Contents. Introduction 2. Allied World Assurance Company (AWH) 3. Euronet Services (EEFT) 4. Grubhub (GRUB) 5. Arcelor Mittal (MT) 6

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1 $99 VALUE

2 Contents Introduction 2 Allied World Assurance Company (AWH) 3 Euronet Services (EEFT) 4 Grubhub (GRUB) 5 Arcelor Mittal (MT) 6 Sibanye Gold Limited (SBGL) 7 Tahoe Resources (TAHO) 8 United Rentals, Inc. (URI) 9 What to Do Next 10 1

3 Introduction The predictive ability of the Zacks #1 rank cannot be denied. An average annual gain of 26% since Beating the S&P 500 by nearly three times during that period. Earning a 43.8% total return from when the stock markets suffered record declines. Now, in this report, you ll receive highlights on 7 stocks from the more than 200 companies that compose the coveted Zacks #1 Ranked list of Strong Buys. Remember only 5% of all stocks covered by the proprietary Zacks Rank system have the promise and potential to beat the market in the next 30 days like these #1 stocks. Inside this report, you ll discover the company financials, earnings data and analysis of these 7 promising companies. The return numbers presented assume no transaction costs. Details of how Zacks calculates performance for the Zacks Rank Portfolios and strategies is available at: 2

4 Allied World Assurance Company (AWH) Allied World Assurance Company (AWH) is one of Bermuda s leading property and casualty insurers. The company recently reported Q2 16 earnings, and they absolutely annihilated both the Zacks Consensus Earnings and Revenue estimates. The company reported year over year gains in Net Income %, Operating Income %, Underwriting Income %, cut their loss and loss expense ratio from 66.8% to 60.6%, and decreased their expense ratio from 32.4% to 31.8%. Over the past 7 days, earnings estimates have been on the rise. Besides posting amazing income and cost cutting measures in Q2, management has also repurchased a total of 4,427,396 shares, year to date, and still has $410 million remaining on its outstanding share repurchase authorization. Also, in April of 2016, shareholders approved four quarterly dividends equal to $0.26 per share. The first dividend was paid on June 30, The company is currently paying a dividend yield of 2.49%.. 3

5 Euronet Services (EEFT) Euronet Services (EEFT) is an industry leader in providing secure electronics financial transaction solutions. The company offers financial payment middleware, financial network gateways, outsourcing and consulting services to financial institutions and mobile operators. EEFT is a Zacks Rank #1 (Strong Buy) with a Growth Style Score of A and a Momentum Style Score of B. Over the last week, two analysts have increased their earnings estimates for the current quarter, next quarter, current year, and next year. The bullish behavior is a direct result of EEFT beating earnings by 4 cents this quarter. The revisions have pushed up our Zacks Consensus Estimate from $1.13 to $1.28 for the current year, and up from $3.56 to $3.83 for the current year.. 4

6 Grubhub (GRUB) Grubhub (GRUB), the nation s leading online and mobile food ordering company, delivered the coveted earnings trifecta last week in their Q2 report on July 28. The earnings trifecta is what we here at Zacks call top and bottom line beats, plus raised guidance. Grubhub reported Q2 EPS of $0.23 versus the $0.19 expected. Revenue also came in higher at $120 million versus expectations of $114 million. Improved engagement with customers and restaurants drove these higher operating metrics, more than offsetting seasonal weakness. In addition, the company issued a raise in their fiscal year 2016 revenue guidance to $ million versus $469 million expected. This guidance is on the back of strong growth with active dinners up 24% year-over-year to 7.35 million. 5

7 Arcelor Mittal (MT) Arcelor Mittal (MT) operates as a global integrated steel and mining company with a presence in more than 60 countries. The company sits in an industry that is ranked 12 out of 265 (Top 5%) in the Zacks Industry Rank after a string of strong EPS beats from companies within the sector. MT reported on July 29th with a 375% surprise to the upside. Last quarter was the third straight beat and the fourth out of the last five quarters. In addition to the beats, the stock price has followed suit, heading higher after earnings each time. Look for this trend to continue as the stock finally has some positive momentum, which hasn t been seen in over 5 years. MT will go for its fourth straight EPS upside surprise when it reports in the fall. While estimates for that quarter are currently flat, estimates for the year have ticked higher over the last 30 days. 6

8 Sibanye Gold Limited (SBGL) Sibanye Gold Limited (SBGL) is one of the largest gold producers in South Africa. It is a mid-cap company with a market cap of $3.8 billion that operates two mines. With the price of gold surging this year, the gold miners find themselves in an enviable position of selling their product for a much higher price than previously possible. Analysts have been raising estimates in the last 30 days. Even though shares have soared this year to new 2-year highs, there s still value. Sibanye is trading with a forward P/E of just 6.9. It also pays a dividend, which is unusual in the gold mining industry. It is currently yielding 1.2%. The gold miners are in the top 3% of the Zacks Industry Rank because of the strong fundamentals. The gold miners are perfectly set up this summer to fit right into that short term play as earnings rise. 7

9 Tahoe Resources (TAHO) Tahoe Resources (TAHO) has mines in Guatemala and Peru, and it actually has exposure to both silver and gold. Analysts have been embracing TAHO shares as evidenced by recent increases in earnings estimates. In fact, we haven t seen a single estimate move lower in the past sixty days for either the current quarter or the current year, while analysts are now looking for EPS growth of close to 28% this year. And if that wasn t enough, TAHO shares have an A Grade for Momentum, thanks in large part to its nice move over the past three months, and momentum in earnings estimate revisions as well. The silver industry currently has a Zacks Industry Rank in the top 1% and it is actually second overall out of more than 250 industries. Investors have largely overlooked silver and silver miners this year, shunning them in favor of companies more-focused on the gold space. However, now could be the time to make a bet on some of the underperformers in this space which still have strong fundamentals. 8

10 United Rentals, Inc. (URI) United Rentals, Inc. (URI), the largest rental company in the world, is coming out of the slowdown due to the energy downturn. On July 20, the company reported its second quarter results and beat the Zacks Consensus Estimate for the second straight quarter. Earnings were $2.06 compared to the consensus of $1.84, for a 22 cent beat. In May and June, month-over-month sequential rates increased 50 and 60 basis points, respectively. These were the first increases in sequential rates in 16 months. Given the better-thanexpected quarterly results, analysts have been raising 2016 and 2017 estimates. United Rentals shares sold off over the last 2 years as oil prices plunged, but they have since rebounded off the lows. Even with the rebound, shares are still cheap. For investors looking for a way to play the energy and construction rebound in the United States, United Rentals is one to keep on the short list. 9

11 What to Do Next In addition to the hand-selected picks included in this special report, you can move yourself way ahead of the crowd in any market environment with the following: As part of this free report, you will now receive our free daily e-newsletter, Profit from the Pros. Each morning, Executive Vice President Steve Reitmeister will summarize the market, what it means for investors and what to do next. Plus you get links to articles featuring some of our top stock, ETF and mutual fund recommendations. Be sure to look for it in your inbox before the markets open every day. Now you should bookmark our homepage to take advantage of one of the most complete investment websites around. Go there now: Even better, get all Zacks private buys and sells through our Zacks Ultimate program. Watch our trades and market insights from all of Zacks private portfolios from growth to value to momentum stocks, from insider moves to big earnings surprises, from options to ETFs, even trades EVP Steve Reitmeister makes in his personal account, and much more. This see-everything arrangement is unique: one month, one dollar, not one cent of further obligation. Learn more about the Zacks Ultimate Trial now. 10