Zacks Buy List Highlights: Cypress Semiconductor, Molex, Avnet, and Pacific Sunwear.Business Editors CHICAGO--(BUSINESS WIRE)--March 10, 2004 Zacks.com releases another list of stocks that are currently members of the coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. Zacks #1 Ranked list which has produced an average annual return of +33.7% since inception in 1988 and has gained +100.3% since January 2000 when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today we highlight the following companies: Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). Corporation (NYSE NYSE See: New York Stock Exchange :CY) and Molex (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MOLX). Further they announced #2 Rankings (Buy) on two other widely held stocks: Avnet, Inc. (NYSE:AVT AVT avian arginine vasotocin. See vasotocin. ) and Pacific Sunwear Pacific Sunwear (also known as PacSun) is a shopping mall retail store that sells surfing and skateboarding clothing and accessories for teenagers and young adults. It was originally based in Newport Beach, California, United States. of California, Inc. (NASDAQ:PSUN). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88 Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank: Cypress Semiconductor Corporation (NYSE:CY) designs, develops, manufactures and markets a broad line of high-performance digital and mixed-signal integrated circuits A mixed-signal integrated circuit combines analog circuits with digital signal processing (DSP) circuits on a single semiconductor die. An integrated circuit that includes both analog and digital circuitry (but no DSP), like a 555 timer, is generally not considered a mixed-signal for a range of markets, including data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , telecommunications, computers, and instrumentation systems. Shortly after reporting fourth quarter results in late January, which included an earnings per share result that beat the consensus by more than +14% and revenue that jumped +35% year-over-year; Cypress Semiconductor stated that its first quarter pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. and revenue would top Wall Street expectations. In early February, the company forecasted pro forma earnings of 18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on revenues of $250 million. The company attributed the outlook to a number of factors, including strong bookings, positive momentum in the WAN market, and robust wireless sales. Cypress Semiconductor has enjoyed several upward revisions from analysts, and its earnings estimates for this year are up 8 cents, or +9%, from one month ago. Cypress Semiconductor looks well-positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. improving trends. Molex (NASDAQ:MOLX) is one of the leading manufacturers of electronic, electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Molex will report its fiscal third quarter results on April 15th. In mid-January, the company put together a solid fiscal second quarter performance, which included earnings per share of 21 cents that beat the consensus by more than +10%. Also, revenues came in at $548.9 million in the quarter, or almost +21% ahead of the year-ago total. Revenue increased by +6% in the Americas from last year, which was the strongest result in several years, thanks to a broad improvement in end markets. Revenue in dollars for the Far East South, the Far East North (Japan and Korea), and in Europe advanced by +34%, +30%, and +22% respectively. Earnings estimates for the year ending June 2004 remain above levels from two months ago by about 9 cents, or +12%. Given the encouraging level of new orders, investors may want to consider taking a look at Molex. Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank: Avnet, Inc. (NYSE:AVT) is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components, enterprise network and computer equipment, and embedded Inserted into. See embedded system. sub-systems from leading manufacturers. In late January, Avnet posted fiscal second quarter net income of 21 cents per share, excluding charges, on revenue of $2.55 billion. That earnings result beat the consensus by more than +16% and easily surpassed the year-ago total, while revenue improved +9% year-over-year. The company stated that sales came in at the high end of its guidance thanks to a strong performance from its Technology Solutions, where sales advanced +7% from last year and +16% sequentially to $1.22 billion. Earnings estimates for the year ending June 2004 increased by about 13 cents, or +20%, from two months ago. If the company can continue to make the most of an improving environment through further positive quarterly results, then Avnet's earnings estimates could be poised to rise even higher. Pacific Sunwear of California, Inc. (NASDAQ:PSUN) and its wholly-owned subsidiaries is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. Last week, Pacific Sunwear posted fiscal fourth quarter net income of 43 cents per diluted share, which was a penny, or more than +2%, atop the consensus. It also marked a solid improvement of the year-ago performance at 31 cents. Total sales in the quarter jumped +22.9% to $326.3 million. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. advanced +12%. The company has enjoyed numerous analyst revisions to the upside over the past seven trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , and in that short period of time, Pacific Sunwear's earnings estimates for the year ending January 2005 improved by approximately 4 cents, or +3%. Looking forward, Pacific Sunwear stated that its financial guidance for fiscal 2004 is for earnings per share growth of +20% or better compared to 2003. To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=89 About the Zacks Rank For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +33.7% compared to the (a)S&P 500 return of only +12.1%. Plus this exclusive stock list has generated total gains of +100.3% since January 2000 as the market suffered its worst downturn in 60 years. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 170.3% annually (12.1% vs. 4.5% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio. For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform the market. http://at.zacks.com/?id=90 The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). . Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit http://at.zacks.com/?id=91 Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. |
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