Chicago, IL – November 24, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Skyworks Solutions (SWKS), Ericsson (ERIC), Alcatel-Lucent (ALU), Nokia (NOK) and Siemens (SI).

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Here are highlights from Monday’s Analyst Blog:

Skyworks Beats Estimates

Skyworks Solutions (SWKS) earlier reported revenues of $228.1 million in the fourth quarter of fiscal 2009, up 19% sequentially and surpassed management’s guidance range of $220 million - $225 million.

Operating margin came in at 14.4% compared to 12.0% in the previous quarter. Earnings per share came in at 24 cents, easily beating the Zacks Consensus Estimate of 18 cents.

During the quarter, the company retired $17.4 million in 2010 convertible bonds, which led to a dilution of the equity base by two million.

Going forward, although the management remains cautious about the broader economy, it expects revenues to grow by 15% - 20% year over year driven by mobile Internet, energy management and diversified analog applications. Management indicated improved order visibility and strength in backlog at the end of the quarter. This implies a revenue guidance of $238 million - $242 million. Operating margin is forecasted around 20%. Earnings per share are expected around 25 cents.

The company launched network infrastructure digital attenuators, voltage controller oscillators, synthesizers and mixers at Huawei, ZTE, Ericsson (ERIC), Alcatel-Lucent (ALU) and Nokia-Siemens (NOK)/(SI).

Skyworks is well positioned to benefit from recent trends in the handset market, which are favorable to increasing dollar content for RF components. In general, the increasing complexity of higher-end phones that offer multi-band communication across various air standards are expanding the market for Skyworks’ products due to the need for backward compatibility from 3G to 2G networks. There is a significant growth opportunity in the handsets market, propelled by the launch of 3G in China.

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

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Chicago, IL – November 17, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Citigroup Inc. (C), Liberty Global Inc. (LBTYA), Comcast Corp. (CMCSA), Deutsche Telekom AG (DT) and Vodafone Plc (VOD).

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Here are highlights from Monday’s Analyst Blog:

Citi to Sell Stake in Bellsystem24

Citigroup Inc. (C) announced that it will sell stake in Bellsystem24 to U.S. private equity firm, Bain Capital Partners, in a deal that values the Japanese call center operator at $1.1 billion.

The company announced on Sunday that it will sell its 93.5% controlling stake in Bellsystem24 − which it held through its Citigroup Capital Partners Japan Ltd. − to Bain Capital Partners through a tender offer. The tender offer is expected to start on or before Nov 20 and be completed on Dec 30, 2009. Under the terms of the deal, Citi will receive 93.5 billion of yen ($1 billion) in cash.

Following the completion of the deal, Citi Holdings’ assets will be reduced by $1.2 billion. However, Citi’s net income and capital ratios will not be significantly impacted by this stake sale, the company said.

Liberty to Acquire Unitymedia

Liberty Global Inc. (LBTYA) announced it will acquire all of the issued and outstanding capital stock of Unitymedia GmbH, the second largest cable TV operator in Germany. The total consideration will be approximately $5.2 billion. Liberty Global will acquire 100% of the shares of Unitymedia for an equity purchase price of around $3 billion and will also assume around $2.2 billion of net outstanding debt of Unitymedia. The deal is expected to be completed by the first half of 2010 subject to regulatory clearance.

Liberty Global is the second largest cable TV operator in the world. However, it is the largest international cable TV operator since Comcast Corp. (CMCSA), the largest cable MSO in the world does not have any operation outside the U.S. As of now, the company has approximately 16.6 million customers in 14 nations, most of which are in Europe. On the other hand, Unitymedia has approximately 6.4 million RGUs (revenue generating units); including 4.5 million analog and digital basic cable subscribers and 1.9 million new service RGUs (digital TV Pay, retail broadband internet, wholesale MMA internet, and telephony).

Germany is one of the lucrative markets in Europe. In 2002, Liberty Global has failed in its attempt to acquire the cable TV business of Deutsche Telekom AG (DT). Unitymedia has the highest uptake of digital TV and highest RGU per household in Germany. Integration of Unitymedia’s operations with Liberty Global will create a formidable cable TV player in Germany to compete with Kabel Deutschland (the largest cable TV operator in Germany), Deutsche Telekom and Vodafone Plc (VOD).

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5518.

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Chicago, IL – October 29, 2009 – Zacks Equity Research highlights Intersil Corporation (ISIL) as the Bull of the Day and Mack-Cali (CLI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (F), Paccar (PCAR) and United Technologies (UTX).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

Intersil Corporation (ISIL) is an OEM of analog and mixed signal semiconductor ICs. September quarter results beat consensus estimates on both the top and bottom lines. Forward guidance is for 3% revenue growth in the fourth quarter.

We expect an unfavorable mix of business through 2009, although management initiatives are likely to mitigate the impact. Management expressed confidence that the bottom is behind it, and judging from the increasing order rates and growing backlog, we are inclined to agree.

Since shares are still going rather cheap, we encourage investors to accumulate them. We are raising our rating from Neutral to Outperform.

Bear of the Day:

Mack-Cali (CLI) is a vertically integrated office REIT with assets in some very competitive markets which are getting worse in conjunction with the overall U.S. economy.

Mack-Cali will have a difficult time holding occupancy and increasing rents due to the continued volatility in the office sector with increasing job cuts and decline in market fundamentals. In addition, we see no near-term growth catalyst for the company.

Our recommendation for Mack-Cali is Underperform as we anticipate it to perform well below the broader market. However, if Mack-Cali can weather the current storm, the share price may rise.

Latest Posts on the Zacks Analyst Blog:

Durable Goods: Pretty Good

The 1.1% increase in Transportation equipment is almost startling at its low absolute value -- it follows a decline of 9.1% in July and an increase of 17.8% in August. So far this year, total new orders for Transportation equipment are down 31.7%.

The Transportation sector is broken out into three parts. Orders for motor vehicles, both passenger cars from Ford (F) and big 18-wheelers from Paccar (PCAR) edged down a slight 0.1% in September, following back to back increases of 1.6% and 1.9% in August and July, respectively.

The pig is probably through the python by now, as far as the rebuilding of inventory related to what was drawn down by the Cash for Clunkers program. Year-to-date, motor vehicle orders are down 28.8%. The real volatility in transportation comes from the Non-Defense Aircraft segment. It fell 2.1% in September, virtually a non-event after the 44.2% decline in August and the 98.1% increase in July.

The year so far has been an absolute disaster for the order books of Boeing -- and by extension, its big suppliers like United Technologies (UTX) -- with orders down 61.8% so far. The Defense Aircraft segement can also be volatile. It posted a 12.5% gain this month following declines of 12.0% and 20.6% in August and July respectively. On a year-to-date basis, they are the only area of durable goods orders that are up.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5509.

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Management added that its major customer has increased its LED TV sales estimates for 2009 and 2010 while other customers are also ramping up. Sales of LED driver products for general lighting applications have also increased. In anticipation of new cell phone launches, shipments of EL inverter products ramped up in the reported quarter.

Gross margin declined to 47% from 53% in the previous quarter due to the non-linear loading of its wafer facilities and backend operations. Net income declined to $1 million compared to $4.5 million in the year-ago quarter. Earnings per share came in at 15 cents easily beating the Zacks Consensus Estimate of 10 cents.
 
Based on booking, management expects revenues between $16.5 million and $17.5 million in its fiscal third quarter, driven by sequential growth in all end markets. However, customer demand in foundry service business is expected to be lower. During the December quarter, Supertex is planning a normal wafer fabrication facility shutdown for maintenance and hence expect gross margin to be flat in the third quarter.
 
