Earnings Momentum Continues

Since being featured as a Zacks Rank Buy, just after an earnings report, estimates continue to climb. The Zacks Consensus Estimate for this year is now $7.72, up from $6.89. Next year's estimates are averaging $9.69, up from $8.47.

On a year-over-year basis, these levels represent earnings growth of 52% and 25%, respectively.

Outperform

Last week, Zacks Equity Research released a new report that included an upgrade to "Outperform". The report sites strong growth, even through the recession, a strong balance sheet, and a good marketing strategy as reasons for the recommendation.

Industry Comparison

Priceline.com is the top rated e-commerce company at Zacks.com. The company boasts a profit margin of 20.2%, about 8 times higher than the industry average. Its ROE is a solid 45.8%, more than triple the average amongst its peers.

The Chart

Shares of PCLN are on a nice trend since the earnings report. The stock continues to set higher highs and higher lows. Take a look at the chart below.

November 13th Feature Here

Last Week's Aggressive Growth Zacks Rank Buy Stocks

TNS, Inc. (TNS) revenues are soaring as new acquisitions start hitting the bottom line. The company also continued it run of earnings surprises, which now stands at 7 in a row. Read Full Article.

Elbit Systems Inc (ESLT) continued its solid earnings history, beating estimates last month. Analysts are raising estimates keeping shares at a good value.

Read Full Article.

Enbridge Energy Partners, L.P. (EEP) estimates continue to climb as the company's most recent project is expected to go into production next year. Read Full Article.

Universal Technical Institute, Inc. (UTI) posted another earnings surprise on growing student population and analysts are expecting solid growth. Read Full Article.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research

Earnings Momentum Continues

Since being featured as a Zacks Rank Buy, just after an earnings report, estimates continue to climb. The Zacks Consensus Estimate for this year is now $7.72, up from $6.89. Next year's estimates are averaging $9.69, up from $8.47.

On a year-over-year basis, these levels represent earnings growth of 52% and 25%, respectively.

Outperform

Last week, Zacks Equity Research released a new report that included an upgrade to "Outperform". The report sites strong growth, even through the recession, a strong balance sheet, and a good marketing strategy as reasons for the recommendation.

Industry Comparison

Priceline.com is the top rated e-commerce company at Zacks.com. The company boasts a profit margin of 20.2%, about 8 times higher than the industry average. Its ROE is a solid 45.8%, more than triple the average amongst its peers.

The Chart

Shares of PCLN are on a nice trend since the earnings report. The stock continues to set higher highs and higher lows. Take a look at the chart below.

November 13th Feature Here

Last Week's Aggressive Growth Zacks Rank Buy Stocks

TNS, Inc. (TNS) revenues are soaring as new acquisitions start hitting the bottom line. The company also continued it run of earnings surprises, which now stands at 7 in a row. Read Full Article.

Elbit Systems Inc (ESLT) continued its solid earnings history, beating estimates last month. Analysts are raising estimates keeping shares at a good value.

Read Full Article.

Enbridge Energy Partners, L.P. (EEP) estimates continue to climb as the company's most recent project is expected to go into production next year. Read Full Article.

Universal Technical Institute, Inc. (UTI) posted another earnings surprise on growing student population and analysts are expecting solid growth. Read Full Article.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Technology Equity Funds.

3 Hi-Tech Choices

T. Rowe Price Global Technology (PRGTX) seeks long-term capital growth. It may purchase stocks ranging from small companies to blue chip firms with established track records.

The fund invests at least 80% of its net assets throughout the world in the common stocks of companies that generate a majority of their revenues from the development, advancement, and use of technology. It looks to invest at least 30% of its assets in established as well as emerging foreign markets.

Shareholders have to make a minimum initial investment of $2,500 to enter this Zacks#1 Rank (“Strong Buy") fund. As of June 2009, it has a portfolio turnover of 104.6%.

David J. Eiswert has been lead manager of the fund since October 2008. Eiswert is a Chartered Financial Analyst and holds a Masters Degree in Economics from the University of Maryland.

Fidelity Select Electronics (FSELX) was incepted in July 1985 and seeks capital appreciation. It is non-diversified.

The fund normally invests at least 80% of assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers; electronic component distributors and electronic instruments and electronic systems vendors. It may also invest in stocks of foreign companies.

Intel Corporation, Texas Instruments and Applied Materials Inc are among the funds top are among the fund’s top holdings. It has an expense ratio of 0.89% against a category average of 1.81%.

