Chicago, IL – November 24, 2009 – Zacks Equity Research highlights Petrobras (PBR) as the Bull of the Day and St. Jude Medical (STJ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Motorola Inc.(MOT), Sprint Nextel Corp.(S) and Alcatel-Lucent (ALU).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

Petrobras (PBR), the largest integrated energy firm in Brazil, stands to benefit from its country's economic growth and huge pre-salt oil reserves. The company recently reported a better-than-expected third-quarter, helped by strong downstream results that more than offset the sharp decline in commodity prices.

Near- to medium-term concerns include the uncertain commodity-price scenario, significant capital investment requirements, and Brazil's proposed new oil and gas regulatory framework. However, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook looks compelling.

As such, we recommend an Outperform rating for Petrobras ADRs. Our six-month target price is $55 per share.

Bear of the Day:

We look for global demographic trends -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth of St. Jude Medical (STJ). These trends give rise to growing demand for cardiovascular health care.

However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.

Earnings per share in the third quarter reached $0.59, beating the Zacks Consensus Estimate by one cent. However, we have chosen to downgrade the stock to an Underperform with a target price of $31.

Latest Posts on the Zacks Analyst Blog:

Motorola Boosts iDEN Business

Motorola Inc.(MOT) has decided to purchase iDEN base station assets of the privately held RadioFrame Networks Inc. The iDEN (Integrated Digital Enhanced Network) technology allows cell phone calls to move on the same network as communication from two-way radios. In general, this technology resembles walkie-talkie features on cell phones. Financial terms of this deal have not been disclosed so far. Motorola itself is the pioneer of the iDEN technology that RadioFrame had licensed for its base station products.

The main reason for this acquisition is the superior iDEN-based base station products of RadioFrame that are lower cost and more power efficient. This proposed acquisition will enhance Motorola's portfolio of multi-channel base stations products that are optimized to support non-contiguous spectrum allocations in the special mobile radio business. Motorola may use RadioFrame’s lower-cost iDEN architecture into entirely separated spectrum bands that are allocated to the wireless carriers in the international (outside the U.S.) markets. RadioFrame has a solid client base for its base station products, notable among them being Sprint Nextel Corp.(S).

RadioFrame’s base station products will be a part of Motorola’s Home and Network Mobility segment. This segment makes equipment for cable and wireless operators. Recently, industry rumors indicated that the company has decided to sell this segment for more than $4.5 billion. As of now, Home and Network Mobility is the largest segment of Motorola. In the third quarter of 2009, this segment generated more than $2 billion revenue and $199 million operating profit.

Earlier this month, Motorola’s Home and Network Mobility segment decided to purchase IPTV specialist BitBand and will do venture funding to the LTE chip making business of Sequans Communications together with Alcatel-Lucent (ALU). BitBand has more than 60 commercial IPTV deployments throughout the world and Paris based Sequans Communications has intended to demonstrate its first LTE chipset in early 2010. Whether Motorola sells its Home and Network Mobility segment or not, it seems that the company is increasingly focusing on optimizing the resources of its largest business segment.

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.

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However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.

Earnings per share in the third quarter reached $0.59, beating the Zacks Consensus Estimate by one cent. However, we have chosen to downgrade the stock to an Underperform with a target price of $31.Zacks Investment Research

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and sideline money is virtually tapped out.

However, keep in mind that some optimism and pessimism is genuinely warranted and isn't always a contrarian indicator - like an outperforming stock with many "buy" ratings or an underperforming stock with a plethora of "sell" ratings.

Betting on a post-earnings price swing

On Thursday, CRM saw about 5,300 puts and 7,200 calls change hands, more than doubling its average single-session volume of roughly 2,200 puts and 3,400 calls. The at-the-money Nov 60 strike garnered the most attention from both sides of the Street, with close to 3,400 puts and 3,000 calls crossing the tape. However, further research reveals that a healthy portion of the 60-strike activity was related.

At 1:17 p.m. Eastern, a block of 500 Nov 60 puts and an equal amount of Nov 60 calls traded for $3.05 and $3.35, respectively. Both blocks were marked "spread", and all of the contracts crossed the tape at the ask price, suggesting they were bought. As such, it seems we've unraveled the makings of a long straddle, which makes money in the wake of a significant price swing from CRM in the near term.

The straddle strategist is likely trying to profit from a post-earnings move by the stock, as the company is expected to report earnings after the closing bell on Tuesday, Nov. 17. From an historical perspective, salesforce.com has exceeded the Street's per-share earnings predictions in each of the last four quarters. However, instead of simply buying a lone call in hopes of another pleasant profit surprise, the aforementioned trader is hedging his or her bets by initiating a straddle, which generates capital from a monumental move in either direction.

The nuts and bolts

Delving deeper into this volatility play, the 60-strike straddle on CRM was initiated for a net debit of $6.40 ($3.05 + $3.35), which represents the most the investor can possibly lose. In order to make money, the straddle strategist needs the equity to violate one of two breakeven rails by options expiration: $53.60 (strike - net debit) or $66.40 (strike + net debit).

Should salesforce.com snap its winning streak in the earnings confessional, a move beyond the lower breakeven rail could generate substantial profit. However, the strategist's maximum possible reward is capped at $53.60 (strike - net debit), since the furthest CRM could fall is to zero. On the flip side, another quarterly report in the "win" column could power the shares past the upper breakeven level. In this instance, the trader's profit potential is theoretically unlimited, as there's no ceiling to how high CRM could climb.

On the charts

Technically speaking, shares of CRM have been on fire in 2009, advancing 89.4% since the start of the year. In fact, the stock has been a broad-market standout lately, outpacing the S&P 500 Index (SPX) by 20% during just the past 60 trading sessions. Supporting the equity have been its 10-week and 20-week moving averages, which have guided CRM higher since March.

However, this double dose of trendline support could actually act as a hindrance to the aforementioned straddle strategist, as they could contain any post-earnings pullbacks. Furthermore, the investor's hopes for a monumental move to the upside could be hampered by the overhead $64-to-$66 region, which played the part of support and resistance during most of 2008.

Nevertheless, a stronger-than-anticipated earnings report could spook the skeptics, which could lend buying pressure to any potential rallies. Most notably, short interest on the equity increased by 11.5% during just the past two weeks, and now accounts for 10.3 million CRM shares, or 9.5% of the stock's total available float. A pleasant earnings surprise could spark a short-squeeze situation, which, at the security's average daily trading volume, would take close to seven sessions to unwind.

Zacks Investment Research

Total revenue in the third quarter of 2009 was $38.7 million, compared to $36.2 million in the third quarter of 2008. Recurring revenue increased 15% to $29.7 million from $25.9 million last year. New, renewed and expanded customer relationships included Epson, FICO, iRobot, Lucent-Alcatel, The Men's Wearhouse, Nike, Photobox, TiVo, U.S. Air Force and Virgin Mobile. Professional service revenue was $9 million for the quarter, consistent with Q2 and in line with our expectations. The mix of revenue across geographies for the quarter was 72% for Americas, 19% for EMEA, and 9% for Asia-Pac.

For the third quarter, the average first year contract value was approximately $112,000, which is up from last quarter and last year.

The company had seven deals over $1 million, 83 deals between $100,000 and $1 million, and 388 deals less than $100,000. The average contract term was consistent with historical averages at approximately 20 months.

Cash generated from operations was $4.9 million for the quarter, which is $11.9 million year-to-date ahead of last year. Capital expenditures were $1.4 million for the third quarter and $3.9 million year-to-date.

The company expects GAAP earnings per share in the fourth quarter between a loss of 1 cent to a profit of 1 cent. The current Zacks Consensus Estimate stands at 1 cent.

RightNow Technologies, Inc. provides customer relationship management (CRM) software and services in the United States, Europe, and the Asia Pacific. Its CRM software suite includes RightNow Service, RightNow Marketing, RightNow Sales, RightNow Feedback, RightNow Voice, and RightNow Analytics. Major competitors include Oracle Corporation (ORCL) and SAP AG (SAP).

