Zacks Buy List Highlights: Cutera, Inc., RF Micro Devices, Lehman Brothers Holdings, and TIBCO Software.

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 Cutera, Inc. (NASDAQ:CUTR) and RF Micro Devices, Inc. (NASDAQ:RFMD). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Lehman Brothers Holdings, Inc. (NYSE:LEH) and TIBCO Software, Inc. (NASDAQ:TIBX). 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 CUTR and RFMD have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Cutera, Inc. (NASDAQ:CUTR) recently reported third-quarter earnings of 27 cents per share, soaring past last year's seven cents and jumping ahead of the consensus estimate by nearly 108%. The company stated that demand for its multi-application CoolGlide Xeo system, the Titan application, and the Solera platform, remain strong as customers continue to acquire its systems and upgrades to address the increasing consumer demand for non-invasive aesthetic procedures. CUTR raised its full year 2005 earnings guidance to 87 cents per share from 62 cents. Analysts increased estimates from 62 cents to 88 cents over the past 30 trading days.

RF Micro Devices, Inc. (NASDAQ:RFMD) posted fiscal second-quarter pro forma earnings of four cents per share in late October, outpacing analysts' expectations by about 33% and reversing last year's loss. The company noted that during the quarter it experienced record order activity, driven by increased demand for its power amplifiers, POLARIS(TM) TOTAL RADIO(TM) transceiver chipsets and Bluetooth(R) products. Earnings estimates for the year ending March 2006 moved up by six cents, or 60%, from two months ago.

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

Lehman Brothers Holdings, Inc. (NYSE:LEH) will report fiscal fourth-quarter earnings in mid-December. In mid-September, the company posted third-quarter earnings of $2.94 per share, exceeding the consensus estimate by almost 27% and eclipsing last year's $1.71. The company mentioned that its record quarterly results speak to the Firm's increased earnings capacity. Earnings estimates for the year ending November 2006 advanced 83 cents, or nearly 9%, over the past 90 trading days.

TIBCO Software, Inc. (NASDAQ:TIBX) released fiscal third-quarter non-GAAP earnings of five cents per share in late September. The result topped analysts' expectations by almost 67%. The company sports a solid record of either beating or matching earnings expectations during each of the past five consecutive quarters. Commenting on the third quarter, TIBX said it was a solid improvement over the past few quarters in many areas of its business.

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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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