The top-line has been shrinking from the past few quarters but the company expects demand to pick up in the back-end of 2009 as Supertex indicated that its LED driver business is expected to see substantial growth. Additionally, the Medical segment is anticipated to stabilize in the second half as new design wins ramp up. We await better visibility of these programs before turning positive on shares of Supertex.
 
Headquartered in California, Supertex designs and sells high-voltage analog and mixed signal integrated circuits. Competition remains intense in the analog sector where the gross margins are traditionally higher including products for the Medical Electronics, Imaging, Telecom, LED Lighting, and industrial/other markets. The company competes with several larger analog semiconductor companies with far greater resources, including Maxim Integrated Products Inc. (MXIM), Hitachi LTD (HIT) and Texas Instruments (TXN) for the Medical Electronic market.

Chicago, IL – October 16, 2009 – Zacks Equity Research highlights Semtech Corp. (SMTC) as the Bull of the Day and Washington Federal (WFSL) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bank of America (BAC), Hasbro (HAS) and Peabody Energy (BTU).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

Semtech Corp. (SMTC) is a fabless supplier of analog and mixed-signal semiconductor devices. Management has been diversifying the product portfolio, introducing new high-margin products and broadening the customer base.

July quarter results exceeded the consensus on both the top and bottom lines. Forward guidance is for 6-10% revenue increase in the October quarter.

Both revenue growth and margin expansion are expected to return in the second half of fiscal 2010 when the new product platforms gain traction. We are reiterating our BUY rating on SMTC shares.

Bear of the Day:

Washington Federal’s (WFSL) third quarter earnings were in line with the Zacks Consensus Estimate. However, the results significantly deteriorated from the prior-year quarter due to a huge increase in provision for loan losses, primarily in response to a deteriorating residential land and construction portfolio.

Credit quality drastically worsened during the quarter. However, declining deposit rates helped improve funding concerns to a great extent and capital position remained strong.

Though margin expansion and increased market share through acquisitions will be a great support going forward, we are concerned about the company's significant exposure to real estate markets and suspect that it will continue to experience credit quality deterioration. Therefore, we recommend the shares as Underperform.

Latest Posts on the Zacks Analyst Blog:

Initial Jobless Claims Fall Again

On the continuing claims front, there was also some apparent good news -- they fell by 75,000 to 5.992 million, the first time in many months that they have been below the 6 mlllion mark. However, the continuing claims only track regular state benefits, which run ot after 26 weeks. On average, people who are out of work have been looking for a job for over 26 weeks now, a situation that has not been seen since the end of WWII.

After the regular state benefits run out, then emergency Federal benefits kick in (a major element of the stimulus package). There are now more than 3.8 million people getting the extended benefits -- up 16,000 from last week (one week behind regular continuing claims, and two weeks behind inital claims). Anyone who claims that the stimulus is not working needs to be able to look at those 3.8 million Americans and their families and tell them that they would be better off if they had no income at all coming in right now -- that they are better off doing business at the local food bank rather than at Bank of America (BAC).

Even those extended benefits do not last forever, and people are starting to drop off the roles. Both the Senate and the House have passed measures to extend the benefits for a few more months, especially in high unemployment states, but they are still hammering out the differences in the bills, but it looks like something will be signed soon. Perhaps that will mean that their kids will get things for Chistmas made by Hasbro (HAS) and not Peabody Energy (BTU).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Contact:
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312-265-9380
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Company Description

Silicon Laboratories Inc. designs and develops analog intensive and mixed signal integrated circuits. The company's products are used in a number of devices such as radios, satellites and portable devices. Silicon Labs was founded in 1996 and has a market cap of $2 billion.

Shares of SLAB have posted huge gains over the last 6 months on the heels of an improving economy and solid second-quarter results, reported on July 29.

Second-Quarter Results

Sales were up 25% from last year to $104.2 million. EPS also came in strong at 21 cents per share, 4 cents ahead of the Zacks Consensus Estimate.

Estimates Jump

After word of the good quarter hit the Street, estimates jumped higher. The current year added 15 cents and rose to $1.01. The next-year estimate added 18 cents, advancing to $1.40, a 38% growth projection.

Valuation

After the big run up, this stock does not come cheap, trading at 44X projected current-year earnings.

The Chart

Shares of SLAB have been rallying since late last year after bottoming out just above $17 before recently topping off above $49. Take a look below.

Zacks Investment Research

Chicago, IL – October 7, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corp. (INTC), Altera Corporation (ALTR), Xilinx, Inc. (XLNX), Texas Instruments (TXN) and Skyworks Solutions Inc. (SWKS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Chip Sales Grew in August

Last month, most chipmakers raised their quarterly projections, backed by an improving market scenario. The world’s largest technology company, Intel Corp. (INTC)raised its third quarter revenue forecast driven by strong demand for programmable chips and microprocessors. This was followed by Altera Corporation (ALTR) which raised its revenue guidance for the third quarter, driven by improving market conditions.

Xilinx, Inc. (XLNX) followed suit and upgraded its guidance driven by broad-based strength across all end-markets and geographies. Top player Texas Instruments (TXN) upgraded its forecast for the third quarter driven by unpredicted demand in all segments, particularly the analog segment.

Skyworks Solutions Inc. (SWKS) raised its guidance for the fourth quarter of fiscal 2009, driven by broad-based, massive improvements in order demand.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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312-265-9380
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Chicago, IL – September 18, 2009 – Zacks Equity Research highlights ON Semiconductor (ONNN) as the Bull of the Day and Developers Diversified (DDR) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alcon Inc.(ACL), AstraZeneca (AZN) and Allergan, Inc.(AGN).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

ON Semiconductor (ONNN) is an OEM of primarily analog semiconductors used within a diverse set of end markets. June quarter results beat consensus expectations, with management guiding for stronger results in the September quarter.

Recent acquisitions, a broad product portfolio, a well diversified business across end markets and geographies, restructuring actions and debt reduction initiatives are other positive factors.

While competition is strong as ever and restrictive covenants and some residual integration risk remain, we believe the positives far outweigh these negative factors. Consequently, we are reiterating our OUTPERFORM rating on the stock.

Bear of the Day:

Developers Diversified (DDR) has a relatively high leverage compared to its peers due to acquisitions over the past several years. Developers Diversified is raising cash through asset sales, debt, and by selling 30 million shares and additional warrants to the Otto family, a shopping center developer in Germany.

The equity sale is dilutive and the long-term sustainability of the company is under doubt. Our recommendation for the company is Underperform as we anticipate it to perform well below the broader market. However, if Developers Diversified can tide over the current storm, the share price can rise.

Latest Posts on the Zacks Analyst Blog:

Alcon Expands Pipeline

Earlier this week, Alcon Inc.(ACL) signed a definitive agreement for the acquisition of Swiss biotech company ESBATech AG. Alcon will pay $150 million in cash at closing. Besides this, Alcon may pay up to $439 million on the achievement of future research and development milestones.

With this acquisition, Alcon will gain access to ESBATech’s proprietary antibody fragment technology, which is used for the development of compounds for the treatment of eye diseases like age-related macular degeneration, diabetic macular edema, glaucoma, dry eye and uveitis.

ESBATech has several stable and soluble single-chain antibody fragments in development. ESBATech’s lead antibody fragment, ESBA105, is a recombinant humanized scFv antibody fragment directed against human tumor necrosis factor-alpha (TNFα). ESBA105 is being developed for a number of therapeutic indications and is currently in a phase IIa study for uveitis and a phase Ia/IIb study for cataract surgery.

We view this acquisition as a positive as it reinforces Alcon’s commitment towards building its pipeline through in-licensing deals and acquisitions. The transaction should allow Alcon to strengthen its ophthalmic product pipeline.

