Company Description

Gap Inc. is a global specialty retailer that sells clothing, accessories and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands. The company operates stores in the United States, Canada, the United Kingdom, France, Ireland and Japan.

Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from Gap, under Gap's brand names.

Estimates are Bullish Ahead of Earnings Announcement

Analysts polled by Zacks have been upbeat on GPS ahead of today's third-quarter report, pegging earnings at 43 cents per share for the third quarter. Last month, analysts were forecasting 37 cents.

For the current full year, the Zacks Consensus Estimate of $1.49 per share was increased from last month's $1.40.

For the following year, Zacks analysts boosted the earnings forecast from $1.53 per share to $1.62 over the past 30 days.

Rewarding Shareholders with Competitive Income

The company just declared a quarterly dividend of $0.085 per share, which translates into an industry-leading dividend yield of 1.5%.

The dividend is payable on January 27 to shareholders of record at the close of business on January 6.

Stellar Sales

Gap's October net sales of $1.14 billion came in 5% above last year's $1.08 billion. Comparable store sales spiked 4% year-over-year. Zacks Investment Research

The second-largest US carrier will be the exclusive distributor of the device (called “nuvifone G60") in the US starting Oct 4, 2009. This will end a more than year-and-a-half delay in the device's US market launch, and also marks Garmin's first foray into the US smartphone market.

The touch-screen based nuvifone G60 will be sold at AT&T's stores and online for $299, after a $100 rebate and with a two-year service contract. While access to GPS service will be free, customers can enjoy premium value-added services, including real-time traffic updates, weather, movies and local events for a monthly payment of $5.99.

The nuvifone G60, which is positioned as a high-end phone, is distinct from other competing smartphones with GPS technology as it is equipped with full capabilities of a satellite navigator. In addition to its extended local search capabilities, the device is preloaded with North American maps and millions of locations of interest. It also has a touch-screen keyboard, web browser and 3-megapixel camera. Moreover, it can be mounted in a car for use as a navigation unit.

AT&T is the exclusive carrier for Apple Inc.'s (AAPL) iPhone in the US and is currently enjoying healthy subscriber activations due to the newly-launched iPhone 3GS. The nuvifone G60 represents another major business opportunity for the carrier, which is expected to bring in meaningful revenue streams. The device will leverage AT&T's industry leading Wi-Fi (wireless broadband) footprint and the nation's fastest 3G network, addressing the company's 79.6 million wireless subscribers.

While nuvifone G60 represents a promising prospect, the device's very high-end pricing structure may turn out to be a limiting factor, given the presence of comparatively cheaper alternatives with GPS capability, such as Palm's (PALM) Pre and the iPhone.

Company Description

Gap Inc. is a global specialty retailer that sells clothing, accessories and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands. The company operates stores in the United States, Canada, the United Kingdom, France, Ireland and Japan.

Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from Gap, under Gap's brand names.

Co-founder Dies After a Long and Heroic Battle with Cancer

The company recently announced that Donald G. Fisher, co-founder of Gap, died after a long and heroic battle with cancer. He was 81.

Donald Fisher opened his first Gap store 40 years ago last month. A life-long resident of San Francisco, he was also known for his commitment to philanthropic and civic activities. Along with his wife Doris, Mr. Fisher believed that opportunities existed for a retail company that could provide consumers with a variety of fit and style options. In 1969, the Fishers raised $63,000 to launch a single jeans and music store called The Gap (named for "the generation gap") in San Francisco.

"Today we lost a friend, a mentor and a great visionary," said Glenn Murphy, CEO and Chairman of the Board of Gap Inc. "Don and Doris took a simple idea and turned it into a brand recognized as a cultural icon throughout the world and changed the face of retail forever. "

Solid Back to School performance at Old Navy

Gap posted net sales of $1.12 billion for the month of August, a 2% dip from the year-prior total. Comparable store sales slipped by 3% year-over-year.

"During August, customers responded well to our denim collections at Gap and Old Navy," said Sabrina Simmons, chief financial officer of Gap Inc. "We were especially pleased by the progress at Old Navy and its strong back to school performance, which helped support total company merchandise margins significantly above last year."

Old Navy sales came in 4% above the previous year's total.

Bullish Forecasts

Analysts polled by Zacks are bullish on earnings. Current full-year estimates of $1.37 per share up 2 cents in just the past week. For the following year, the Zacks Consensus Estimate of $1.48 per share was also bumped up by 2 cents over the past week.

Gap boasts an impeccable record of exceeding earnings projections. Dating back to December 2004, the company topped the Zacks Consensus every time with the exception of 1 match.

A Strong Second Quarter Helped Push Shares Higher

In mid-August, the company reported second-quarter earnings 33 cents per share, beating the Zacks Consensus Estimate by 3% and outpacing last year's 32 cents.

Net sales of $3.25 billion came in below the previous year's $3.50 billion. Comparable store sales declined 10% year-over-year. Online sales, however, showed an increase of 17% from the year-prior.

"We're proud to deliver second quarter earnings per share above last year, especially during a challenging environment," said Glenn Murphy, chairman and chief executive officer of Gap Inc. "Building upon two years of work improving our economic model, we're now putting further emphasis on changing the trajectory of our top line performance. Our focus is to find the right balance between maintaining our cost discipline and making appropriate, targeted investments to gain back market share."

Shares, which are nearing a 52-week high, climbed higher after delivering a stellar second quarter, outperforming the market by about 10%. For the past year, GPS is more than 20% ahead of the market.

GPS Stacks Up Well Against Industry Numbers

Gap, a Zacks #1 Rank (Strong Buy), has a solid balance sheet, showing no debt. The company's return on equity of 21% nearly triples the industry average of 8%. Its net profit margin of 7% eclipses the industry average of 1%. Gap also offers an industry-leading dividend yield of 1.6%. Zacks Investment Research

Intended for immediate incorporation in e-book readers, GPS navigators and other popular portable consumer electronics, the CE module can be integrated into media players and durable goods as embedded mobile broadband gradually enters everyday life.

The new Ericsson CE module, C3607w, gives device manufacturers the flexible, self-contained connectivity solution needed to create next generation intuitive and innovative consumer electronics by decoupling processor and connectivity design. A third in size compared with earlier Ericsson modules, the C3607w comes with an extensive operator approval program and outstanding IPR protection which eases integration and reduces time to market.

The C3607w is Ericsson's smallest, lightest and fastest mobile broadband module to date, capable of getting uplink speeds of 5.76 Mbps with up to 40% less power consumption than previous modules. Equipped with Ericsson's wake-on-wireless feature that facilitates remote wake-up commands from sleep mode, the CE module will also feature a new set of security and messaging applications.

Ericsson's C3607w consumer electronics module is expected to be available in the first quarter of 2010.

Headquartered in Stockholm, Sweden, LM Ericsson Telephone Co. is a multinational company engaged in manufacturing and selling wireless infrastructure equipment for the telecom sector. It is a total network solutions provider, serving wireless and wireline operators, enterprises and consumers.

The company is primarily a supplier of global system for mobile communications (GSM)-based equipment and looks to benefit from next generation systems as more broadband content is being streamed to mobile devices, prompting network providers to upgrade their networks. GSM is the dominant wireless standard in Europe and most of the world. 

Sony Ericsson, the company’s 50/50 mobile handset joint venture with Sony, is one of the top-five largest manufacturers of cell phones in the world. Alcatel-Lucent (ALU) is the company’s chief rival. We currently have a Neutral recommendation on Ericsson.

Strong Back-to-School Sales

Old Navy sales rose 4% in August, which lead to net sales of $1.12 billion for the month of August. Sales are down slightly, from $1.14 billion, last year, but considering the retail environment this is quite encouraging.

A Non-Surprise Surprise

The sales report came on the heels of the last quarterly announcement, which said earnings per share were 33 cents, a penny higher than the same period last year and the Zacks Consensus Estimate. While it is an earnings surprise, The Gap has beaten expectations in all but 1 quarter in the past 5 years. In late 2005 the company met expectations.

