Zacks Brokerage Buy List: Abbott, Cisco, CVS Corporation and PepsiCo.
Here are explanations as to why these stocks are on the Brokerage Buy List:
Abbott (NYSE:ABT), the broad-based pharmaceutical and medical products company, recently announced that the U.S. FDA approved HUMIRA(R) for reducing signs and symptoms of active arthritis in patients with psoriatic arthritis. Psoriatic arthritis combines skin symptoms with arthritis symptoms, which can be a progressively disabling disease if left untreated. Abbott, which remains a large-cap pick for the long-term by six of the leading brokerages, will report its third-quarter results on October 19. In July, the company posted second-quarter earnings per share of 58 cents, excluding items, which improved from 54 cents year-over-year and topped the consensus by almost 2%. Worldwide sales jumped 17.5% to $5.52 billion.
Cisco Systems, Inc. (NASDAQ:CSCO) has been active on the acquisition front and on September 30 announced an agreement to acquire Nemo Systems, a privately-held company. Nemo Systems has developed leading-edge technology in the network memory space that will offer enhanced performance on Cisco's core switching platforms and service modules. Cisco will pay up to $12.5 million in cash. Cisco is a favorite with six of the leading brokerage firms. In August, the company reported fiscal fourth-quarter pro forma earnings per share of 25 cents, compared to 21 cents a year earlier. Sales reached $6.6 billion, marking gains of 11.1% and 6.4% on a year-over-year and sequential basis respectively. Cisco said its "home run" during the quarter was the continued balance across geographies, architectural evolutions, product families and market segments, with the commercial and enterprise segments bringing in top results.
CVS Corporation (NYSE:CVS) recently announced that same-store sales for September increased 5.7%, including an increase of 5.6% for pharmacy same-store sales and 5.9% for front-end same-store sales. Total sales for the month advanced 7.3% to $3.5 billion, compared to $3.3 billion last year. CVS Corporation narrowed its third quarter earning guidance to between 29-30 cents, instead of 29-31 cents. Nevertheless, CVS Corporation remains one of the best large-cap stocks to own for the long-term by three of leading brokerages.
PepsiCo (NYSE:PEP) recently posted third quarter earnings per share of 78 cents, excluding items, which marked a year-over-year advance of approximately 18%. Revenue advanced 13% to $8.18 billion from $7.26 billion. During the quarter, worldwide snacks volume advanced 4.5% and worldwide beverage volume increased 10%. PepsiCo will feel an impact from the hurricanes, but nonetheless is encouraged by momentum of its businesses looking toward the fourth quarter. In fact, the company believes it will exceed its previously stated 2005 operating and financial objectives. PepsiCo is a favorite for the long-term with five of the top brokerages.
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About Zacks Brokerage Buy List
Zacks has developed many successful ways for individual investors to profit from the stock picking prowess of Wall Street professionals. The Brokerage Buy List is yet another powerful tool that investors can wield in order to improve their investment results. This portfolio is comprised of the core stocks recommended by at least three of the Top 14 brokerage firms. These are the kind of large cap stocks that are best for long- term investors. Since January 2003, this portfolio has generated an annualized double-digit return. To learn more about the Brokerage Buy List, go to http://at.zacks.com/?id=141
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|Date:||Oct 7, 2005|
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