The ESBATech acquisition is the latest in a series of deals entered into by Alcon to build its pipeline. In July 2009, Alcon entered into a five-year collaborative research agreement with AstraZeneca (AZN) for the exclusive ophthalmic discovery and potential development rights to AstraZeneca’s compound library.

Alcon also entered into a research and licensing agreement with PhiloGene Inc. for rights to a vascular endothelial growth factor (VEGF) protein, which will be developed for the treatment of wet age related macular degeneration and diabetic macular edema.

Alcon’s primary competitor in the ophthalmology market is Allergan, Inc.(AGN).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Lithium ion batteries are in the evolution stage and the fastest growing secondary battery type in the market today. The lithium ion polymer (cobalt, manganese or phosphate) offers high energy density at low weights, which is the primary reason for its growing adoption in notebooks, cell phones and cameras. As the target market continues to expand, the batteries are now being used in automotive, industrial and power line applications as well.

One of the most attractive features of the MAX11080 is that up to 31 devices can be daisy-chained together to monitor up to 372 battery cells, reducing power consumption by 10X and battery management costs by up to 80% in hybrid cars. It also uses 75% less board space than other discrete designs.

The product also offers redundant cell monitoring to detect thermal leakage, thus preventing batteries from exploding. Battery explosion is always an area of concern and many big computing and consumer electronics firms like Dell (DELL), Apple (AAPL) and Sony (SNE) have faced such issues in the past. Enhanced safety makes the product particularly suitable for automotive and industrial applications, where hazardous operations sometimes increase the significance of thermal discharge.

Maxim has a broad range of products that enables it to serve customers across many end markets. This product is an addition to the core analog range and is targeted at small and mid-size industrial and communications customers. This is a key strategic area for the company as it affords scope for differentiation and thereby, stronger prices and higher profits.

Qualcomm continues to lead mobile video market with the deployment of MediaFLO networks (that offers FLO TV services). In June, the mobile TV industry received a boost when the US government decided to switch to digital TV from analog transmission.

The immediate beneficiary of this was Qualcomm’s FLO TV network, which has already spent $500 million to buy spectrum that has been released. The company will now have the opportunity to broadcast its transmission in 100 major US markets serving more than 250 million potential customers. According to industry researches, market size for mobile TV may reach $10 billion by 2013 from $1.5 billion in 2008.

Advertisement in the mobile TV network is gaining huge market traction for the corporate world. Since each mobile device is connected to a specific viewer, the scope for audience-specific advertisement is enormous in this industry. Rentrak’s TV Essentials media management system will provide relevant viewership information on FLO TV network to several advertisers and content developers.

FLO-TV has been offered by the two largest telecom operators in the U.S., AT&T (T) and Verizon Wireless (VZ). The company has bought select licenses in the FCC auctions for 700-Mhz spectrum. Qualcomm has also started a trial run of FLO TV in Taiwan in collaboration with Taiwan Television Enterprise Ltd. and China Network Systems. Successful delivery may result in further business opportunities in the vast Asian market.

To bolster its position, Qualcomm has entered multi-year licensing agreements with large media content/broadcaster companies to provide TV programs through the FLO TV mobile entertainment platform. CBS, CBS College Sports, CBS News, CNBC, Comedy Central, ESPN, ESPN News, ESPN 2, FOX, FOX News, FOX Sports, MSNBC, MTV, NBC, NBC 2Go, NBC News, NBC Sports and Nickelodeon are the channels which have joined hands with FLO TV.

As consumers switch from analog to digital television broadcasting, the demand for digital set-top boxes and integrated digital televisions (iDTVs) is on the rise. This transition has already taken place in nine countries, including the USA, parts of Europe and Scandinavia, and is underway in other nations.

With its STV4100, the company offers complete chipsets for digital-terrestrial receivers, including the tuner and a choice of demodulators, MPEG decoders and combined demodulator/decoder ICs.

Silicon tuners are replacing those supplied by third-party providers, which combine multiple discrete components in a metal enclosure and must be individually adjusted for optimum performance. STMicroelectronics’ new device saves up to 30 separate components, has a compact QFN 5 x 5mm footprint and needs no adjustment. Moreover, operation on only 600mA of electricity helps to minimize power consumption of products like set-top boxes, iDTVs, PC-TV receivers, and DVD or Blu-ray recorders.

The STV4100 is in production and is priced at $1.80 in quantities of 10,000 units. STMicroelectronics also announced the general availability of PGI Visual Fortran (PVF) Release 9.0 for Windows workstations, servers and clusters. PVF 9.0 is the first product that supports building, launching and debugging of Microsoft MPI (MSMPI) Fortran applications within the Microsoft Visual Studio integrated development environment.

Based in Geneva, Switzerland, STMicroelectronics is a global independent semiconductor company. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices. These gadgets are used in a wide variety of microelectronic applications, including telecommunication systems, computer systems, consumer products, automotive products, industrial automation and control systems. Its major competitors are Texas Instruments Inc. (TXN) and Infineon Technologies.

With Docsis 3.0, Comcast is now able to offer one of the fastest Internet speeds available in the market. The company has not only doubled the speed for its customers but also offers new higher-speed service plans. Offering high-speed Internet access has become essential for service providers since preference for video-on-demand (watching movie on the Internet) has increased among customers. In addition, demand for online gaming and downloading of various multimedia applications has also grown significantly.

Comcast posted solid growth in the second quarter. However, it lost 214,000 basic video customers during the period. US telecom giants are gradually expanding their fiber-optic networks to take the fight to cable MSOs. Verizon Communications (VZ) with FiOS network and AT&T (T) with U-Verse network are likely to make broader entertainment, information and communications markets highly competitive. Quest Communications (Q) is also planning to start implementing VDSL-2 based high-speed network.

Implementation of Docsis 3.0 has also improved Comcast’s bottom line. For most of its installations, the company is using denser cable modem termination system (CMTS) blades that reduce downstream port costs by more than 50%. It has undertaken a project to reclaim 40 to 50 of its existing analog channels to free up spectrum for Docsis 3.0. We believe the major beneficiaries of Comcast’s nationwide Docsis 3.0 deployment will be Arris Group (ARRS), Thomson S.A. (TMS) and Motorola (MOT).

Microcontroller businesses increased 11.9% sequentially. In particular, 16-bit microcontroller revenues were up 15.7% sequentially and 33.3% year over year.  Analog business was up 12.2% sequentially.

GAAP net income came in at $27.4 million or 15 cents per share. Non-GAAP net income came in at 19 cents, easily beating the Zacks Consensus Estimate of 14 cents.

Non-GAAP gross margin came in at 51.4%, up from 49.3% in the previous quarter driven by higher production activity in the fabs, continued cost reduction efforts from global manufacturing operations and favorable product mix from the sale of proprietary products. However, gross margin was down from 61.6% reported a year ago.

June quarter was a rebound from the March quarter, which the management believes was the bottom. Inventories came down to $113.9 million, from $131.5 million at the end of the previous quarter.

The company saw a steady improvement in the overall business environment. Management stated that despite the continued weakness in the global economy, it is seeing improving trends in the company’s business and overall visibility. Microchip expects revenues for the September quarter to grow at 7% – 11% sequentially. This implies revenue guidance between $206 million and $214 million.

Non-GAAP gross margin is expected to increase to 54% – 55%. The company right-sized its manufacturing output thereby, allowing factories to increase their production levels in the September quarter leading to an improvement in margins.

Capital expenditures for fiscal 2009 are estimated at $20 million, a reduction of about 80% from fiscal 2008. The global slowdown has adversely affected the company’s business in the past six months. However, the company was able to maintain profitability through effective cost control measures and inventory correction.

