Zacks Buy List Highlights: Electronics for Imaging, Unit Corporation, Business Objects SA, and Emulex Corp.

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 Electronics for Imaging (NASDAQ:EFII) and Unit Corporation (NYSE:UNT). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Business Objects SA (NASDAQ:BOBJ) and Emulex Corp. (NYSE:ELX). 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 EFII and UNT have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Electronics for Imaging (NASDAQ:EFII) recently updated its third-quarter outlook. Pro forma earnings are expected to be in the range of 30 cents to 32 cents per share, an increase from the company's previous guidance of 21 cents to 23 cents. Analysts have followed suit and raised third-quarter earnings estimates by nine cents, or almost 41%, from one month ago. In mid-July, EFII announced second-quarter pro forma earnings of 14 cents per share, jumping ahead of the consensus estimate by 40%. Earnings results for the third quarter will be released on October 19, 2005.

Unit Corporation (NYSE:UNT) earnings estimates for the year ending December 2005 moved up eight cents, or about 2%, over the past 60 trading days. In late July, the company posted second-quarter earnings of 86 cents per share compared to 44 cents for the prior year. The result was almost 18% ahead of the consensus estimate. Revenues grew 67% year-over-year. UNT stated that favorable commodity prices and industry conditions are producing great results and more growth opportunities.

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

Business Objects SA (NASDAQ:BOBJ) reported second-quarter non-GAAP earnings of 32 cents per share in late July, surpassing the consensus estimate by more than 18% and beating the year ago result. The company commented that it accelerated revenue growth across all major geographies, with particularly strong success in the Americas. Earnings estimates for the year ending December 2005 increased by four cents, or approximately 3%, from two months ago.

Emulex Corp. (NYSE:ELX) announced fiscal fourth-quarter record non-GAAP earnings of 30 cents per share in mid-August, exceeding the consensus estimate by 25%. This is a company that has topped the consensus estimate each time over the past five consecutive quarters. ELX said broad strength was evident in its fourth quarter results as revenues grew sequentially and year over year across all major product categories, geographies and channels.

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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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