Chicago, IL – October 22, 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: Morgan Stanley (MS), Goldman Sachs (GS), St. Jude Medical, Inc. (STJ), Medtronic Inc. (MDT) and Boston Scientific Corporation (BSX).

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 Wednesday’s AnalystBlog:

Morgan Stanley Finally Profits

Morgan Stanley (MS) reported third-quarter 2009 income of $498 million this morning or 38 cents per share, compared with a loss of $159 million or $1.37 per share in the prior quarter and an income of $7.7 billion, or $7.38 per share a year ago. The results were much ahead of the Zacks Consensus Estimate of 30 cents per share.

The results marked the first quarter of income in a year’s time. Results were aided by robust underwriting revenues in the investment banking operation resulting from higher levels of market activity, strong growth in fixed income sales and trading, commodities, prime brokerage and wealth management business, which offset losses in commercial real estate.

Unlike the preceding qaurters, the results were in line with strong results from competitors like Goldman Sachs (GS), which has been grabbing market share after the financial crisis.

St. Jude Beats Zacks Estimate

St. Jude Medical, Inc. (STJ) today reported financial results for the third quarter of 2009 before the market opened. Earnings per share came in at 59 cents, compared to the Zacks Consensus Estimate of 58 cents and the year-ago earnings of 54 cents.

Net sales in the reported quarter increased 7% year over year to approximately $1.2 billion. Excluding an unfavorable foreign exchange translation (FX), net sales increased 10% year over year. Growth was witnessed across all the business segments. However, the company’s domestic revenues were below expectation primarily due to lack of purchase of cardiac rhythm management (CRM) devices by roughly 50 hospitals in the U.S.

St. Jude’s cash and cash equivalents stood at approximately $798.3 million at the end of the reported quarter. The company ended the quarter with an outstanding debt of roughly $2.0 billion.

St. Jude has provided earnings per share guidance for the fourth quarter and full fiscal 2009. For the fourth quarter, earnings per share are expected between 61 and 63 cents. For full fiscal 2009, earnings per share are expected between $2.41 and $2.43.

St. Jude is a leading medical devices manufacturer that designs, manufactures and distributes medical devices to treat cardiovascular and neurological conditions.

Presently, St. Jude Medical holds the #2 market position for ICDs and pacemakers behind Medtronic Inc. (MDT) but ahead of Boston Scientific Corporation (BSX). This segment is the company’s largest in terms of revenues. St. Jude also holds the #2 market position behind Medtronic in neuromodulation.

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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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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

Salesforce.com enters the Government cloud computing segment in a big way with this deal, although many cabinet-level government agencies are already using the company’s services. The positive news comes just after the company’s introduction of Service cloud 2, an enhanced version of service cloud computing that provides better solutions to customers. This includes Salesforce knowledge, Salesforce Answers and Salesforce for Twitter. Salesforce is thus blazing all guns to make its cloud computing services available to customers across all segments.

Historically, Salesforce has achieved success in all cloud computing deals with government organizations. NASA uses Salesforce’s CRM applications in its partnership program with companies, federal agencies and non-profit organizations to get a macro view of its interactions with these agencies, while the US Army uses Salesforce CRM for recruitment to save time and resources. This apart, the US Department of State's Office of Nonproliferation and Disarmament Fund avails Force.com services for providing up to date budget information to program managers around the globe.

Government organizations are clearly benefiting from the cloud computing services, saving time by reducing cost of additional hardware and software and without incurring any additional employee cost. Going forward, these benefits should draw the attention of other government customers around the world, generating additional demand for companies like Salsforce.com in the cloud computing segment.

On the other hand, big companies like Microsoft (MSFT), Oracle (ORCL), International Business Machine (IBM) and Google (GOOG) are also entering this segment to get a share of this growing market, offering Salesforce.com tough competition.

The deal will help RightNow to deliver the broadest social CRM solution in the marketplace. The HiveLive platform will be immediately available after close of the acquisition.

Online communities and social networking sites are becoming a critical source of information when consumers make purchase decisions or seek service and support. Most organizations strive not only to participate in social conversations, but to integrate those conversations into internal business processes and tap them for design ideas.

The HiveLive platform complements RightNow Cloud Monitor by empowering organizations not only to monitor the social web but actually facilitate their own communities. HiveLive will also add the social channel to RightNow’s multi-channel contact center offering, which includes phone, email, mobile, web, feedback and chat.

Under terms of the deal, RightNow will acquire all outstanding shares of HiveLive for approximately $6 million in cash. The acquisition will add to the company’s earnings from the fourth quarter of 2010. It sees operating expenses rising by about $1 million per quarter due to headcount additions. The company expects to close the transaction next week and will record in its financial statements for the quarter ending Sept. 30, 2009.

For the third quarter, RightNow reiterated its revenue and non-GAAP earnings per share guidance originally provided on July 29. RightNow expects increased expenses from the acquisition by way of amortization of acquired intangibles, which will be finalized once the purchase price accounting valuation is complete. As such, it withdrew its previous GAAP earnings per share guidance for the third quarter and full year 2009.

RightNow Technologies is a leading provider of on-demand CRM software solutions, designed to optimize customer service operations for businesses of all sizes. Its comprehensive customer service solution features a self-learning knowledge base that is designed to seamlessly support multiple communication channels, including web, interactive voice, email, chat, telephone and proactive outbound email communications. The company’s major competitors include Oracle Corp. (ORCL) and SAP AG (SAP).

Chicago, IL – September 3, 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: Boston Scientific (BSX), Johnson & Johnson (JNJ), Medtronic Inc. (MDT), Abbott Laboratories (ABT) and St. Jude Medical Inc. (STJ).

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 Wednesday’s Analyst Blog:

Looks Like Boston Scientific MADIT

We think that the positive test results will boost demand for Boston Scientific’s (BSX) CRT-Ds, which will essentially drive the company’s top-line. Boston Scientific reported fiscal second quarter results with the cardiac rhythm management (CRM) segment, registering revenue growth of 5% year over year. Within the CRM segment, ICD sales increased roughly 8% year over year to $454 million in the quarter. 


Boston Scientific is a manufacturer of medical devices and products used in a broad range of interventional medical specialties. The company faces significant competition across its product portfolio. The primary competitors include Johnson & Johnson (JNJ), Medtronic Inc. (MDT), Abbott Laboratories (ABT) and St. Jude Medical Inc. (STJ). Based on the company’s performance, we have assigned a Neutral recommendation on the stock.

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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.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

Recurring revenue was $27.4 million, up 5% from $26 million in the first quarter and a 7.5% increase over the $25.5 million reported a year ago. On a constant currency basis, recurring revenue grew about 4% sequentially and 13% from the year-ago period.

Professional service revenue was $9 million for the quarter, a fall of nearly $1 million sequentially. The quarterly sales mix across geographies was 72% from the Americas, 19% from the Europe, Middle East and Africa region, and 9% from Asia Pacific.

For the second quarter, the average first-year contract value was approximately $100,000, up sequentially and from the fourth quarter of 2008. RightNow recorded ten deals of over $1 million, 60 deals worth between $100,000 and $1 million each and 421 deals for less than $100,000 each. The average contract length in the second quarter increased to 27 months. This increase reflects that several of the large transactions in the quarter were multiyear deals. Key verticals during the quarter included media and entertainment, high-tech, public sector, telecommunications and retail.

Total gross margins were 70% in the quarter compared to 67% in the first quarter and 64% a year ago. Quarterly operating margin was 7% of revenue, which is consistent with that achieved in the first quarter.

Cash generated from operations was $2.1 million for the quarter. Capital expenditures were $1.8 million for the second quarter. RightNow ended the quarter with total cash and investments of $94.6 million. The company does not have long-term debt and its shareowner’s equity is $30.6 million.