Meanwhile, the company continues to pay its quarterly cash dividend of $0.339 per share, which will be paid on Sept. 3 to stockholders of record on Aug. 20.

Microchip is riding on a huge cash balance of $1.4 billion, up from $1.39 billion in the previous quarter. The company had earlier unsuccessfully offered to acquire Atmel Corp. (ATML), which the latter refuted. The company has adopted an elbow out strategy on the M&A front. This strategy focuses on small, bite-sized acquisitions, trivial in terms of the revenue contribution and the size of Microchip but will expand the company’s product portfolio and footprint in untapped markets. We maintain our HOLD on the stock.

Earnings per share rose 7 cents to 39 cents from 32 cents in the year ago period. The Zacks Consensus Estimate called for 29 cents.

Net sales fell 2.9% to $965.7 million compared with $994.9 million for the year ago period. The decline was primarily due to a 4.6% decrease in sales generated by company-operated stores, a 3.2% decrease in kiosk sales, and an 18.8% increase in other sales.

Same-store sales declined 4% compared to a year ago. Sales declined in wireless accessories, digital-to-analog converter boxes, GPS products, music players and digital cameras. However, sales of netbooks, television antennas, prepaid wireless handsets, digital televisions and Voice over Internet Protocol Products rose.

Inventories fell by $48.1 million over the year ago period.

The company also grew its cash and cash equivalents to $930.8 million at the end of the quarter from $577.8 million as of June 30, 2008.

Zacks Consensus Estimates Rise

Following the estimates surprise, covering analysts moved to revise third quarter and full year estimates.

The third-quarter Zacks Consensus Estimates rose 3 cents to 31 cents in the last week with 11 out of 16 covering analysts raising.

15 out of 17 analysts also raised for the full year as the 2009 Zacks Consensus Estimate jumped 15 cents to $1.54 per share.

Value Fundamentals

RadioShack was a Zacks #1 Rank (strong buy) stock when I last reviewed it on May 29 and is now a Zacks #2 Rank (buy) stock.

It is still an attractive value stock, with a forward P/E of 10.03. It has an outstanding 1-year return on equity (ROE) of 23.84%.

As an added bonus, the company pays a dividend, with a current yield of 1.60%.

Read the May 29 analysis.

Update to Previous Value Zacks Rank Buy Stocks

JDA Software Group, Inc. (JDAS) is bucking the economic downturn as the company recently reported record second quarter results on the back of strong software sales. JDAS is trading with a forward P/E of 13.9. Read the full article.

Oriental Financial Group Inc. (OFG) continues to show strength in its key market of mid to high net worth clients as it recently surprised on earnings for the 8th consecutive time. Despite a run up in the stock price, OFG isn't expensive. It trades at just 4.1x forward earnings. Read the full article.

Cato Corporation (CTR) is finding consumers like its value-priced women's apparel as same-store sales for the first half of the year rose 1% compared to 2008. The company has surprised on estimates 3 out of the last 4 quarters by an average of 54.76%. CTR is trading at 14.9x forward earnings. Read the full article.

The Anderson's, Inc. (ANDE) is expected to report second-quarter results next week after beating the Zacks Consensus Estimate by 28 cents in the first quarter. Can it keep the momentum? Analysts are expecting 19.55% year over year earnings growth in 2009. Read the full article.

Zacks Investment Research

Company Description

National Semiconductor, which is headquartered in Santa Clara, CA, makes energy-efficient analog and mixed-signal semiconductors.

Its PowerWise® products are part of systems that consume less power, extend battery life and generate less heat.

The company's products include power management circuits, display drivers, audio and operational amplifiers, communication interface products and data conversion solutions.

National Semiconductor saw sales of $1.89 billion for fiscal 2008, which ended May 25, 2008.

Estimates are on the Rise

The company is seeing bullish Street forecasts after posting fiscal fourth-quarter results. Analysts' earnings estimates of 38 cents per share for the year ending May 2010 are up 192% over the past 2 months.

For the following year, earnings forecasts of 62 cents per share are up 44% over the past 2 months.

Results for the Fourth Quarter

In early June, National announced fourth-quarter results. Earnings came in at a loss of 26 cents per share, which translated into underperformance when compared to the previous year's 35-cent profit. However, the result was 41% ahead of analyst's projections.

Sales of $281 million, slipped by 39% on a year-over-year basis.

Management said bookings were up 30% sequentially from the third quarter, noting that the advance was attributable to increased orders from manufacturers of wireless handsets and other personal mobile devices as well as increased bookings from distributors who serve the broader electronics market.

The company also stated that sales in the first quarter will range from $285 million to $305 million, or an increase of approximately 2% to 9% sequentially.

"Business conditions improved through the quarter. We saw increasing orders from our wireless handset customers as they began ramping production of new smartphone models," said Brian L. Halla, National's chairman and CEO. "We are well positioned to enable greater energy efficiency in a wide range of products with our analog and power management circuits."

National declared dividend of 8 cents per share, which was paid on July 13. The company offers an industry-leading dividend of 2%. Zacks Investment Research

Chicago, IL – July 17, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cadence Design Systems, Inc. (CDNS), National Semiconductor (NSM), Synopsys (SNPS), Mentor Graphics Corporation (MENT) and Magma Design Automation (LAVA).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Cadence Battles Slowing Market

Cadence Design Systems, Inc. (CDNS) is widely impacted by the declining Electronic Data Automation (EDA) industry. The EDA industry appears to be slowing, and declined 10.7% year-over-year in the first quarter of 2009, according to the latest data by the EDA Consortium (EDAC). This follows the single digit growth in 2008 and a double digit growth in 2007. This decline is widely due to improper accounting issues at CDNS related to contract revenues signed during the first quarter, said EDAC.

EDAC reported that revenues declined in all regions except Asia-Pacific (APAC). By product, Computer-Aided Engineering (CAE), EDA's largest product category, fell 18.8% year-over-year in the first quarter, while IC Physical Design & Verification revenue, the second largest EDA category, fell 5.4% year-over-year.

We don’t expect any improvement in EDA until the semiconductor market improves. More challenging economic conditions are likely to affect the semiconductor industry and flow through to the EDA market as well, although at this point, Cadence appears to be the hardest hit.

In a recent press release, Cadence announced that National Semiconductor (NSM), a developer of energy-efficient analog and mixed-signal semiconductors, has selected its Virtuoso Accelerated Parallel Simulator for their global offices. Cadence’s Accelerated Parallel Simulator Virtuoso platform will reduce design time, help performance improvement and verify large and complex analog designs.

Cadence has also unveiled its first unified TLM-driven design and verification solution and methodology to help SoC designers benefit from its transaction-level modeling (TLM). C-to-Silicon Compiler is at the center of the Cadence next-generation TLM-based system-level design and verification solution.

New product offerings and a number of new customers wins are expected to increase Cadence expects to increase customer base and market shares. But the company is losing share to Synopsys (SNPS) and is struggling in a downturn in the semiconductor cycle.

We also do not believe Cadence to outgrow its competitors, such as Mentor Graphics Corporation (MENT) and Magma Design Automation (LAVA). Additionally, the release of new products and their enhanced versions are expected to take time to generate additional revenue.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5518.

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Visit: www.zacks.com 

Cadence Virtuoso and EDI System already have a track record of delivering high-quality mixed-signal designs in a shorter design cycle. It could reduce area and design time through the seamless integration of analog and digital design functions.
 
Of course, this is a very big customer win for Cadence, but we are not certain about the timing of the revenue flow from this deal. Cadence did not specify any revenue details that it will generate from this customer. This apart, we believe that this deal will have a positive impact on the revenue stream, only in the medium to long term.
 
