period as the 2012 earnings estimate increase, the Zacks Consensus Estimate for 2013 stood at $4.03 and has since moved to $4.11. Valuation The valuation for Monsanto is higher than the industry average on just about every multiple that aggressive growth investors tend to look at. The twelve month trailing PE of 20x is well above the 11.8x industry average, and the both multiples are the same for the forward PE. The price to book, a more conservative measure of value, has a 3.2x multiple for Monsanto compared to a 2.5x industry average. The price to sales multiple of 3x is well above the 0.8x industry average. Dividend Now that I have covered the growth side of this play, let's take a look at the dividend. The company paid a $0.30 dividend on April 3, 2012. That brings the current yield to 1.6%. The previous two four quarters also saw $0.30 dividends. Prior to that, the company paid a full year of $0.28 dividends and that was an increase from $0.265 dividends paid starting back in April of 2009. Monsanto holding the dividend steady through the recession gave dividend seekers the payment they were looking for as well as a harbor in the tempest. The recession caused many companies that were paying a dividend to reduce it or suspend it completely. Monsanto benefited from an existing strong balance sheet to maintain payment of the dividend. The Chart A quick look at the price and consensus chart shows that earnings growth has returned to the stock in 2012. The stock, however has not really noticed as it has pretty much traded in an range over the last year and a half. The growth for MON looks to continue into 2013 and without a meaningful increase in stock price, look for the company to once again increase the dividend payout. Monsanto is a Zacks #1 Rank (Strong Buy).

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service Like Brian Bolan on Facebook  MONSANTO CO-NEW (MON): Free Stock Analysis Report MONSANTO CO-NEW (MON): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Lathia Motors - Growth & Income

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Lithia Motors (LAD) sees growth in earrings estimates and could see a dividend hike in 2013. The stock is a Zacks #1 Rank (Strong Buy). Company Description Lithia Motors is an automotive franchisee and retailer of new and used vehicles. It sells new and used cars and light trucks. They offer replacement parts and service, vehicle maintenance, warranty, paint, and repair services. As of May 1, 2012, the company offered 25 brands of new vehicles and various brands of used vehicles in 84 stores, as well as online at Lithia.com. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon. Lithia Motors posts Seven Straight Positive Earnings Surprises Lithia Motors has topped the Zacks Consensus Estimate in each of the last seven quarters. The seven beats have come in on average more than $0.13 higher than the Zacks Consensus Estimate. On average, the positive earnings surprises were a massive 47%. The stock has generally reacted positively when the company beats expectations. The stock was up 5.6% on average following the positive earnings surprises. The largest price movement in the stock came the day after the company posted its second strongest surprise. The March 2011 quarter saw the company beat the topline estimate of $531 million by posting revenues of $603 million. EPS of $0.34 was $0.14 higher than the Zacks Consensus Estimate. In the session following positive earnings surprise the stock increased by 18.7%.

