Contents. Introduction 2. Cliffs Natural Resources (CLF) 3. McDermott International (MDR) 4. Post Holdings (POST) 5.

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1 $99 VALUE

2 Contents Introduction 2 Cliffs Natural Resources (CLF) 3 McDermott International (MDR) 4 Post Holdings (POST) 5 Pfizer (PFE) 6 Rent-A-Center (RCII) 7 United Natural Foods (UNFI) 8 WebMD (WBMD) 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 Cliffs Natural Resources (CLF) Cliffs Natural Resources (CLF) is an international mining company and a producer of iron ore pellets in North America as well as a supplier of metallurgical coal to the global steelmaking industry. The stock is a Zacks Rank #1 (Strong Buy) right now because the turnaround story is in full effect. Analysts have been increasing earnings estimates on this stock as things have begun to look up for the industry. The iron mining industry is in the Top 8% of our Zacks Industry Rank because there are lots of stocks in the business that are turning the corner. Several analysts have revised their earnings expectations on the backs of some dollar weakness and an overall improvement in the industry. This has caused them to increase their estimates, jacking up our Zacks Consensus Estimate to breakeven for the current quarter and a whopping 68 cent gain for the current year. 3

5 McDermott International (MDR) McDermott International (MDR) is an oil and gas services company that provides engineering, procurement, construction and installation for upstream field developments. The company beat the Zacks Consensus Estimate of $0.01 by $0.12 for a 1200% positive earnings surprise. Over the last six quarters, MDR has topped the Zacks Consensus Estimate each time. The topline was equally as strong with revenues of $729M, which was $59M more than expected for an 8.7% positive revenue surprise. This Zacks Rank #1 (Strong Buy) is now benefiting from the post earnings drift higher is now expected to be a positive earnings year and not a year of red ink. The Zacks Consensus Estimate was calling for a loss of 3 cents in April, but following the huge beat, analysts moved their forecast up 8 cents. 4

6 Post Holdings (POST) Post Holdings (POST) is a manufacturer, marketer and distributor of branded ready-to-eat cereals, such as Honey Bunches of Oats, Pebbles, Grape-Nuts and many more. In the most recent earnings report, Post Holdings almost doubled the Zacks Consensus Earnings Estimate, and handily beat the Zacks Consensus Revenue Estimate. Because of the strong Q2 16 performance, management increased their fiscal 2016 Adjusted EBITDA guidance to between $893m and $913m, up from the previous guidance of $810m to $840m. Earnings estimates have been on the rise. Due to management s long term planning, the company has seen solid traction from their recent acquisitions, and improvements in organic sales. The company has about $870 million in cash for additional acquisitions that could enhance their long term plans. 5

7 Pfizer (PFE) Pfizer (PFE) is a leading pharmaceutical company in the world. The company reported much betterthan-expected results for Q1, beating on both the top and bottom lines while also raising their guidance for the current year. Earnings of $0.67 per share handily beat the Zacks Consensus Estimate of $0.55. PFE has an excellent history of beating estimates, having missed only once in last five years. Revenues of $13 billion were also ahead of the Zacks Consensus Estimate of $11.9 billion. This was the sixth consecutive quarter of revenue growth for the company. They now expect EPS in the range of $2.38 to $2.48, above the street consensus of $2.30. Revenue guidance of $51 billion to $53 billion was also better than analysts estimate of $51.24 billion. They continue to reward shareholders through share buybacks and dividends. The current dividend yield is 3.6%. 6

8 Rent-A-Center (RCII) Rent-A-Center (RCII) operates company-owned rent-to-own stores that offer high-quality, durable goods to consumers, such as consumer electronics, appliances, furniture and accessories, In the new renting and sharing economy, younger consumers are becoming more comfortable with a pay as you go system and Rent-A-Center stands to benefit from this fundamental change in trend. Last quarter, the company came out with Q1 earnings at $0.48 verse the $0.40 expected, a beat of 20%. It was the fifth straight EPS beat, a trend that hasn t been rewarded by investors yet. This is creating a strong valuation case for RCII if the EPS trends continue. Rent-A- Center will go for another EPS beat on July 25th. Earnings estimate revisions for both fiscal year 2016 and 2017 are headed higher, suggesting the stock s earnings momentum will continue. It sports a Zacks Style Score of A in Value and Growth and has a VGM Score of A. It pays a dividend yield of 2.67%. 7

9 United Natural Foods (UNFI) United Natural Foods (UNFI) sells organic, natural, and specialty foods across the U.S. and Canada. The company is beating out the S&P 500 from a YTD look, and things are looking especially promising following the company s latest earnings report. The company thoroughly crushed estimates, beating expectations by about 15%. But the outlook was the real key for this stock, as management raised sales guidance and boosted EPS projections as well. And with these improved projections from management, analysts were pretty much racing to raise their estimates. These increases have helped to boost the consensus estimate by about 5% for both the current quarter and the current year, setting up a nice trend for UNFI stock heading into the summer. No wonder shares of UNFI currently have a Zacks Rank #1 (Strong Buy) and why we are looking for outperformance from this company in the months ahead. 8

10 WebMD (WBMD) WebMD (WBMD) is a $2.5 billion provider of online health information services to consumers, physicians, employers, health plans, and other healthcare professionals. On May 4, WebMD posted earnings of 36 cents per diluted share, beating the Zacks Consensus Estimate of 33 cents by 9%. Revenue rose by 11% to $158.6 million year-over-year and was above Wall Street s projections of $156.6 million. In 2016, the company sees EPS in the range of $1.81 to $1.93 on revenue of $695 million to $708 million. Accordingly, analysts raised the full-year 2016 profit consensus from $1.80 to $1.87, representing over 26% EPS growth. They also bumped up 2017 projections from $2.03 to $2.18, for 16.5% growth. These actions moved WBMD back to the coveted Zacks #1 Rank, which only about 200 stocks can share at any one time. 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