Christopher Lin has been lead manager of the fund since January 2009. The fund offers dividends and capital gains twice a year in April and December.

Kinetics Internet Emerging Growth (WWWEX) seeks long-term growth of capital by investing in equity securities of emerging internet companies whose research and development efforts may result in higher stock values. It was incepted in December 1999.

The fund invests in companies such as Internet service providers, software companies, computer hardware companies, E-commerce and content developers. It invests up to 20% of its assets in convertible and nonconvertible debt securities rated below investment grade. It is non-diversified.

Steven Tuen has been lead manager of the fund since December 1999. Tuen is a Chartered Financial Analyst and was with IPO Value Monitor before joining Kinetics Asset Management in 1999.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Chicago, IL – October 14, 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: Las Vegas Sands (LVS), Wynn Resorts Ltd. (WYNN), MGM Mirage (MGM), Advance Auto Parts (AAP) and O’Reilly Automotive (ORLY).

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:

Macau Casino Growth Threatened?

The explosive growth of the casino industry in Macau may be threatened as the government of Macau − the Chinese gambling Mecca − is considering ways to impose restrictions on age, number of tables and locations of casinos.

Yesterday, government officials of Macau met with six major casino operators including Las Vegas Sands (LVS) and Wynn Resorts Ltd. (WYNN) and a casino jointly operated by MGM Mirage (MGM) and local businesswoman/tycoon Pansy Ho, concluding that limitless expansion of the Macau gambling sector may be harmful to the society. Significant expansion of the gambling business in Macau has encouraged corruption, addiction and prostitution in that area.

The government is considering regulations like raising the entry age limit for casinos to 21 years from 18 years, limiting the number of tables per casino and modifying zoning laws to compel slot machine halls away from residential areas and into commercial zones.

Advance Auto Targets E-Commerce

Advance Auto Parts (AAP) has launched its own e-commerce website, AdvanceAutoParts.com, to sell its products online for the first time since its dissolution with Phoenix-based auto retailer CSK Auto during the first quarter of 2009. The website will allow customers to purchase more than 100,000 parts and accessories. It will also allow free shipping on purchases of $75 or more as well as free in-store pickup.

The Roanoke, VA-based auto retailer previously operated a similar website called PartsAmerica.com in partnership with CSK Auto. However, it had to close down the website after CSK was acquired by Springfield, MO-based auto retailer O’Reilly Automotive (ORLY). At that time, Advance Auto only operated an online merchandise lookup feature.

In 2007, Advance Auto targeted e-commerce as a potential growth channel. The company now aims to take it to the next level. Last month, the company opened an e-commerce office in Campbell, CA, near Silicon Valley. The headcount in the office (currently constituting 20 employees) will be doubled as the company ramps up the new website.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

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

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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

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Technology Equity Funds.

3 Hi-Tech Choices

Firsthand e-Commerce (TEFQX) seeks long-term growth of capital. It may purchase stocks of small-, mid-, and large-cap companies.

The fund represents a single theme and invests primarily in securities of companies that provide products, services, and technology to facilitate the growth of electronic commerce.

Unit holders have to make a minimum initial investment of $2,000 to enter this Zacks#1 Rank (“Strong Buy") fund. It has outstripped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Munder Internet A (MNNAX) seeks capital appreciation. It combines a top-down sector analysis with bottom-up security analysis to identify companies positioned to benefit from the growth of the Internet.

The fund may invest without limit in initial public offerings (IPOs). It invests up to 25% of total assets in foreign securities.

Apple Inc. (AAPL - Analyst Report), Yahoo Inc. (YHOO - Snapshot Report) and Google Inc. (GOOG - Snapshot Report) are among the fund’s top holdings.

Jacob Internet (JAMFX) seeks long-term growth of capital. Current income is a secondary objective.

The fund primarily invests in common stocks and securities convertible into common stocks, but may invest up to 35% in fixed income or debt securities. It normally invests in foreign companies, including securities of emerging market countries.

Francis J. Alexander has been lead manager at the fund since its inception in December 1999. It distributes dividends annually from its net investment income and any net realized capital gains.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Technology Equity Funds.

3 Hi-Tech Choices

Firsthand e-Commerce (TEFQX) seeks long-term growth of capital. It may purchase stocks of small-, mid-, and large-cap companies.

The fund represents a single theme and invests primarily in securities of companies that provide products, services, and technology to facilitate the growth of electronic commerce.