Estimates Still Rising

In the past month, 19 of 25 analysts polled by Zacks have increased their outlook for the full-year. The average estimate is now $1.35, up from $1.24. The Zacks Consensus for next year is $1.46, up from $1.33.

The Chart

After the recent success, shares of GPS are now trading at a 2-year high.

Read the June 26th Feature Here

Last Week's Aggressive Growth Zacks Rank Buy Stocks

Ross Stores, Inc. (ROST)) continues to grow and consumers opt for discounted goods in a tough economy. Read Full Article.

China Fire & Security Group Inc (CFSG)) continues to push higher, aided by its government's stimulus plan and new legislation. Read Full Article.

Tenet Healthcare Corp (THC)) continues to release excellent news, driving shares higher.

Read Full Article.

Lancaster Colony Corp. (LANC)) recently announced great year-end results and shares are surging on the news.

Read Full Article.Zacks Investment Research

Sales at stores open at least a year, a key retail industry performance metric, were only down 3%, ahead of the 7% expected by analysts. Gap noted that sales at its higher-end store Banana Republic were worse than expected, but buoyed by a strong performance from sales at the value oriented Old Navy.

Estimates Continue to Rise

With the company holding its own in a very tough environment, analysts continue to raise their earnings estimate. The current year is up 8 cents in the last month to $1.33 per share. The next-year estimate is up 9 cents in the same time to $1.42, a respectable 7% growth projection.

The Chart

Shares of GPS caught a second wind in early August, building on previous gains from earlier in the year. Take a look at the nice move below.

Last Week's Momentum Zacks Rank Buy Stocks

Credit Suisse Group (CS) has posted huge gains over the last 4 months as the financial sector has recovered from a virtual near-death experience. Read Full Article.

Polo Ralph Lauren Corp. (RL) recently reported solid second-quarter results that were better than expected, pushing the company's share price close to its 52-week high. Read Full Article.

Western Digital Corp. (WDC) is selling more hard drives than it did last year and holding revenue steady, helping the company produce better than expected Q2 earnings and sending estimates higher. Read Full Article.

Autonation, Inc. (AN) has been on a big-time rally for the last 9 months, recently topping off above $21 and moving within striking distance of the all-time high. Read Full Article. Zacks Investment Research

Chicago, IL – August 31, 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: Garmin Ltd. (GRMN), AT&T (T), Apple (AAPL), Nokia (NOK) and Research In Motion (RIMM).

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 Friday’s Analyst Blog:

Garmin Nuvifone Finds U.S. Carrier

A Garmin Ltd. (GRMN) spokesperson announced that the company had selected a carrier for the nuvifone G6, its new smartphone. Although the name of the carrier was not announced, rumor has it that it could be AT&T (T), the second-largest player in the U.S. The product will be manufactured by Taiwanese PC manufacturer Asustuk.

Garmin expects the product to generate $100-200 million in revenue this year, which would add an incremental 4% to the top line. This means that Garmin would still be short of the one million unit mark this year. Although the company’s small size and vulnerability in the intensely competitive market could delay initial customer response, Asus is geared to crossing the million unit threshold in 2010.

We believe that the success of the product could be tempered by AT&T’s commitment to Apple’s (AAPL) iPhone, for which it has exclusive distribution rights in the U.S.

Competition and market dynamics have been slowing down Garmin’s growth in the last two years. The company is one of the largest players in the personal navigation device (PND) market.

Management expected the PND market to gradually give way to GPS-enabled smartphones, as consumers continue to show a preference for an all-in-one device. The company decided to develop its own smartphones to protect the significant market share it has captured over the past few years.

Everything would have gone smoothly if the recession had not hit the economy so severely. As it happened, the automotive market (its largest segment) was severely impacted. Additionally, the company was forced to enter into relationships with recession-hit carriers that continue to show significant apathy to increased spending.

The nuvifone has had a stumbling start in the fiercely competitive Taiwanese market. After repeated postponement, the device finally started shipping, side by side with smart phones from Nokia (NOK), Research In Motion (RIMM), Apple and HTC.

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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.

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

Chicago, IL – August 31, 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: Franklin Resources (BEN), United (UAUA), The Gap (GPS), J.C. Penney (JCP) and Family Dollar (FDO).

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 Friday’s Analyst Blog:

Savings Rate Dips in July

We have already seen a dramatic improvement in the trade deficit over the last year -- more than cutting it in half. However, most of that improvement is due to the fall in the price of oil, and we are past the anniversary of the oil price peak, so that effect is going to fade. We have seen some pick-up in the economies of other major countries recently, but they are far from booming (with the exceptions of China and India, but even there things are going slower than they used to). That does not auger well for a dramatic increase in exports.

Thus, by process of elimination, it means that we will have to dramatically reduce our non-oil imports (or cut the volume of oil imports if we are not getting the help on the price side). The only other option is an increase in Government as a share of GDP.

This is a trend that has all sorts of implications. If we are going to be saving more, it should help investment management companies like Franklin Resources (BEN). On the other hand, if we are consuming less, it means that the consumer discretionary sector will face a particularly stiff headwind. People will take fewer vacations which will hurt airlines like United (UAUA).

Retailers, particularly in the mid-range like The Gap (GPS) and J.C. Penney (JCP) will find growth very hard to come by. Spending will not come to a stop, but it will slow, and people will be more concerned with cost as opposed to cash. This makes discounters like Family Dollar (FDO) relatively much better positioned.

Keep in mind here that I am talking about a trend that will play out over a decade, and it will not be a straight line, so from time to time some of the less-well-positioned firms might be good trades, but I suspect that they will be lousy long-term investments.

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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:
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312-265-9380
Visit: www.zacks.com

Chicago, IL – August 26, 2009 – Zacks Equity Research highlights Intuitive Surgical (ISRG) as the Bull of the Day and Cost Plus Inc. (CPWM) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford (F), Honda (HMC) and The Gap (GPS).

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:

Intuitive Surgical’s (ISRG) story is improving. A new product was developed as an upgrade to the existing daVinci Surgical System. Furthermore, the company enjoys a virtual monopoly in robotic surgery without direct competition.

The company's razor/razor blade business model ensures recurring revenues even during difficult times. In the second quarter, earnings of $1.62 per share were higher than the Zacks Consensus Estimate of $1.27.

Growth in revenues was witnessed across all the segments. We believe the company will continue leveraging its monopoly position in the industry. We rate this stock Outperform with a target price of $260 per share.

Bear of the Day:

First quarter sales and earnings per share for Cost Plus Inc. (CPWM) were slightly above our estimates. Even so, the company's sales declined 9% year-on-year and it reported a net loss of $20 million.

The company is closing stores, cutting costs, and trying to preserve cash, but those moves will do little reverse its weak sales trends and merchandise margins. In addition, management's guidance for the second quarter cautioned investors to prepare for more of the same.

Cost Plus expects same-store sales to decrease 9.5%-14.5% and a pre-tax loss from continuing operations of $14-$21 million. We have an Underperform rating on CPWM shares. Our six-month target price is 50 cents per share.

Latest Posts on the Zacks Analyst Blog:

Gaining Confidence

The rise in consumer confidence means that "animal spirits" may be returning to Main Street, not just Wall Street. If consumers feel more confident, they are more likely to go out and spend, particularly on big-ticket discretionary items. This will greatly help retailers and the companies that make discretionary items.

Even with the "Cash for Clunkers" program running out again, it means that some folks might just feel confident enough about the future to go out and buy a new car from Ford (F) or Honda (HMC), even if they are not bribed to do so by the Federal Government. It means they might go do their back to school shopping at The Gap (GPS) instead of at the Salvation Army.

In the process, they will increase demand and put people back to work. Those workers will then have incomes that they can spend, further increasing economic activity. In short, a vicious cycle would be turning into a virtuous cycle.

