Zacks Issues Buy Recommendations on the Following 4 Stocks: KB Home, Varian Medical, Best Buy, and Harley-Davidson.Business Editors CHICAGO--(BUSINESS WIRE)--June 25, 2003 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 +33.6% since 1988 and has gained +13.3% annually since 2000 as the markets have been tumbling down. Among the #1 ranked stocks today we highlight the following companies: KB Home (NYSE NYSE See: New York Stock Exchange :KBH KBH København (Danish: Copenhagen) KBH Katonai Biztonsági Hivatal (Military Security Office, Hungary; since 1989) KBH Kicked By Horse KBH Ka'anpali Beach Hotel (Maui, HI) ) and Varian Medical Systems Varian Medical Systems (NYSE: VAR) is engaged in the design and manufacture of advanced equipment and software solutions for treating cancer with radiation, as well as x-ray tubes for original equipment manufacturers, replacement x-ray tubes and flat-panel digital subsystems , Inc. (NYSE:VAR). Further they announced #2 Rankings (Buy) on two other widely held stocks: Best Buy Company, Inc. (NYSE:BBY BBY Best Buy (stock symbol) BBY Before Battle of Yavin (Star Wars) BBY BeBeyond (Chinese online community) ) and Harley-Davidson, Inc. (NYSE:HDI HDI Human Development Index (UNDP yardstick of human welfare) HDI Help Desk Institute HDI Humpty Dumpty Institute (New York, New York) HDI High Density Interconnect ). To see the full Zacks #1 Ranked list or the rank for any other stock then visit: http://www.zacksrank1bw.zacks.com 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: KB Home (NYSE:KBH) is a builder of single-family homes with domestic operations in several western states, and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. in France. Earnings estimates for KB Home have improved by approximately +4% and +5% for this year and next respectively over the past seven trading days, as the company recently reported second quarter diluted earnings of $1.94 per share, which was more than +19% better than the consensus. Total revenues in the quarter rose by +26% to $1.44 billion. KB Home said that its expected to continue benefiting from favorable housing market conditions for the rest of the year. Several other companies in the space are also benefiting from favorable conditions, including Centex (NYSE:CTX CTX Context (Management; Tandem) CTX Centex Corporation (stock symbol) CTX Centrex CTX Cyclophosphamide CTX Corporate Trade Exchange CTX Cytoxan CTX Cholera Toxin CTX Clinical Trial Exemption ), D.R. Horton (NYSE:DHI DHI see dairy herd improvement. ) and Hovnanian (NYSE:HOV), just to name a few. The company said it remains cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for the future, given its solid results in the first half of 2003 and the backlog support its projections for the rest of the year. The company decided to raise its earnings per share estimate for 2003 to $8.20. Varian Medical Systems, Inc. (NYSE:VAR) is a world leading manufacturer of integrated cancer therapy systems, and also a premier supplier of X-ray tubes X-ray tube An electronic device used for the generation of x-rays. X-rays are produced in the x-ray tube by accelerating electrons to a high velocity by an electrostatic field and then suddenly stopping them by collision with a solid body, the so-called and flat-panel digital subsystems. Earnings estimates for this year and next are about +4% and +5% higher than levels from three months ago, as Varian reported second quarter of fiscal 2003 net earnings in late April that beat the consensus. Besides the earnings result of 48 cents per diluted share, Varian also reported a sales jump of +21%, a net orders rise of +27%, and backlog that was up +22% from the year-ago quarter. The company attributed its net earnings growth to increased sales, higher gross margins, and comparatively slower growth in selling, general, and administrative expenses. Varian also enjoys a good record of surpassing Wall Street's quarterly earnings estimates. With an optimistic outlook for the future and a successful track record behind it, Varian could be good therapy for your portfolio. 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: Best Buy Company, Inc. (NYSE:BBY) is a leading appliance and electronics retailer. Although the company's earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of 21 cents per diluted share for the quarter ended May 31, 2003 came in below the year-ago total, it was still enough to exceed the consensus. The company said the result came in above its expectations because more shoppers came to its stores and Web sites after the war in Iraq ended. Furthermore, as previously reported, revenues from continuing operations for the quarter advanced by +11% to $4.67 billion. Best Buy said its mid-single-digit gain in 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. in May boosts its confidence in the sales outlook for its fiscal second quarter and the rest of the fiscal year. Best Buy forecasted diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations of about 27 cents to 32 cents for the second quarter, which would surpass the year-ago result of 24 cents. The company has experienced some rise in earnings estimates over the past seven trading days, with this year and next year's expectations up by approximately +13% and +9% respectively from three months back. Moving forward, the company said it is committed to improving enterprise efficiency and increasing its market share. Investors may want to take this company's name literally when looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. profit. Harley-Davidson, Inc. (NYSE:HDI) is an American motorcycle manufacturer. For the first quarter, ended March 30, 2003, Harley-Davidson reported diluted earnings of 61 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. , which blew the year-ago total away while also eclipsing the consensus by +22%. Revenue improved to $1.1 billion from $927.8 million, or +20%. More recently, in June, the company said that it expects Harley-Davidson retail registration in the second quarter to grow faster than the overall motorcycle industry, and said it is pleased with the retail performance of its dealers since the weather improved. Earnings estimates for HDI, which has an excellent record of beating Wall Street's quarterly expectations, have risen by about 10 cents for this year over the past 3 months and approximately 5 cents for next. Investors that want to live high on the hog may want to ride a position of Harley-Davidson. 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://freezrguideprbw1.zacks.com 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 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the (a)S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; a substantial return compared to the large losses suffered by most investors during that time frame. 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 stocks by 166.7% annually (11.3% vs. 4.2% respectively). This is a healthy change from traditional Wall Street Brokerage firms who rarely give stocks Sell ratings even as the share price and earnings forecast tumble. 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://www.zacksrank2bw.zacks.com/ 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 1981 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://www.freeprofit1bw.zacks.com 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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