Cadence is struggling in a downturn in the semiconductor cycle. The company also provided a bleak second quarter and fiscal 2009 guidance. Until the second quarter results are released, we do not get a clear view of the future prospects of the company and will maintain our cautious approach on this stock.

We will maintain our Sell rating on the stock, as we believe there are better investment options available in the market.

Baseband is a generic term used to describe the central application processor that controls and handles most of the digital functions within a handset. Baseband manufacturers face the dual issues of a commoditized market and rapidly increasing development costs. This is because, as features are added to phones, the complexity and cost of manufacturing DSPs are further increased.
 
Previously, in the 3G manufacturing process, custom-made baseband chips provided cell phone makers a competitive advantage. But as the 3G production cycle matured, this competitive edge was lost and the demand for standard chips such as those made by Qualcomm became more popular.

Currently, it makes much more sense for a handset manufacturer to go for standardized chips to drive volumes, rather than custom made chips for a more differentiated product. Infineon, Broadcom (BRCM) and Mediatek (the fourth largest player) were the other direct beneficiaries of the change. STMicroelectronics (STM), the third largest player, shifted focus from custom-made to standardized baseband chips and therefore did not lose much on account of the change.
 
TI was the worst affected, both because of the increasing cost and the loss of customers to their second sourcing strategy. Consequently, management announced its decision to sell off the merchant baseband business last year. However, buyers are hard to come by and management finally decided not to sell the business outright, but continue serving existing customers. The business would instead be phased out by 2012.

For TI, the sale makes sense, since it would save $200 million a year. Management is also optimistic about growth in the increasingly crowded analog market. Its OMAP processors are expected to be a great success and one wonders whether they will be integrated into a baseband chip in days to come.

Chicago, IL – July 9, 2009 – Zacks Equity Research highlights MIPS Technologies (MIPS) as the Bull of the Day and Altria Group (MO) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

MIPS Technologies (MIPS) develops embedded processors and intellectual property for use in performance-oriented markets such as digital entertainment, wired and wireless communications (including broadband access), office automation, security and automotive markets.

The firm continues to drive bottom-line margins higher in a very difficult environment. The valuation on MIPS has become very compelling as the stock has shed significant value from its 52-week high and the new acquisition has the potential to drive margin expansion.

Further, MIPS recently sold its analog business, which is highly accretive. We would be buyers of the stock at these levels.

Bear of the Day:

Altria Group (MO) is the leading domestic tobacco company, which generates significant cash flow and the stock has a high dividend yield. In an effort to expand into adjacent categories, Altria acquired UST, the world's leading moist smokeless tobacco manufacturer.

However, the company is engaged in numerous tobacco liability suits. Several large punitive damage awards have been upheld, most recently the $79.5 million judgment in the Williams case in 2009.

In addition, the 150+% federal excise tax increase should dramatically reduce cigarette volume. A Sell rating is recommended.

Latest Posts on the Zacks Analyst Blog:

Even Landlords May Be Hurting

2Q09 asking rent fell 0.7% year-over-year to $1,040 a month, and down 0.6% from on a linked quarter basis. In the U.S.’s largest U.S.’s apartment market, New York, vacancies fell 0.5% on a linked quarter basis and a 4.0% declined year-over-yearto 2.9%, despite a 1.7% decrease in rent to the $2,680 level. In addition, other areas of the country (such as Las Vegas, San Francisco and San Jose, California) had effective rents that dropped more than 2.0% year-over-year.

Nationally the picture may grow worse, with approximately 45% of the more than 100,000 units from new construction for 2009 already on the market. As unemployment has continued to mount, the largest tenant group -- 18-24-year-olds -- has been hardest hit.

With general expectations of an economic recovery pushed back to early 2010, lower rents and higher vacancies should be expected to continue over the near term.

With the apartment buildings sector typically the leader for all commercial real estate categories with respect to defaults, it is extremely probable that financial institutions such as (but not limited to) Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM) will continue to experience negative commercial real estate credit quality trends during the coming quarters.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5509.

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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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

The firm continues to drive bottom-line margins higher in a very difficult environment. The valuation on MIPS has become very compelling as the stock has shed significant value from its 52-week high and the new acquisition has the potential to drive margin expansion.

Further, MIPS recently sold its analog business, which is highly accretive. We would be buyers of the stock at these levels.Zacks Investment Research

The Chinese government completed the first phase of its plan to upgrade the nation's wireless infrastructure to 3G networks in January 2009. Licenses were issued to the country's largest telecom companies, China Mobile Ltd (CHL), China Unicom Ltd (CHU), and China Telecom Corp (CHA), to build and provide the nation's premier high-speed wireless networks.

The three Chinese players plan to spend over $20 billion this year alone rolling out the initial phases of their 3G deployments. Providers of semiconductor and other telecom equipment in the United States and China are benefiting from this massive spending initiative, offsetting slower spending in the developed world. Thus, semiconductor companies with China exposure are clear winners from the global economic downturn.

TriQuint (TQNT) is one such company that is gaining strength from China's investment in 3G infrastructure. Its rivals Xilinx (XLNX) and Altera (ALTR) (which has a large exposure to the telecommunications industry), recently raised their guidance on better-than-expected demand from OEMs providing equipment for Chinese 3G wireless networks.

LSI Corp (LSI) is also banking on customers like Huawei for expanding its networking revenues. The company had earlier said that almost all primary equipment providers for this build out in China are using LSI networking products. Skyworks Solutions (SWKS), a leader in handset markets, continues to benefit from diversified exposure across both handsets (smart phones) and analog markets (China base stations, energy management) which have made up for broader handset inventory adjustments.

It now remains to be seen which company wins the race as US chip makers have to compete not only with each other but also their Chinese and Taiwanese counterparts.

What is a Smart-Grid?

"Smart-grids" deliver electricity from suppliers to consumers using digital technology to save energy, reduce costs and increase reliability. Many global governments are promoting such a modernized electricity network as a means of increasing energy independence and reducing global warming issues.

An electricity grid is not a single entity but an aggregate of multiple networks and multiple power generation companies with multiple operators employing varying levels of communication and coordination, most of which are manually controlled.

Smart grids increase the connectivity, automation and coordination between suppliers, consumers and networks, which perform either long distance transmission or local distribution tasks. Transmission networks move electricity in bulk over medium-to-long distances, are actively managed, and generally operate from 400kV to 800kV over AC and DC lines.

Local networks traditionally moved power in one direction, "distributing" the bulk power to consumers and businesses via lines operating at 132kV and lower. This paradigm is changing as businesses and homes begin generating more wind and solar electricity, enabling them to sell surplus energy back to their utilities.

Efficiency Through Technology

Modernization is necessary for energy consumption efficiency; real-time management of power flows; and to provide the bi-directional metering needed to compensate local producers of power. Although transmission networks are already controlled in real-time, many in the US and European countries are antiquated by world standards, and unable to handle modern challenges such as those posed by the intermittent nature of alternative electricity generation, or continental scale bulk energy transmission.

According to Deloitte, in 2009, smart grid providers may represent one of the largest and fastest growing sectors within the "clean," green energy industry. Deloitte forecasts that electricity, as a percentage of total energy consumption, will increase from 9% in 1973 to 16% through 2009.

Additionally, they estimate that modern smart-grids offer approximately twice the efficiency, at 60%, as the average efficiency of the world's legacy electricity grids at  approximately 33%.

Finally, Deloitte estimates that the annual cost  of power outages and power quality disturbances in the U.S. approximates $180 billion.

Likewise, a recent study by the U.S. Department of Energy study estimates that smart-grid modernization of U.S. electricity grids with would save between $46 to $117 billion over the next 20 years.