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

About the Bull and Bear of the Day

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

About the Analyst Blog

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

About Zacks Equity Research

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

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

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

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

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

Contact:
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Visit: www.zacks.com

Chicago, IL – August 5, 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: Wal-Mart (WMT), Family Dollar (FDO), TJ Maxx/Marshalls (TJX), The Gap (GPS) and T. Rowe Price (TROW).

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:

Personal Income Falls

If not for government automatic stabilizers and the Stimulus Bill, the overall trend in incomes would be much worse. Demographics are part of the reason that the savings rate is going up, since the Baby Boomers are in a scramble to save for retirement, which is right on the horizon for most of them. If they don’t save (or unless the housing market miraculously turns around and forms another bubble), large numbers of them will simply be unable to retire. The competition for Wal-Mart (WMT) greeter jobs will be intense and sales of cat food will soar (and not for Mr. Whiskers, either).

In large part, the economic growth of the 1990’s and the first part of this decade were a mirage driven by the falling savings rate. This is now being reversed and the economy faces a serious long-term headwind because of it. Keep in mind, though, that once people retire, their savings rate tends to go negative as they live off what they had accumulated over their lifetimes. Thus in about five years, demographics will be forcing the savings rate back down again.

On the plus side, the higher savings rate means that we are capable of funding more of the growing federal debt internally, rather than borrowing from China and OPEC. The rise in personal savings is being offset by an increase in government dis-savings, otherwise known as the budget deficit.

Net-net, though, the overall national savings rate is still going up, but not by nearly as much as the chart indicates. Then again, keep in mind we were running pretty hefty budget deficits even when the personal savings rate was close to zero. That was the combination that led to the country being deep in hock to China. We are still going into more debt abroad, but at a slower rate than we have been in recent years. This is borne out by the shrinking trade deficit.

Long-term, the need to increase the overall personal savings rate is going to be a major negative for the retail industry and all others that depend on discretionary spending. In the short-term, however, I would note that the retailers in general have come in with better-than-expected earnings (very low expectations going in) and are getting estimate increases for this year (and next year to a lesser extent). Still, it should slow their overall long-term growth rates, and as a result should cause them to trade at lower relative P/E’s than they have in the past.

I continue to see retailers that cater to the middle class as being the most vulnerable. Discounters like Family Dollar (FDO) and TJ Maxx/Marshalls (TJX) are likely to pick up share from chains like The Gap (GPS). Yes, there will be some pick-up as the economy finds its feet again, and the effects of the Stimulus Bill are likely to be much bigger in the second half than they were in the first half.

However, this is not going to be a V shaped recovery. History, both domestically and abroad, has shown that recessions caused by financial panics and balance sheet issues tend to last longer and lead to weaker recoveries than do recessions caused by the inventory cycle or by tight monetary policies.

Higher savings rates mean that people will be contributing more to their 401K’s and IRA’s. This should be good news for asset management firms like T. Rowe Price (TROW), so it is not like there will be no offsets to this trend.

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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 

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

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

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

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

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

Zacks Consensus Estimates Rise

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

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

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

Value Fundamentals

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

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

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

Read the May 29 analysis.

Update to Previous Value Zacks Rank Buy Stocks

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

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

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

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

Zacks Investment Research

Cartesio+ offers high integration and performance features and has high-sensitivity embedded positioning capabilities. It satisfies the highest automotive quality control parameters while consuming low power.

It is manufactured in ST’55 nanometer process technology and integrates a powerful processor with a GPS subsystem enhanced with indoor sensitivity. It integrates video input port for connecting auxiliary devices such as a rear-view camera for safe parking. The device also supports dynamic scaling of the core frequency to improve battery life.

The new Cartesio+ processor has been designed to meet demanding standards of quality and reliability in the automotive market. Cartesio+ is scalable and is available in two variants: the STA2064 and STA2065, which have been crafted for cost-sensitive and performance-demanding applications, respectively. Samples are now available to lead customers while commercial production is scheduled for December 2009.

Automotive, Consumer, Computer & Telecom Infrastructure (ACCI), which is making the Cartesio+ processor, is the largest segment of STM. This group is comprised of three major product lines; Home Entertainment & Displays (HED), which now includes the Imaging division; Automotive Products Group (APG); and Computer and Communication Infrastructure (CCI), which now includes the Communication Infrastructure division.

Based in Geneva, Switzerland, STMicroelectronics N.V. is a global independent semiconductor company. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices. These devices are used in a wide variety of microelectronic applications, including telecommunication systems, computer systems, consumer products, automotive products, and industrial automation and control systems.

We maintain our Hold rating on STM.

Chicago, IL - July 6, 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: The Gap (GPS), Limited (LTD), J.C. Penney (JCP), Macy's (M) and ASM International (ASMI).

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 Friday's Analyst Blog:

Another Ugly Jobs Report

Even for those who still have a job, things are not good. Average hourly earnings were unchanged for the month, and with a lower workweek that means that average weekly earnings were down by $1.85. While that is not huge, it does mean that people are not going to be keeping up with inflation.

With less money in their pockets and a change in attitude that favors more savings at the margin, people are going to be shopping less. This seems to me likely to affect some of the mid-range stores more than the discounters or those involved in the carriage trade. I see the continued weak employment situation as a big negative for some of the mall occupants like The Gap (GPS), Limited (LTD) and the anchors like J.C. Penney (JCP) and Macy's (M).

ASM International Downgraded

S&P ratings lowered ASM International's (ASMI) long-term credit rating from BB- to B+. The rating revision hinges on the rating agency's expectation of a prolonged downturn for semiconductor equipment companies.

ASMI is an original equipment manufacturer (OEM) offering semiconductor manufacturing equipment used in the fabrication of integrated circuits (ICs). Its products are used in both the front and back-end segments of the semiconductor production process. The company was growing revenue and earnings nicely before 2008, but suffered a big setback during 2008 when its earnings declined nearly 70%. The company reported a loss in the first quarter.

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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
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312-265-9380
Visit: www.zacks.com

Chicago, IL - July 6, 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: Verizon Wireless (VZ), Research In Motion (RIMM), Sprint (S), Telus (TU) and Apple (AAPL).

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Here are highlights from Friday's Analyst Blog:

Verizon Gets BlackBerry Tour

Verizon Wireless (VZ) has finally confirmed that Research In Motion's (RIMM) BlackBerry Tour 9630, the highly anticipated 3G smartphone device, will hit the stores on July 12. Verizon will sell the Tour for $199.99 after a $70 mail-in rebate with a new two-year customer contract. Currently, customers can pre-order the Tour from Verizon stores. The Tour will enable customers make phone calls and access e-mail and Internet wherever Verizon's data roaming services are available.

Users can easily access voice and data services on networks outside the user's home country, which is preferred by enterprise users. Customers purchasing the BlackBerry through Verizon will be able to use Verizon's CDMA network in the U.S and EDGE/GPRS/GSM networks while in roaming.

The Tour, also known as BlackBerry Niagara, is a sleek and thin smartphone. It features robust functionalities such as push-based mobile solution for e-mail, SMS and MMS capabilities, a HVGA 480 x 360 display, microSD card slot content with up to 16 GB cards, and a full QWERTY keyboard for smooth typing.

The Tour is enabled with Bluetooth 2.0 and GPS, but has no WiFi capabilities. In addition, there is a 3.5mm headphone jack and 3.2-megapixel autofocus camera with geo-tagging and video recording. It supports Verizon's V CAST Music with Rhapsody and VZ Navigator services. The BlackBerry Tour also supports the recently launched BlackBerry App World and is preloaded with Documents to Go for viewing and editing Word, Excel and PowerPoint documents.

Sprint (S) also plans to launch the Tour for $199.99 with a two-year contract, but did not provide any specific release date. In addition, the smartphone will be sold in Canada through Bell Mobility and Telus (TU). RIM's BlackBerry is one of the largest selling smartphones in the market. Tour is expected to be a sure-fire hit due to its differentiating and consumer-friendly features, as well as the low price point. RIM is also expected to gain from the rising demand for smartphones.