Unit holders have to make a minimum initial investment of $2,000 to enter this Zacks#1 Rank (“Strong Buy") fund. It has outstripped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Munder Internet A (MNNAX) seeks capital appreciation. It combines a top-down sector analysis with bottom-up security analysis to identify companies positioned to benefit from the growth of the Internet.

The fund may invest without limit in initial public offerings (IPOs). It invests up to 25% of total assets in foreign securities.

Apple Inc. (AAPL), Yahoo Inc. (YHOO) and Google Inc. (GOOG) are among the fund’s top holdings.

Jacob Internet (JAMFX) seeks long-term growth of capital. Current income is a secondary objective.

The fund primarily invests in common stocks and securities convertible into common stocks, but may invest up to 35% in fixed income or debt securities. It normally invests in foreign companies, including securities of emerging market countries.

Francis J. Alexander has been lead manager at the fund since its inception in December 1999. It distributes dividends annually from its net investment income and any net realized capital gains.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

OWW is stuck in a difficult spot these days since the economic malaise has seriously curtailed personal and business travel. However, along with most of its industry, this online travel company has been working to make traveling easier and more affordable. As a result, the company was able to beat first-quarter EPS expectations when it reported in May.

Furthermore, earnings estimates have been moving, rather gingerly, in the right direction for several weeks now.

OWW is part of the Electronic Commerce industry, and is 1 of 3 companies from that space on the Zacks #1 Rank List today, which includes 231 stocks. The 2 other stocks from the industry are Overstock.com, Inc. (OSTK) and Petmed Express (PETS).

Volume today for OWW is approximately 235,000, which is above the daily average of 134,000.

Earnings Estimates Moving Higher

In this difficult environment, analysts currently expect OWW to lose 9 cents per share for this year. However, the loss has narrowed by a penny over the past month, and by a dime over the past 3 months.

Analysts expect the company to profit by 3 cents per share next year, marking a nice turnaround on a year-over-year basis. Two months ago, analysts were anticipating breakeven at best for the year, and saw a loss of 12 cents 3 months ago.

First-Quarter Results

Early May saw the company announce first-quarter net revenue of $188 million, which was down 14% from $219 million a year earlier. Excluding items, OWW lost 5 cents per share, which was narrower than both the consensus and year-ago result.

In the report, OWW outlined some of the actions it has taken to combat the tough business conditions, including the Hotel Price Assurance, which refunds customers when lower hotel rates are booked on Orbitz.com.

Other initiatives included "Fly Fee Free", which removed booking fees on flights booked by May 31 at Orbitz.com and CheapTickets.com; "Hotel Fee Cut", which cut booking fees on hotels for rooms booked by Jul 15; and OWW became the first quarter with Total Price hotel search results.

"Going forward, we are planning to introduce a number of new media monetization initiatives on our websites," said CFO Marsha Williams. "We believe the combination of these new initiatives, our cost reduction actions, our improved marketing efficiency, and our significant uptick in air volume since removing fees, should enable us to offset most of the impact of the air and hotel fee reductions through the balance of the year."

Zacks Investment Research

Volume for this online retailer of diamonds and fine jewelry is currently at about 234,000 shares, which is heavier than its daily average of nearly 211,000.

This Zacks #1 Rank Top Performer is 1 of 3 companies from the Electronic Commerce industry on today's Zacks #1 Rank List, which includes 229 stocks. The other 2 from this space are travel services companies Ctrip.com International, Ltd. (CTRP) and Orbitz Worldwide, Inc. (OWW).

A Couple Upgrades

Today, a major brokerage firm boosted its rating on NILE to "Buy" from "Hold". This comes only a few days after another firm upgraded the stock to "Outperform" from "Market Perform", stating that the company has potential to capitalize on opportunities of growth in the U.S. and internationally.

Meanwhile, earnings estimates are another positive for the company. Expectations for this year are up 1.3% over the past 2 months to 78 cents per share. Looking a little further back, the guidance is 18% better than the 3-month ago target of 66 cents.

For next year, ending December 2010, analysts are pegging 99 cents per share, or 27% atop this year's guidance. That outlook is up 4.2% in 2 months and nearly 21% in 3 months.

NILE Beat in Q1

A sharp economic downturn is not exactly the best environment for jewelers, and NILE certainly felt the pinch of this uncooperative environment in its first quarter. However, all things considered, the company was able to beat Wall Street's earnings expectations.

