Zacks Buy List Highlights: Ceradyne, Inc., webMethods, Inc., Varian Medical Systems, Inc., and XTO Energy, 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 Ceradyne, Inc. (NASDAQ:CRDN) and webMethods, Inc. (NASDAQ:WEBM). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Varian Medical Systems, Inc. (NYSE:VAR) and XTO Energy, Inc. (NYSE:XTO). 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 CRDN and WEBM have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Ceradyne, Inc. (NASDAQ:CRDN) recently released third-quarter earnings of 53 cents per share, topping the consensus estimate by 6% and eclipsing last year's earnings. The company commented that its record setting results for the quarter were primarily due to ceramic body armor production at an elevated rate and at high quality levels. Earnings estimates for the year ending December 2005 increased five cents, or almost 3%, from one month ago.

webMethods, Inc. (NASDAQ:WEBM) recently posted fiscal second-quarter non-GAAP earnings of five cents per share, jumping ahead of the consensus estimate by nearly 67% and outperforming the previous year's second quarter. The company noted that the continued focus on its cost structure has resulted in WEBM reporting the lowest quarterly expenses since the company's initial public offering in February 2000. WEBM's fourth-quarter forecast is in line with Wall Street estimates. Analysts are projecting earnings of six cents per share, which is 20% above one month ago levels.

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

Varian Medical Systems, Inc. (NYSE:VAR) recently announced fiscal fourth-quarter results, citing growth in net orders and revenues from all business segments for the quarter and for the full fiscal year. Fourth-quarter earnings per share totaled 45 cents versus last year's 37 cents. The results also topped the consensus estimate by almost 5%. Earnings estimates for the year ending September 2006 advanced four cents, or about 2%, over the past 30 trading days.

XTO Energy, Inc. (NYSE:XTO) reported third-quarter earnings of 85 cents per share in mid-October, beating the consensus estimate by nearly 4% and outperforming the year prior total. The company noted that it set quarterly records for its oil and natural gas production. During the past five quarters, XTO Energy has been successful in staying ahead of analysts' earnings expectations three times and matched estimates once.

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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 155.5% annually (+4.6% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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