However, adjusted earnings came in at 15 cents per American Depositary share (ADS), edging past the consensus estimate by a penny. A year ago, the company earned 20 cents.

Revenue for the online game developer fell 21% to $54.7 million, primarily due to disruptions caused by adjustments to ZT Online's monetization structure.

Giant Interactive also said that active paying accounts for online games declined 15% year over year to 1.2 million.

One of 9 covering analysts raised full-year expectations over the past month, sending the consensus up a penny to 60 cents per share.

GA, a Zacks #3 Rank ("Hold") stock, is trading on higher-than-usual volume of approximately 886,000, compared to average daily volume of about 590,000.

Raytheon Co. (RTN) has seen a swift rebound off recent multi-year lows and compares favorably to the market over the past year. Analysts are bullish on RTN's earnings for both 2009 and 2010, calling for annual growth of 16% and 6%, respectively.

Bullish Forecasts

Current full-year earnings estimates of $4.71 per share were boosted by 16 out of 20 covering analysts from last month's projections of $4.63 per share. For the following year, 9 out of 19 covering analysts hiked earnings forecasts by a penny from last month's $5.00 per share.

The company boasts an outstanding track record of topping analysts' estimates since July 2004. During the past 4 consecutive quarters, earnings were, on average, 7% above forecasts.

A Recent Contract

The company most recent contract announcement was a $7.3 million deal for the continued production of ALR-69A(V) radar warning receiver systems for the Warner Robins Air Logistics Center in Robins Air Force Base, Georgia.

Solid Earnings

In late April, Raytheon posted first-quarter earnings of $1.11 per share, beating the previous year's 93 cents and exceeding the consensus estimate by 11%. Net sales of $5.9 billion increased 10% on a year-over-year basis.

Shares of RTN are on a rebound after falling with the market. Shares received an extra boost on strong first-quarter results and have traded ahead of the broader market over the past year.

Read our Dec 29 commentary.

Last Week's Growth and Income Zacks Rank Buy Stocks

Family Dollar Stores, Inc.( FDO) continues to perform well as analysts boost earnings forecasts. Brokerage analysts lifted estimates over the past month, projecting earnings growth of 19% for the fiscal year ending August 2009. Read the full analysis on FDO.

Yum Brands (YUM) is beating the broader market on strong first-quarter results. The company delivered an upside surprise of 20% on first-quarter earnings. Analysts remain bullish on Yum's earnings for this year. Read the full analysis on YUM.

Giant Interactive Group Inc. (GA) is seeing upbeat earnings forecasts ahead of reporting tomorrow. The company has done well in the past, exceeding analysts' estimates by an average of 10% over the past 4 straight quarters. Read the full analysis on GA.

Strayer Education, Inc. (STRA) recently posted record results in the first quarter. Revenues jumped 28% year-over-year, while earnings per share of $2.08 came in 6% ahead of the consensus estimate and topped the year-prior $1.64. Read the full analysis on STRA. Zacks Investment Research

Chicago, IL - May 6, 2009 - Four free stock picks are being made available today on Zacks.com. The industry's leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Visa, Inc. (NYSE: V), Giant Interactive Group Inc. (NYSE: GA), O'Reilly Automotive Inc. (Nasdaq: ORLY) and Wyndham Worldwide Corporation (NYSE: WYN).
    
Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=88

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Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth - Visa, Inc. (NYSE: V)
Visa has yet to miss expectations since it first went public and analysts are rapidly raising estimates

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Growth & Income - Giant Interactive Group Inc. (NYSE: GA)
Giant Interactive Group is seeing upbeat earnings forecasts  ahead of reporting tomorrow. The company has done well in the past, exceeding analysts' estimates by an average of 10% over the past 4 straight quarters.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum - O'Reilly Automotive Inc. (Nasdaq: ORLY)
O'Reilly Automotive is rallying as consumers shun new cars to spruce-up their older models. The company's share price has doubled in the last 6 months.