The company expects third-quarter sales in the range of $37 million to $38 million and breakeven earnings on a per-share basis. It sees revenue for the full year between $147 million and $151 million. The current Zacks Consensus Estimate for the third quarter is 2 cents a share. For 2009, the Zacks Consensus Estimate is pegged at 8 cents a share.

RightNow Technologies is a leading provider of on-demand customer relationship management (CRM) software solutions, designed to optimize customer service operations for businesses of all sizes.

Chicago, IL – August 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: Salesforce.com (CRM), Wal-Mart (WMT), Dell Inc. (DELL), Google Inc. (GOOG) and Microsoft Corporation (MSFT).

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:

CRM Focuses on Healthcare

Healthcare provides a good business opportunity to information technology companies, a fact reinforced by Salesforce.com (CRM). The company is investing in Practice Fusion, which is involved in the business of electronic health records, health policy, health information technology and consumer medical data topics. Salesforce.com will invest around $10.0 million for a marginal stake in the company, which will generate around $1.0 million of revenue a year for the company.

The cloud computing model introduced by Salesforce.com, uses online software solutions created by it. We believe that the advantages of the model are particularly applicable to the company’s clientele. In addition to the user-friendly interface, cloud computing typically lowers IT staff requirements. So medical practitioners and other professionals who prefer to manage the system on their own will find it particularly useful.

Under the new agreement, Practice Fusion’s EMR (electronic medical records product line) will be combined with Salesforce.com’s cloud computing system to enhance value for customers. We think the deal comes at an opportune moment because the federal government passed a bill earlier this year, including around $30.0 billion in incentives to medical practitioners and hospitals for buying and using electronic record keeping software. We believe this is likely to generate additional business for companies such as Salesforce.com, as most doctors currently use hard copies of medical records.

Wal-Mart (WMT) is also trying to enter this segment, through collaboration with Dell Inc. (DELL). Other big companies such as Google Inc. (GOOG) and Microsoft Corporation (MSFT) have launched personal health records storage systems, which are helping patients to store their own health data. We believe electronic health records provide significant business opportunities, as healthcare professionals are increasingly adopting the concept of a paperless office and recognizing the benefits. We believe that growth in this segment is inevitable, as electronic records becoming accessible from anywhere and at any time makes life easy for both doctors and patients.

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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.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

St. Jude Medical (STJ) recently announced that two out of its 12 manufacturing facilities are presently under the FDA's (Food and Drug Administration) scrutiny as their manufacturing practices were not in conformity with the Current Good Manufacturing Practice.

The FDA has already issued a warning letter to St. Jude to state that it would neither grant the company's requests for export certificates to foreign countries, nor clear any pre-market approval applications for its class III devices until the violation is rectified.

The two facilities identified are Plano, Texas and Hackettstown, New Jersey. The company has already provided written responses to the FDA detailing proposed corrective actions at these facilities. The company needs to rectify the manufacturing practices faster to protect its top line.

St. Jude Medical is a leading medical device manufacturer that designs, manufactures and distributes medical devices to treat cardiovascular and neurological conditions. The company operates through four business segments: Cardiac Rhythm Management (CRM), Cardiovascular (CV), Atrial Fibrillation (AF) and Neuromodulation (Neuro).

In the CRM segment (ICDs and pacemakers), the company is the second-largest player in the market after Medtronic (MDT) but ahead of Boston Scientific (BSX). CRM is the company's largest segment in terms of revenue. In the Neuro segment, St. Jude holds the #2 market position behind Medtronic.

St. Jude resorted to several fund-raising activities in the past few months. Last December, the company borrowed $500 million under its existing $1 billion credit facility. It also entered into a three-year agreement for $360 million with a consortium of banks in Japan and issued $88 million of three-year notes later.

In January, the company borrowed an additional $180 million under this agreement. The company used these amounts to fund acquisitions and repay its $1.2 billion in convertible debentures. The borrowings will increase its credit risk if St. Jude does not properly utilize these funds.

St. Jude remains relatively insulated from the recent economic fallout as a result of its life-sustaining product portfolio. In our latest report, we have assumed that the stock should trade at a 25% premium to the comparables' mean P/E/G multiple. Based on this, we reiterate `Buy' rating for this stock. We think investors stand to benefit by adding this stock to their portfolio.

Pegasystems Inc. (PEGA) just doubled analysts' expectations and shares have more than doubled since its appearance as a Zacks Rank Buy earlier this year.

Doubled Expectations

In its latest earnings report the customer relationship management software company more than doubled the consensus estimate. On May 4 Pega said it generated $62 million in revenue for the first quarter, which is a company record. This is the seventh consecutive quarter the company has set revenue records.

Net income came in at $8.6 million, about 3 times higher than the same quarter last year. This yielded 23 cents per share, well above the 11 cents that Wall Street was expecting. This was the third surprise in the past 4 quarters.

Triple-Digit Growth

The consensus for full-year 2009 is now 64 cents, up 16 cents since the report. Forecasts for next year are averaging 83 cents, up 17 cents. These projections would mean an earnings growth rate of 122% this year and another 29% in 2010.

The Chart

Since originally being featured as a Zacks Rank Buy in January, share of PEGA have more than doubled.

Read the March 18th Feature Here

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Longtop Financial Technologies, Ltd (LFT) topped analyst estimates and investors continue to flock to Chinese stocks. Read Full Article.

Citi Trends, Inc. (CTRN) continues to top analyst forecasts as it expands across the U.S. Read Full Article.

American Public Education, Inc (APEI) analysts are projecting earnings to almost double this year and the company has just reported a fantastic first quarter. Read Full Article.

Neutral Tandem, Inc (TNDM) continues to expand its network and is currently trading at a great value Read Full Article.Zacks Investment Research

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and sideline money is virtually tapped out.

However, keep in mind that some optimism and pessimism is genuinely warranted and isn't always a contrarian indicator - like an outperforming stock with many "buy" ratings or an underperforming stock with a plethora of "sell" ratings.

Fascinated by 40

According to the Zacks screener, put players went crazy over CRM last Thursday. During the session, the security saw roughly 8,900 puts change hands - nearly 6 times its average daily volume of fewer than 1,700 contracts. As a result of the bombardment of bearish bets, the stock's Schaeffer's put/call open interest ratio (SOIR) jumped from 0.93 to 1.04 overnight. In other words, puts are now more popular than their call counterparts among options slated to expire within 3 months.

Digging deeper into the data, it appears the CRM Jun 40 put was most popular Thursday, with approximately 4,100 new positions opened. On the flip side, the 40 strike also captivated call traders, with about 1,100 new contracts open. This round-number strike is now home to peak open interest in the front-month series, with roughly 5,500 puts and almost 2,000 calls in residence.

A Victory for the Bears

Turns out, most visitors to the options pits were preparing for salesforce.com's turn in the earnings limelight after the closing bell Thursday. After scanning the firm's figures, it's clear the bearish options bettors won this battle.

Though the business software sultan said first-quarter profit nearly doubled from a year ago, the company's prospects for the road ahead were not what the bulls wanted to hear. The firm said it expects to record revenue of $312 million to $313 million in the second quarter, below analysts' estimates. In addition, salesforce.com trimmed its full-year revenue outlook to between $1.25 billion and $1.27 billion, compared to prior projections for $1.30 billion to $1.33 billion in sales.

"New business wasn't as strong as we hoped," said CFO Graham Smith, stating that new orders declined in the single digits on a percentage basis from a year prior. Plus, existing clients aren't adding new features as rapidly as a year ago, new customers are signing smaller contracts, and it's taking longer to close deals, according to Chief Executive Marc Benioff.

Challenges on the Charts?

In light of the news, shares of CRM plummeted Friday. Furthermore, after outperforming the S&P 500 Index (SPX) by 18% during the past 60 trading sessions, the stock is now poised to close the month beneath support at its 10-week moving average for the first time since mid-February.