EPS totaled 13 cents in the quarter, which was off of the year-earlier performance of 16 cents, but ahead of the consensus of 10 cents by 30%.

Net sales, though, were down more than 11% at $62.4 million, versus $70.5 million.

Due to the difficult environment, NILE did not provide a specific financial guidance. But it did offer a general overview of its situation.

"Sales trends improved in the first quarter compared to the fourth quarter of 2008, and we anticipate further improvement as we progress through 2009 with an expectation that the fourth quarter will post a year-over-year sales increase," stated CFO Marc Stolzman.

Zacks Investment Research

Volume for this online retailer of diamonds and fine jewelry is currently at about 234,000 shares, which is heavier than its daily average of nearly 211,000.

This Zacks #1 Rank Top Performer is 1 of 3 companies from the Electronic Commerce industry on today's Zacks #1 Rank List, which includes 229 stocks. The other 2 from this space are travel services companies Ctrip.com International, Ltd. (CTRP) and Orbitz Worldwide, Inc. (OWW).

A Couple Upgrades

Today, a major brokerage firm boosted its rating on NILE to "Buy" from "Hold". This comes only a few days after another firm upgraded the stock to "Outperform" from "Market Perform", stating that the company has potential to capitalize on opportunities of growth in the U.S. and internationally.

Meanwhile, earnings estimates are another positive for the company. Expectations for this year are up 1.3% over the past 2 months to 78 cents per share. Looking a little further back, the guidance is 18% better than the 3-month ago target of 66 cents.

For next year, ending December 2010, analysts are pegging 99 cents per share, or 27% atop this year's guidance. That outlook is up 4.2% in 2 months and nearly 21% in 3 months.

NILE Beat in Q1

A sharp economic downturn is not exactly the best environment for jewelers, and NILE certainly felt the pinch of this uncooperative environment in its first quarter. However, all things considered, the company was able to beat Wall Street's earnings expectations.

EPS totaled 13 cents in the quarter, which was off of the year-earlier performance of 16 cents, but ahead of the consensus of 10 cents by 30%.

Net sales, though, were down more than 11% at $62.4 million, versus $70.5 million.

Due to the difficult environment, NILE did not provide a specific financial guidance. But it did offer a general overview of its situation.

"Sales trends improved in the first quarter compared to the fourth quarter of 2008, and we anticipate further improvement as we progress through 2009 with an expectation that the fourth quarter will post a year-over-year sales increase," stated CFO Marc Stolzman.

Zacks Investment Research

Shares of the company, which is kind of like a Chinese version of priceline.com, are up more than 7% Friday on volume of about 1.68 million, compared to the average of 1.97 million.

In mid May, CTRP reported solid first-quarter results, which has led to an increase in earnings estimates over the past 30 days.

Still Movin' Despite the Slowdown

CTRP was able to grow profit under difficult circumstances due to "strong execution in operations and prudent controls on cost".

Earnings per ADS reached 26 cents in the quarter, which was 30% better than the consensus at 20 cents. This marked the second straight quarter of better-than-expected profit, as the fourth quarter saw a surprise of more than 13%.

Net revenues advanced 18% year over year to US$59 million.

Earnings Estimates Reflect Good Quarter

Analysts responded to CTRP's report by raising estimates for the years ending December 2009 and December 2010. Expectations for this year are up 17.2% in the past 30 days as 5 of 8 covering analysts revised higher.

Next year's consensus has also advanced by 17.2% in that time. Analysts now expect $1.43 for the year, which currently marks a more than 30% improvement over this year's consensus of $1.09.

"While the business environment remains uncertain, we will extend our leadership in the China travel industry through excellent customer service, strategic alliance with our partners, advanced IT technologies and innovative sales and marketing channels," said CEO Min Fan.

Not Much Electronic Commerce on Zacks #1 Rank List

CTRP is part of the Electronic Commerce industry, and there is only 1 other company from that space on today's Zacks #1 Rank List, which includes 228 in total. Fittingly, the other company is priceline.com (PCLN).

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 Thursday's Analyst Blog:

Toys "R" Us Gets FAO Schwartz

FAO Schwarz operates only two retail stores -- its flagship location in New York City, and a location at Caesar's Palace in Las Vegas. The acquisition also includes the company's e-commerce and catalog operations, and gives Toys "R" Us control of an iconic brand name in the toy industry.

