Zacks Issues Buy Recommendations on the Following 6 Stocks: ADTRAN, Avid, Western Digital, Mylan, SanDisk and Hutchinson.Business Editors CHICAGO--(BUSINESS WIRE)--March 6, 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: ADTRAN, Inc. (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 :ADTN ADTN Administrative Data Transmission Network ADTN Administrative Data Telecommunications Network ), Avid Technology "Avid" redirects here. For the "Advancement Via Individual Determination" educational program, see AVID. Avid Technology, Inc NASDAQ: AVID is an American company specializing in video and audio production technology; specifically, digital non-linear media editing (NLE) , Inc. (NASDAQ:AVID) and Western Digital Corporation (NYSE NYSE See: New York Stock Exchange :WDC WDC Washington DC, USA WDC Western Digital Corporation WDC World Data Center WDC Warwick District Council (UK) WDC World Diamond Council WDC Workforce Development Center WDC Wisconsin Democracy Campaign ). Further they announced #2 Rankings (Buy) on two other widely held stocks: Mylan Laboratories Inc. (NYSE:MYL MYL Mind Your Language MYL Made You Laugh MYL Miss You Lots MYL Meet You Later MYL Miss You Loads ), SanDisk Corporation (NASDAQ:SNDK) and Hutchinson Technology ''This article or section is being rewritten at Hutchinson Technology is an acknowledged world leader in precision manufacturing. Specializing in design and manufacture of close-tolerance products that require chemical, mechanical and electronic technologies. Inc. (NASDAQ:HTCH). 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 A summary; a brief statement, less than the whole. A synopsis is a condensation of something—for example, a synopsis of a trial record. 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: ADTRAN, Inc. (NASDAQ:ADTN) designs, develops, manufactures, markets and services a broad range of high-speed digital transmission products utilized by telephone companies and corporate end-users to implement advanced digital data services over existing telephone networks. The company reported that fourth quarter earnings more than tripled to 32 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. , compared to 10 cents last year. The result also beat Wall Street's expectations. Estimates for this year and next have improved by about 18 cents and 30 cents respectively over the past 2 months. The company recently released it's MX2820 to the praises of industry experts. Simplified management, cost savings, space efficiency, and an improved protection system make the MX2820 the most compelling multiplexing multiplexing, in communication, technique whereby two or more independent messages, or information-bearing signals, are carried by a single common medium, or channel. solution on the market today. For investors 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. a technology firm on the rise, ADTN may be the solution. Avid Technology, Inc. (NASDAQ:AVID) develops, markets, sells and supports a wide range of software and systems for creating and manipulating digital media content. In late January, AVID reported a solid fourth quarter 2002 that improved on both the top- and bottom-lines. Excluding a charge and acquisition-related amortization, the company reported net income of 28 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, which was +125% greater than what Wall Street was expecting. AVID said it delivered significant bottom-line improvement for the third consecutive quarter and improved its top-line revenue over the fourth quarter of last year, as it ended 2002 with a stronger balance sheet. Analysts have responded by raising estimates for this year and next by about 25 cents and 21 cents respectively over the past couple of months. With the release of its Symphony system for the Macintosh OS X platform, investors can expect beautiful music from AVID. Western Digital Corporation (NYSE:WDC) designs, develops, manufactures and markets a broad line of hard drives featuring leading-edge technology. The hard drive industry benefited from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. conditions in WDC's fiscal second quarter, and the company took full advantage with revenue jumping to $749.5 million from $574.7 million last year. Furthermore, net income in the quarter surged to 36 cents per share from 7 cents in the year-ago period, which also surpassed Wall Street's expectations by more than 150%. Over the past four quarters, WDC has put together an average earnings surprise of more than +80%. Recently the company announced the availability of their external FireWire(R)/USB 2.0 combo hard drives. This new drive offers users the high performance of FireWire, ideal for digital audio and video with the convenience of USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. 2.0, one of the most popular interfaces in the industry. Analysts hope this will produce increased revenue and gain more market share. The company certainly appears to be moving in the right direction and investors are starting to take notice again. 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: Mylan Laboratories Inc. (NYSE:MYL) and its subsidiaries are engaged in developing, licensing, manufacturing, marketing and distributing generic and branded pharmaceutical products. Mylan announced net earnings of $68.4 million, or 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 of 37 cents (55 cents pre-split) for the third quarter ended December 31, 2002. This compares to 41 cents per diluted share (61 cents pre-split) for the same prior year quarter. Mylan also announced that it anticipates fiscal 2004 earnings per diluted share to be approximately $1.59 to $1.69 ($2.38 to $2.53 pre-split) and is increasing its fiscal 2003 annual guidance to between $1.39 and $1.42 per diluted share ($2.09 to $2.13 pre-split). Mylan's 2004 guidance was consistent with its long-term goal of growing the company's operations by an average of 15% or more per year. With a good track record of success and some strength appearing in its estimates, MYL could be the cure for an ailing portfolio. SanDisk Corporation (NASDAQ:SNDK) designs, manufactures, and markets flash memory storage products that are used in a wide variety of electronic systems. SNDK recently announced a 1 gigabyte (GB) SanDisk Ultra(TM) CompactFlash(R) card with a sustained write speed of up to 6 megabyte One million bytes, or more precisely 1,048,576 bytes. Also MB, Mbyte and M-byte. See mega and space/time. (unit) megabyte - (MB, colloquially "meg") 2^20 = 1,048,576 bytes = 1024 kilobytes. 1024 megabytes are one gigabyte. (MB) per second and sustained read speed of 9MB/sec., making it the fastest and largest capacity Type I CompactFlash card. In addition, SanDisk introduced the SanDisk Ultra(TM) SD card line to its family of high-speed film cards specifically designed for digital cameras. The new SanDisk Ultra cards are designed for serious photographers who use digital cameras with CompactFlash or SD slots. These new products will build on the positive fourth quarter numbers that were released in January. Total fourth quarter revenues were a record $179.8 million, up 27% sequentially from the prior quarter. Product revenues were $158.7 million, up 20% sequentially. Retail sales increased 35% and represented 69% of product sales, Fourth quarter units sold increased 21% and megabytes sold increased 43% compared to the previous quarter, both representing new record levels. Fourth quarter net income was $19.6 million, up 73% sequentially. Strong products and strong financials make this stock more than just a flash in the pan. Hutchinson Technology Inc. (NASDAQ:HTCH) is a leading supplier of suspension assemblies for hard disk drives. The company reported a solid fiscal fourth quarter, with a net profit, excluding a pre-tax charge, of 28 cents a share on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of about $109 million. The earnings result easily surpassed Wall Street expectations and a year-ago loss, while net sales improved from $95 million last year. HTCH recently stated that it now expects net income per diluted share to reach the high end of the 50 cents to 65 cents range that they previously forecasted for its fiscal 2003 first quarter, which ended December 29, 2002. The company also said that based on recent order trends, it currently expects its shipments of suspension assemblies during its fiscal second quarter will be similar to the fiscal first quarter volume of approximately 135 million units. This should result in fiscal 2003-second quarter financial performance to be similar to fiscal 2003's first quarter. This is positive news for analysts and investors looking to get back into the technology sector may want to give HTCH a spin. 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 Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. 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. 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