Zacks Buy List Highlights: ADTRAN, BMC Software, Inc., Arrow Electronics, and Grey Wolf, Inc.

CHICAGO -- Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Rank (Strong Buy) List. The #1 Rank stocks highlighted today are ADTRAN, Inc. (NASDAQ:ADTN) and BMC Software, Inc. (NYSE:BMC). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Arrow Electronics, Inc. (NYSE:ARW) and Grey Wolf, Inc. (AMEX:GW). To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +33% 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%.

Here is a synopsis of why ADTN and BMC have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

ADTRAN, Inc. (NASDAQ:ADTN) will announce third-quarter financial results on October 18, 2005. Last month, the company issued a revised full year earnings guidance of $1.18 to $1.22 per share. Analysts are in agreement as evidenced by the 12 cent increase in earnings estimates for the year ending December 2005. The increase represents an improvement of 11% over one month ago levels. ADTN said it expects its momentum will result in record revenue and operating income this year.

BMC Software, Inc. (NYSE:BMC) earnings estimates for the year ending March 2006 moved up nine cents, or about 10%, from three months ago. In early August, the company posted fiscal first-quarter non-GAAP earnings of 20 cents per share, exceeding the consensus estimate by nearly 43%. The company mentioned that quarterly results were positively impacted by revenue growth across all business lines and by ongoing cost and expense management. Total revenues grew 7% year-over-year.

Here is a synopsis of why ARW and GW have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks ranked by Zacks:

Arrow Electronics, Inc. (NYSE:ARW) released second quarter earnings of 54 cents per share, excluding items, in late July. The result topped the consensus estimate by almost 6%. The company stated that it again delivered strong results as it continues to execute on its strategies to drive sales growth and greater operating efficiencies. Earnings estimates for the year ending December 2005 climbed four cents, or nearly 2%, from three months ago.

Grey Wolf, Inc. (AMEX:GW) earnings estimates for the year ending December 2005 are above three months ago levels by two cents, or 4%. The company reported second-quarter earnings of 12 cents per share in late July, which reversed last year's one cent loss and beat the consensus estimate by approximately 9%. Revenues increased about 55% year-over-year. Financial results for the third quarter will be released on October 26, 2005.

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About the Zacks Rank

For over 16 years, 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 +33%. 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 143.5% annually (+4.9% vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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