What's more, the selling pressure could actually escalate in the near term, should salesforce's gloomy guidance spook the bulls. According to Zacks, the brokerage bunch had high hopes for CRM ahead of the report, with 14 out of 24 ranking analysts deeming the stock worthy of a "buy" or better rating. A fresh wave of downgrades from this optimistic outfit could spell trouble for the shares.

Zacks Investment Research

There is not much on the economic calendar, though the minutes from the April Fed meeting will be released on Wednesday afternoon (2 p.m.).

• Tuesday: April building permits and housing starts
• Wednesday: April Fed minutes, weekly crude inventories
• Thursday: Phili Fed survey, April Leading Indicators, weekly initial jobless claims

Fed Chairman Ben Bernanke will deliver a commencement speech at the Boston College Law School on Friday afternoon. Vice Chairman Donald Kohn will speak at a conference about fiscal policy in Princeton, N.J. on Saturday afternoon.

Volume could be light on Friday as traders and fund managers leave early for the holiday weekend. The U.S. markets will be closed on Monday, May 25.

Keep an eye on General Motors (GM). A bankruptcy filing could occur any day now.

The end of first-quarter earnings season removes a catalyst for the bulls. Given that stocks have rallied for 8 out of 10 weeks, a pullback is overdue and I think it has started.

Companies That Could Issue Positive Earnings Surprises

Despite the recession, Aeropostale (ARO) continues to enjoy strong growth. April same-store sales surged 20%, leading the company to hike its first-quarter guidance by 14 cents to 46 cents per share. Brokerage analysts are even more bullish and think the casual clothing retailer could announce profits of 48 cents per share. ARO has topped expectations during 3 out of the last 4 quarters. Aeropostale is scheduled to report on Thursday, Apr 21, after the close of trading.

Though same-store sales continue to fall, Gap Inc. (GPS) recently said that first-quarter earnings would top expectations. The company guided for profits of 29 to 30 cents per share, 6 cents more than what brokerage analysts were projecting in early May. (Revisions by 11 of the 19 covering analysts have since pushed the consensus earnings estimate up to 30 cents per share.) GPS has a long track record of topping expectations. GAP is scheduled to report on May 21, after the close of trading.

About one-quarter of the covering brokerage analysts have raised their fourth-quarter estimates on Home Depot (HD) in recent weeks. The revisions have nudged the consensus earnings estimate a penny higher to 28 cents per share. The most accurate estimate is more bullish at 30 cents per share. The home improvement retailer has topped expectations for 4 consecutive quarters. Home Depot is scheduled to report on Tuesday, May 19, before the start of trading.

Target (TGT) recently predicted that its first-quarter earnings would be "well above" the consensus estimate. Brokerage analysts quickly adjusted their models, sending the consensus earnings estimate up to 60 cents per share - an increase of 11 cents from 30 days ago. The most accurate estimate is slightly more bullish at 61 cents per share. This is a riskier call, however, because TGT does not have a good history of topping expectations. Target is scheduled to report on Wednesday, May 20, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

Deere & Co. (DE) has missed expectations for 4 consecutive quarters. Analysts seem to be bracing for another miss as is evident by the recent 2-cent drop in the consensus earnings estimate. The average fiscal second-quarter forecast now calls for profits of $1.10 per share. The most accurate estimate is more bearish at a $1.07 per share. Deere is scheduled to report on Wednesday, May 20, before the start of trading.

