• Wal-Mart (NYSE:WMT) reported estimate-topping results of 84 cents a share, three cents above Zacks estimates of 81 cents, on revenues of $98.67 billion, slightly below estimates of $99.50 billion. Comparable sales eased 0.4% from last year. The firm raised fourth quarter and full-year guidance to a range of $1.08-$1.12 for the quarter and $3.57-$3.61 for the year

• Kohl's (NYSE:KSS) reported results of 63 cents a share, above Zacks estimates of 61 cents, on revenues of $4.1 billion, above Zacks projections of $4 billion

• Banking analyst Richard Bove strongly advised purchase of Bank of New York Mellon (NYSE:BK) shares, saying the firm's multiple should be twice current levels due to growth prospects

• Motorola (NYSE:MOT) is considering sale of its Home and Networks Mobility division as part of its turnaround plan. Analysts value the unit at $3-$5 billion

• Hewlett-Packard (NYSE:HPQ) said it agreed to acquire 3Com (NASDAQ:COMS) for $7.90 per share,

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Companies featured in this edition of the newsletter: ACTC, CHIP, CVM, DKAM, ENZ, IWEB, MBCI, MFGD, PHC

Markets rebounded last week, on the strength of upbeat productivity and manufacturing reports that led to solid gains in all of the major indices. Despite news that the unemployment rate had hit its highest levels in 25 years, the Dow managed to end the week up 310 points, gaining 3.2% on the week to close at 10,023, up 14.2% on the year. The Nasdaq posted a gain of 3.3%, closing at 2112 and extending its yearly gains to 34%, while the S&P 500 and Russell 2000 advanced 3.2% and 3.1% respectively on the week to bring their YTD performance to 18.4% and 16.2%.

Several better than expected economic reports provided buying incentive throughout much of the week, as investors managed to shake off the previous week’s negative bias to send indices into positive territory

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For Immediate Release

Chicago, IL – October 16, 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: Goldman Sachs Group Inc. (GS), ASML Holding N.V. (ASML), Applied Materials (AMAT), KLA Tencor (KLAC) and Lam Research (LRCX).

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:

Goldman Beats Zacks Estimate

Goldman Sachs Group Inc.’s (GS) third quarter 2009 (ended Sept. 25, 2009) earnings of $5.25 per share were significantly ahead of the Zacks Consensus Estimate of $4.13.

Results reflected strong performance in the trading operations, which offset the decrease in

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ASML Holding N.V. (ASML) was the first of the capital equipment companies to report third quarter results. Judging from the 100.7% increase in revenue to €555.3 million, we feel more optimistic about Applied Materials (AMAT), KLA Tencor (KLAC), Lam Research (LRCX) and Tokyo Electron, the other big players in the space. Although the year-over-year decline of 20.3% indicates that sales are still quite weak, performance is still significantly better than the 67.2% and 80.0% year-over-year declines in the preceding two quarters. The strengthening markets are not so much a reflection of a recovery, according to management, as they are a result of new product introductions, leading to increased demand from memory and foundry customers in Asia.  Revenue increase in the last quarter was driven by increases in both average selling ...

U.S. stocks broke a three-day slide and rose more than 1% Monday as a fresh round of strategic corporate deal-making spurred hopes that normalcy is returning to the financial system.  The multi-billion dollar merger announcements signaled a resurrection in merger activity and investors picked up stocks. 

The Dow Jones industrial average jumped 124 points, or 1.3% and the broader S&P 500 index rallied 19 points, or 1.8% and the Nasdaq composite index advanced 40 points, or 1.9%.  The share gains were broad based with 28 of the 30 Dow components advancing.  On the New York Stock Exchange, four stocks rose for each one that declined in price.  Only 978 million shares exchanged hands on the NYSE.  Trading was light due to the Jewish holiday of Yom Kippur.     

