Zacks Buy List Highlights: Precision Castparts Corp., Parker Drilling Co., Lawson Software, Inc., and Macromedia, 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 Precision Castparts Corp. (NYSE:PCP) and Parker Drilling Co. (NYSE:PKD). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Lawson Software, Inc. (NASDAQ:LWSN) and Macromedia, Inc. (NASDAQ:MACR). 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 PCP and PKD have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Precision Castparts Corp. (NYSE:PCP) recently reported fiscal second-quarter earnings of 60 cent per share, outperforming last year's 43 cents and exceeding the consensus estimate by almost 2%. Sales from continuing operations totaled $874.9 million, a 25.4% increase from the previous year's second quarter. The company boasts a solid record of beating Wall Street estimates in each of the past five consecutive quarters.

Parker Drilling Co. (NYSE:PKD) will announce third-quarter financial results in early November. In early August, the company posted second-quarter earnings that reversed last year's loss and surpassed the consensus estimate by 225%. The company mentioned that the significant improvement in earnings for the quarter was driven by record dayrates for its barge rigs in the Gulf of Mexico and record gross margins for its Quail Tools' rental divisions. Earnings estimates for the year ending December 2005 are above one week ago levels by four cents, or almost 17%.

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

Lawson Software, Inc. (NASDAQ:LWSN) recently announced fiscal first-quarter earnings of four cents per share, matching the consensus estimate and outperforming the year prior total. The company stated that it was a terrific quarter, one marked by the return of strong license revenues driven by new business from new clients. Earnings estimates for the year ending May 2006 increased by five cents, or 25%, over the past 30 trading days.

Macromedia, Inc. (NASDAQ:MACR) just released fiscal second-quarter earnings of 30 cents per share, eclipsing last year's 22 cents and beating the consensus estimate by 25%. The company noted that with the advancement of rich Internet application development, new mobile adoption on the Flash Platform, and the launch of Studio 8, this has been an outstanding quarter. Earnings estimates for the year ending March 2006 climbed five cents, or nearly 5%, over the past seven trading days.

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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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