Zacks #1 Rank Top Performers: KMG Chemicals, OM Group, Atlantic Tele-Network, Excel Maritime Carriers and Schnitzer Steel Industries.

CHICAGO -- Zacks.com announces the latest list of top performing Zacks #1 Rank ("strong buy") stocks. The stocks on the prestigious list with the highest returns last week were KMG Chemicals, Inc. (NASDAQ: KMGB), OM Group, Inc. (NYSE: OMG), Atlantic Tele-Network, Inc. (NASDAQ: ATNI), Excel Maritime Carriers Ltd. (NYSE: EXM) and Schnitzer Steel Industries, Inc. (NASDAQ: SCHN). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32.2% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.

Here is a synopsis of the last week's best performing Zacks #1 Rank stocks.

KMG Chemicals, Inc. (NASDAQ: KMGB) was the top performing Zacks #1 Rank company last week with a gain of 18.3%. The company is a producer and distributor of specialty chemicals to carefully focused markets. Earnings estimates for the fiscal year ended in July are up 17% over the past two months, while expectations for the fiscal year ending July 2008 advanced 20%.

For its fiscal third quarter, KMG Chemicals reported a profit of 34 cents per share, which easily surpassed the consensus estimate of 20 cents by 70%. This marked the second straight quarter that KMGB surprised by a double-digit percentage, having done so by 30% last quarter. Net sales jumped 33.3% to $28 million, compared to $21 million in the prior-year period. The solid quarterly numbers were a direct result of strong performances from all of its segments, according to the company. KMG Chemicals was featured as a value stock of the day at Zacks.com on Aug 21.

Shares of OM Group, Inc. (NYSE: OMG) rose 15.4% for the week ended Aug 31, making it one of the top-performing Zacks #1 Rank companies. OM Group is a leading, vertically-integrated international provider and marketer of value-added, metal-based specialty chemicals and related materials. Over the past month, earnings estimates for this year have moved forward approximately 8.7%.

OM Group reported second-quarter net sales of $231.3 million, an increase of 32% from $175.2 million a year earlier thanks to increased product selling prices. In addition, earnings per share edged past the year-ago result and also bettered the consensus by a double-digit percentage. Looking forward, OM Group intends to leverage its core competencies to broaden its market reach and create new growth platforms, while putting its financial flexibility to good use by delivering long-term shareholder value.

Atlantic Tele-Network, Inc. (NASDAQ: ATNI) is a telecommunications company that gained 13.1% for the week ended Aug 31, making it one of the top-performing Zacks #1 Rank companies. Earnings estimates for this year are above levels from two months ago by approximately 16%.

Atlantic Tele-Network put together a strong second-quarter report, including revenue that gained 18% year over year to $44.2 million. Furthermore, earnings per share advanced from the previous year and also bettered the consensus. Despite challenges, the company said it is pleased to continue reporting favorable results and credits its operating units for strong execution both operationally and strategically.

Excel Maritime Carriers Ltd. (NYSE: EXM) finds itself on the top performers list for a second consecutive week. The seaborne transportation services company advanced 12.7% last week. For the week ended Aug 24, shares were up 21.7%. Analysts' earnings estimates for this year are currently at $3.35, marking improvements of 28.4% over the past two months and 12.4% over the past 30 trading days.

Favorable market conditions have led to a number of appearances for shipping companies on the top performers list, especially DryShips and TBS International. For its second quarter, Excel Maritime Carriers announced earnings per share of 71 cents, excluding items, eclipsing the consensus by almost 25%. Total revenues advanced to $37.3 million from $26.7 million. The company said it is benefiting from the strength in shipping markets and consistent implementation of its balanced fleet deployment strategy. Excel Maritime believes its strong balance sheet enables it to further pursue fleet expansion opportunities.

Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) was a value stock of the day at Zacks.com on Aug 31, and was also a top-performing Zacks #1 Rank company for the week that ended on that day. The company has topped Wall Street's earnings expectations in four out of the past five quarters. Most recently, Schnitzer Steel reported fiscal third-quarter earnings per share of $1.47, beating the consensus by 37.4% and bettering the year-ago result of $1.11. Revenues jumped 40.3% to $709.4 million. The company enjoyed strong financial results in all of its businesses.

Shares of the company gained 11.5% last week, making it a top-performing Zacks #1 Rank. Schnitzer Steel Industries is one of the largest manufacturers and exporters of recycled ferrous metal products in the U.S. Over the past two months, earnings estimates for the year ended last month and the year ending August 2008 are up 11.3% and 8.1% respectively.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +32.2%. During the 2000-2002 bear market, Zacks #1 Rank 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). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 129% annually (+5.3% vs. +12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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