Zacks #1 Rank Top Performers: Universal Stainless & Alloy Products, Dollar Financial, Allegheny Technologies, Sun Microsystems and Harmonic.

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 Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP), Dollar Financial Corporation (NASDAQ:DLLR), Allegheny Technologies Inc. (NYSE:ATI), Sun Microsystems, Inc. (NASDAQ:SUNW) and Harmonic Inc. (NASDAQ:HLIT). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +31.8% 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.

Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) was one of the top-performing Zacks #1 Rank companies last week with an advance of 10.6%. Furthermore, the specialty steel maker reached fresh 52-week highs three times in January, most recently on Jan 23. For its fourth quarter, the company announced that sales jumped 33% to $55.8 million while earnings per share eclipsed both the consensus and year-ago result. The company attributed its strong quarterly performance to strength in its niche markets and its targeted investments in capital equipment and personnel.

Dollar Financial Corporation (NASDAQ:DLLR) gained 9.8% last week after announcing that fiscal second quarter results will surpass expectations. The international financial services company said it continued to experience strong growth in its international businesses and in U.S. consumer lending revenue during the quarter. Dollar Financial is scheduled to report the quarter's results on Wednesday. Over the past month, earnings estimates of the year ending June 2007 are up approximately 3.2%.

Allegheny Technologies Inc. (NYSE:ATI) reported solid fourth quarter results last week, which helped this steel maker become a top-performing Zacks #1 Rank with a gain of 9.8%. Earnings per share of $1.63 bettered both the consensus and year-ago result, while sales surged 56% to $1.4 billion. Allegheny reached 52-week highs on Jan 24 and Jan 25. The company likes what it sees in its major markets and believes that it is positioned for another revenue and earnings growth year in 2007. Analysts are encouraged as well and have boosted earnings expectations for 2007 by approximately 7.2% in just the past seven trading days.

Sun Microsystems, Inc. (NASDAQ:SUNW) reached a 52-week high on Jan 25 and gained 9.7% for the week after posting strong fiscal second quarter results. More specifically, the server and software company reached its highest point in more than four years. Excluding items, earnings per share of four cents trounced the consensus by 300% and reversed a year-ago loss. Meanwhile, revenues improved 7% to $3.57 billion. In the past seven trading days, earnings estimates for the year ending June 2007 improved 75% to seven cents from four cents.

Harmonic Inc. (NASDAQ:HLIT) reached new 52 week highs on Jan 23 and Jan 24 as the company heads toward its fourth quarter and year-end reporting date on Wednesday. In its third quarter report, the company had forecasted net sales between $67 million and $72 million for the fourth quarter. Third-quarter net sales reached $62.9 million, compared to $53.3 million in the sequential quarter and $61 million from a year ago. Earnings per share reversed a year-ago loss. The company continued to experience strong bookings across its global customer base. Harmonic gained 8.44% last week.

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 +31.8%. 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 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.

(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, 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 to buy or sell any security.