Research in Motion has developed a loyal business with previous launches including the BlackBerry Storm (featuring a large touchscreen), BlackBerry Curve 8900 and 8300, BlackBerry Bold, BlackBerry Pearl Flip 8230 and BlackBerry 8830 World Edition smartphones on the Verizon network. The Tour is an updated edition to the BlackBerry 8830 World Edition and a combination of the BlackBerry Curve 8900, Pearl and the Bold. RIM's Tour is expected to be the most successful model launched till date.

Although the Tour is an attractive product, we believe that it will have to compete with the launch of Apple's (AAPL) iPhone 3G S.

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/ZacksInvestment

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

Read the full analyst report on "S"
Read the full analyst report on "RIMM"
Read the full analyst report on "VZ"
Read the full analyst report on "NOK"
Read the full analyst report on "TU"
Read the full analyst report on "T"
Read the full analyst report on "PALM"
Read the full analyst report on "AAPL"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/verizon-gets-blackberry-tour-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/are-pnds-becoming-obsolete-analyst-blog/ http://www.straightstocks.com/stock-watch/are-pnds-becoming-obsolete-analyst-blog/#comments Thu, 02 Jul 2009 19:12:49 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/21787/Are+PNDs+Becoming+Obsolete%3F+-+Analyst+Blog Portable navigation device (PND) suppliers in deep water

Discussions at the GPS-Wireless 2009 conference suggest a murky outlook for GPS providers this year. The PND market in particular is expected to stagnate. PNDs enjoyed very strong growth over the last few years, but increased competition, consistent price declines, a staggering auto market and the recession are now taking their toll on results.

According to research firm iSuppli, PNDs accounted for 50% of all navigation device shipments in 2007, while automotive in-dash systems, smart phones and cell phones made up the rest. The situation is now expected to reverse, with cell phones and smart phones taking market share. The research firm expects PND sales to shrink to around 23% of all navigation devices by 2013. Navigation-enabled cell phone and smart phone shipments are expected to make some gains this year, growing 70.6% and 51.6%, respectively.

Certain phenomena came to light at the conference. It became apparent that all the major players were rethinking their strategy.

TomTom NV Amsterdam made its intentions clear when it purchased Tele Atlas (a leading mapping company). Last month, the company announced the Navigator 7 software, which could be used by consumers in mobile phones. This two-pronged strategy was intended to help TomTom maintain its position in the PND market, and also prevent share erosion as GPS enabled cell phones become more popular.

Garmin (GRMN) had a slightly different game plan. The company decided to enter the cell phone market itself through the introduction of the proprietary nuvifone. However, the nuvifone continues to be delayed, possibly due to unsatisfactory arrangements with carriers.

At the same time, Nokia Corp (NOK), the largest player in the cell phone market, has acquired Navteq (a mapping company which provides GPS maps to Garmin).

Although cell phones are cannibalizing the PND market, there is no doubt that PNDs are more suitable for use in automobiles. However, automakers these days are more interested in connectivity than navigation. This means that PND manufacturers have to make the adjustment or exit the market. Connected PNDs are expected to grow from around 3% of the North American PND market in 2008 to around 15% in 2010, and constitute half of all PNDs by 2013 (iSuppli). This would be good news for companies like Microsoft (MSFT), as its software usage rates are likely to increase.

Cell phones are also getting increasingly connected, which opens the door to Google (GOOG) maps. For most teens and youngsters, a connected cell phone with a Google map would take care of navigation requirements at no extra cost. This is a real threat for all PND makers.
Read the full analyst report on "GRMN"
Read the full analyst report on "NOK"
Read the full analyst report on "MSFT"
Read the full analyst report on "GOOG"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/are-pnds-becoming-obsolete-analyst-blog/feed/ 0 http://www.straightstocks.com/market-commentary/death-of-the-sucker%e2%80%99s-rally-spotting-the-recession%e2%80%99s-end-a-rapidly-growing-sector-and-more/ http://www.straightstocks.com/market-commentary/death-of-the-sucker%e2%80%99s-rally-spotting-the-recession%e2%80%99s-end-a-rapidly-growing-sector-and-more/#comments Thu, 18 Jun 2009 15:10:10 +0000 Contrarian Profits http://www.contrarianprofits.com/?p=18060 http://www.straightstocks.com/market-commentary/death-of-the-sucker%e2%80%99s-rally-spotting-the-recession%e2%80%99s-end-a-rapidly-growing-sector-and-more/feed/ 0 http://www.straightstocks.com/stock-watch/zacks-earnings-trends-highlights-gap-nordstrom-lowes-tjx-companies-analog-devices-and-texas-instruments-press-releases/ http://www.straightstocks.com/stock-watch/zacks-earnings-trends-highlights-gap-nordstrom-lowes-tjx-companies-analog-devices-and-texas-instruments-press-releases/#comments Tue, 16 Jun 2009 13:23:18 +0000 Dirk Van Dijk http://www.zacks.com/stock/news/21104/Zacks+Earnings+Trends+Highlights%3A+Gap%2C+Nordstrom%2C+Lowe%27s%2C+TJX+Companies%2C+Analog+Devices+and+Texas+Instruments.+-+Press+Releases For Immediate Release

Chicago, IL - June 16, 2009 - Zacks Research Director, Dirk Van Dijk says that S&P 500 earnings are continuing to show red ink. He tracks companies on the Zacks.com web site, naming names, while forecasting trends for the months ahead.

Key Points

• Estimate increases outnumber cuts by 5:4 margin
• Second Quarter total net income expected to be down 36.0% year/year
• Third quarter expected to be down 23.1% year/year
• Full year 2009 expected to fall 12.3%, implies strong growth in fourth quarter
• Staples only sector expected to post positive growth in second quarter
• Six sectors expected to decline more than 30%
• Financials expected to rebound after disastrous 2008
• Median EPS growth in second quarter expected to be -19.3%
• Bottom up estimate for S&P 500 now $57.27 in 2009 versus $57.25 two weeks ago.
• S&P 500 now expected to earn $72.49 in 2010 versus $72.61 last week

Total Net Income Growth

The expectations bar for the second quarter is set very low with total net income projected to fall 36.0%. This is even worse than the 27.3% decline posted in the first quarter. (Note that this is different than what was posted in the last report since the numbers always reflect the current members of the S&P 500 and there have been some noteworthy changes in the index, most importantly the deletion of GM).

Our first peak at the third quarter shows that earnings are still expected to be down year over year, but not by as much, dropping "only" 23.1%.

For both quarters the decline in total net income is expected to be widespread, with only Staples eeking out a small year over year gain (+1.2%). Health Care and Utilities are expected to hold up fairly well with only mid-single digit declines. Every other sector is expected to post a decline of at least 25%. Hardest hit will be 3 economically sensitive sectors: Materials, Energy and Industrials. The first 2 are also commodity oriented, and face very tough year ago comparisons. However, the prices of the underlying commodities have been rebounding, so with the bar set low, they have the potential to surprise to the upside.

Looking ahead to the third quarter, Staples, Health Care and Utilities are again expected to post flattish results. Financials are expected to post extremely strong year over year earnings gains, reflecting the very tough time they had a year ago. The commodity sectors are again expected to face a tough time, but then again with commodity prices on the rise (provided they can be sustained) they might do better than expected.

The Zacks Revisions Ratio: 2009

• Revisions ratio for full S&P 500 up to 1.25, from 1.09
• Steady climb in the ratio, was 0.32 three months ago
• Four sectors in positive territory; Consumer Sectors lead
• Revisions ratio is now into positive territory for the S&P 500 as a whole
• Industrials continue to see estimates being cut
• Ratio of firms with rising to falling mean estimates rises to 1.05 from 0.86
• Total number of revisions (4-week total) down to 1,758 from 3,023 (-41.8%)
• Increases down to 978 from 1,576 (-37.9%); cuts down to 780 from 1,447 (-46.1%)
• Total revisions activity approaching low for the quarter

There has been a steady increase in the revisions ratio, which is now up for 14 weeks in a row. Granted it started at absolutely horrific levels, with estimates being cut at more than 4:1 for the S&P 500 as a whole, and in individual sectors, the cuts were often in excess of 10:1.