Among other conclusions, Deloitte deduces through its smart-grid analysis that "[M]ajor manufacturers and utilities should explore partnerships with, and consider acquisitions of, smart energy companies."  Such is the case we now see with Duke Energy and Cisco.

Both Companies Known as Trail-Blazers

At the risk of over-stating the significance of this relationship, particularly for the traditionally staid, 100+ year old electricity industry, both Duke Energy and Cisco rank as consensus innovative leaders in their respective industries. Under terms of the agreement, Cisco seeks to develop and deliver to Duke Energy a state-of-the-art, industry-leading, end-to-end, power plant-to-customer, smart-grid network communications infrastructure.

Empirically speaking, U.S. support for smart-grid technology became federal policy with passage of the Energy Independence and Security Act of 2007. Subsequently, smart-grids received additional support with the passage of the American Recovery and Reinvestment Act of 2009, which appropriated $11 billion for the creation of a smart-grid.

Support from the Federal Government

As recently as January 2009, in his National Address, President Obama requested Congress to pass legislation including the development of new electricity "smart-grids."  On March 19, 2009, The Federal Energy Regulatory Commission (FERC) issued a proposed policy statement and action plan for standards governing the development of a smart-grid. Successful progress toward national implementation of smart-grids continues.

Upon completion, the new, "internet protocol-based open standards" architecture will replace Duke's existing, antiquated analog electric grid with a long-overdue, secure digital backbone infrastructure.

The resultant smart-grid, widely thought to be replicated by other leading energy utilities, will modernize some the most outdated infrastructure in the U.S. - electricity delivery systems - with secure, reliable and efficient data, networks and communications.

The collaboration project will ultimately update the delivery to, and use of electricity by, Duke's 11 million customers served in five states: Ohio, Indiana, North Carolina, South Carolina and Kentucky. Throughout the term of the project, and in subsequent years, Duke will install large-scale new smart-grid technology, including millions of electric and natural gas "smart meters," in addition to hardware and software for distribution.

"Smart meters" replace analog mechanical meters with digital meters which record energy usage in real-time. Smart meters provide a communications pathway extending from generation plants to electrical outlets and other smart grid-enabled devices.

Manifold benefits await Duke Energy and its customers.

The proposed modernized electric grid will:

• Build an 'Energy Internet', which will enable decentralized power generation, so that customers may be both energy clients and suppliers; allow supplier selection of power consumption to offer flexibility to energy consumers;
• Integrate solar and other renewable energy sources into the electric grid;
• Encourage consumers to actively participate in operations of the grid; improve electricity delivery, improve systems efficiency and reliability, increase energy independence, decrease environmental impact, and help customers reduce their energy consumption, strengthen grid security and resist attack;
• Provide higher quality power that will save money wasted from outages;
• Incorporate two-way digital communication to detect power outages and be readily inter-operable, upgradeable and scalable to new emerging technologies.

Going forward, Cisco plans to continue to deliver products and services to support this initiative serving a growing smart grid communications infrastructure market projected by Cisco to reach $20 billion annually over the next five years.

Duke Energy maintains a Street analyst consensus recommendation with a Buy-rated bias; an average long-term EPS growth rate of 4.2%, within a range of 2.0% to 6.0%, and a target price of $15.48 per share, within a range of $14.00 to $20.00 per share.

Cisco Systems boasts a Street analyst consensus Buy rating with an average estimated long-term EPS growth rate of 10.9, within a range of 2.0% to 20.0% and an average target price of $22.38 per share, within a range of $15.00 to $30.00 per share.

Chicago, IL - June 16, 2009 - Zacks Equity Research highlights Maxim Integrated Products (MXIM) as the Bull of the Day and Sonic Innovations (SNCI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Valero (VLO), Tesoro (TSO) and ConocoPhillips (COP).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Maxim Integrated Products (MXIM) is an OEM of semiconductor analog and mixed signal ICs. March quarter results were short of consensus estimates, although they were in-line with management's own expectations.

Forward guidance is for a revenue increase of 3-12% in the June quarter. Order rates started picking up in three of the four end markets, and the fourth market is expected to see increase in Q4.

We are reiterating our Buy rating on MXIM shares, given recent market share gains, healthy product pipeline, diversity in the company's markets, strong cash generating capabilities and cheap valuation.

Bear of the Day:

Sonic Innovations (SNCI) announced that its shareholders at the annual shareholder meeting approved a name change of the company to Otix Global, Inc, where Otix Global is to become the parent company of Sonic Innovations. SNCI filed with the Securities and Exchange Commission its Form 10-Q for the quarterly period ended March 31, 2009.

Revenue from SNCI's German subsidiary is at risk of declining from unsuccessful attempts at renegotiating insurance contracts that is required as a result of new legislation passed by the Federal Council of Germany in Nov. 2008 that became effective April 1, 2009.

Our price target of $0.80 per share is based on a price-to-sales multiple of roughly 0.3x our FY09 sales estimate.

Latest Posts on the Zacks Analyst Blog:

Refiners Lose Out in Cap & Trade

While there are many important changes that this 946-page tome is aiming to bring about, we are focusing here on one central part of the proposed legislation -- the Cap & Trade regime. The bill creates winners and losers among different energy producing and consuming sectors through its initial free awards of emission permits.

Approximately 85% of the permits are doled out for free, with the rest auctioned off. According to a preliminary estimate by the EPA, a permit to emit one ton of carbon dioxide or equivalent will be worth $11-$15 in 2012, with the value of all permits at around $60 billion in 2012. By the 2025, the value would be higher, according to EPA estimates, rising to $22-$28, with the total value at around $113 billion.

Oil producers and refiners, such as Valero (VLO), Tesoro (TSO) and ConocoPhillips (COP) are clearly on the losing side, having been allocated a very small portion of the permits (2%). This forces them to purchase permits on their own account. Electric utilities and other consuming industries such as steel, cement and paper manufacturers benefiting from the giveaways.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=5509.

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The semiconductor producer now anticipates profit between 14 cents and 22 cents per share, compared to the prior guidance of 1 cent to 15 cents. The average forecast is pegged at 15 cents per share, which has increased 5 cents, or 50%, over the past week as 1 of 4 analysts raised expectations.

"Analog is by far the biggest driver of sequential growth this quarter, although all major product lines are growing," said VP Ron Slaymaker.

Texas Instruments also said that quarterly revenue is expected at $2.3 billion to $2.5 billion, against its earlier outlook of $1.95 billion to $2.4 billion.

Six of 33 covering analysts enhanced full-year earnings estimates over the past week, sending the consensus estimate up 2 cents, or 4.2%, to 50 cents per share.

TXN, a Zacks #3 Rank ("Hold") stock, is trading on volume of approximately 27.8 million, which is well above the average daily volume at about 16.5 million.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday's Analyst Blog:

Amylin Update Post ADA Meeting

This past weekend, Amylin Pharmaceuticals (AMLN) presented several abstracts and oral presentations at the American Diabetes Association (ADA) meeting in New Orleans. At the meeting, Amylin presented long-term follow-up data from the 74-week open label portion of the DURATION-1 program that demonstrated clear and sustained improvement in HbA1c for patients taking exenatide once weekly long-acting release (LAR).

The data also show improvements in fasting plasma glucose and weight loss while on LAR. Data from the previously reported DURATION-2 program also demonstrate that once weekly LAR offers greater glycemic control, with an added weight loss benefit over Takeda's Actos and Merck's (MRK) Januvia. Exenatide LAR remains extremely well positioned to capture significant market share in the type-2 diabetes market if it is approved in March 2010.

