Zacks Buy List Highlights4 March 2005
Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list. The #1 ranked stocks highlighted today include the following companies: Deckers Outdoor Corporation (NASDAQ:DECK) and Storage Technology Corporation (NYSE:STK). Further they announced #2 Rankings (Buy) on two other widely held stocks: Brocade Communications Systems, Inc. (NASDAQ:BRCD) and Valueclick, Inc. (NASDAQ:VCLK). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88
Stocks ranked #1 (Strong Buys) by Zacks have produced an average annual return of +33.4% since inception in 1988. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked stocks gained +43.8% while the S&P 500 tumbled -37.6%.
Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks Zacks ranks:
Deckers Outdoor Corporation (NASDAQ:DECK) recently reported a fourth quarter net income of 72 cents per diluted share, topping the consensus by about +41% and eclipsing last year's performance. The company said robust demand for UGG footwear, along with improved deliveries from the factories and strong retail sell-throughs, allowed it to once again exceed expectations. Entering 2005 with confidence, Deckers Outdoor raised full year earnings guidance. Analysts followed suit and increased earnings estimates for the year ending December 2005 by 30 cents, or about +13%, over the past seven trading days.
Storage Technology Corporation (NYSE:STK) earnings estimates for the year ending December 2005 advanced 3 cents, or almost +2%, from one month ago. In late January, the company mentioned that its superior technologies, strong customer relationships and solid business model allowed it to deliver robust earnings for the quarter and the full year. Storage Technology reported fourth quarter earnings per diluted share of 83 cents, surpassing the consensus by almost +26%. Revenue for the fourth quarter was $665.8 million compared to $655.1 million for the fourth quarter of 2003.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks ranked by Zacks:
Brocade Communications Systems, Inc. (NASDAQ:BRCD) stated last month that it achieved its eighth consecutive quarter of revenue growth and its seventh consecutive quarter of increased non-GAAP at operating profitability. Such a performance was driven by the strong acceptance of a refreshed and enhanced product line, and execution on its business model. The company's fiscal first quarter net income was 10 cents per diluted share, which exceeded the consensus by +25% and soared past last year's 3 cents. October 2005 fiscal year earnings estimates moved up 8 cents, or almost +26%, in the past month, including an advance of 1 cent , or almost +3%, over the past seven trading days.
Valueclick, Inc. (NASDAQ:VCLK) reported fourth quarter net income of 16 cents per diluted common share in mid February, more than doubling last year's 7 cents and jumping ahead of the consensus by +60%. Earnings estimates for the year ending December 2005 climbed 3 cents, or about +8%, from a month ago. In the quarterly report, the company said that it concluded a successful 2004 on a high note, with record revenue and profitability, and year-over-year organic revenue growth of +49 percent in the fourth quarter.
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About the Zacks Rank
For over 15 years, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +33.4%. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked stocks gained +43.8% while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 133.5% annually (12.21% vs. 5.23% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the portfolio trading.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks #1 Ranked stocks highlighting those stocks poised to outperform the market. http://at.zacks.com/?id=90
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Source: Business Wire
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