This week we finally broke into positive territory, which we define as at least 5 increases for every 4 cuts. We have to conclude that the green shoots are taking hold, at least as far as analysts' projections for earnings.

While I still have my doubts about the group from a longer-term macro perspective, at least for the short term, the analysts disagree with me about the retailers, which have been some of the strongest performers in terms of estimate revisions. Some of the names that have gotten more than 10 estimate increases and no cuts are Gap (GPS), Nordstrom (JWN), Lowe's (LOW) and TJX Companies (TJX).

The Zacks Revisions Ratio: 2010

• Overall picture for 2010 similar to that of 2009
• Revisions ratio up to 1.25 from 0.96
• Tech and Consumer sectors showing best estimate momentum for 2010
• Health Care and Utilities getting cut
• Ratio of rising to falling mean estimates rises to 1.19 from 0.80
• Total revisions activity nearing lows for the quarter
• Total number of revisions falls to 1,425 from 2,264 (-37.1%)
• Estimate increases falls to 791 from 1,109 (-28.7%), cuts fall to 634 from 1,155 (-45.1%)

Two tech stocks with particularly strong revision ratios are Analog Devices (ADI) and Texas Instruments (TXN).

Earnings Shares and P/Es

• Earnings Shares, including historical, based on current make up of S&P 500
• Health Care expected to take earnings crown from Energy in 2009 and keep it in 2010
• Energy's earnings share expected to plunge to 11.1% from 23.8%
• Financials' 2009 earnings share expected to rise to 11.3% from -1.7% in 2008.
• 12-month forward S&P P/E of 14.55 equates to earnings yield of 6.87%, which is attractive relative to 10-year T-note yield of 3.85%, but only mediocre relative to 5.98% A-rated 10-year corporate.
• T-note rates are rising and more realistic earnings yields of near 6.34% based on lower earnings ($60) means the spread, while still attractive, is not overwhelming.

Want stock picks from Zacks Equity Research that are based on earnings estimates? Subscribe to the free "Profit from the Pros" newsletter: http://at.zacks.com/?id=5617.

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=5618.

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.

The best way to unlock profitable Zacks' stock recommendations and market insights is through the free daily email newsletter: "Profit from the Pros." It provides a steady flow of profitable ideas GUARANTEED to be worth your time. Register for your free subscription at http://at.zacks.com/?id=5616

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

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

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:
Dirk Van Dijk
Director of Research
312-265-9211
Visit: www.zacks.com

• Estimate increases outnumber cuts by 5:4 margin
• Second Quarter total net income expected to be down 36.0% year/year
• Third quarter expected to be down 23.1% year/year
• Full year 2009 expected to fall 12.3%, implies strong growth in fourth quarter
• Staples only sector expected to post positive growth in second quarter
• Six sectors expected to decline more than 30%
• Financials expected to rebound after disastrous 2008
• Median EPS growth in second quarter expected to be -19.3%
• Bottom up estimate for S&P 500 now $57.27 in 2009 versus $57.25 two weeks ago.
• S&P 500 now expected to earn $72.49 in 2010 versus $72.61 last week

Total Net Income Growth

The expectations bar for the second quarter is set very low with total net income projected to fall 36.0%. This is even worse than the 27.3% decline posted in the first quarter. (Note that this is different than what was posted in the last report since the numbers always reflect the current members of the S&P 500 and there have been some noteworthy changes in the index, most importantly the deletion of GM).

Our first peak at the third quarter shows that earnings are still expected to be down year over year, but not by as much, dropping "only" 23.1%.

For both quarters the decline in total net income is expected to be widespread, with only Staples eeking out a small year over year gain (+1.2%). Health Care and Utilities are expected to hold up fairly well with only mid-single digit declines. Every other sector is expected to post a decline of at least 25%. Hardest hit will be 3 economically sensitive sectors: Materials, Energy and Industrials. The first 2 are also commodity oriented, and face very tough year ago comparisons. However, the prices of the underlying commodities have been rebounding, so with the bar set low, they have the potential to surprise to the upside.

Looking ahead to the third quarter, Staples, Health Care and Utilities are again expected to post flattish results. Financials are expected to post extremely strong year over year earnings gains, reflecting the very tough time they had a year ago. The commodity sectors are again expected to face a tough time, but then again with commodity prices on the rise (provided they can be sustained) they might do better than expected.

Total Net Income Growth (Reported)
Sector	Q3 '09 E	Q2 '09 A	Q1 '09 A	2010 E	2009 E	2008 A
Cons. Disc.	-0.26%	9.49%	8.58%	12.52%	16.52%	17.70%
Cons. Stap.	-18.86%	-21.82%	-26.88%	9.12%	-14.84%	10.65%
Technology	-100.00%	-170.93%	-86.30%	200.00%	-88.37%	13.16%
S&P	-21.54%	-36.38%	-27.97%	14.12%	-17.00%	12.76%

Total Net Income (Reported)
Sector	Q2 '09	Q2 '08	Q1 '09	Q1 '08
Cons. Stap.	$231	$295	$240	$328
Cons. Disc.	$174	$159	$116	$107
Technology	-$61	$86	$10	$73
S&P	$343	$540	$366	$508

Total Net Income Growth (Not Reported)
Sector	Q1 '09 A	Q2 '09 E	Q3 '09 E	2008 A	2009 E	2010 E
Cons. Stap.	-6.34%	1.21%	-0.13%	7.72%	-3.84%	8.92%
Health Care	0.52%	-4.83%	-4.31%	8.35%	1.00%	9.20%
Utilities	-1.45%	-6.84%	0.49%	1.79%	-1.75%	8.67%
Telecom	-18.67%	-25.48%	-15.77%	-4.51%	-19.59%	5.64%
Cons. Disc.	-43.46%	-30.86%	-24.58%	-51.24%	36.72%	39.00%
Technology	-27.12%	-33.62%	-20.09%	19.58%	-20.76%	21.22%
Financials	4.20%	-37.65%	260.88%	-106.74%	-623.75%	60.91%
Industrial	-36.39%	-41.41%	-33.51%	-2.76%	-28.74%	7.72%
Energy	-60.57%	-68.16%	-66.86%	22.41%	-59.20%	43.76%
Materials	-74.07%	-84.90%	-64.03%	-3.72%	-68.07%	96.77%
S&P	-27.22%	-35.98%	-23.08%	-20.03%	-12.67%	23.61%

Total Net Income Growth (Combined)
Sector	Q1 '09 A	Q2 '09 E	Q3 '09 E	2008 A	2009 E	2010 E
Cons. Stap.	-6.34%	1.21%	-0.13%	7.72%	-3.84%	8.92%
Health Care	0.52%	-4.83%	-4.31%	8.35%	1.00%	9.20%
Utilities	-1.45%	-6.84%	0.49%	1.79%	-1.75%	8.67%
Telecom	-18.67%	-25.48%	-15.77%	-4.51%	-19.59%	5.64%
Cons. Disc.	-43.46%	-30.86%	-24.58%	-51.24%	36.72%	39.00%
Technology	-27.12%	-33.62%	-20.09%	19.58%	-20.76%	21.22%
Financials	4.20%	-37.65%	260.88%	-106.74%	-623.75%	60.91%
Industrial	-36.39%	-41.41%	-33.51%	-2.76%	-28.74%	7.72%
Energy	-60.57%	-68.16%	-66.86%	22.41%	-59.20%	43.76%
Materials	-74.07%	-84.90%	-64.03%	-3.72%	-68.07%	96.77%
S&P	-27.27%	-35.95%	-23.13%	-20.73%	-12.27%	23.91%

The Zacks Revisions Ratio: 2009

• Revisions ratio for full S&P 500 up to 1.25, from 1.09
• Steady climb in the ratio, was 0.32 three months ago
• Four sectors in positive territory; Consumer Sectors lead
• Revisions ratio is now into positive territory for the S&P 500 as a whole
• Industrials continue to see estimates being cut
• Ratio of firms with rising to falling mean estimates rises to 1.05 from 0.86
• Total number of revisions (4-week total) down to 1,758 from 3,023 (-41.8%)
• Increases down to 978 from 1,576 (-37.9%); cuts down to 780 from 1,447 (-46.1%)
• Total revisions activity approaching low for the quarter

There has been a steady increase in the revisions ratio, which is now up for 14 weeks in a row. Granted it started at absolutely horrific levels, with estimates being cut at more than 4:1 for the S&P 500 as a whole, and in individual sectors, the cuts were often in excess of 10:1.

