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Zacks Issues Buy Recommendations on the Following 6 Stocks: Pharmaceutical Resources, Seagate, Quiksilver, D.R. Horton, Int'l Game Tech, and Network Appliance.

Business Editors

CHICAGO--(BUSINESS WIRE)--April 24, 2003 releases another list of stocks that are currently members of the coveted 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 Pharmaceutical Resources, Inc. (NYSE:PRX), Seagate Technology (NYSE:STX), and Quiksilver, Inc. (NYSE:ZQK). Further they announced #2 Rankings (Buy) on two other widely held stocks: D. R. Horton Inc. (NYSE:DHI), International Game Technology (NYSE:IGT) and Network Appliance, Inc. (NASDAQ:NTAP). To see the full Zacks #1 Ranked list or the rank for any other stock then visit.

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:

Pharmaceutical Resources, Inc. (NYSE:PRX) is a holding company that, through its subsidiaries, is in the business of manufacturing and distributing a broad line of generic drugs. The company sprung into 2003 with a very health first quarter performance, with diluted earnings, excluding a net benefit, of 67 cents per share. That result was +24% better than the year-ago total. Furthermore, total revenues in the quarter advanced by +32% to $106.4 million. PRX said it was able to put together such a quarter while continuing to invest heavily in research and development, and believes that 2003 could be its most successful ever. Over the past three months, estimates for this year have improved by about 25 cents, while expectations for next year have been more than 50 cents in that timeframe. The company has a very steady track record of beating Wall Street's earnings expectations and is continuously working on developing new products. PRX appears to have good running room moving forward and could provide a very successful recovery for your portfolio.

Seagate Technology (NYSE:STX) is the leader in designing, manufacturing and marketing hard disc drives. STX recently announced that it's Barracuda 5400.1 disc drives have been selected by PC manufacturer Acer for its office computers and entry-level PCs. Fiscal third quarter diluted earnings fell to 37 cents per share from 45 cents last year, but that was still more than enough to easily surpass the consensus estimate. STX said it shipped 16.6 million disc drive in the quarter, reflecting an increase of 1.6 million units over last year. The company attributed its competitive advantages in driving solid results during a seasonally down quarter. It has successfully ramped production of its 80GB/disck platform, and expects progress in the upcoming quarter. Analysts apparently like this company's potential, as they have raised estimates for this year and next by approximately 9 cents and 10 cents respectively in the last seven trading days. STX said it continues to meet market challenges with leading technology, reliability and production flexibility. If your looking to upgrade your financial universe with increased profits, STX may be for you.

Quiksilver, Inc. (NYSE:ZQK) designs, arranges for the manufacture of, and distributes casual sportswear, beachwear and snowboardwear primarily for young men and boys under various labels. ZQK has been bucking lackluster trends in the larger retail space for a while now, and analysts are taking notice. Its earnings estimates sit at heightened levels from three months ago, as the company has put together a good record of surpassing Wall Street's earnings estimates, with an average surprise of about +14% over the past four quarters. In the first quarter, ZQK almost doubled its earnings by reporting 24 cents per share, which handily beat the year-ago total of 13 cents while easily surpassing Wall Street's expectations. Furthermore, consolidated net sales in the quarter improved by about +31%. Late last month, the company's Board of Directors approved a two-for-one stock split of the company's common shares, in a move that ZQK believes will provide greater liquidity for current shareholders while attracting new investors. ZQK is skiing briskly into the new year and may be able to provide additional acceleration for your investments.

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:

D. R. Horton Inc. (NYSE:DHI), one of the largest homebuilders in the United States, builds high quality, single-family homes designed principally for the entry-level and move-up markets. DHI continues to build on its steady streak of surpassing consensus estimates, as the company reported second quarter diluted earnings of 86 cents per diluted share, which was a dime better than Wall Street's expectations and a +34% improvement over last year. Furthermore, consolidated revenue advanced by +19% to $1.9 billion. Homes closed advanced +19% to 7,888 homes. Recent upward revisions have pushed earnings estimates for this year up by about 13 cents in the past seven trading days, while next year's estimates jumped by approximately 14 cents. DHI raised its earnings per share guidance for the fiscal year ended September 30, 2003 to between $3.60 and $3.65. DHI has laid down a solid foundation for future success and may be able to do the same for your portfolio.

International Game Technology (NYSE:IGT) is one of the largest manufacturers of computerized casino gaming products and operators of proprietary gaming systems in the world and was the first to develop computerized video gaming machines. IGT's earnings estimates have been trending higher for months now, but a solid second quarter performance helped to convince analysts to raise expectations even further in the past seven trading days. For the quarter, IGT stated that earnings from continuing operations jumped by +34% to $1.07 per diluted share, which was more than enough to surpass Wall Street's expectations. In addition, total revenues and earnings of unconsolidated affiliated reached $567.5 million, marking an advance of +15% from last year. Such results could foreshadow strong momentum heading forward and a good chance for further earnings estimates upgrades. IGT looks like it could provide good odds for hitting the jackpot.

Network Appliance, Inc. (NASDAQ:NTAP) is a leading supplier of network attached data storage and access devices. Network Magazine recently named NTAP's NetAPP(R) NearStore(TM) R100 the 2003 Best Product of the Year for the storage hardware category. In February, the company reported third quarter of fiscal year 2003 pro forma net income of 6 cents per share, which was enough to match the Street while surpassing the year-ago result of 4 cents. Revenues also improved by +15% to $228.5 million in the quarter. NTAP enjoys an excellent record of matching or beating quarterly consensus estimates, which have been rising for the past three consecutive quarters. Earnings estimates for this year and next have only shown slight improvement in recent months, but given the struggles impacting its space, there should be more than enough space for further improvement with strong performances.

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.

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.

The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.

About Zacks is a property of Zacks Investment Research, 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

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 of all dividends, no transaction costs, 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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Publication:Business Wire
Geographic Code:1USA
Date:Apr 24, 2003
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