(PNCL) Top Performer for Thurs: Pinnacle Airlines – Zacks #1 Rank Top Performers

A couple of weeks ago, MagicDiligence looked at MFI stocks in the Forbes' Best 200 Small Companies for 2009 list. In producing that article, I thought it would be interesting to take these 200 firms as a "universe", calculate MFI earnings yield and return on capital statistics for each, and then rank them to get a Magic Formula-style list of which ones are the best combination of cheap and high quality.

The recent break gave me a chance to do just that. Before we get to the list, though, a few things should be mentioned. The first is that some current official MFI stocks are not that highly rated here, though most are. The main reason for this is how different data providers treat operating expenses. For example, InterDigital (IDCC - a current MFI stock) has $37 million in one-time restructuring fees in the past 12 months that are technically operating expenses but should be treated as non-operating for MFI purposes. The data feed used for this project included them, leading to its relatively low ranking. Also, Joel Greenblatt's exact recipe for calculating MFI statistics is unknown. The numbers below use MagicDiligence's approximations for earnings yield and MFI return on capital.

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

• 8x8 Inc (EGHT)
• Actel Corp (ACTL)
• Air Methods Corp (AIRM)
• American Equity Investment Life Holding Co (AEL)
• AMERCO (UHAL)
• Ameriprise Financial Inc (AMP)
• Atlantic Tele-Network Inc (ATNI)
• Audiovox Corp (VOXX)
• Bare Escentuals Inc (BARE)
• R.G. Barry Corp (DFZ)
• Bell Microproducts Inc (BELM)
• Bio-Rad Laboratories Inc (BIO)
• BNP Paribas SA (BNPQY)
• Bristow Group Inc (BRS)
• Cabot Oil & Gas Corp (COG)
• Cadbury Plc (CBY)
• Cantel Medical Corp (CMN)
• Cato Corp (CATO)
• China Green Agriculture Inc (CGA)
• Clearwater Paper Corp (CLW)
• Connecticut Water Service Inc (CTWS)
• Domtar Corp (UFS)
• Dorman Products Inc (DORM)
• Dover Motorsports Inc (DVD)
• Gilat Satellite Networks Ltd (GILT)
• Herley Industries Inc (HRLY)
• Hertz Global Holdings Inc (HTZ)
• Illinois Tool Works Inc (ITW)
• International Flavors & Fragrances Inc (IFF)
• iRobot Corp (IRBT)
• Lancaster Colony Corp (LANC)
• LJ International Inc (JADE)
• Maidenform Brands Inc (MFB)
• Marlin Business Services Corp (MRLN)
• Medical Action Industries (MDCI)
• Neenah Paper Inc (NP)
• Quantum Corp (QTM)
• Quidel Corp (QDEL)
• RCM Technologies Inc (RCMT)
• Rentech Inc (RTK)
• Rodman & Renshaw Capital Group Inc (RODM)
• Rogers Corp (ROG)
• Stanley Inc (SXE)
• Systemax Inc (SYX)
• Ultrapar Participacoes SA (UGP)
• U.S. Auto Parts Network Inc (PRTS)
• Vantage Drilling Co (VTG)

The third quarter earnings season is about over. It's time to take stock (no pun intended, well, maybe it was).

After each quarter's earnings season, I try to pull together what I call the Growth Report. Part 1 compiles the list of stocks that have shown a year-over-year increase in both revenue and earnings AND a sequential quarter-over-quarter increase in both revenue and earnings. Given the perception that the economic downturn is easing, it will be interesting to see how many companies have been able to to pull off this trick.

Here are the stocks added to the Zacks #1 Rank ("strong buy") List today:

• 3D Systems Corp (TDSC)
• AboveNet Inc (ABVT)
• Air Methods Corp (AIRM)
• Cia de Bebidas das Americas (ABV)
• Avnet Inc (AVT)
• Briggs & Stratton Corp (BGG)
• Bristow Group Inc (BRS)
• Cavco Industries Inc (CVCO)
• CNinsure Inc (CISG)
• John Bean Technologies Corp (JBT)
• Lumber Liquidators Inc (LL)
• National Semiconductor Corp (NSM)
• Natural Resource Partners LP (NRP)
• NBTY Inc (NTY)
• Oxford Industries Inc (OXM)
• Park Electrochemical Corp (PKE)
• Schawk Inc (SGK)
• Teekay LNG Partners LP (TGP)
• Trimas Corp (TRS)
• Universal Corp (UVV)
• Weis Markets Inc (WMK)