Follow Brian Bolan on twitter at @BBolan1 Lithia Motors Most Recent Reported Earnings On April 25, 2012 Lithia Motors reported revenue of $759 million, approximately $73 million higher than the Zacks Consensus Estimate and up from $603 million reported in year ago quarter, an increase of 26%. In addition, earnings per share came in at $0.60, $0.18 higher than the Zacks Consensus Estimate of $0.42. The beat of 42% helped lift the stock higher by 8.5% in the session following the release. Lithia Motors Sees Estimates Moving Higher Lithia Motors has seen earnings estimates move higher following the recent positive earnings surprise. The Zacks Consensus Estimate for 2012 was as low as $2.04 in January 2012 and has since moved to $2.49. That represents an increase of more than 22%. Estimates for 2013 have also seen an increase following the most recent quarterly release. Over the same time period as the 2012 earnings estimate increase, the Zacks Consensus Estimate for 2013 stood at $2.30 and has since moved to $2.73. The increase of 18% for 2013 is part of the key driver for the stock. Growth in earnings is key if there is going to be growth in the dividend, something the growth and income investors love to see. Valuation The valuation for Lithia Motors is very attractive. A trailing PE of 11.3x is well below the industry average of 23x and the forward PE of 10x is also far below the 17x industry average. The price to book multiple of 1.7x shows the company trading at a discount to the industry average of 3.1x and price to sale of 0.2x is well below the 0.8x industry average. Growth and income investors may have to complete with value investors when they look at the valuation for Lithia Motors. Dividend Now that I have covered the growth side of this play, let's take a look at the dividend. The company paid a $0.10 dividend on May 9, 2012. That bring the current yield to 1.6%. The previous four quarters saw $0.07 dividends, and four previous to that were $0.05 dividends. The recent growth in the dividend is a good to see, and increases in earnings estimates point to further dividend increases in the future. Prior to the financial crisis years of 2008 and 2009, LAD paid a $0.14 quarterly dividend to shareholders. The dividend was suspended throughout 2009, and reinstated in 2010. Since the dividend came back, it has increased two times. A two cent increase in 2011 and now a three cent increase in 2012. It is a safe bet that the dividend could increase four cents in 2013 to return to the $0.14 quarterly level that was last paid to shareholders in 2008. The Chart A quick look at the two year price chart shows both growth and income investors just what they want to see. A consistent up and to the right trend is once in a while broken by a few downtrends. Crossing the 200 day moving average one time ended up being a wonderful buying opportunity for both growth and income investors. The recent pullback in shares makes them very attractive on both a valuations and potential for an increased dividend in 2013. Lathia Motors is a Zacks #1 Rank (Strong Buy).

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service Like Brian Bolan on Facebook  LITHIA MOTORS (LAD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Williams-Sonoma, Inc. - Growth & Income

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Estimates have been rising for Williams-Sonoma, Inc. (WSM) after the company delivered strong first quarter results, driven by a 5% increase in same-store sales.

It is a Zacks #2 Rank (Buy).

Based on consensus estimates, analysts expect low double-digit earnings growth over the next couple of years. This, along with a solid 2.4% yield and reasonable valuation, offers attractive total return potential.

Company Description

Williams-Sonoma is a specialty retailer. Along with the Williams-Sonoma brand, the company operates Pottery Barn and West Elm. It is headquartered in San Francisco, California and has 575 stores throughout North America.

First Quarter Results

Williams-Sonoma reported strong first quarter results on May 22. Earnings per share came in at 34 cents, beating the Zacks Consensus Estimate of 32 cents. It was a 13% increase over the same quarter in 2011.

Net revenues rose 6% to $818 million, driven by a 5% increase in same-store sales. The West Elm brand saw a 22% spike in same-store sales while the Pottery Barn brand increased 9%. This more than offset a 3% decline in its Williams-Sonoma brand.

Meanwhile, operating income increased 6% as the operating margin held steady at 6.9%.

Estimates Rising

Management provided encouraging guidance in its first quarter press release. The company expects to earn between $2.42 and $2.49 in 2012 on 4-6% revenue growth. This prompted analysts to revise their estimates higher, sending the stock to a Zacks #2 Rank (Buy).

The Zacks Consensus Estimate for 2012 is now $2.48, representing 11% growth over 2011 EPS. The 2013 consensus is currently $2.74, also corresponding with 11% growth.

Dividend

In addition to solid, steady growth, Williams-Sonoma pays a solid, steady dividend. Since 2006, the company has increased its dividend 6 times at a compound annual rate of 14%.

It currently yields 2.4%.

Reasonable Valuation

Valuation looks reasonable for this specialty retailer with shares trading at 14x 12-month forward earnings, a discount to the industry median of 16x and its 10-year median of 19x.

The Bottom Line

With rising estimates, solid growth and income, and reasonable valuation, Williams-Sonoma offers plenty to like.

Read the December 7 article here.

This Week's Growth & Income Zacks Rank Buy Stocks:

Energy Transfer Equity, L.P. (ETE) offers investors solid growth and income at an attractive price. The partnership has steadily raised its distribution, which currently yields 6.7%, and estimates have been rising after it delivered solid first quarter results on May 8. It is a Zacks #2 Rank (Buy). Read the full article.