"If" remains the operative word, however. Lingering concerns over the potential that exenatide causes pancreatitis, and newly found fears on potentially increased risk in C-cell malignant carcinoma of the thyroid in the GLP-1 class, have knocked Byetta (exenatide twice daily injection) significantly down off its previous growth trajectory.

Amylin management presented interim results from a retrospective safety analysis at ADA, seemingly quashing the pancreatitis risk. Data on over 25k patients taking Byetta shows no significant increased risk of developing pancreatitis at the 95% confidence interval. Still, however, the big risk to Amylin's stock is that FDA may ask for additional data on the LAR formulation prior to granting approval.

Longer-term, intense competition in type-2 diabetes market may limit Amylin's profitability. In the next few years, the potential exists that we will see up to three more GLP-1 molecules: Novo's Victoza (liraglutide), Glaxo's (GSK) Syncira (albiglutide), and Roche's Ipsen (taspoglutide), plus another DPP-IV inhibitor in Bristol's (BMY) Onglyza (saxagliptin) on the market. We note that Glaxo's Syncira, currently in the initial stages of a phase III program, is also a once weekly injection.

However, the most concerning potential competitor is Amylin's current partner on LAR, Eli Lilly (LLY). At ADA, Lilly presented positive data from a phase II program called GBCJ demonstrating the effectiveness of its own internally developed GLP-1 molecule, LY2189265. LY2189265 is a once-weekly injection a novel-engineered fusion protein, consisting of a dipeptidyl peptidase-IV (DDP-IV) protected GLP-1 analog linked to a fragment of immunoglobulin G4.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Friday's Analyst Blog:

Optimistic on Osiris

Osiris Therapeutics, Inc. (OSIR) reported financial results for the first quarter 2009 on May 7, 2009. Total revenues in the quarter were $12.7 million, up from $0.4 million for the same period for 2008, and slightly above our forecasts of $11.8 million.

Revenues include the recognition of $10.0 million in amortized license fees from Genzyme Corp. (GENZ) and $2.6 million related to the contract with the U.S. Department of Defense. The company reported net income of $14.8 million, or $0.45 per share for the quarter. This figure is comprised of losses from continuing operations of $7.9 million, or $0.24 per share, and income from discontinued operations of $22.7 million, or $0.69 per share.

Barclays Boosted by Lehman Ops

Today, Barclays PLC (BCS, or Barclays) posted a 15% year-over-year increase in pretax profits to £1.4 billion, driven by a 361% gain in pretax earnings to £907 million at Barclays Capital, stemming from the acquisition and integration of Lehman's North American operations. While net income attributable to shareholders rose 12%, diluted earnings per share dropped 33% due to dilution caused from the sale of additional shares last year.

Net revenues increased 42% year over year due to the Lehman acquisition and strong growth at the international businesses in Global Retail and Commercial Banking on growth in assets. However, profits at all of Barclays' retail and commercial banking operations were hit by a sharp deterioration in credit quality and higher loan impairment charges, particularly in the UK, Spain, and India. Total impairment charges rose 79% year over year to £2.3 billion, including £1.1 billion at Barclays Capital, which was up 45% year over year and included credit market write-downs of £754 million.

Intersil Corporation Looks Ahead

Intersil Corporation (ISIL) is an OEM of analog and mixed signal semiconductor ICs. Management expressed confidence that the bottom is behind it, and judging from the increasing order rates and growing backlog, we are inclined to agree.

The High Performance Analog market is a key reason we are bullish on the shares.

Isis Our Top Mid-Cap Biotech Pick

We are keeping our Buy rating and $22 price target on Isis Pharmaceuticals (ISIS). We are big fans of antisense technology and believe that the number of potential therapeutic applications is enormous. Antisense drugs may have significant potential to treat a number of diseases where small molecule and biologic compounds have failed.

Although still early-stage, antisense technology as a platform for developing drugs reminds us greatly of the promise of biologic drugs over a decade ago. Potential mechanisms such as siRNA, RNAi, alternate splicing and micro RNA have the potential to change how we treat disease in the years to come.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

Sell Liberty Property in Near Term

Liberty Property Trust (LRY) is a self-administered and self-managed real estate investment trust (REIT) that focuses primarily on prime suburban properties in the Southeast, Mid-Atlantic, and Midwest regions of the United States. The company's portfolio comprises over 700 industrial and office properties, spanning 77 million square feet of space.

Office and industrial markets continue to weaken throughout the US. In the current environment, we do not favor suburban industrial/office companies as rental rates and occupancies will continue their downward trend.

The company recently cut its quarterly payout to $0.475 per share, 24% lower than the previous payout. Negative job growth trends will keep shares under pressure.

3Com Fairly Priced at $4

3Com Corp (COMS) is a leader in the Chinese enterprise networking market, but may face increased competition in the server market with the entry of large players such as Cisco Systems (CSCO).

Through improved operational efficiency, 3Com achieved profitability on a GAAP basis for its third consecutive quarter. We are pleased with the company's performance in recent quarters, but are concerned about the worsening global economic outlook and a weak IT spending in China. Moreover, the future of its business in China concerns us as the company reduces its dependence on Huawei as a reseller.

Krispy Kreme Rockets Up 46%

Shares of Krispy Kreme Doughnuts Inc (KKD) are rocketing 46% today to $3.34, after announcing it secured credit agreement amendments that will enable it to stay in compliance. The amendments give the doughnut chain time to weather the recession while continuing to close under-performing units and reinvigorating same-store sales.

Comp sales showed signs of stabilization in the latest quarter ended February 1, rising 0.9%. Revenue, however, fell 17% to $91.8 million, as the company continues to close under-performing stores.

Semtech Target Upped to $18

Semtech Corp. (SMTC) is a fabless supplier of analog and mixed-signal semiconductor devices. Management has been diversifying the product portfolio, introducing new high-margin products and broadening the customer base.

January quarter results were short of consensus estimates. Forward guidance is for a -7% to -17% revenue decline in the April quarter. Both revenue growth and margin expansion are expected to return in the second half of fiscal 2009 when the new product platforms gain traction.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Chicago, IL - April 9, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Best Buy Co., Inc. (BBY), Conn's, Inc. (CONN), GameStop Corp. (GME) and Corning Incorporated (GLW).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This Week: Better Profits for Electronics Stores?

Profit forecasts for electronics retailers are rising in a significant manner. During just the past 2 weeks, more than 40% of all earnings estimates for Retail-Consumer Electronics have been revised upwards - a very bullish sign.

The biggest beneficiary of the optimism has been Best Buy Co., Inc. (BBY).

A couple of weeks ago, BBY shocked analysts with better-than-expected fiscal fourth-quarter earnings of $1.61 per share. Though same-store sales were down, the dollar amount of the average purchase rose. More importantly, gross margins widened by 90 basis points.

BBY also provided upbeat guidance. The company expects fiscal 2010 profits to total between $2.50 and $2.90 per share; the consensus had called for earnings of $2.36 per share.

Nearly all of the covering analysts adjusted their projections to be inline with BBY's guidance. The consensus estimate is now at $2.77 per share.

It's not just Best Buy that is responsible for the overall improvement in the industry group's outlook, however.

Competitor Conn's, Inc. (CONN) also beat estimates and said that gross margins improved. Video game retailer GameStop Corp. (GME) generated same-store sales growth of 9.6%. Both companies provided an upbeat outlook.

Without a doubt, the demise of Circuit City is helping all 3 companies.

Another trend helping BBY and CONN is that consumers are still buying LCD TVs. Some of this might be attributable to the digital conversion, though declining prices and aging analog sets are also playing a role.