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Value - Wyndham Worldwide Corporation (NYSE: WYN)
Wyndham Worldwide, the hotel giant, surprised on estimates by 17.14% in the first quarter and reaffirmed 2009 guidance despite a difficult start to the year. The company has surprised on estimates four quarters in a row by an average of 12.47%. WYN's forward P/E is 8.2.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=88
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

Today, Zacks is promoting its stock recommendations by offering four daily picks free to those who register at http://at.zacks.com/?id=88 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin. 
  
More Free Stock Picks

Each weekday, new Zacks #1 Rank or Zacks #2 Rank stock picks are released on the free email newsletter, Profit from the Pros. Investors are invited to register for their free subscription at http://at.zacks.com/?id=91

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

or

Growth & Income Stocks:
Contact: Alex Kolb
Phone: 312-265-9149

or

Momentum Stocks:
Contact: Michael Vodicka
Phone: 312-265-9226

or

Value Stocks:
Contact: Tracey Ryniec
Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

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

Company Description

Giant Interactive Group, a Chinese online gaming company, boasts some of the widest revenue streams in the industry. The industry has been hot lately and GA's share price was no exception, outpacing the market as it surged nearly 20% over the past 3 months.

Focusing on multiplayer online role playing. Giant's first game, ZT Online, was voted the most popular online game in China in 2006 according to the International Data Corporation. The Company's second game, Giant Online, entered into open beta testing on March 28, 2008. Giant has three additional online games that it intends to launch, including King of Kings III, Empire of Sports and ZT Online II.

Giant built a nationwide distribution network to sell prepaid game cards and game points required to play its games, which as of December 31, 2008 consisted of over 280 distributors, and reached over 116,500 retail outlets.

Bullish Forecasts

Analysts have revised earnings estimates to the upside ahead of tomorrow's first-quarter eport. Current full-year projections of 59 cents per share were increased from the 3 months-ago level of 54 cents. For 2010, estimates are up from 64 cents to 71 cents over the past 3 months.

Favorable Industry Comparisons

Giant Interactive's return on equity (ROE) of 21% soars past the industry average of 5%. The company's net profit margin crushes the industry average of 5%. Giant rewards shareholders with a dividend yield of 2% in an industry that offers very little income.

Strong Earnings

The company posted stellar results in the fourth quarter. Earnings per share of 18 cents, jumped ahead of analysts' estimates by 64%. Net revenue grew 33% on a year-over-year basis.

Management noted that fourth-quarter results showed a marked improvement on a sequential basis. Zacks Investment Research

Mastercard Inc's (MA) share price continues to pressure a very key level of short-term resistance at the $175 mark as estimates climb higher.

Estimates Rise

Estimates have been rising in tandem with MA's share price, with the current-year estimate up 25 cents in the last 60 days to $10.37 per share.

The next-year estimate is up 51 cents in the same period, to $12.25, an 18% earnings growth projection.

A Healthy Dividend

Mastercard is without question a growth stock, delving into new markets across the world, but the company also distinguishes itself with a respectable dividend, paying 60 cents per share, equating to a .36% yield.

The Chart

As previously mentioned, shares of MA are continue to pressure a key level of resistance at the $175 mark, take a look below.

Last Week's Growth & Income Zacks Rank Buy Stocks

Giant Interactive Group Inc. (GA) recently posted stellar results for the fourth quarter. Earnings per share of 18 cents, soared past analysts' estimates by 64%. Net revenue jumped 33% on a year-over-year basis. Read Full Article.

Steris Corp. (STE) continues to see higher forecasts from analysts. Current fiscal year earnings estimates of $1.79 per share were increased from last month's $1.76 and the 3 months-ago level of $1.72. Read Full Article.

