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CHICAGO, Aug 10, 2004 (BUSINESS WIRE)
Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of +33.1% 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%. Among the #1 ranked stocks today we highlight the following companies: Adobe Systems Inc. (NASDAQ:ADBE) and Scientific-Atlanta, Inc. (NYSE:SFA). Further they announced #2 Rankings (Buy) on two other widely held stocks: McDonald's Corporation (NYSE:MCD) and Xerox Corporation (NYSE:XRX). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88
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 we rank:
Adobe Systems Inc. (NASDAQ:ADBE) is a provider of graphic design, publishing, and imaging software for Web and print production. Adobe Systems will not report its fiscal third quarter numbers until September 20th, but has already provided a glimpse of the period when it recently raised its financial targets. The company now expects revenue between $380 million and $400 million, compared to the prior target of $360 million to $400 million. Earnings per share are now expected at 36 cents to 41 cents, instead of 31 cents to 36 cents. The consensus was expecting 34 cents. Adobe Systems increased its targets thanks to greater than expected revenues for its Adobe Photoshop and Creative Suite products, as well as its Acrobat product family. In June, the company reported fiscal second quarter diluted earnings of 44 cents per share, which marked the 10th straight quarter of earnings per share above Wall Street expectations. Earnings estimates for the year ending November 2004 remain above levels from three months ago by 12 cents, or approximately +8%, including a rise of 5 cents, or about +3%, over the past seven trading days. Adobe Systems also indicated that it's experiencing solid demand in all of its major geographic markets, which is good news for the company and its shareholders moving forward.
Scientific-Atlanta, Inc. (NYSE:SFA) is a leading supplier of digital content distribution systems, transmission networks for broadband access to the home, digital interactive set-tops and subscriber systems designed for video, high-speed Internet and VoIP networks, and worldwide customer service and support. Scientific-Atlanta recently reported fiscal fourth quarter earnings of 35 cents per share, excluding items, on sales of $458.8 million. That earnings result was in-line with the consensus and improved upon the year-ago result of 31 cents. In the prior six quarters, Scientific-Atlanta had topped Wall Street's quarterly earnings expectations. Sales improved by +14% from the year-ago result. Bookings in the fourth quarter reached $540.4 million, which was an increase of +18% from last year. It also marked a +21% jump on a sequential basis. The company has enjoyed several upward revisions from analysts recently, and earnings estimates for the year ending June 2005 are up 9 cents, or approximately +6%, from levels achieved one month ago. Markets for Scientific-Atlanta's products were more robust in fiscal 2004, and consumers are increasingly demanding advanced video services. The company appears to have a lot of running room, so investors may want to take a closer look.
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 we rank:
McDonald's Corporation (NYSE:MCD) develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. Yesterday, McDonald's reported that same-store sales for McDonald's restaurants worldwide increased by +6.4% in July. That marked the company's 15th consecutive month with a global same-store sales increase. In late July, McDonald's reported second quarter diluted earnings of 47 cents per share, which was 10 cents better than the year-ago result and in-line with the consensus. The company also reported double-digit growth in systemwide sales, revenues, and operating income for the quarter, as well as for the six-month period. The company said its 'Plan to Win' continues to deliver results worldwide. Earnings estimates for this year, ending December 2004, are up 6 cents, or approximately +4%, from three months ago, including a rise of 3 cents, or about +2%, in the past 30 trading days. McDonald's isn't sitting on its laurels, and remains focused on operational excellence, leadership marketing, innovation and financial discipline. Given its impressive string of sales results, and a strong quarterly performance, McDonald's has a lot of momentum going forward and may satisfy your hunger for profit.
Xerox Corporation (NYSE:XRX) is a leader in the global document market, providing document solutions that enhance business productivity. In late July, Xerox reported a strong second quarter, as earnings per share topped the consensus and year-ago result. The company stated services-led offerings for large enterprises generated major wins during the quarter, as continued strength in color technology and monochrome light production systems contributed to equipment sales growth. The quarter's result gave the company confidence to raise its full-year earnings forecast to between 80 cents and 84 cents per share, compared to its earlier prediction of between 67 cents and 72 cents. Earnings estimates for the year ending December 2004 are above levels from one month ago by 6 cents, or about +8%. The company attributed its solid earnings result to market demand for new systems and specialized services, along with a clear focus on providing smart document management for small to large businesses. With popular new products and another solid quarterly report, investors may want to consider enhancing their portfolio's productivity with a position in this company.
To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=89
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 +33.1% compared to the (a)S&P 500 return of only +12.0%. 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 140% annually (12.0% vs. 5.0% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.
For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform the market. http://at.zacks.com/?id=90
The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.
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SOURCE: Zacks.com
Zacks.com Jason Kissinger, 312-630-9880 x 260 myzacks@zacks.com www.Zacks.com
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