Zacks Buy List Highlights: BMC Software, Inc., Guess? Inc., Goodrich Corporation, and Microsemi Corporation.

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 BMC Software, Inc. (NYSE:BMC) and Guess? Inc. (NYSE:GES). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Goodrich Corporation (NYSE:GR) and Microsemi Corporation (Nasdaq:MSCC). 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 BMC and GES have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

BMC Software, Inc. (NYSE:BMC) earnings estimates for the year ending March 2006 moved up nine cents, or about 10%, from two 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.

Guess? Inc. (NYSE:GES) recently reported that total August retail sales increased 16.4% over last year's total, while comparable store sales improved by 6.4%. In late July, the company announced second-quarter earnings of nine cents per share, outpacing last year's five cents and surpassing the consensus estimate by 350%. GES noted that its wholesale, retail and licensing operations all posted solid performance during the period. Earnings estimates for the year ending December 2005 are above two months ago levels by eight cents, or approximately 8%.

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

Goodrich Corporation (NYSE:GR) released its second-quarter earnings report in late July, which announced a full year 2005 increase in earnings guidance. The company cited its strong first half performance and the improving demand for its products as reasons for the improved forecast. Over the past three months, analysts revised 2005 earnings estimates upward by 16 cents, or approximately 8%. GR's earnings per share for the second quarter were ahead of the consensus estimate by about 4% and outpaced the year prior result. Sales grew 20% year-over-year.

Microsemi Corporation (Nasdaq:MSCC) posted fiscal third-quarter non-GAAP earnings of 18 cents per share in late July. The result improved on last year's 10 cents and topped the consensus estimate by almost 6%. The company stated that it remains focused on improving operational efficiencies while leveraging its technical capabilities and new products to grow revenues. Earnings estimates for the year ending September 2005 climbed almost 2% over the past 60 trading days.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions," provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93.

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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