Zacks Buy List Highlights: Blue Coat Systems, Chesapeake Energy Corp., ARRIS, and Intuitive Surgical.

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 Blue Coat Systems, Inc. (NASDAQ:BCSI) and Chesapeake Energy Corp. (NYSE:CHK). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: ARRIS (NASDAQ:ARRS) and Intuitive Surgical Inc. (NASDAQ:ISRG). 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 BCSI and CHK have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Blue Coat Systems, Inc. (NASDAQ:BCSI) earnings estimates for the year ending April 2006 increased 25 cents, or approximately 26%, over the past 90 trading days. In mid-August, the company reported fiscal first-quarter GAAP earnings of 24 cents per share, exceeding the consensus estimate by about 14% and surpassing the year ago result. On a year-over-year basis, net revenue grew by 58%. The company stated that it continues to be pleased with the market acceptance of the solutions that Blue Coat provides as evidenced by the stronger than expected sequential growth in net revenue.

Chesapeake Energy Corp. (NYSE:CHK) will report third-quarter earnings at the end of this month. Earnings estimates for the year ending December 2005 increased 36 cents, or about 17%, from three months ago. In early August, the company posted adjusted second-quarter earnings of 50 cents per share, surpassing the consensus estimate by about 11% and beating last year's result. CHK stated that the second quarter was its 16th consecutive quarter of production growth.

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

ARRIS (NASDAQ:ARRS) recently announced that it anticipates its unaudited financial results for the third quarter will be above its previous revenue and earnings guidance. Analysts agree as evidenced by recent earnings estimates of 16 cents per share, which is about 33% above three months ago levels. The company will release third-quarter results next week. In late July, the company posted preliminary and unaudited financial results for the second quarter. Excluding items, earnings totaled 11 cents per share, which was ahead of the consensus estimate by approximately 22% and outpaced last year's second-quarter result. Revenues increased 34.6% year-over-year.

Intuitive Surgical Inc. (NASDAQ:ISRG) earnings estimates for the full year 2005 improved by 42 cents, or almost 51%, over the past 90 trading days. In late July, the company announced second-quarter earnings of 40 cents per share, soaring past last year's 14 cents and jumping ahead of the consensus estimate by almost 111%. ISRG mentioned that higher sales were driven by higher da Vinci(R) Surgical System shipments and continued recurring revenue growth. Results for the third quarter will be available next week.

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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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