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

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of May 18 - 22¹. Prices are as of Thursday's, May 14, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Airmedia Gp-Adr	AMCN	$0.00	$0.10	(13.3%)	5/18	AMC	$5.72
Amer Apparel	APP	($0.02)	$0.02	(28.6%)	5/18	AMC	$5.45
China Ritar Pwr	CRTP	$0.02	$0.03	(86.7%)	5/18	N/A	$1.90
Derma Sciences	DSCI	($0.01)	($0.04)	0.0%	5/18	BTO	$0.36
Doctor Reddys	RDY	$0.33	$0.15	N/A	5/18	N/A	$11.65
Dri Corp	TBUS	($0.03)	$0.06	20.0%	5/18	N/A	$1.20
Hasting Entmt	HAST	$0.13	$0.28	(350.0%)	5/18	BTO	$3.48
Himax Tech-Adr	HIMX	$0.03	$0.18	12.5%	5/18	AMC	$2.52
Ituran Location	ITRN	$0.18	$0.18	(3.5%)	5/18	BTO	$7.47
Kit Digital Inc	KDGL	($0.33)	($9.44)	0.0%	5/18	AMC	$8.49
Lowes Cos	LOW	$0.25	$0.41	(8.3%)	5/18	N/A	$18.87
Perfect World	PWRD	$0.47	$0.38	65.6%	5/18	BTO	$18.34
Petro Resources	PRC	($0.02)	($0.04)	(300.0%)	5/18	N/A	$0.33
Radiant Logist	RLGT	$0.01	$0.00	200.0%	5/18	N/A	$0.16
Simcere Pharmac	SCR	$0.17	$0.25	(25.0%)	5/18	AMC	$7.65
Smf Energy Corp	FUEL	($0.04)	($0.10)	28.6%	5/18	N/A	$0.26
Spectrum Pharma	SPPI	($0.11)	($0.28)	29.4%	5/18	N/A	$4.07
Tsakos Egy Navg	TNP	$0.64	$1.70	(7.5%)	5/18	BTO	$19.01
Valspar Corp	VAL	$0.35	$0.41	(4.8%)	5/18	BTO	$22.78
Vimicro Int-Ads	VIMC	($0.14)	($0.09)	(50.0%)	5/18	AMC	$1.79
012 Smile.Com	SMLC	$0.18	$0.25	(25.0%)	5/19	BTO	$5.49
3Sbio Inc-Ads	SSRX	$0.12	$0.13	(27.3%)	5/19	AMC	$8.01
Analog Devices	ADI	$0.09	$0.44	20.0%	5/19	AMC	$20.09
Dicks Sprtg Gds	DKS	$0.06	$0.17	5.8%	5/19	BTO	$17.94
Dycom Inds	DY	$0.05	$0.14	(100.0%)	5/19	AMC	$7.82
E-House China	EJ	$0.05	$0.11	16.7%	5/19	BTO	$12.49
Excel Maritime	EXM	$0.12	$1.93	141.5%	5/19	AMC	$9.06
Hewlett Packard	HPQ	$0.86	$0.87	0.0%	5/19	AMC	$34.93
Home Depot	HD	$0.28	$0.41	18.8%	5/19	BTO	$24.53
Ja Solar Holdgs	JASO	($0.06)	$0.14	(366.7%)	5/19	BTO	$3.35
Kana Software	KANA	($0.03)	($0.01)	(300.0%)	5/19	AMC	$0.72
Kemet Corp	KEME	($0.09)	($0.02)	25.0%	5/19	N/A	$0.62
Medtronic	MDT	$0.82	$0.78	0.0%	5/19	BTO	$33.59
Oceanfreight In	OCNF	$0.13	$0.88	26.5%	5/19	AMC	$1.39
Opnext Inc	OPXT	($0.26)	$0.01	(1200.0%)	5/19	BTO	$2.30
Paragon Shpgn-A	PRGN	$0.52	$0.59	(8.8%)	5/19	AMC	$3.45
Phillips Van He	PVH	$0.48	$0.90	10.7%	5/19	AMC	$26.18
Raven Inds Inc	RAVN	$0.47	$0.60	(10.3%)	5/19	BTO	$24.74
Saks Inc	SKS	($0.24)	$0.13	(73.3%)	5/19	BTO	$3.60
Solarfun Power	SOLF	($0.17)	$0.32	(471.4%)	5/19	BTO	$4.75
The9 Ltd-Adr	NCTY	$0.33	$0.46	(26.5%)	5/19	AMC	$9.15
Tjx Cos Inc New	TJX	$0.49	$0.41	7.8%	5/19	BTO	$26.85
Tti Team Tele	TTIL	($0.04)	$0.05	(225.0%)	5/19	N/A	$0.77
Advance Auto Pt	AAP	$0.90	$0.86	37.8%	5/20	AMC	$39.93
Anntaylor Stres	ANN	($0.21)	$0.47	(90.7%)	5/20	BTO	$7.87
Bj'S Wholesale	BJ	$0.44	$0.29	3.5%	5/20	BTO	$36.40
Brady Corp Cl A	BRC	$0.33	$0.63	(44.1%)	5/20	N/A	$21.91
Cato Corp A	CTR	$0.62	$0.58	18.2%	5/20	BTO	$17.98
Chinaedu Cp-Adr	CEDU	$0.03	$0.01	500.0%	5/20	AMC	$5.40
Citi Trends Inc	CTRN	$0.43	$0.36	32.1%	5/20	AMC	$22.33
Columbus Mckinn	CMCO	$0.33	$0.72	29.3%	5/20	BTO	$12.83
Comp Science	CSC	$1.47	$1.44	4.9%	5/20	AMC	$36.47
Deere & Co	DE	$1.10	$1.74	(25.0%)	5/20	BTO	$41.78
Eaton Vance	EV	$0.21	$0.43	15.8%	5/20	BTO	$27.40
Elbit Systems	ESLT	$1.02	$0.75	5.3%	5/20	BTO	$53.52
Gymboree Corp	GYMB	$0.71	$0.86	2.0%	5/20	AMC	$32.76
Hoku Scientific	HOKU	($0.08)	($0.12)	(300.0%)	5/20	BTO	$2.75
Hot Topic Inc	HOTT	$0.02	($0.03)	0.0%	5/20	AMC	$8.74
Intuit Inc	INTU	$1.53	$1.33	8.0%	5/20	AMC	$24.32
Limited Inc	LTD	($0.04)	$0.10	6.3%	5/20	AMC	$11.13
Medcath Corp	MDTH	$0.23	$0.30	(6.3%)	5/20	AMC	$9.74
Melco Pbl Entmt	MPEL	($0.07)	$0.10	20.0%	5/20	BTO	$5.48
Miva Inc	MIVA	($0.06)	($0.16)	7.1%	5/20	AMC	$0.31
Netapp Inc	NTAP	$0.15	$0.31	0.0%	5/20	AMC	$17.41
Netease.Com-Adr	NTES	$0.46	$0.30	27.3%	5/20	AMC	$30.55
Petsmart Inc	PETM	$0.30	$0.32	5.1%	5/20	AMC	$21.10
Semtech Corp	SMTC	$0.06	$0.17	0.0%	5/20	AMC	$14.14
Synopsys Inc	SNPS	$0.31	$0.33	8.8%	5/20	AMC	$20.56
Target Corp	TGT	$0.60	$0.74	(3.6%)	5/20	BTO	$40.48
Techtarget	TTGT	($0.06)	$0.00	0.0%	5/20	AMC	$4.45
Tween Brands	TWB	($0.16)	$0.21	(188.1%)	5/20	BTO	$2.90
Westell Tech-A	WSTL	($0.03)	($0.05)	0.0%	5/20	AMC	$0.44
8X8 Inc	EGHT	$0.01	$0.01	(100.0%)	5/21	AMC	$0.71
Aeropostale Inc	ARO	$0.48	$0.26	1.0%	5/21	AMC	$32.79
Alkermes Inc	ALKS	($0.13)	($0.07)	(1.7%)	5/21	AMC	$8.63
Aruba Networks	ARUN	($0.08)	($0.07)	37.5%	5/21	AMC	$4.76
Autodesk Inc	ADSK	$0.00	$0.41	(7.1%)	5/21	AMC	$18.84
Barnes & Noble	BKS	($0.15)	$0.05	12.2%	5/21	BTO	$22.23
Black Box Corp	BBOX	$0.64	$0.74	3.7%	5/21	AMC	$25.20
Bon-Ton Stores	BONT	($3.72)	($2.03)	(13.2%)	5/21	BTO	$3.64
Bristow Group	BRS	$0.63	$0.82	(8.5%)	5/21	BTO	$25.57
Brocade Comm Sy	BRCD	$0.06	$0.15	7.1%	5/21	AMC	$6.00
Buckle Inc	BKE	$0.49	$0.41	1.4%	5/21	BTO	$31.45
Casual Male Ret	CMRG	($0.04)	$0.00	(1100.0%)	5/21	BTO	$1.34
Childrens Place	PLCE	$0.74	$0.66	4.3%	5/21	BTO	$32.21
Cost Plus Inc	CPWM	($0.84)	($1.00)	(340.0%)	5/21	AMC	$1.90
Dillards Inc-A	DDS	($0.23)	$0.05	(206.7%)	5/21	AMC	$7.60
Dress Barn	DBRN	$0.31	$0.39	(300.0%)	5/21	AMC	$13.79
Foot Locker Inc	FL	$0.13	$0.14	41.2%	5/21	AMC	$10.76
Gamestop Corp	GME	$0.41	$0.38	0.0%	5/21	BTO	$25.97
Gap Inc	GPS	$0.30	$0.34	6.3%	5/21	AMC	$15.41
Global Srcs-Ltd	GSOL	$0.03	$0.15	45.5%	5/21	BTO	$5.84
Hibbet Sports	HIBB	$0.37	$0.32	0.0%	5/21	AMC	$18.01
Hormel Foods Cp	HRL	$0.50	$0.56	17.6%	5/21	BTO	$32.44
Hurray Hldg-Adr	HRAY	($0.08)	$0.07	(3700.0%)	5/21	BTO	$2.80
Kirklands Inc	KIRK	($0.09)	($0.11)	13.5%	5/21	BTO	$5.83
Ldk Solar Co	LDK	($0.08)	$0.45	(48.8%)	5/21	AMC	$8.12
Mf Global Ltd	MF	$0.09	($0.59)	0.0%	5/21	BTO	$5.87
New York & Co	NWY	($0.08)	$0.11	(11.1%)	5/21	BTO	$4.38
Nordson Corp	NDSN	$0.27	$0.97	25.8%	5/21	AMC	$35.92
Pac Sunwear Cal	PSUN	($0.30)	($0.17)	6.0%	5/21	AMC	$3.74
Parlux Fragranc	PARL	$0.04	N/A	(414.3%)	5/21	AMC	$1.79
Patterson Cos	PDCO	$0.50	$0.51	2.3%	5/21	BTO	$22.25
Perry Ellis Int	PERY	$0.23	$0.60	(3300.0%)	5/21	AMC	$5.87
Red Robin Gourm	RRGB	$0.33	$0.43	34.4%	5/21	AMC	$19.93
Renesola Lt-Adr	SOL	$0.07	$0.28	(187.5%)	5/21	BTO	$3.40
Rosetta Genomic	ROSG	($0.23)	($0.33)	10.7%	5/21	BTO	$3.02
Ross Stores	ROST	$0.72	$0.60	0.0%	5/21	BTO	$35.23
Safe Bulkers	SB	$0.65	N/A	(4.8%)	5/21	AMC	$5.68
Salesforce.Com	CRM	$0.11	$0.08	57.1%	5/21	AMC	$39.77
Schawk Inc-Cl A	SGK	($0.05)	$0.15	(55.6%)	5/21	AMC	$6.91
Skillsoft Plc	SKIL	$0.13	$0.07	87.5%	5/21	AMC	$7.37
Stage Stores	SSI	($0.04)	$0.06	0.0%	5/21	BTO	$10.97
Stein Mart Inc	SMRT	$0.12	$0.17	(39.0%)	5/21	BTO	$3.83
Suntech Pwr Hld	STP	($0.07)	$0.35	(29.2%)	5/21	BTO	$14.73
Tech Data Corp	TECD	$0.33	$0.43	60.3%	5/21	BTO	$27.77
Telvent Git Sa	TLVT	$0.29	$0.37	33.9%	5/21	BTO	$20.17
Toro Co	TTC	$0.93	$1.60	0.0%	5/21	BTO	$27.31
Verigy Ltd	VRGY	($0.65)	$0.23	(18.6%)	5/21	AMC	$10.68
Zumiez Inc	ZUMZ	($0.08)	$0.05	10.53%	5/21	AMC	$10.19
British Airways	BAIRY	($2.77)	N/A	N/A	5/22	N/A	$24.52
Campbell Soup	CPB	$0.43	$0.43	1.6%	5/22	BTO	$26.75
Met-Pro Corp	MPR	$0.12	$0.13	(25.0%)	5/22	BTO	$9.88
Yingli Green En	YGE	$0.03	$0.25	62.5%	5/22	BTO	$8.08

BTO = Before The Market Open, AMC = After The Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

Zacks Investment Research

With strong results in fiscal 2009, the company has exceeded our estimates once again in both top-line and bottom-line growth. Meanwhile, we believe the acquisition of InStranet also makes strategic sense, and over the long-term EPS growth will further accelerate.