In a spate of big corporate merger announcements, Abbott Labs (NYSE:ABT) said it will pay $6.5 billion for Solvay's pharmaceutical business, and

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Key Points:

Growth Third-quarter net income expected to be down 22.9% year-over-year Fourth quarter net income to more than double from a year ago, but it is all in the Financials Only 159, or 31.8%, of all S&P 500 firms expected to see positive EPS growth in Q3 More than half expected to post positive growth in Q4 levels Bottom-up estimate for S&P 500 now $60.84 in 2009 S&P 500 now expected to earn $75.23 in 2010 Top down estimates are $53.94 and $68.40, respectively

Revisions Total estimate increases outnumber cuts by almost 2:1 for 2009 Upward revisions outnumber cuts by more than 2:1 for 2010 Revisions ratios for both years have risen consistently for last 3 months For 2009, Tech and Staples lead; Utilities and Telecom lag Materials also look good for both years

Valuation S&P 500 P/E at 17.1x based on 2009 earnings, an earnings yield of 5.83% P/E of 13.9x based on 2010 Earnings, an earnings yield of 7.22% Earnings yields are

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For Immediate Release

Chicago, IL – September 2, 2009 - Zacks Research Equity Strategist, Dirk Van Dijk says that S&P 500 earnings are continuing to show red ink. He tracks companies on the Zacks.com web site, naming names, while forecasting trends for the months ahead.

Key Points from Van Dijk's Latest Earnings Assessment

Growth

Second-quarter total net income down 31.0% year-over-year Third quarter expected to be down 22.9% year-over-year Fourth quarter to more than double year ago, but it is all in the Financials Health Care only sector to post positive growth in second quarter Only 32.4% of companies posted earnings growth last quarter; 25.0% post sales growth year-over-year

Surprise

Results much stronger than feared; median surprise was 6.7% Positive surprises lead disappointments by 3.4:1 margin (surprise ...

Key Points:

Growth Second-quarter total net income down 31.0% year-over-year Third quarter expected to be down 22.9% year-over-year Fourth quarter to more than double a year ago, but it is all in the Financials Health Care only sector to post positive growth in second quarter Only 32.4% of companies posted earnings growth last quarter; 25.0% post sales growth year-over-year

Surprise Results much stronger than feared; median surprise was 6.7% Positive surprises lead disappointments by 3.4:1 margin (surprise ratio) Surprise ratio above 8:1 for Health Care and above 4:1 for Tech, Staples and Discretionary Margins the cause, not revenue growth 71.2% of firms beat on earnings; 45.9% beat sales estimates

Levels Bottom-up estimate for S&P 500 now $60.97 in 2009 versus $60.60 last week. S&P 500 now expected to earn $75.09 in 2010 versus $74.90 last week Top down estimates $52.94 and $67.09, respectively

Revisions Total estimate increases outnumber cuts by than 7:4 for 2009 Upward revisions outnumber cuts by more than 3:2 for 2010 Revisions ratios

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For Immediate Release

Chicago, IL – August 25, 2009 - Zacks Research Equity Strategist, Dirk Van Dijk says that S&P 500 earnings are continuing to show red ink. He tracks companies on the Zacks.com web site, naming names, while forecasting trends for the months ahead.

Key Points from Van Dijk's Latest Earnings Assessment

Growth

Second-quarter total net income down 31.0% year-over-year Third quarter expected to be down 27.5% year-over-year Staples and Health Care only sectors to post positive growth in second quarter Only 30.9% of companies posted earnings growth; 23.7% posted sales growth year-over-year

Surprise

Results much stronger than feared with median surprise of 6.7% Positive surprises lead disappointments by 3.4:1 margin (surprise ratio) Surprise ratio above 8:1 for Health Care and above 4:1 for Tech, Staples ...

Key Points:

Growth

Second-quarter total net income down 31.0% year-over-year Third quarter expected to be down 27.5% year-over-year Staples and Health Care only sectors to post positive growth in second quarter Only 30.9% of companies posted earnings growth; 23.7% posted sales growth year-over-year

Surprise

Results much stronger than feared with median surprise of 6.7% Positive surprises lead disappointments by 3.4:1 margin (surprise ratio) Surprise ratio above 8:1 for Health Care and above 4:1 for Tech, Staples and Discretionary Margins the cause, not revenue growth 71.2% of firms beat on earnings: 45.9% beat sales estimates

Levels

Bottom-up estimate for S&P 500 now $60.60 in 2009 versus $60.41 last week. S&P 500 now expected to earn $74.90 in 2010 versus $74.74 last week Top down estimates $53.84 and $67.44, respectively

Revisions

Total estimate increases outnumber cuts by more than 5:3 for 2009 Upward revisions outnumber cuts by more than 4:3 for 2010 Revisions ratios for both years have risen consistently through earnings season For

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