This week we finally broke into positive territory, which we define as at least 5 increases for every 4 cuts. We have to conclude that the green shoots are taking hold, at least as far as analysts' projections for earnings.

While I still have my doubts about the group from a longer-term macro perspective, at least for the short term, the analysts disagree with me about the retailers, which have been some of the strongest performers in terms of estimate revisions. Some of the names that have gotten more than 10 estimate increases and no cuts are Gap (GPS), Nordstrom (JWN), Lowe's (LOW) and TJX Companies (TJX).

Sector	Avg. 4wk EPS Change (FY1)	Revisions Ratio	Firms With FY1 EPS Increase	Firms With FY1 EPS Decrease
Consumer Staple	0.47%	3.30	23	13
Consumer Disc	-1.61%	2.41	41	34
Technology	1.28%	2.12	35	21
Financial Services	1.08%	1.38	40	36
Energy	-0.73%	0.72	18	20
Telecom	-0.47%	0.60	3	5
Materials	-1.26%	0.46	11	13
Health Care	0.03%	0.45	21	20
Utilities	-0.32%	0.44	12	16
Industrials	-2.61%	0.37	16	31
S&P 500	-0.32%	1.25	220	209

The Zacks Revisions Ratio: 2010

• Overall picture for 2010 similar to that of 2009
• Revisions ratio up to 1.25 from 0.96
• Tech and Consumer sectors showing best estimate momentum for 2010
• Health Care and Utilities getting cut
• Ratio of rising to falling mean estimates rises to 1.19 from 0.80
• Total revisions activity nearing lows for the quarter
• Total number of revisions falls to 1,425 from 2,264 (-37.1%)
• Estimate increases falls to 791 from 1,109 (-28.7%), cuts fall to 634 from 1,155 (-45.1%)

Two tech stocks with particularly strong revision ratios are Analog Devices (ADI) and Texas Instruments (TXN).

Sector	Avg. 4wk EPS Change (FY2)	Revisions Ratio	Firms With FY2 EPS Increase	Firms With FY2 EPS Decrease
Technology	-0.67%	2.29	39	24
Consumer Discr	-0.21%	2.10	40	26
Consumer Staples	0.98%	2.09	29	6
Energy	1.96%	1.48	27	11
Financial Services	-3.39%	0.98	35	38
Telecom	-0.34%	0.89	5	3
Industrials	-1.45%	0.62	20	29
Materials	0.03%	0.59	13	11
Utilities	-0.66%	0.52	8	18
Health Care	-0.84%	0.36	13	26
S&P 500	-0.74%	1.25	229	192

Earnings Shares and P/Es

• Earnings Shares, including historical, based on current make up of S&P 500
• Health Care expected to take earnings crown from Energy in 2009 and keep it in 2010
• Energy's earnings share expected to plunge to 11.1% from 23.8%
• Financials' 2009 earnings share expected to rise to 11.3% from -1.7% in 2008.
• 12-month forward S&P P/E of 14.55 equates to earnings yield of 6.87%, which is attractive relative to 10-year T-note yield of 3.85%, but only mediocre relative to 5.98% A-rated 10-year corporate.
• T-note rates are rising and more realistic earnings yields of near 6.34% based on lower earnings ($60) means the spread, while still attractive, is not overwhelming.

Earnings Shares and P/Es
Sector	2008%	2009%	2010%	Market Cap %	P/E 2008	P/E 2009	P/E 2010
Health Care	15.89%	18.32%	16.14%	12.72%	11.2	11.1	10.1
Technology	17.05%	15.53%	15.20%	18.67%	15.3	19.2	15.8
Cons Stpl	13.49%	14.80%	13.01%	12.76%	13.2	13.7	12.6
Financials	-1.73%	11.30%	14.67%	13.21%	NM	18.6	11.6
Energy	23.81%	11.09%	12.86%	12.92%	7.6	18.6	12.9
Industrials	13.49%	10.96%	9.53%	10.12%	10.5	14.7	13.7
Cons Discr	4.67%	7.28%	8.17%	9.23%	27.6	20.2	14.5
Utilities	4.60%	5.16%	4.53%	3.77%	11.5	11.7	10.7
Telecom	4.43%	4.00%	3.41%	3.25%	10.2	12.9	12.3
Materials	4.30%	1.57%	2.49%	3.35%	10.9	34.1	17.3
S&P 500	100.00%	100.00%	100.00%	100.00%	14.0	15.9	12.9

Neil Malkin contributed significantly to this report.

Data in this report, unless stated otherwise, is through the close on Thursday 6/11/2009

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 Tuesday's Analyst Blog:

Will Oil Prices Prevent a Recovery?

Higher oil prices are coming at a time when the economy is still very fragile. Retail spending on goods other than energy face strong headwinds from both the need for consumers to rebuild their personal balance sheets (pay down past debts and build up savings) and from much worse personal income statements (unemployment, hours and wages cut, lower interest rates on savings).

This is just one more unhelpful factor that will pressure sales, particularly for stores that sell discretionary items, including clothing stores like The Gap (GPS) and appliance stores like Rex Stores (RSC) and HH Gregg (HGG). Higher oil prices are of course good news for the energy sector, but for the overall economy high energy prices are a significant negative.

The rise in oil prices does not seem to be consistent with the overall weakness of the world economy, but there are several reasons why it just may be sustained or extended, even in the absence of a global economic rebound. The first is that oil is a good hedge against future inflation, and given the expansion of the Fed balance sheet, that may be a very serious concern down the road. Currently the bigger threat is deflation, but it will be hard for the Fed to sop up all the liquidity that has been created to fight the deflationary fire.

A second and somewhat related reason is that China has been increasing its purchases of all sorts of commodities, trying to take advantage of the lower prices (note that the price of other commodities like copper have also increased sharply from the lows of last winter, but remain well off the highs of last summer). OPEC has also shown greater discipline this time around than they have in the past. How long that will last nobody knows, but so far they have been keeping it together.

The third reason is that the looming danger of peak oil has not gone away, it has only been masked by "peak demand" caused by the economic downturn worldwide. Any incremental oil is now coming from very expensive sources like the Canadian oil sands or the very deep waters of Brazil, both of which require oil prices in the mid-$60's to be economically viable.

With oil prices rising above those levels, the drilling off Brazil should pick up steam. There are, however, very few rigs capable of drilling at such depths. Most of those are controlled by two firms, Transocean (RIG) and Diamond Offshore (DO), both of which will benefit enormously if oil prices stay high.

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

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About Zacks

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

Company Descriptionn

RadioShack is an electronics retailer with about 4,400 company-operated stores, 1,400 dealer outlets and 700 wireless phone kiosks throughout the U.S. as well as 200 company-operated stores in Mexico.

RadioShack Grew Revenue by 5.6% in the First Quarter

While many other retailers struggled, RadioShack managed to increase revenue by 5.6% in the first quarter on the strength of the wireless business, flat-panel televisions, and sales of digital converter boxes.

The company saw declines in sales of GPS, wireless accessories, digital cameras and digital music players.

Same store sales for company-operated stores and kiosks was up 5% from the first quarter of 2008.