We therefore reiterate our Buy rating on Salesforce.com's shares with our six-month price target of $45.00. Zacks Investment Research

Company Description

Pegasystems Inc. is a leading provider of customer relationship management(CRM) software that enables transaction-intensive organizations to manage a broad array of customer interactions. The company's customers represent a wide range of industries, including banking and financial services, insurance, healthcare management, and telecommunications.

Revenues Surge 25% Higher

On Nov 6 Pegasystems announced third-quarter results that included a 25% bump in revenue. Total revenue for the quarter was $52.7 million, up from $42.2 million in the same period one year ago.

The increase in revenues translated to 6 cents in earnings per share, which met analyst expectations. While this number tapered from last years 9 cents per share.

Estimates Pop

Currently analysts are expecting full year estimates for 2009 to be 39 cents. This is a 30% increase over the past 90 days, up from 30 cents. Full-year growth is equally impressive. The consensus estimate for 2008 is 32 cents, a 78% year-over-year increase. A growth of just over 20% is expected next year, with the 39 cents per share estimate.

Leaders in Innovation Award

Pegasystems won recognition in two areas from the financial-i Leaders in Innovation Awards 2008. The program rewards companies for "excellence in global transaction banking".

CEO and chairman, Alan Treffler said "The financial-i Awards provide an important independent endorsement of Pegasystems' continuing commitment to innovation."

The Chart

Shares of PEGA are pressuring resistance just above $13. Given the over-all upward momentum they could breakout if they maintain the trend line by setting a higher low on the most recent pullback. Take a look at the chart below.

"PEGA" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Being a small player in a competitive industry, Internap has a relatively low revenue growth rate. Although the company has been gaining traction in its data colocation services, it is witnessing softness in its content delivery network business. Much of this has been caused by the weakening economy, which has forced INAP to trim its 2008 guidance twice.

Though the company has been making important upgrades to its CDN product, there has been a lackluster performance in the segment in the last few quarters. As such, we are initiating our coverage on INAP with a Sell rating and a price target of $2.50.

Read the full analyst report on INAP

Maverick Capital Management Holdings Analysis

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Capital Campaign Fundraising Best Practices

• Relies heavily on relationship cultivation
• Requires using the 80/20 rule to focus on the best prospects at hand
• Requires a multi-stage marketing/sales process to effectively move through the "marketing" campaign
• Demands an ability to sell the intangible. In one case you are selling the good feelings and community benefits of a large donation, in another the hopefully secure or proper management of your capital.

• Use internal champions to help ask for new investments. Using testimonials from a current investor or creating an environment which includes a few of your more supportive current investors with potential investors may be effective. Many times capital campaign consultants get volunteers from within the hospital or university they are raising money for to go out and help ask for gifts or in the case of hedge funds - investments.
• Stage your marketing campaign - Many capital campaign fundraising endeavors are managed a staged 3-4 step project helping the organization systematically develop close relationships with dozens of even hundreds of well qualified donors. Some hedge funds may take this same approach to marketing to a channel, such as family offices...but most that I have come in contact with do not. There are efficiencies in doing things in batches, so if your hedge fund marketing team consists of only 2-3 individuals it may help to try this approach.
• Market Research - Many development offices conduct thorough market research on their potential donors (investors). In the hedge fund marketing arena there is always a balance that must be struck between knowing who you are approaching for compliance and selling effectiveness reasons while not "wasting time" by spending hours researching a potential target investor. This is because many "targets" may not be searching for your strategy or may have minimum AUM requirements your fund does not meet and some research time could be wasted on these contacts. That said, many times no research is done on prospects in the hedge fund industry - and groups are simply cold called through directories, databases, and internal Sales CRM systems with no long of what the firm does besides their type of business.

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With projected weakness in the consumer segment continuing, do you see tougher times ahead for tech stocks under your coverage?

Most companies in the IT sector derive the bulk of their revenue from the enterprise market, followed by government and small and medium businesses. Although the consumer has been weak this year, enterprise spending has held up relatively well, and second quarter results confirmed this.

The exception has been that industries that sell to consumers have been weak. For example, companies that sell into the retail industry have shown some weakness. Although consumer weakness could spill over into other areas as well, falling energy prices make me optimistic that consumer spending will improve. In my coverage universe, Apple (AAPL) has the heaviest consumer exposure. Apple has held up quite well given frequent product releases that don't appear to have much sensitivity to the economy.

In what ways is the global economy important in your outlook?

The global economy has provided strength for many multinational companies I cover. Companies such as IBM (IBM) and Hewlett-Packard (HPQ) derive more than half their revenue overseas. Strength in economies outside the U.S. has helped these companies offset any weakness in the U.S. economy.

In addition, U.S.-based companies have benefited from currency translation as the U.S. dollar has fallen in value relative to other currencies. As a result, products are cheaper for customers outside the U.S. Moreover, currency translation has inflated revenue growth numbers from non-U.S. sales. I believe that this is starting to reverse itself as Europe appears to be weakening and the dollar is rising in value relative to European currencies as a result. This was partially behind my downgrade of HP, which derives almost 70% of revenue from outside the United States.

Were there any big surprises regarding quarterly earnings recently reported? If so, do they seem to reflect any larger trends?

Results for the second quarter were relatively good. Guidance for the remainder of 2008 was mixed as some companies remain relatively cautious. I think that surprises were mostly company specific. Dell (DELL) comes to mind as one of the biggest disappointments After posting several quarters of improving results, the company badly missed Q2 expectations.

Trouble occurred for Dell as they took aggressive price cuts in an effort to take market share, but weren't able to keep costs in line with its new pricing. However, IBM and HP are both in the same business and reported very good results for the quarter. Although Dell was able to drive unit volume with its actions, it appears that it will take time for profitability to improve.

Which companies would you consider your top Buy recommendations at this time?

My top pick is OPNET (OPNT). The company has a history of strong growth as technology leader in the market for network and application management software. However, it experienced some growing pains over the past year as the company grew its sales force and made an acquisition, which helped its product offering, but was dilutive to earnings.

While rapidly growing its sales force, productivity declined, and new license revenue suffered as a result. OPNET implemented changes in the way it provides sales people incentives, implemented a CRM package and got rid of less productive sales people. The company has demonstrated improvements and is still trading at a very attractive price considering it is a leader in a rapidly growing market.

Although I don't have a lot of new Buy recommendations I continue to like NCR Corp. (NCR) as its financial self services segment is finally gaining traction.

How would you advise investors looking to pick up additional tech holdings in the near future?

I expect continued volatility throughout the rest of the year, so investors are likely to be able to wait for attractive entry points on stocks they like. The global story may be growing long in the tooth given the strengthening dollar and weakening global economy.

At this point I would recommend being selective on stocks as the slowing global economy is likely to be a much bigger problem than the slow U.S. consumer. Companies with new technologies and products, particularly ones that can save companies money, are probably the safest in the current environment.