Corning Incorporated (GLW) recently said that it has been "experiencing increasing glass orders." As a result, the company is now guiding for first-quarter glass volume of flat to down 5%, versus previous guidance for a 20% to 25% drop. (GLW is a major manufacturer of glass for flat panel displays.)

Finally, tough economic conditions are causing more consumers to stay at home then go out. A DVD or a video game can cost less than taking a family of four out for a night. This trend favors companies like BBY, CONN and GME.

Finally, as I discussed last month, retail earnings in general have not been as bad as feared. This has led to multiple positive revisions across the retail sector.

CONN is a Zacks #1 Rank ("strong buy") stock. BBY and GME are Zacks #2 Rank ("buy") stocks. All 3 are classified in Retail-Consumer Electronics. GLW is a Zacks #2 Rank stock classified in Fiber Optics.

Related ETFs

There are a few exchange-traded funds that focus on retailers. SPDR S&P Retail (XRT) provides good overall coverage of the sector. Furthermore, Best Buy is the fund's fourth-largest holding, though no single position accounts for more than 2.5% of XRT's portfolio.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 3:1 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://www.zacks.com/performance.

Visit http://www.zacks.com/performance) for information about the performance numbers displayed in this press release. 

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.

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.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

Profit forecasts for electronics retailers are rising in a significant manner. During just the past 2 weeks, more than 40% of all earnings estimates for Retail-Consumer Electronics have been revised upwards - a very bullish sign.

The biggest beneficiary of the optimism has been Best Buy Co., Inc. (BBY).

A couple of weeks ago, BBY shocked analysts with better-than-expected fiscal fourth-quarter earnings of $1.61 per share. Though same-store sales were down, the dollar amount of the average purchase rose. More importantly, gross margins widened by 90 basis points.

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BBY also provided upbeat guidance. The company expects fiscal 2010 profits to total between $2.50 and $2.90 per share; the consensus had called for earnings of $2.36 per share.

Nearly all of the covering analysts adjusted their projections to be inline with BBY's guidance. The consensus estimate is now at $2.77 per share.

It's not just Best Buy that is responsible for the overall improvement in the industry group's outlook, however.

Competitor Conn's, Inc. (CONN) also beat estimates and said that gross margins improved. Video game retailer GameStop Corp. (GME) generated same-store sales growth of 9.6%. Both companies provided an upbeat outlook.

Without a doubt, the demise of Circuit City is helping all 3 companies.

Another trend helping BBY and CONN is that consumers are still buying LCD TVs. Some of this might be attributable to the digital conversion, though declining prices and aging analog sets are also playing a role.

Corning Incorporated (GLW) recently said that it has been "experiencing increasing glass orders." As a result, the company is now guiding for first-quarter glass volume of flat to down 5%, versus previous guidance for a 20% to 25% drop. (GLW is a major manufacturer of glass for flat panel displays.)

Finally, tough economic conditions are causing more consumers to stay at home then go out. A DVD or a video game can cost less than taking a family of four out for a night. This trend favors companies like BBY, CONN and GME.

Finally, as I discussed last month, retail earnings in general have not been as bad as feared. This has led to multiple positive revisions across the retail sector.

CONN is a Zacks #1 Rank ("strong buy") stock. BBY and GME are Zacks #2 Rank ("buy") stocks. All 3 are classified in Retail-Consumer Electronics. GLW is a Zacks #2 Rank stock classified in Fiber Optics.

Related ETFs

There are a few exchange-traded funds that focus on retailers. SPDR S&P Retail (XRT) provides good overall coverage of the sector. Furthermore, Best Buy is the fund's fourth-largest holding, though no single position accounts for more than 2.5% of XRT's portfolio.

The Zacks Rank is a quantitative short-term indicator designed to determine a stock's relative performance over a period of 1 to 3 months.

Zacks Premium and Zacks Elite subscribers can view the Zacks Industry Rank List at http://www.zacks.com/zrank/zrank_inds.php. This interactive list allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. Shown below is the Zacks Sector Rank List, which shows the trend in estimate revisions on a broader scale.

Sector Rank as of Apr 8
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Medical	2.61	2.62	0.66	249	377
Retail-Wholesale	2.81	2.78	0.59	223	381
Computer and Technology	2.82	2.84	0.57	305	532
Consumer Discretionary	2.94	2.99	0.49	106	215
Business Services	3.02	3.06	0.33	35	107
Consumer Staples	3.03	3.06	0.44	86	195
Oils-Energy	3.12	3.17	0.22	175	796
Utilities	3.15	3.06	0.35	58	164
Construction	3.17	3.12	0.27	27	101
Aerospace	3.18	3.10	0.20	12	59
Basic Materials	3.22	3.24	0.28	84	303
Auto-Tires-Trucks	3.25	3.15	0.12	10	81
Finance	3.27	3.25	0.20	183	902
Industrial Products	3.33	3.32	0.08	18	237
Transportation	3.35	3.31	0.10	31	305
Conglomerates	3.39	3.46	0.07	5	69

Charles Rotblut, CFA, is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Zacks Investment Research

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday's Analyst Blog:

Dollar Financial Downgraded to Hold

Dollar Financial Corp's (DLLR) 2Q09 (ended December 31, 2008) diluted earnings of $0.49 per share were 2 pennies ahead of our estimate. The company continued to deliver strong revenue growth (9.8% during the reported quarter), despite a difficult economic environment.

The Management reduced its FY09 earnings expectations to $1.65 2.35 per diluted share, from $2.10-2.35 per diluted share, primarily due to continuous deterioration in the macroeconomic environment and strengthening of the U.S. dollar.

Halliburton Remains a Sell

Our continued Sell recommendation on Halliburton Co (HAL) shares reflects the weak fundamentals of the U.S. natural gas market, to which the company enjoys a strong leverage through its leading position in the pressure pumping business.

Weak natural gas prices and the continued credit market turmoil have prompted E&P players to curtail spending plans, significantly affecting the outlook for companies such as Halliburton.

Arena Pharma Results Disappoint

This morning Arena Pharmaceuticals (ARNA) released important phase III data on obesity drug lorcaserin. The data show the patients taking 10mg lorcaserin twice daily lost 12.7 lbs, or 5.8% of their body weight on an intent-to-treat basis over the first 12-months of the study vs. 4.7 lbs, or 2.2% of their body weight for patients taking placebo. Additionally, 47.5% of the patient taking lorcaserin lost at least 5% of their body weight compared to only 20.3% taking the placebo.

These results satisfy the 2 FDA requirements for approvability, in our view. More importantly, there was no statistically significant associated risk of developing valvulopathy (heart value damage) for patients taking lorcaserin vs. placebo over the entire two year study period.

Hittite Microwave Still a Hit

Hittite Microwave Corp (HITT) is a leading analog company and is gaining traction with new products. Business remains strong due to the fact that the company sells directly to its customers. However, the company's end markets are facing decelerating growth, which could hamper margins and profitability in the near term.

The company expects weak results for Q1, impacted by a slowdown in bookings. We believe Hittite is better positioned than its peers should the outlook for tech deteriorate given its international exposure and less cyclical target markets.

PetMed Express Lowered to Hold

PetMed Express (PETS) and subsidiaries, doing business as 1-800-PetMeds, is a leading nationwide pet pharmacy. The company markets its health products for dogs, cats, and horses direct to the consumer through national television, online, and direct mail advertising campaigns.

We are downgrading PetMed Express from Buy to Hold and reducing our 6-month target price from $21 to $17. The company should continue to report solid results thanks to management s focus on increasing its market share and cutting operating costs. What's more, the company's solid sales trends in a difficult environment, cost-cutting efforts, and clean balance sheet ($44 million in cash and $0 debt) should continue to support its stocks price.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, 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 at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com