Net income climbed 13% to $43.1 million, or 34 cents per share, from $38.8 million, or 30 cents, in the year ago period. This easily surprised on Wall Street estimates by 54.55%, or 12 cents a share. Analysts expected only 22 cents.

Consensus Estimates Jump

RadioShack did not provide guidance for the rest of the year when it released its first quarter results in April but covering analysts have been bullish on the company due to the big first quarter surprise.

Second-quarter consensus estimates rose 6 cents to 29 cents in the last 2 months. 2009 full-year estimates surged nearly 19% to $1.38 from $1.16 per share in the last 60 days with 1 out of 16 covering analysts raising in just the last week.

Value Fundamentals

RadioShack is a Zacks #1 Rank (strong buy) stock. It has a price-to-book of 1.85 and a PEG ratio of 1.0. The company also has an outstanding 5-year return on equity (ROE) of 29.24%.

Additionally, RSH pays a dividend with a current yield of 1.80%. RadioShack is expected to report second-quarter results on July 16.

Zacks Investment Research

The cellular phone market is stagnant, except for smartphones. This is a positive for Apple (AAPL), which does not sell low-end phones. Compact digital cameras are down (bad for Panasonic) but high end digital SLRs are a good and growing market for Canon. However, Canon was impacted by the poor market for laser printers, as was Hewlett-Packard (HPQ).

The TV market was mixed. The trend has been for an increase in screen size, but this has not occurred over the past 6 months. Plasma sets are in a secular decline as the LCD sets become cheaper and have improving performance. Large screen LCDs are now selling in greater volumes than plasma sets. This is bad for Panasonic, which is closing some plasma plants. Consumers are moving from expensive brands, like the Bravia from Sony, to cheaper brands.

In fact, Sony lost its second place in LCD to LGE (Samsung is number one) and Vizio was the number one in the US (in units). The large screen TV marker was up in units Y/Y in the first part of 2009, but with the downgrades from High-End products to lower-priced sets, dollars are down Y/Y worldwide.

OPPORTUNITIES

GPS devices showed good growth, as significant price declines and new features made the attractive purchases.

WEAKNESSES

The June quarter is not expected to show any growth from March quarter levels, which will make it a weak quarter. Most companies are reducing headcounts and deferring capital expenditures. The third quarter should show seasonal strength, but we do not expect a full recovery in 2009.Zacks Investment Research

The cellular phone market is stagnant, except for smartphones. This is a positive for Apple (AAPL), which does not sell low-end phones. Compact digital cameras are down (bad for Panasonic) but high end digital SLRs are a good and growing market for Canon. However, Canon was impacted by the poor market for laser printers, as was Hewlett-Packard (HPQ).

The TV market was mixed. The trend has been for an increase in screen size, but this has not occurred over the past 6 months. Plasma sets are in a secular decline as the LCD sets become cheaper and have improving performance. Large screen LCDs are now selling in greater volumes than plasma sets. This is bad for Panasonic, which is closing some plasma plants. Consumers are moving from expensive brands, like the Bravia from Sony, to cheaper brands.

In fact, Sony lost its second place in LCD to LGE (Samsung is number one) and Vizio was the number one in the US (in units). The large screen TV marker was up in units Y/Y in the first part of 2009, but with the downgrades from High-End products to lower-priced sets, dollars are down Y/Y worldwide.

OPPORTUNITIES

GPS devices showed good growth, as significant price declines and new features made the attractive purchases.

WEAKNESSES

The June quarter is not expected to show any growth from March quarter levels, which will make it a weak quarter. Most companies are reducing headcounts and deferring capital expenditures. The third quarter should show seasonal strength, but we do not expect a full recovery in 2009.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:

Garmin's Next Phase of Growth

GPS capability is expected to provide further impetus to growth in cell phones. Garmin Ltd. (GRMN) already enjoys an important position in automotive navigation, and management intends to leverage this position in the cell phone market.

The first step in this direction is the launch of the company's own smartphone. Although the cell phone market is relatively more competitive, management expressed enthusiasm about the growth prospects for its nuvifone.

The company announced two nuviphone models. Both phones are feature-rich 3.5G devices incorporating a PND with on-board maps and premium points of interest; UMTS, HSPDA and Wi-Fi data connectivity; a premium mobile web browser; a local search portal that seamlessly integrates navigation functions; SMS; instant messaging and e-mailing; a camera with automatic location tagging and picture navigation; and multimedia functions such as a video recorder, MPEG 4 video player and MP3. Research In Motion's (RIMM) Blackberry is the most popular platform for smartphones in North America. Apple's (AAPL) launch of the iPhone in Q3 of 2008 met with resounding success, lifting it to the second position.

3SBio Stays a Buy, Post Report

In addition to a diversified marketed product portfolio, 3SBio, Inc. (SSRX) also has a decent pipeline under development.

In the EPO franchise, the company has filed new drug applications (NDA) with China State Food and Drug Administration (SFDA) for higher dose EPIAO (36,000 IU/vial vs regular 10,000 IU/vial) for the treatment of anemia associated with chemotherapy in cancer patients. If approved, high-dose EPIAO would be the only dosage form of this kind available in China.

Also, 3SBio has completed preclinical test for NuPIAO and the company plans to move NuPIAO into clinic in 2009. NuPIAO is second generation of EPIAO that is designed to have a longer half-life. NuPIAO is comparable in structure and function to Amgen's (AMGN) Aranesp. Preliminary testing has demonstrated that NuPIAO has a comparable half-life to Aranesp.

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About Zacks Equity Research

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

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

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

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

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

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

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

Chicago, IL - May 18, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Deere & Co. (DE), Home Depot (HD), Lowe's (LOW), Target (TGT), Aeropostale (ARO) and Gap Inc. (GAP). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

First-quarter earnings season nears an end with Deere & Co. (DE), Home Depot (HD), Lowe's (LOW) and Target (TGT) reporting. Joining them will be 15 other members of the S&P 500. In total, we have confirmed reports from 124 companies.

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.

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. (GAP) 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.

Want to turn earnings surprises into quick profits? Learn how by visiting http://at.zacks.com/?id=3206.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 82% annually (+2% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=4988.

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 by going to http://at.zacks.com/?id=3568.

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.

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

Chicago, IL - May 12, 2009 - Zacks Equity Research picks DIRECTV (DTV) as Bull of the Day and Trimble Navigation (TRMB) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on American Express (AXP), Capital One (COF) and Wells Fargo (WFC).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

DIRECTV (DTV) is set to continue generating healthy free cash flow and earnings growth, with reduced cap ex requirements, healthy ARPU, and vigorous growth in its U.S. and Latin American operations. The company's HD lead should defend its market share, bolster ARPU, and help stem decelerating subscriber growth.

We think the HD roll-out with the RBOCs as partners will defend DTV's market share against cable's ability to offer video, voice and data ("triple play"), which together with recently tightened credit standards, have been impeding subscriber growth. Longer term, we view other companies' IP-TV roll-outs a serious threat, but one that won't be fully realized for several years.

Near-term, we expect satellite and cable TV will be relatively defensive recession investments, suffering less subscriber attrition in the recession than other forms of entertainment, and DIRECTV in particular should benefit from its recent efforts to weed out its lower-end customers most likely to churn.

Bear of the Day

Trimble Navigation (TRMB) is an OEM of GPS-based products and control systems. March quarter revenue was short of the consensus, although the EPS exceeded. Forward guidance is for a revenue decline of -1.4% to an increase of 9.0% in Q2.

International markets will be the only growth drivers for E&C, as the negative impact of the recession on the domestic business is likely to continue. The company will also face negative seasonality in the second half.

However, both the TFS and TMS segment results are currently expected to improve. We are reiterating our Sell rating on TRMB shares.

Recent Analysis from the Analyst Blog

More Thoughts on Unemployment

Losses at American Express (AXP) were modeled to show a 20.2% loss rate on its credit card book, while at Capital One (COF) losses were expected to go as high as 18.2%, and at Wells Fargo (WFC) they were modeled to go as high as 26.0% of loans outstanding.