Ross Stores, Inc. (ROST) recently posted fourth-quarter earnings of 76 cents per share, beating last year's 70 cents and matching analysts' expectations. The company's share price, which is trading slightly below a 52-week high, has experienced significant growth over the past year as it outpaced the major averages. Read Full Article. Zacks Investment Research

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Company Description

Giant Interactive Group, a Chinese online gaming company, boasts some of the widest revenue streams in the industry. The industry has been hot lately and GA's share price was no exception, outpacing the market as it surged nearly 20% over the past 3 months.

Focusing on multiplayer online role playing. Giant's first game, ZT Online, was voted the most popular online game in China in 2006 according to the International Data Corporation. The Company's second game, Giant Online, entered into open beta testing on March 28, 2008. Giant has three additional online games that it intends to launch, including King of Kings III, Empire of Sports and ZT Online II.

Giant built a nationwide distribution network to sell prepaid game cards and game points required to play its games, which as of December 31, 2008 consisted of over 280 distributors, and reached over 116,500 retail outlets.

Strong Earnings

The company recently posted stellar results for the fourth quarter. Earnings per share of 18 cents, soared past analysts' estimates by 64%. Net revenue jumped 33% on a year-over-year basis.

Management noted that fourth-quarter results showed a marked improvement on a sequential basis.

Bullish Forecasts

Analysts are revising earnings estimates to the upside. Current full-year projections of 59 cents per share were increased from the 2 months-ago level of 54 cents. For 2010, estimates are up from 67 cents to 72 cents in just 1 week.

Favorable Industry Comparisons

Giant Interactive's return on equity (ROE) of 21% tops the industry average of 15%. The company's net profit margin surges past the industry average of 5%. Giant rewards shareholders with a dividend yield of 2% in an industry that offers very little income. Zacks Investment Research

Company Description

Giant Interactive is a Chinese online gaming company. Its first game, ZT Online, was voted the most popular online game in China in 2006 according to the International Data Corporation. The company has three additional online games in the pipeline, including King of Kings III, Empire of Sports and ZT Online II.

Giant Interactive has 280 distributors and reaches over 116,500 retail outlets including Internet cafes, software stores, supermarkets and bookstores throughout China.

GA Beat Wall Street Estimates by 63.64%

On Mar 4, Giant Interactive Group reported fourth-quarter 2008 earnings that surprised on analysts' estimates by 63.64%, or 7 cents a share. Earnings per ADS were 18 cents. Analysts expected 11 cents.

Fourth quarter revenue fell 18% to $51.7 million as revenue from online games fell year over year. The decrease was primarily due to the disruption caused by the revised monetization structure in ZT Online made in the third quarter of 2008. Quarter over quarter, revenue rose 33.2%.

For 2008, revenue rose 4.4% to $233.3 million compared to full year 2007.

"Our fourth quarter results showed a marked improvement on a sequential basis, signifying that our strategic decision to adjust the monetization model within ZT Online in the third quarter is generating positive momentum," said Yuzhu Shi, Chairman and Chief Executive Officer.

"This new monetization structure aims to extend the game life cycle and promote long-term growth," he said.

Dividend Announced

On Mar 4, the company announced it would pay a cash dividend of 18 cents per share on April 10 to shareholders of record on Mar 27, 2009. The total cash payment will be approximately $40.8 million.

Consensus Estimates Rise

Given the surprise in the fourth quarter, covering analysts have been adjusting their earnings for the first quarter and 2009. First quarter consensus estimates are up 1 penny to 13 cents in the last month.

Full year 2009 consensus estimates rose 5 cents to 59 cents in the last 30 days with 5 out of 9 covering analysts raising during that period.

Analysts expect 5-year earnings growth of 20.17%.

Value Fundamentals

Giant Interactive Group is a Zacks #1 Rank (strong buy) stock. It's trading with a forward P/E of 10.38. The company's price-to-book is 2.12. GA has a 1-year return on equity (ROE) of 20.69%.

Zacks Investment Research