Taubman Centers, Inc. (TCO) delivered strong first quarter results as the company beat the Zacks Consensus Estimates on both revenue and earnings. And to top it off, management increased its guidance for the remainder of the year. This prompted analysts to revise their estimates higher, sending the stock to a Zacks #2 Rank (Buy). Based on consensus estimates, analysts project solid earnings growth over the next two years. On top of this, the company pays a dividend that yields 2.5%. Read the full article.

Estimates have been rising for AMCOL International Corporation (ACO) after the company delivered a strong first quarter earnings beat on April 27. It is a Zacks #2 Rank (Buy). Based on current consensus estimates, analysts project 14% EPS growth this year and 12% growth next year. On top of this, the company pays a dividend that yields a solid 2.5%. And valuation is attractive too, with shares trading at a discount to their historical median on both a price/earnings and price/book value basis. Read the full article.

W.W. Grainger, Inc. (GWW) recently delivered its 8th consecutive positive earnings surprise on record first quarter sales. And management raised its guidance for the remainder of 2012, prompting analysts to revise their estimates higher too. Grainger also recently announced a 21% increase in its quarterly dividend, marking the company's 41st consecutive year of increased dividends. It currently yields 1.7%. Read the full article.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 WILLIAMS-SONOMA (WSM): Free Stock Analysis Report WILLIAMS-SONOMA (WSM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Energy Transfer Equity, L.P. - Growth & Income

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Energy Transfer Equity, L.P. (ETE) offers investors solid growth and income at an attractive price.

The partnership has steadily raised its distribution, which currently yields 6.7%, and estimates have been rising after it delivered solid first quarter results on May 8.

It is a Zacks #2 Rank (Buy).

Company Description

Energy Transfer Equity is a publicly traded partnership, which owns the general partner and 100% of the incentive distribution rights, and approximately 28% of the outstanding limited partner interests of Energy Transfer Partners L.P. (ETP).

It also owns the general partner interests, 100% of the incentive distribution rights, and approximately 22% of the outstanding limited partner interests of Regency Energy Partners L.P. (RGP). ETE is also the parent of Southern Union Company, a diversified natural gas company.

The Energy Transfer Equity family of companies owns approximately 45,000 miles of natural gas and natural gas liquids pipelines. It has a market cap of $10.5 billion.

First Quarter Results

Energy Transfer Equity delivered better than expected first quarter results on May 8. Earnings per share came in at 73 cents, crushing the Zacks Consensus Estimate of 35 cents. It was an 83% increase over the same quarter in 2011.

This increase was due in large part to a gain on the deconsolidation of its propane business - not exactly something to get excited about. But adjusted distributable cash flow did rise 4% year-over-year to $130.7 million.

Outlook

And analysts have been revising their earnings estimates significantly higher for both 2012 and 2013. It is a Zacks #2 Rank (Buy).

Based on consensus estimates, analysts expect strong earnings growth over the next two years. The Zacks Consensus Estimate for 2012 is now $2.20, a 33% increase over 2011 EPS. The 2013 consensus is currently $2.34, corresponding with 6% growth.

6.7% Yield

Not only do analysts expect strong earnings growth but strong distributable cash flow growth as well. And this should translate to higher distributions down the road.

The partnership currently pays a distribution that yields a solid 6.7%. Since 2007, it has raised it at a compound annual rate of 13%.

Valuation

Valuation looks reasonable too. Shares trade at 17.1x 12-month forward earnings, a discount to its historical median of 18.4x.

And its price to tangible book ratio of 1.3 is also below its historical multiple of 2.2.

The Bottom Line

With rising estimates, strong growth projections, a juicy 6.7% yield and reasonable valuation, Energy Transfer Equity offers attractive total return potential.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 ENERGY TRAN EQT (ETE): Free Stock Analysis Report ENERGY TRAN EQT (ETE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

Taubman Centers, Inc. - Growth & Income

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Taubman Centers, Inc. (TCO) delivered strong first quarter results as the company beat the Zacks Consensus Estimates on both revenue and earnings. And to top it off, management increased its guidance for the remainder of the year.