This move has implications for the two largest toy manufacturers, Mattel (MAT) and Hasbro (HAS), as Toys "R" Us is a major customer for both companies.

During 2008, Toys "R" Us accounted for approximately 11.9% of total sales by Mattel, or $700 million, making it the company's the second-largest customer. For Hasbro, Toys "R" Us accounted for approximately 10% of sales, or roughly $400 million, last year, making it the company's third-largest customer.

Wal-Mart (WMT) remains the largest customer for both Mattel and Hasbro.

REITs Continue Selling Equity

In an effort to raise cash, REITs continue to tap the capital markets through new equity sales. Highwoods Properties (HIW), an office developer, is the latest REIT to announce an equity offering. The company plans to raise about $125 million through the issuance of new shares.

Earlier this month, HCP, Inc. (HCP), a health care operator, closed a $440 million offering. So far in 2009 (excluding May), according to NAREIT data, REITs have raised a combined $8.7 billion of capital through common share sales, vs. $11.1 billion for all of 2008.

April was by far the busiest month, with $6.4 billion of stock sold -- the highest monthly amount in years. With secured and unsecured debt becoming more expensive and harder to obtain, companies are biting the bullet and selling equity at depressed prices. The mini REIT rally over the past quarter has also helped.

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

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:

We are changing our recommendation on Petrobras (PBR) ADRs from Hold to Buy. We like Petrobras for its positive production-growth profile, and the improving outlook for its downstream business.

Moreover, the discovery of the giant Tupi field opens up a new range of possibilities for the company in the long run. The continued growth in production is a trend that should prevail in the short-to medium-term.

First quarter 2009 results were positive due to increased production, improved operating margins and sound cash-flow generation. Finally, oil prices have been recovering in the last several weeks.

Bear of the Day:

We maintain our under-performer rating on Liberty Interactive (LINTA). We now think the consumer-led economic slowdown will continue to stifle the company's earnings growth well into 2009, with little visibility to improvement other than easing comps.

When the economy turns, we expect Liberty Interactive to accelerate EPS growth to a mid-teens rate and maintain it for several years, driven by QVC. Indeed, despite QVC s challenging retail environment, Liberty Interactive posted 2% revenue growth, albeit with declining margins. Also driving the growth is Liberty's e-commerce business, which currently is doubling its revenue and OIBDA year over year.

Neverthess, at 14.0x our 2010 EPS estimates, we think the stock is richly valued, presenting a poor risk/reward proposition in a climate of murky earnings visibility with potential earnings estimate cuts more likely than increases.

Latest Posts on the Zacks Analyst Blog:

How Big Was the Housing ATM?

If we didn't have growth due to the housing bubble, we would have hardly had any growth at all.

This data does seem to correspond to the data showing no increase in median income over the period. It also explains why it is not just people who bought their houses near the top who are in trouble right now.

Historically, Residential Investment (RI) has been the primary driver to lead the economy out of a recession. A housing recovery obviously helps homebuilders like D.R. Horton (DHI) and those that supply it like Whirlpool (WHR) and Fortune Brands (FO).

The equity extraction helped support just about every part of the consumer based economy. With foreclosures still on the rise and a huge inventory of houses (both new and used) still out there, it is hard to see RI lifting the economy this time around. RI has already shrunk to its smallest percentage of GDP on record (after being at near record highs just a few years ago), so it might not fall that much further.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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 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=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 InvestmentResearch 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=4582.

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

When the economy turns, we expect Liberty Interactive to accelerate EPS growth to a mid-teens rate and maintain it for several years, driven by QVC. Indeed, despite QVC s challenging retail environment, Liberty Interactive posted 2% revenue growth, albeit with declining margins. Also driving the growth is Liberty's e-commerce business, which currently is doubling its revenue and OIBDA year over year.

Neverthess, at 14.0x our 2010 EPS estimates, we think the stock is richly valued, presenting a poor risk/reward proposition in a climate of murky earnings visibility with potential earnings estimate cuts more likely than increases.Zacks Investment Research

Chicago, IL - April 30, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Amazon.com (AMZN), CyberSource Corporation (CYBS), Equinix Inc. (EQIX), Google, Inc. (GOOG), Netflix, Inc. (NFLX), eBay Inc. (EBAY), Yahoo! Inc. (YHOO) and First Trust Dow Jones Internet Index Fund (FDN).

