Zacks Industry Rank Analysis Highlights: Activision, Apple, Dell, GameStop and THQ.CHICAGO -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Apple (Nasdaq:AAPL AAPL Apple Computer, Inc. (stock symbol) AAPL American Association of Professional Landmen AAPL American Academy of Psychiatry and the Law AAPL Advance Audiovisual Presentation Limited AAPL Advocates for Arkansas Public Libraries ), Activision (Nasdaq:ATVI ATVI Albuquerque Technical Vocational Institute ), Dell (Nasdaq:DELL), GameStop (NYSE NYSE See: New York Stock Exchange :GME GME granulomatous meningoencephalitis. GME Graduate medical education, see there ) and THQ THQ Toy Headquarters THQ Territorial Headquarters THQ Tehsil Headquarters (Pakistan) THQ The Holy Quran THQ Theater Headquarters (Nasdaq:THQI). To see the Zacks Industry Rank and the trend in earnings estimates revisions for all 208 industry groups, visit http://at.zacks.com/?id=3154. Zacks Industry Rank Analysis is written by Charles Rotblut, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , Senior Market Analyst for Zacks.com. Late last week, THQ (Nasdaq:THQI) raised its guidance for both its fiscal third-quarter and fiscal 2007 earnings. The company credited stronger than expected holiday sales of WWE WWE World Wrestling Entertainment, Inc. (formerly World Wrestling Federation) WWE Witwe (German: Widow) WWE William Webb Ellis (inventor of rugby) WWE World Wide Education WWE Well Woman Exam SmackDown vs. Raw 2007, Disney/Pixar Cars and Avatar: The Last Airbender across both current and next generation game systems. THQI projects third-quarter earnings to have totaled 91 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 a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, up from previous guidance for profits between 65 and 70 cents per share. Fiscal 2007 earnings are projected to total $1.00 per share on a GAAP basis, compared to previous guidance for profits to be in a range of 77 to 87 cents per share. All of the covering brokerage analysts raised their full-forecasts in response, causing the fiscal 2007 consensus estimate to jump 16 cents to $1.04 per share. Five brokerage analysts also raised their fiscal 2008 outlook, resulting in an eight-cent increase in the consensus estimate to $1.13 per share. THQI's announcement came a week after GameStop's (NYSE:GME) CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , R. Richard Fontaine, described the holiday season as "one of the most successful ever". The video game retailer stated that 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. for the holiday period spiked 23.9%, despite shortages of the next-generation Wii and PlayStation 3 gaming systems. Fontaine credited a wide choice of games and gaming systems as well as a "broader base of customers". Based on the strong performance, GME now expects full-year earnings to have totaled between $2.03 and $2.05 per share. Brokerage analysts responded by raising their forecasts for 2006 profits and 2007 earnings. The new consensus estimates are $2.05 per share and $2.77 per share, respectively. The entire video game industry should benefit from the November introductions of the Wii and the PlayStation3. These next generation systems, along with Xbox 360, should drive a new cycle of upgrades. The new consoles offer a big upgrade in terms of graphics, and particularly with the case of the Wii, a new means of interacting with the games. Given this scenario and the bullish news out of THQI and GME, it is not surprising to see brokerage analysts also raising their profit forecasts on Activision (Nasdaq:ATVI). Apple (Nasdaq:AAPL) generated first-quarter profits of $1.14 per share. The results surpassed expectations for earnings of 78 cents per share. This was the fourth time in five quarters that AAPL has topped expectations by a margin of 10 cents or more. AAPL is a Zacks #2 Rank stock ("buy") classified in Computer-Micro, a group that also contains Dell (Nasdaq:DELL), a Zacks #1 Rank stock. Estimates for the 2007 fiscal year have been revised notably higher over two months, from $1.08 to $1.17 per share. The release of Microsoft Vista See Windows Vista. is expected to drive an upgrade cycle in PCs, particularly in the second-half of the year. DELL is also benefiting from cost-cutting measures and an increased revenue contribution from laptops, servers, storage and printers. The interactive Zacks Industry Rank List allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. See the list at http://at.zacks.com/?id=3208. About Zacks Industry Rank and the Zacks Rank Zacks Industry Rank is calculated by averaging the Zacks Rank for all covered companies within a given industry. The Zacks Rank is assigned to approximately 4400 stocks and ranges from #1 ("Strong Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the Zacks Rank are quantitative indicators designed to cover periods of 1-3 months. Since 1988, 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 +31.8%. 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 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively. Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=2564. 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 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2565. 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 Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect 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 dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (b)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 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. 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