This prompted analysts to revise their estimates higher, sending the stock to a Zacks #2 Rank (Buy).

Based on consensus estimates, analysts project solid earnings growth over the next two years. On top of this, the company pays a dividend that yields 2.5%.

Company Description

Taubman Centers is a real estate investment trust (REIT) focused on shopping centers. The company owns, leases, and/or manages 27 properties throughout the U.S.

It is headquartered in Bloomfield Hills, Michigan and has a market cap of $4.4 billion.

First Quarter Results

Taubman Centers strong first quarter results on April 26. Funds from operation (FFO) per share came in at 75 cents, beating the Zacks Consensus Estimate of 70 cents. It was a 9% increase over the same quarter last year.

Total revenue came in at $169 million, ahead of the consensus of $157 million. This was driven by higher rent and occupancy rates. Leased space at comparable properties increased 150 basis points to 92.0% as average rent per square foot was up 2% to $46.14.

Meanwhile, net operating income (NOI) excluding lease cancellation income increased 9%.

Increased Guidance

Following strong Q1 results, management raised its FFO guidance for 2012 to a range of $3.18-$3.25, up from previous guidance of $3.14 to $3.24. This prompted analysts to revise their estimates higher for both 2012 and 2013, sending the stock to a Zacks #2 Rank (Buy).

The Zacks Consensus Estimate for 2012 is now $3.23, within guidance, and representing 14% growth over 2011 FFO. The 2013 consensus is currently $3.46, corresponding with 7% growth.

Dividend

As a REIT, Taubman Centers must pay out at least 90% of its income to shareholders to avoid paying taxes on that money. This has led to a steady rise in distributions over the last several years:

It currently yields a solid 2.5%.

Valuation

Shares of Taubman Centers aren't cheap, but they're not unreasonable either. The stock trades at 22.3x 12-month forward FFO, a premium to its 10-year median of 15.1x. But considering the strong long-term growth potential, this multiple seems reasonable.

And its enterprise value to EBITDA (earnings before interest, taxes, depreciation and amortization) multiple is 9.2, below the industry median of 12.5 and its 10-year median of 10.6.

The Bottom Line

With rising estimates, strong growth prospects, a 2.5% yield and reasonable valuation, Taubman Centers offers a lot to like.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

 TAUBMAN CENTERS (TCO): Free Stock Analysis Report TAUBMAN CENTERS (TCO): Free Stock Analysis Report TAUBMAN CENTERS (TCO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

AMCOL International Corporation - Growth & Income

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Estimates have been rising for AMCOL International Corporation (ACO) after the company delivered a strong first quarter earnings beat on April 27.

It is a Zacks #2 Rank (Buy).

Based on current consensus estimates, analysts project 14% EPS growth this year and 12% growth next year. On top of this, the company pays a dividend that yields a solid 2.5%.

And valuation is attractive too, with shares trading at a discount to their historical median on both a price/earnings and price/book value basis.

Company Description

AMCOL International Corporation develops and markets a wide range of mineral and technology based products which are used in various industrial, environmental and consumer applications. The company reports revenue in the following 4 segments:

Minerals & Materials (52% of total revenue)
Environmental (21%)
Oilfield Services (23%)
Transportation (4%)

It is headquartered in Hoffmann Estates, Illinois and has a market cap of $924 million.

First Quarter Results

AMCOL delivered better than expected first quarter results on April 27. Earnings per share came in at 43 cents, beating the Zacks Consensus Estimate by 3 cents. It was an 10% increase over the same quarter last year.

Sales rose 8% to $235.8 million, driven by a 7% increase in Minerals & Materials and a 24% jump in Oilfield Services.

Gross profit expanded 110 basis points to 27.6% of sales. Meanwhile, operating income increased 16% year-over-year as the operating margin expanded 60 basis points to 9.1%.