In light of the extreme lengthening of the duration of unemployment, such high loss rates certainly seem well founded, if perhaps a touch on the optimistic side.

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 VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

International markets will be the only growth drivers for E&C, as the negative impact of the recession on the domestic business is likely to continue. The company will also face negative seasonality in the second half.

However, both the TFS and TMS segment results are currently expected to improve. We are reiterating our Sell rating on TRMB shares. Zacks Investment Research

Chicago, IL - April 29, 2009 - Zacks.com announces the latest Industry Outlook. Today's outlook from Zacks Equity Research analyst Ken Nagy discusses the Semiconductor sector. Highlighted stocks include: Power Integrations, Inc. (POWI), Intel Corp. (INTC) and Trimble Navigation (TRMB).

Here is the latest on the Semiconductor sector:

Older technologies deliver power inefficiently, often consuming two or three times the amount of power needed by the end product and wasting substantial amounts of energy. Firms that provide solutions to so-called "energy vampires" will outperform. Our favorite name in this arena is Power Integrations, Inc. (POWI).

Intel Corp.'s (INTC) "Netbooks" are expected to attract first-time buyers in developing economies, while in developed economies, their pricing and portability are expected to help second- and third-unit sales per household. Although they are unlikely to be as efficient as some of the latest chips for desktops and servers, there is a longer-term potential for adoption in consumer electronic devices, embedded applications and thin clients.

Since the chip is specially designed for the portable market, the design excludes some features that lower the manufacturing cost. This is expected to help maintain margins even as volumes ramp up. Management stated that the Atom processor would generate margins in the 58% range. Given the enormous prospects, revenues are being broken out separately.

Trimble Navigation (TRMB) is an OEM of GPS-based products and control systems. December quarter results were short of consensus and management expectations, although they were in-line with management's preannouncement. Forward guidance is for a 6-18% sequential increase in Q1.

International markets will be the key to growth in 2009, as the negative impact of the recession on E&C is likely to be even more pronounced. We expect further declines in the share price as investors react to management conservatism, and the weakening market overall.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2678

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2679.

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=4581. 

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Contact:Mark VickeryWeb Content Editor312-265-9380Visit: www.zacks.com

In the past 10 years, the fundamental shift in the semiconductor industry from corporate IT to consumer demand is very important to consider. It has created a different playing field. There are more products that use semi components (MP3s, cell phones, autos, "smart" houses). Seasonal demand is now an issue, such as Christmas and the Chinese New Year. Finally, the potential exists for more commoditized products and ASP [average selling price] erosion.

Firms that will out-perform in a slightly negative GDP environment include:

    
• Firms with the strongest balance sheets, such as Intel Corp. (INTC)    
• Companies that make specialized semiconductors (i.e. chips used in dentist X rays)    
• Firms that sell products that are technology-driven rather than capacity-driven    
• Companies that are gaining market share because of superior technology, like Varian Semi (VSEA)    
• Firms that sell products associated with regulation (e.g. power conservation), such as Power Integrations (POWI)

OPPORTUNITIES

Older technologies deliver power inefficiently, often consuming two or three times the amount of power needed by the end product and wasting substantial amounts of energy. Firms that provide solutions to so-called "energy vampires" will outperform. Our favorite name in this arena is Power Integrations, Inc. (POWI).

Intel's "Netbooks" are expected to attract first-time buyers in developing economies, while in developed economies, their pricing and portability are expected to help second- and third-unit sales per household. Although they are unlikely to be as efficient as some of the latest chips for desktops and servers, there is a longer-term potential for adoption in consumer electronic devices, embedded applications and thin clients.

Since the chip is specially designed for the portable market, the design excludes some features that lower the manufacturing cost. This is expected to help maintain margins even as volumes ramp up. Management stated that the Atom processor would generate margins in the 58% range. Given the enormous prospects, revenues are being broken out separately.

SITUATIONS TO AVOID

Trimble Navigation (TRMB) is an OEM of GPS-based products and control systems. December quarter results were short of consensus and management expectations, although they were in-line with management's preannouncement. Forward guidance is for a 6-18% sequential increase in Q1.

International markets will be the key to growth in 2009, as the negative impact of the recession on E&C is likely to be even more pronounced. We expect further declines in the share price as investors react to management conservatism, and the weakening market overall.

The E&C unit shrunk to 49% of revenue in the last quarter. The revenue share has been declining gradually, as the TFS and TMS segments experienced stronger growth. The problems in this business continued in the last quarter, with revenue declining double-digits, both sequentially and year over year.

The Middle East is undergoing temporary softness due to the fall-off in oil revenues. The traditionally strong U.S. and European construction markets experienced unprecedented weakness. A couple of factors indicate that the weakness could continue.

The first is the slower economy, which resulted in weaker demand for new construction products. The second is related to the uncertainty in the credit market. As construction companies are less certain about the availability of funds, they have cut back investment in new contruction equipment. While a lot of the order pullback may return as revenue, delayed decision-making is likely to continue for the next few quarters. Customers depleted inventories in the last quarter in favor of using cash for new equipment.

RadioShack Corp. (RSH) shares fell sharply on Tuesday after the third-largest U.S. electronics chain reported a 39% decline in quarterly profit as cash-strapped consumers shied away from spending on GPS navigation devices and expensive cameras.

In the latest fourth quarter, the Fort Worth, Texas-based company earned $62 million, or 50 cents a share, compared with the consensus forecast of 74 cents. Despite holiday markdowns, quarterly revenue declined 7.7% to $1.26 billion, while same-store sales fell 9.2% as unemployment rose and home values plunged.

RadioShack shares were trading down more than 20% to $8.59 at noon. Earlier in the session, they dropped the most in four months to $8.08 on the New York Stock Exchange.

Company Description

Symmetricom designs and manufactures precise time and frequency products in more than 90 countries around the world.

The company has two segments: Telecom Solutions Division and Timing, Test and Measurement Division. Telecom Solutions provides communications companies with IP video monitoring tools to provide high quality video experiences for their customers over the network.

Timing, Test and Measurement provides government, aerospace and broadcast customers with Time & Frequency instrumentation solutions such as GPS receivers, rubidium, cesium and hydrogen maser clocks that delivery atomic frequency references designed for ultra-precise timing and measurement.

SYMM Beat Wall Street Estimates in the Second Quarter by 66.67%

On Feb 4, Symmetricom reported second-quarter 2009 earnings that surprised on estimates by 2 cents a share. Net income rose to $2.7 million from $0.9 million. Earnings per share was 5 cents. The analyst expected 3 cents. Revenue fell 1% to $48.2 million from $48.8 million in the second-quarter of 2008.

The two segments had split results on the quarter. Telecom Solutions saw revenue fall 11% to $27.3 million from $30.5 million in the year ago period. While Timing, Test and Measurement gained 14% to $21 million from $18.3 million.

The company continues to see traction in its new product areas of cable, video Quality of Experience and PackeTime IEEE 1588. Symmetricom also expects revenue in the second half of the year to move higher, reflecting the usual seasonal uptick in the business.

Third Quarter and Full Year 2009 Outlook

For the third quarter of 2009, Symmetricom forecast EPS in the range of 7 cents to 12 cents per share. Full year 2009 revenue is now expected between $220 million and $230 million. Earnings per share is expected in the range of 35 cents to 41 cents.

Estimates Rise

Given the company's recent guidance, estimates have moved higher for the third-quarter 2009 and the full year. Third quarter estimates rose 2 cents to 7 cents per share, the lower end of the guidance range, in the last 30 days.

Full-year 2009 estimates rose to 29 cents from 25 cents, which is under the forecasted range.

Value Fundamentals

Symmetricom is a Zacks #1 Rank (strong buy). It's trading with a forward P/E of 12.13 and a price-to-book of 0.79.

"SYMM" Free Stock Analysis: Buy? Sell? Hold?
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