Buy List Highlights: United Online, Urban Outfitters, Krispy Kreme, and RadioShack.Business Editors CHICAGO--(BUSINESS WIRE)--Oct. 1, 2003 Zacks.com releases another list of stocks that are currently members of the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. Zacks #1 Ranked list which has produced an average annual return of +33.6% since 1988 and has gained +13.3% annually since 2000 as the markets have been tumbling down. Among the #1 ranked stocks today we highlight the following companies: United Online, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :UNTD) and Urban Outfitters Urban Outfitters, Inc. NASDAQ: URBN owns and operates three retail clothing brands: Urban Outfitters, Anthropologie and Free People. The first store opened in 1970 in Philadelphia, Pennsylvania, focusing on "funky" fashion and household products. , Inc., (NASDAQ:URBN). Further they announced #2 Rankings (Buy) on two other widely held stocks: Krispy Kreme Krispy Kreme is a chain of doughnut stores. Its parent company is Krispy Kreme Doughnuts, Inc. (NYSE: KKD), based in Winston-Salem, North Carolina, United States. Doughnuts, Inc. (NYSE NYSE See: New York Stock Exchange :KKD KKD Kultur- og Kirkedepartementet (Norwegian: Ministry of Culture and Church Affairs) KKD Krispy Kreme Doughnuts (stock symbol) KKD Kilocalories per Kilogram of body weight Per Day ) and RadioShack Corporation (NYSE:RSH (Remote SHell) A Unix command that enables a user to remotely log into a server on the network and pass commands to it. It is similar to the rlogin command, but provides passing of command line arguments to the command interpreter on the server at the same time. ). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://www.zacksrank1bw.zacks.com Here is a synopsis A summary; a brief statement, less than the whole. A synopsis is a condensation of something—for example, a synopsis of a trial record. 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: United Online, Inc. (NASDAQ:UNTD) is a leading provider of value-priced Internet services. Recently the company announced that its Board has declared a 3-for-2 split of the company's common stock, which will be in the form of a stock dividend. United Online's decision to declare this stock split reflects their confidence in the company's continued success and makes United Online's stock more attractive to a larger pool of investors by offering increased liquidity. This confidence may be explained by the company's positive fiscal fourth quarter and full year results. Total revenues for the quarter were a record $79.6 million, up +46% versus $54.4 million for the year-ago quarter. Total pay subscribers also increased by a net 142,000 during the quarter, reaching a record 2.55 million at June 30, 2003. Net income for the quarter was $14.6 million, or 32 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , which included a tax benefit of $4.3 million, or $0.10 per share, related to the recognition of a portion of the company's deferred tax assets. Excluding this benefit, net income for the June 2003 quarter was a record $10.3 million, or 23 cents per share, versus a net loss of ($2.7) million, or (7 cents) per share, for the year- ago quarter. It looks like UNTD is dialed in and connecting it's investors to higher profits. Urban Outfitters, Inc., (NASDAQ:URBN) is a leading lifestyle consumer products company doing business under the Urban Outfitters, Anthropologie and Free People brand names. Back in August, URBN announced record earnings of $9.5 million for the second quarter ended July 31, 2003. This was a +51% increase over the comparable quarter last year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter also increased by +22% to a record $122.9 million. Second quarter earnings were 47 cents versus 32 cents for the same period last year. The company had an outstanding second quarter, delivering double-digit comparable store sales gains, improving margins, and leveraging both occupancy and SG&A expenses. This allowed URBN to post our most profitable quarter in the company's thirty-three year history. This success caused many analysts to raise their full year estimates for Urban Outfitters, in fact, 80% of the analysts covering the company have raised estimates for this year while the other 20% seemed satisfied with their previous estimates. The retail sector looks to be recovering from a tough first quarter and specialty retailers like URBN are major beneficiaries. It might be a good time to outfit your portfolio with a retailer like URBN. 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: Krispy Kreme Doughnuts, Inc. (NYSE:KKD) is a leading branded specialty retailer of premium quality doughnuts that are made throughout the day in their stores. In late August, Krispy Kreme posted second quarter of fiscal 2004 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings of 21 cents per share on total company revenues of $161.8 million. That earnings result continued a long stretch of surpassing Wall Street's expectations by beating the consensus by a penny, while also improving on the year-ago performance of 15 cents. Similarly, total company revenues improved by +41.1% year-over-year. Most of analysts more recent revisions for the company have been to the upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside , pushing earnings estimates for this year and next slightly upward from levels three months ago. Furthermore, analysts expect next year's earnings result to be as much as +30% higher than this year's. Krispy Kreme stated that the results of the quarter, along with its initiatives, create a strong foundation for the balance of the year. As the company's stores continue to expand over the globe, investors may want to make some room in their stomachs and their portfolios for some Krispy Kreme. RadioShack Corporation (NYSE:RSH) is one of the nation's largest and most trusted consumer electronics retailers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and offers both on- and off-line shopping convenience. For its second quarter 2003, RadioShack posted net income of 34 cents per diluted share, which surpassed the consensus by more than +17% while also beating the year-ago total. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. in the quarter improved by +3%, as total sales advanced by the same percentage to $1.025 billion from $998 million. The company stated that the quarter's financials were driven mainly by striking a prudent balance between sales and profitability. RadioShack has enjoyed numerous upward revisions from analysts, and its earnings estimates for this year and next have risen by about +6% and +5% respectively from three months ago. Analysts expect an approximate +9% rise in earnings for next year over this year. Even though the electronics industry in general has been sluggish, RadioShack appears to be moving in the right direction. Investors may want to tune into profits with a piece of RadioShack. 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://freezrguideprbw1.zacks.com 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 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the *S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; a substantial return compared to the large losses suffered by most investors during that time frame. 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 stocks by 166.7% annually (11.3% vs. 4.2% 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 Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. 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The S&P 500 includes the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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