Estimates Rising

Analysts revised their estimates higher for both 2012 and 2013 following strong Q1 results, as you can see below:

This sent the stock to a Zacks #2 Rank (Buy).

The Zacks Consensus Estimate for 2012 is now $2.07, representing 14% growth over 2011 EPS. The 2013 consensus is currently 12% higher at $2.31.

Solid Dividend

On top of this growth, Amcol pays a dividend that yields a solid 2.5%.

The company aggressively raised its dividend throughout the first part of the last decade but hasn't increased it since 2008. With strong earnings growth projections and a very manageable payout ratio of 35% based on the 2012 consensus estimate, I wouldn't be surprised to see a dividend hike in the near future.

Reasonable Valuation

Despite strong Q1 results and rising estimates, shares of AMCOL have pulled back recently along with the overall market. This has led to some attractive valuations.

The stock trades at just 13.3x 12-month forward earnings, a discount to its 10-year median of 15.7x. Its price to book ratio of 2.2 is also below its historical multiple of 2.4.

The Bottom Line

With rising estimates, strong growth, a solid dividend and reasonable valuation, AMCOL offers investors a lot to like.

Todd Bunton is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor Service.

 AMCOL INTL CP (ACO): Free Stock Analysis Report AMCOL INTL CP (ACO): Free Stock Analysis Report AMCOL INTL CP (ACO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

W.W. Grainger, Inc. - Growth & Income

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W.W. Grainger, Inc. (GWW) recently delivered its 8th consecutive positive earnings surprise on record first quarter sales. And management raised its guidance for the remainder of 2012, prompting analysts to revise their estimates higher too.

It is a Zacks #2 Rank (Buy) stock.

Grainger also recently announced a 21% increase in its quarterly dividend, marking the company's 41st consecutive year of increased dividends. It currently yields 1.7%.

Company Description

Grainger distributes maintenance, repair, and operating (MRO) supplies such as motors, tools, fasteners, and safety gear.

It is headquartered in Lake Forest, Illinois and has a market cap of $13.1 billion.

First Quarter Results

Grainger delivered better than expected first quarter results on April 17. Earnings per share came in at $2.57, beating the Zacks Consensus Estimate by 6 cents. It was an 18% increase over the same quarter last year.

Sales rose 16% to $2.2 billion, driven by a 10% increase in volume and a 3% increase in price. Sales were up 11% in the U.S. and 13% in Canada.

Operating income increased 16% year-over-year, as the gross margin expanded from 44.0% to 44.4% of sales.

Guidance Raised

Following strong Q1 results, management raised its guidance for the remainder of 2012. The company stated "given the opportunity in the MRO market, coupled with continued investments in our proven growth drivers, we remain confident in our strategy and the prospects for future growth. We also expect to generate better earnings leverage as the year progresses."

The company expects to earn between $10.40 and $10.80 per share on sales growth of 12-14%, up from previous guidance of $9.90-$10.65 on 10-14% top-line growth.

This prompted analysts to revise their estimates higher for both 2012 and 2013, sending the stock to a Zacks #2 Rank (Buy) stock.

The Zacks Consensus Estimate for 2012 is now $10.72, within guidance, and representing 19% growth over 2011 EPS. The 2013 consensus is currently 15% higher at $12.30.

As you can see from Grainger's Price & Consensus chart, consensus estimates have steadily risen over the last several months as the company has delivered 8 straight positive earnings surprises:

Dividend Raised

Along with rising earnings estimates has come a rising dividend. The company recently announced a 21% increase in its quarterly dividend, marking the company's 41st consecutive year of increased dividends.

It currently yields a solid 1.7%.

Reasonable Valuation

Despite strong first quarter results, increased guidance and rising estimates, shares of GWW have sold off considerably during the recent market pullback.

Shares now trade around 17.5x forward earnings, in-line with its historical median.

The Bottom Line

With very strong earnings momentum, a bullish outlook from management, a rising dividend and reasonable valuation, Grainger offers investors a lot to like.

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