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

Not All Internet Stocks Are Attractive

The most important thing I look for when analyzing an industry is a discernable business trend. I want to find the factors that are driving earnings estimates higher or lower.

Unfortunately, such trends don't always exist. This is the case with Internet stocks.

On the surface, Electronic Commerce and Internet Services look good with Zacks Industry Ranks of 2.86 and 2.67, respectively. These strong ranks reflect the fact that both groups have more positive estimate revisions than negative revisions.

Beneath the surface, however, the waters are not completely calm. Not quite a case of the good, the bad and the ugly, but more of the good and the not-so good.

The Good

There are 5 companies that account for more than half of all the positive revisions within the 2 groups: Amazon.com (AMZN), CyberSource Corporation (CYBS), Equinix Inc. (EQIX), Google, Inc. (GOOG) and Netflix, Inc. (NFLX).

AMZN, EQIX, GOOG and NFLX all topped first-quarter earnings estimates, and CYBS matched. More importantly, brokerage analysts raised their full-year forecasts on all 5 companies following their recent reports.

There were good reasons for the optimism:

    
• AMZN saw sales rise, despite the recession. Its Q1 margins also widened.    
• CBYS delivered a double-digit increase in revenues and processed a record number of transactions.    
• EQIX said revenues rose both on a year-over-year and a sequential basis    
• GOOG reported an increase in aggregate paid clicks, a sign that the company is remaining the dominant player in search-term advertising    
• NFLX is still seeing growth in its subscriber count and raised its full-year EPS guidance.

NFLX is a Zacks #1 Rank ("strong buy") stock. AMZN, CYBS and EQIX are Zacks #2 Rank ("buy") stocks. GOOG changed this morning from a Zacks #2 Rank stock to a Zacks #3 Rank ("hold") stock.

The Not So Good

On the other side are companies like eBay Inc. (EBAY) and Yahoo! Inc. (YHOO).

The reaction to these companies' earnings reports has been decidedly mixed with approximately an equal number of analysts raising and cutting their full-year forecasts.

Net revenues for EBAY fell 8%. The decline was led by weakness in the company's marketplace segment, which includes the well-known auction web site. Margins also contracted.

Yahoo also saw revenues and profits fall. Declines in both display and search advertising hurt the company. (Though Google saw an increase in paid clicks, there was downward pressure on advertising prices.)

Both EBAY and YHOO are Zacks #3 Rank ("hold") stocks.

Be Selective

Though some of the reports were good, not all of the companies are enjoying positive business momentum. This is worrisome given the rally in Internet stocks.

Since early-March, First Trust Dow Jones Internet Index Fund (FDN) has soared by more than 30%. The magnitude of the rally over such a short period of time should be enough to give investors pause. The mixed reaction to first-quarter reports only adds to the probability that there isn't much short-term upside for some Internet stocks.

Certainly, there are opportunities in individual stocks - we hold NFLX in the Zacks Elite Focus List portfolio - but just not for the group as a whole, at least over the short-term.

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

Internet Company Earnings Have Been Mixed

The most important thing I look for when analyzing an industry is a discernable business trend. I want to find the factors that are driving earnings estimates higher or lower.

Unfortunately, such trends don't always exist. This is the case with Internet stocks.

On the surface, Electronic Commerce and Internet Services look good with Zacks Industry Ranks of 2.86 and 2.67, respectively. These strong ranks reflect the fact that both groups have more positive estimate revisions than negative revisions.

Beneath the surface, however, the waters are not completely calm. Not quite a case of the good, the bad and the ugly, but more of the good and the not-so good.

The Good

There are 5 companies that account for more than half of all the positive revisions within the 2 groups: Amazon.com (AMZN), CyberSource Corporation (CYBS), Equinix Inc. (EQIX), Google, Inc. (GOOG) and Netflix, Inc. (NFLX).

AMZN, EQIX, GOOG and NFLX all topped first-quarter earnings estimates, and CYBS matched. More importantly, brokerage analysts raised their full-year forecasts on all 5 companies following their recent reports.

There were good reasons for the optimism:

• AMZN saw sales rise, despite the recession. Its Q1 margins also widened.
• CBYS delivered a double-digit increase in revenues and processed a record number of transactions.
• EQIX said revenues rose both on a year-over-year and a sequential basis
• GOOG reported an increase in aggregate paid clicks, a sign that the company is remaining the dominant player in search-term advertising
• NFLX is still seeing growth in its subscriber count and raised its full-year EPS guidance.