Steve Biggs, CFA is a senior analyst covering the consumer and enterprise technology markets for Zacks Equity Research.
"OPNT" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

The company reported second quarter top-line above expectations primarily due to acquisitions and strong end-market growth. However, EPS exceeded our expectations by a penny on lower R&D spending. The management provides adjusted 2008 EPS guidance of $1.20-$1.50. Our 2008 EPS estimates increase on positive news surrounding new products and promising innovations, and diversification beyond the CRM original equipment manufacturers, now less than 50% of Q208 sales.

We note the integration risk and acquisition strategy inherent in this name which leads us to discount FY08 earnings. We do see benefits to the diversification effort and, if management is successful at integrating acquisitions and meeting its operational efficiency goals, EPS growth should benefit in 2009 and beyond. The management’s growth view on 2008 CRM/Neuro is 5%, with the Therapy Delivery segment (up 12%) and Orthopedics (up 10%) becoming the company’s growth drivers.

We maintain our Hold rating on the shares of Greatbatch. Given the expanded diversification, we believe the stock should be valued in-line to the group 2008 P/E of 25x. On our 2008 EPS estimate of $1.14, our target remains at $28.50.

Read the full analyst report on GB

While the company reported strong second half results and raised full-year revenue guidance, dilution from the InStranet acquisition will result in lower than expected second half EPS. Although this will penalize the stock, we believe InStranet makes strategic sense, and over the long-term EPS growth will accelerate. We therefore reiterate our Buy rating on Salesforce.com's shares.

We believe a price-to-sales [P/S] multiple is an appropriate valuation metric for Salesforce.com shares given the early stage of the company and its software-centric business. Traditionally, leading software providers trade in a range of 5x to 15x revenue. On our FY 2009 revenue estimate of $1,072.7 million, or $8.93 per share, the stock is trading at a P/S multiple of 7.3.

We believe the stock can approach a P/S multiple of at least 9x over the long-term as the leader in the space. We set a price target of $83.00, representing a P/S multiple of 9.3 with our 2009 revenue estimate, which we believe Salesforce.com can reach over the next six months.

Although profit margins are currently very low for Salesforce.com, Return on Equity (ROE) is trending in the right direction. Over the next several years, we expect Salesforce.com to approach a healthy level of ROE as expected of a company in the software industry.

Read the full analyst report on CRM

Overall, we have confirmed reports from 106 companies, 13 of which are in the S&P 500. Retailers will again be prominent, with 40 listed to release results.

There is not much on the economic calendar, though we will get inflation numbers on Tuesday. Key data will include:

• Tuesday: July producer prices (PPI), July housing starts, July building permits
• Wednesday: Weekly crude inventories
• Thursday: July Leading Indicators, August Phili Fed survey, weekly initial jobless claims

The Kansas City Fed will hold its economic symposium at Jackson Hole, WY. Fed Chairman Fed Ben Bernanke will speak about financial stability on Friday.

Volume could be modest through Labor Day as traders try to get in late summer vacations. Late August can be tricky for the markets, so be prudent. Oil remains a wildcard and it is hurricane season.

Companies That Could Issue Positive Earnings Surprises during the Week of Aug 18 - 22

Aeropostale (ARO) enjoyed a 13% increase in August same-stores sales, at a time when many other retailers were struggling. The strong performance led the teen apparel chain to raise its second-quarter EPS guidance by 5 cents to between 30 and 31 cents per share. Brokerage analysts believe the company will report 31 cents per share. ARO has surprised to the upside for 3 consecutive quarters, so current projections may prove to be conservative. Aeropostale is scheduled to report on Thursday, Aug 21, after the close of trading.

Discount retailer Ross Stores (ROST) credited bargain-hunting consumers, the stimulus checks and favorable weather for driving July same-store sales 4% higher. Given last month's good performance, the company believes quarterly profits will total between 53 and 54 cents per share, a slight increase over previous guidance. Revisions by 5 brokerage analysts pushed the consensus earnings estimate 2 cents higher to 54 cents per share. ROST has topped expectations for 3 consecutive quarters. Ross Stores is scheduled to report on Wednesday, Aug 20, before the start of trading.

Companies That Could Issue Negative Earnings Surprises during the Week of Aug 18 - 22

Trends were not favorable for Saks (SKS), which experienced a 5.3% drop in August same-store sales. The company observed that business trends worsened as the second quarter progressed and, as a result, brokerage analysts have been steadily lowering their projections. The second-quarter consensus estimate calls for a loss of 18 cents per share, reflecting cuts from a majority of the 7 covering analysts. SKS missed expectations last quarter by a margin of 4 cents per share. Saks is scheduled to report on Tuesday, Aug 19, before the start of trading.

