Contents. Introduction 2. Analog Devices (ADI) 3. Deere & Company (DE) 4. Gol Linhas Aereas Inteligentes (GOL) 5. SMART Global Holdings (SGH) 6

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1 $99 VALUE

2 Contents Introduction 2 Analog Devices (ADI) 3 Deere & Company (DE) 4 Gol Linhas Aereas Inteligentes (GOL) 5 SMART Global Holdings (SGH) 6 Skechers (SKX) 7 Sterling Construction (STRL) 8 Thor Industries, Inc. (THO) 9 What to Do Next 10 1

3 Introduction The predictive ability of the Zacks Rank cannot be denied. In fact, since 1988, if you invested in Zacks Rank #1 stocks, you would have averaged a gain of +25% per year. This performance has been examined and attested by Baker Tilly Virchow Krause, LLP,* an independent accounting firm. Now, in this report, you ll receive highlights on 7 stocks from the more than 200 companies that compose the coveted Zacks #1 Rank List. 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 Strong Buy stocks. Inside this report, you ll discover the company financials, earnings data and analysis of these 7 promising companies. 2

4 Analog Devices (ADI) Analog Devices (ADI) is an original equipment manufacturer of semiconductor devices. The chipmaker reported excellent results for its Q4 ended October 28, beating our estimates on both the top and bottom lines. The company has a pretty good record at beating estimates, with not a single miss in the past five years. The average quarterly beat for the last four quarters was more than 16%. Earlier this year, the company completed the acquisition of another analog chipmaker Linear Technology, which is expected to reduce Analog s reliance on Apple while deepening its competitive moat and adding products in other fast-growing categories. Analysts have significantly raised their estimates for the company after strong earnings and an upgraded guidance.. 3

5 Deere & Company (DE) Deere & Company (DE) is a leading manufacturer of agricultural, construction, and forestry machinery. For its fourth-quarter fiscal 2017, the company posted earnings of $1.57 per share that beat the Zacks Consensus Estimate of $1.46 and surged about 74% year-over-year. Total equipment revenues of $7.09 billion were up 26% from the year-ago period and ahead of our consensus estimate of $6.91 billion. Including financial services, total net sales came in at $8.02 billion, which marked year-over-year growth of 23%. Deere s strong quarter has inspired a plethora of positive earnings estimate revisions. We are seeing 100% agreement among the analysts that are revising their estimates. These analysts are in agreement with the company s upbeat guidance, and we now expect Deere to have another remarkable fiscal year in

6 Gol Linhas Aereas Inteligentes (GOL) Gol Linhas Aereas Inteligentes (GOL), Brazil s largest airline, recently reported earnings that crushed Zacks Consensus Estimates for earnings (actual $0.60 vs. expected $0.19) and revenue (actual $859 million vs. expected $783 million). The company saw year over year gains in the following major areas: net revenues +13.2%, recurring operating income +49.3%, auxiliary and cargo revenues +7.0%, net income +12.1%, and adjusted total net debt -66.7%. Due to improved demand both domestically and internationally, an expanding Brazilian economy, an upturn in the number of total seats, and international development; management increased FY 17 EPS guidance from a range of $ to $ Over the past 30 days, earnings estimates have greatly improved with Q4 17, FY 17, and FY 18 all seeing positive revisions. 5

7 SMART Global Holdings (SGH) SMART Global Holdings (SGH) is a $788 million manufacturer of specialty semiconductor memory solutions, including DRAM and flash products. In the midst of its fiscal 2018 first quarter, SMART delivered an earnings pre-announcement on November 15 where management raised their Q1 adjusted EPS view to cents from cents vs the Zacks Consensus of 82 cents. The revenue outlook was also boosted to $250-$260 million from $225-$240 million, vs the consensus of $233 million. Wall Street analysts responded with a 21% boost to the current fiscal year EPS consensus and an 18% bump to the following year. Even with the stock s 25% surge this month, these EPS estimate hikes keep the stock trading under 10X next year s projected $4+. 6

8 Skechers (SKX) Skechers (SKX) reported third quarter earnings that soared past estimates, causing shares to jump over 35% to a new 52-week high. Earnings came in at 59 cents per share, coming in way above the Zacks Consensus Estimate of 43 cents per share. Total revenues grew 16.2% to $1.095 billion, also beating our consensus estimate of $1.065 billion. Skechers saw an impressive 4.4% increase in comparable store sales as well. For its current quarter, the company expects earnings to increase an incredible 225%, a testament to the growing popularity of the Skechers brand in addition to how well the company believes it will perform during this holiday season. Skechers projects net sales in the fourth quarter in the range of $860 million to $885 million, and diluted earnings per share of $0.09 to $0.14. Earnings estimates for 2018 are also on the rise. 7

9 Sterling Construction (STRL) Sterling Construction (STRL), together with its subsidiaries, operates as a heavy civil construction company.it builds, repairs, and reconstructs transportation infrastructure projects, including highways, roads, bridges and airfields. On October 30, the company reported EPS of $0.26 when $0.22 was expected. It was the third consecutive beat of the Zacks Consensus Estimate and good for an 18% positive earnings surprise. Revenues were sharply higher than expected. The company posted sales of $304M when the Zacks Consensus Estimate was calling for $262M. That $42M difference translates to a 16% positive revenue surprise. Importantly, the company guided higher as well. Over the last several months, the Zacks Consensus Estimate has been moving higher. 8

10 Thor Industries, Inc. (THO) Thor Industries, Inc. (THO) is riding the demand for RVs and towables to new records. This Zacks Rank #1 (Strong Buy) just posted its best quarterly revenue and profitability in the company s history. Fiscal first quarter earnings were $2.43, crushing the Zacks Consensus Estimate by 35%. It was the third straight beat in a row. Revenue was an all-time quarterly record of $2.23 billion. Three estimates were raised after the report for fiscal 2018, pushing the Zacks Consensus Estimate up to $8.71 from $8.14. That is earnings growth of 22.9% as the company made $7.09 in fiscal Additionally, three estimates were also raised for fiscal With the economy strong and the stock market at new highs, Thor looks on track for another record year in Fiscal

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

12 Copyright 2017 Zacks Investment Research Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks Terms and Conditions of Service disclaimer. *Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers a period beginning on January 1, 1988 through December 31, 2016 and was examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank # 1 that were rebalanced monthly (see additional details regarding rebalancing below) with zero transaction costs. These are not the returns of actual portfolios of stocks. Zacks Rank #1 stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank #1 stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank #1 stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank #1 stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Rank #1 stocks can, and often do, change throughout the month. Certain Zacks Rank #1 stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed above. 11