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Zacks Analyst Blog Highlights: drugstore.com, RLI Corp., Broadcom and Qualcomm.


CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: drugstore.com (Nasdaq:DSCM DSCM Dry Standard Cubic Meter
DSCM Demand and Supply Chain Management
DSCM Digital Security Countermeasures
DSCM Data Standards Configuration Management Board
DSCM Master Chief Data Systems Technician (US Navy Rating) 
), RLI RLI Realtors Land Institute
RLI Reserve Life Index (oil industry)
RLI Rhodesian Light Infantry (Rhodesian Army Unit)
RLI Retail & Leisure International
RLI Resource List Interoperability
 Corp. (NYSE NYSE

See: New York Stock Exchange
:RLI), Broadcom Corporation (Nasdaq:BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX)
BRCM Master Chief Boilermaker (USN rating) 
) and Qualcomm, Inc. (Nasdaq:QCOM QCOM Qualcomm, Inc. (stock symbol) ).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673.

Here are highlights from Friday's Analyst Blog:

drugstore.com Upgraded

Ahead of the company's third quarter report, we are upgrading drugstore.com (Nasdaq:DSCM) shares from Sell to Hold. We have become less negative on the name because we believe that drugstore.com's strategy of trying to improve its profit margins is finally gaining traction. Still, we won't get fully behind the stock (i.e., recommend buying it) until we can see its sales growth pick up along with its profit margins.

That said, we think the company will become profitable by 2008, and it even has a small chance of reaching profitability in 2007. The company is scheduled to report third quarter results on October 26.

New $50 Price Target for RLI

RLI Corp's (NYSE:RLI) 3Q06 results are due out before the open on October 19, 2006. RLI has been one of the most profitable P&C underwriters in the industry, with losses recorded in just three of the last 20 years. But higher recently reported losses and negative developments of previous reported losses in its property construction business have lowered recent quarterly results.

While our new price target assumes the company's price-to-book multiple will maintain a premium to the group, we tend to think the shares of RLI are slightly overvalued Overvalued

A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a
 at this point. We are maintaining our general earnings expectations, as well as our Hold rating.

Hold Broadcom on News

On October 10, Broadcom Corporation (Nasdaq:BRCM) announced that a 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.  International Trade Commission judge ruled that Qualcomm, Incorporated (Nasdaq:QCOM) infringed five claims of a Broadcom patent. The Commission is expected to issue a permanent exclusion order barring the importation into the United States of infringing Qualcomm chips. We are maintaining our Hold rating on BRCM and have set a target price of $29 to reflect more positive trends in the semiconductor market.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis

Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations.
 to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day"
subscribe, take

buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company";
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About Zacks

Zacks.com is a property of Zacks Investment Research Zacks Investment Research

A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms.
, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
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Publication:Business Wire
Date:Oct 16, 2006
Words:622
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