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

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Aug 18 - 22¹.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time
Analog Devices	ADI	$0.45	$0.38	7.3%	8/19/2008	AMC
Amer Woodmark	AMWD	$0.11	$0.34	(100.0%)	8/20/2008	BTO
Anntaylor Stres	ANN	$0.47	$0.50	4.4%	8/22/2008	BTO
Accuray Inc	ARAY	$0.03	$0.01	(80.0%)	8/19/2008	AMC
Aeropostale Inc	ARO	$0.31	$0.19	4.0%	8/21/2008	AMC
Acorn Intl-Adr	ATV	$0.08	$0.09	(55.6%)	8/20/2008	N/A
Avanex Corp	AVNXD	$0.06	$0.00	100.0%	8/21/2008	AMC
Blue Coat Sys	BCSI	$0.11	$0.22	(33.3%)	8/21/2008	AMC
Bebe Stores Inc	BEBE	$0.17	$0.21	0.0%	8/21/2008	AMC
Bj'S Wholesale	BJ	$0.57	$0.46	7.4%	8/20/2008	BTO
Burger King Hld	BKC	$0.34	$0.29	11.1%	8/21/2008	BTO
Buckle Inc	BKE	$0.60	$0.38	7.0%	8/21/2008	BTO
Barnes & Noble	BKS	$0.09	$0.12	0.0%	8/21/2008	BTO
Bon-Ton Stores	BONT	($1.43)	($0.91)	14.0%	8/21/2008	BTO
Bally Tech Inc	BYI	$0.54	$0.33	10.6%	8/20/2008	AMC
Concurrent New	CCUR	$0.09	($0.10)	0.0%	8/19/2008	BTO
Charming Shoppe	CHRS	$0.00	$0.14	183.3%	8/20/2008	N/A
Candela Corp	CLZR	($0.09)	($0.03)	(28.6%)	8/20/2008	AMC
Casual Male Ret	CMRG	$0.05	$0.07	(100.0%)	8/21/2008	BTO
China Techfaith	CNTF	$0.08	($0.09)	(12.5%)	8/18/2008	AMC
Cost Plus Inc	CPWM	($0.92)	($0.64)	(3.1%)	8/21/2008	AMC
Salesforce.Com	CRM	$0.08	$0.04	50.0%	8/20/2008	AMC
China Sunergy	CSUN	$0.03	($0.14)	125.0%	8/22/2008	BTO
Cato Corp A	CTR	$0.42	$0.39	5.4%	8/21/2008	BTO
Citi Trends Inc	CTRN	$0.17	$0.07	5.9%	8/20/2008	AMC
Cyberonics Inc	CYBX	$0.03	($0.31)	300.0%	8/21/2008	BTO
Ditech Networks	DITC	($0.24)	($0.02)	(182.4%)	8/21/2008	AMC
Dicks Sprtg Gds	DKS	$0.36	$0.41	(5.6%)	8/21/2008	N/A
Edap Tms Sa-Adr	EDAP	($0.21)	($0.11)	(75.0%)	8/21/2008	BTO
E-House China	EJ	$0.13	$0.09	10.0%	8/20/2008	BTO
Eaton Vance	EV	$0.47	$0.48	0.0%	8/20/2008	BTO
Foot Locker Inc	FL	$0.01	($0.12)	(6.7%)	8/21/2008	AMC
Focus Media Hld	FMCN	$0.35	$0.32	7.1%	8/17/2008	AMC
Frontline Ltd	FRO	$2.38	$1.65	(2.4%)	8/21/2008	N/A
Stealthgas Inc	GASS	$0.34	$0.37	6.3%	8/19/2008	BTO
Gamestop Corp	GME	$0.28	$0.14	11.8%	8/21/2008	BTO
Gap Inc	GPS	$0.31	$0.21	9.7%	8/21/2008	AMC
Gymboree Corp	GYMB	$0.23	$0.19	1.2%	8/20/2008	AMC
Hasting Entmt	HAST	$0.13	$0.09	21.7%	8/18/2008	BTO
Home Depot	HD	$0.60	$0.77	10.8%	8/19/2008	BTO
Hibbet Sports	HIBB	$0.15	$0.15	14.3%	8/21/2008	AMC
Heinz (Hj) Co	HNZ	$0.66	$0.63	0.0%	8/21/2008	BTO
Hot Topic Inc	HOTT	($0.01)	($0.04)	0.0%	8/20/2008	AMC
Harris Interact	HPOL	($0.01)	$0.06	(500.0%)	8/22/2008	BTO
Hewlett Packard	HPQ	$0.83	$0.71	2.3%	8/19/2008	AMC
Hurray Hldg-Adr	HRAY	$0.00	$0.01	333.3%	8/21/2008	AMC
Hormel Foods Cp	HRL	$0.38	$0.41	1.8%	8/21/2008	BTO
Chipmos Tec Ltd	IMOS	$0.01	$0.13	(300.0%)	8/20/2008	AMC
Intuit Inc	INTU	($0.12)	($0.06)	3.1%	8/21/2008	AMC
Isoray Inc	ISR	($0.07)	N/A	(33.3%)	8/20/2008	BTO
Jds Uniphase Cp	JDSU	$0.04	$0.06	11.1%	8/20/2008	AMC
Jack Henry Assc	JKHY	$0.32	$0.32	(11.8%)	8/19/2008	AMC
Jamba Inc	JMBA	$0.02	$0.04	(55.6%)	8/21/2008	AMC
Kensey Nash Cp	KNSY	$0.32	$0.11	12.0%	8/21/2008	BTO
Key Tronic	KTCC	$0.13	$0.17	57.1%	8/19/2008	AMC
Lancaster Colon	LANC	$0.32	$0.54	(31.8%)	8/21/2008	BTO
Lowes Cos	LOW	$0.56	$0.67	2.5%	8/18/2008	BTO
Limited Inc	LTD	$0.20	$0.20	42.9%	8/20/2008	AMC
Lsi Industries	LYTS	$0.07	$0.32	(44.4%)	8/21/2008	BTO
La-Z-Boy Inc	LZB	($0.06)	($0.13)	0.0%	8/19/2008	AMC
Medtronic	MDT	$0.69	$0.62	6.8%	8/19/2008	BTO
Mentor Graphics	MENT	($0.17)	$0.09	(40.0%)	8/20/2008	BTO
Met-Pro Corp	MPR	$0.18	$0.17	0.0%	8/21/2008	BTO
Myriad Genetics	MYGN	($0.23)	($0.18)	0.0%	8/19/2008	BTO
Noah Education	NED	$0.05	N/A	53.8%	8/21/2008	AMC
Novatel Wireles	NVTL	$0.12	$0.25	7.7%	8/19/2008	AMC
Open Text Corp	OTEX	$0.53	$0.52	6.8%	8/19/2008	AMC
Patterson Cos	PDCO	$0.39	$0.35	0.0%	8/21/2008	BTO
Peoples Educatn	PEDH	$0.06	$0.01	5.0%	8/21/2008	AMC
Childrens Place	PLCE	($0.45)	($0.97)	37.5%	8/21/2008	BTO
Perrigo Company	PRGO	$0.40	$0.24	4.8%	8/18/2008	BTO
Pac Sunwear Cal	PSUN	$0.06	$0.07	(88.9%)	8/21/2008	AMC
Phillips Van He	PVH	$0.65	$0.68	3.5%	8/20/2008	AMC
Perfect World	PWRD	$0.38	N/A	22.6%	8/18/2008	BTO
Qad Inc	QADI	$0.00	$0.02	(100.0%)	8/21/2008	AMC
Raven Inds Inc	RAVN	$0.31	$0.32	20.0%	8/19/2008	BTO
Regis Corp/Mn	RGS	$0.58	$0.53	0.0%	8/20/2008	BTO
Rosetta Genomic	ROSG	($0.34)	($0.19)	(3.1%)	8/19/2008	BTO
Ross Stores	ROST	$0.54	$0.37	3.5%	8/20/2008	BTO
Intl Royalty Cp	ROY	$0.04	$0.03	(66.7%)	8/18/2008	N/A
School Specialt	SCHS	$1.97	$1.87	(1.5%)	8/21/2008	BTO
Scansource Inc	SCSC	$0.47	$0.48	(12.5%)	8/21/2008	AMC
Shoe Carnival	SCVL	$0.00	$0.01	(2.6%)	8/21/2008	BTO
Schawk Inc-Cl A	SGK	$0.20	$0.36	0.0%	8/18/2008	AMC
Shamir Optical	SHMR	$0.11	$0.12	30.8%	8/21/2008	BTO
Shoretel Inc	SHOR	($0.07)	$0.05	0.0%	8/21/2008	AMC
Saks Inc	SKS	($0.18)	($0.14)	(23.5%)	8/19/2008	BTO
Stein Mart Inc	SMRT	($0.13)	$0.05	383.3%	8/21/2008	BTO
Semtech Corp	SMTC	$0.17	$0.14	21.4%	8/20/2008	AMC
Synopsys Inc	SNPS	$0.31	$0.23	6.9%	8/20/2008	AMC
Renesola Lt-Adr	SOL	$0.31	N/A	16.7%	8/19/2008	BTO
Stage Stores	SSI	$0.23	$0.23	(14.3%)	8/21/2008	N/A
Suntech Pwr Hld	STP	$0.33	$0.25	25.0%	8/20/2008	BTO
Symmetricom Inc	SYMM	$0.05	$0.04	(133.3%)	8/20/2008	AMC
Tech Data Corp	TECD	$0.46	$0.50	0.0%	8/21/2008	BTO
Target Corp	TGT	$0.77	$0.80	2.8%	8/19/2008	BTO
Aktieselskabet	TRMD	$1.29	$1.00	(28.6%)	8/20/2008	N/A
Tower Semicond	TSEM	($0.22)	($0.28)	(20.0%)	8/20/2008	BTO
Trina Solar Ltd	TSL	$0.78	$0.32	6.3%	8/18/2008	BTO
Toro Co	TTC	$0.97	$1.02	0.0%	8/21/2008	BTO
Verigy Ltd	VRGY	$0.28	$0.50	27.8%	8/21/2008	AMC
Valuevision Cla	VVTV	($0.21)	($0.11)	(28.1%)	8/20/2008	N/A
Wet Seal Inc -A	WTSLA	$0.10	$0.07	12.5%	8/21/2008	AMC
Xinhua Finance	XFML	$0.05	N/A	0.0%	8/18/2008	AMC
Yucheng Technol	YTEC	$0.10	$0.17	(16.7%)	8/18/2008	BTO
Zumiez Inc	ZUMZ	$0.07	$0.11	66.67%	8/21/2008	AMC

BMO = Before The Market Open, AMC = After Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

"ROST" Free Stock Analysis: Buy? Sell? Hold?
"PRFT" Free Stock Analysis: Buy? Sell? Hold?
"LINT" Free Stock Analysis: Buy? Sell? Hold?
"HOMD" Free Stock Analysis: Buy? Sell? Hold?
"ARO2" Free Stock Analysis: Buy? Sell? Hold?
"DNC" Free Stock Analysis: Buy? Sell? Hold?
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Zacks Investment Research