NFLX is a Zacks #1 Rank ("strong buy") stock. AMZN, CYBS and EQIX are Zacks #2 Rank ("buy") stocks. GOOG changed this morning from a Zacks #2 Rank stock to a Zacks #3 Rank ("hold") stock.

The Not So Good

On the other side are companies like eBay Inc. (EBAY) and Yahoo! Inc. (YHOO).

The reaction to these companies' earnings reports has been decidedly mixed with approximately an equal number of analysts raising and cutting their full-year forecasts.

Net revenues for EBAY fell 8%. The decline was led by weakness in the company's marketplace segment, which includes the well-known auction web site. Margins also contracted.

Yahoo also saw revenues and profits fall. Declines in both display and search advertising hurt the company. (Though Google saw an increase in paid clicks, there was downward pressure on advertising prices.)

Both EBAY and YHOO are Zacks #3 Rank ("hold") stocks.

Be Selective

Though some of the reports were good, not all of the companies are enjoying positive business momentum. This is worrisome given the rally in Internet stocks.

Since early-March, First Trust Dow Jones Internet Index Fund (FDN) has soared by more than 30%. The magnitude of the rally over such a short period of time should be enough to give investors pause. The mixed reaction to first-quarter reports only adds to the probability that there isn't much short-term upside for some Internet stocks.

Certainly, there are opportunities in individual stocks - we hold NFLX in the Zacks Elite Focus List portfolio - but just not for the group as a whole, at least over the short-term.

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 29
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Retail-Wholesale	2.62	2.74	1.99	447	225
Medical	2.70	2.65	0.97	423	438
Computer and Technology	2.85	2.85	1.08	742	689
Consumer Staples	2.94	2.94	0.83	144	174
Consumer Discretionary	2.94	2.93	0.92	241	262
Business Services	3.06	2.97	0.48	48	101
Utilities	3.07	3.14	0.34	56	166
Basic Materials	3.08	3.15	0.54	163	304
Auto-Tires-Trucks	3.17	3.17	0.41	31	75
Finance	3.18	3.22	0.35	502	1424
Construction	3.23	3.16	0.57	55	97
Aerospace	3.25	3.13	1.17	55	47
Oils-Energy	3.27	3.24	0.34	253	753
Industrial Products	3.37	3.33	0.22	68	306
Transportation	3.37	3.37	0.24	89	374
Conglomerates	3.61	3.54	0.16	12	77

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

Zacks Investment Research

The weak economy has caused many to lose their jobs, while many others live in fear of losing theirs. This elevated level of fear is causing many consumers to cut back on purchases and look for ways to save on the purchases they do make. Consumers have also experienced a great deal of wealth destruction from falling home prices and stock market declines.

Most realize that they need to replace those losses by increasing their savings. As consumers increase savings, their overall spending declines. Another facet of the trend to increase savings is a reduction in leverage. This includes paying down current debt and refusing to take on new debt.

Consumers' willingness to buy on credit was key driver for consumer spending in the last decade. A reluctance to borrow for discretionary purchases acts as another headwind for retail sales. What's more, when consumers do go shopping, they will focus on necessary items such as food, clothing and staples. Discretionary items are purchased only when they are significantly marked down. Most will continue to trade down to cheaper alternatives. In turn, retailers will focus on reducing square footage, reducing leverage, and reducing inventory, all of which is points to a recognition of an industry that is contracting.

OPPORTUNITIES

In the near term retailers could attract a bid, as investors buy into the belief that the worst is priced in. Those investors looking for something longer than a trade should stay defensive and focus on retailers with stable revenue and earnings. These include discounters, retailers with rock solid balance sheets, and supermarkets.

Two stocks we like in this environment are Kroger (KR) and PetMed Express (PETS). Kroger's sales should remain relatively intact. Consumers will still need to shop for groceries even with in a weak economic environment. Kroger is doing a good job of gaining market share by competing on price and selection.

We also like GameStop (GME). GameStop's results have remained strong throughout this downturn, and its stock has been unfairly punished along with the rest of retailers. The company even pre-announced strong holiday results on Feb 19.

WEAKNESSES

We would avoid most names in retail. The stocks that are least attractive in this environment are those companies with levered balance sheets, marginal businesses, or those retailers that do not generate enough cash flow to internally finance operations. Among our current Sell ratings are specialty retailer Cost Plus (CPWM) and e-commerce firm Overstock.com (OSTK). Zacks Investment Research