Revenue dipped 27% to $674.6 million during the quarter due to lower housing revenues, partly offset by higher land sale revenues. Housing revenues fell 32% to $618.7 million, while land sale revenues rose to $52.7 million from $7.1 million.

The year-over-year decline in housing revenues reflected a 22% decrease in the number of homes delivered to 3,042 homes and a 12% decrease in the average selling price to $203,400. Meanwhile, net orders for KBH increased 12% to 1,446 homes, primarily an outcome of the company’s lower cancellation rate.

The Financial Services operations, which include KB Home’s equity interest in an unconsolidated mortgage banking joint venture, reported a pretax income of $7.5 million in the quarter, compared to a pretax income of $6.9 million in the fourth quarter a year ago.

Annual Results

KB Home posted a narrower loss of $101.8 million or $1.33 per share in fiscal 2009 compared to a net loss of $976.1 million or $12.59 per share in fiscal 2008 and to the Zacks Consensus Estimate of a loss of $2.02 per share.

Revenue plummeted 40% to $3.03 billion in the reported fiscal year. The decrease was attributable to lower housing revenues, which fell 40% to $1.76 billion. The number of homes delivered shrank 32% to 8,488, while the average selling price declined 12% to $207,100.
 
Financial Position

KB Home had cash and cash equivalents of $1.3 billion as of November 30, 2009. Total debt amounted to $1.8 billion as of that date. The debt to capitalization ratio stood at 72%.

Based in Los Angeles, California, KB Home builds various types of homes, including attached and detached single-family homes, town homes and condominiums, designed primarily for first-time, first move-up and adult buyers. It also offers mortgage services through a joint venture, KB Home Loans. In addition, the company, through its subsidiary, KB Home Mortgage Company, provides title and insurance services to its homebuyers.

Shares of KBH have been under pressure today. The stock price declined about 5.5% to around $15.40 from $16.38 after the market closed yesterday. The market appears to be discounting the better-than-expected earnings and focusing instead on management’s weak outlook, changes in federal government monetary and fiscal policies and programs and by the impact of rising foreclosures and mortgage loan delinquencies.

We recommend KBH shares as Neutral.
 

Stocks declined in early trading after a Commerce Department report noted new home sales fell to their lowest level since March.  The disappointment, however, was short-lived as markets gained momentum in the afternoon, helped by a rally in the oil market.  Oil surged more than 3%, rising $2.27 to $76.67 a barrel on reports of a drawdown in supplies of crude last week.  Higher crude prices helped energy producers and industrial companies.  Also, ebbing enthusiasm about an economic recovery hurt the dollar, making commodities attractive.  Shares of Schlumberger (NYSE:SLB) rose 2% on a Barclay's (NYSE:BCS) upgrade.

The Dow Jones industrial average ended the day virtually unchanged, adding less than 0.1% to its prior day’s tally.  The broader S&P 500 index gained about 2 points, or 0.2%.  The Nasdaq composite advanced 17 points, or 0.7%, closing at a fresh 15-month high.  For the year, the DJIA has gained over 19%, the S&P500 about 24%, and the NASDAQ about 44%.  The Vix volatility index, the market’s fear gauge, inched up 0.4% to 19.63.  The gauge slid below 20 for the first time since August 2008 on Tuesday.

This morning’s stock futures suggest early market gains, following improved share prices in Asian markets and strength in European bourses.

Yesterday, the greenback fell 0.4% to 77.86 against a basket of currencies, after rising to a three-month high in Tuesday's session, and following six straight session gains.  A falling dollar nevertheless helped push commodity producer shares higher, with shares of Freeport McMoRan (NYSE:FCX) up 3.2% and Newmont Mining (NYSE:NEM) up 2.8%.  Alcoa (NYSE:AA) rose 1.3% and was the leading gainer on the DJIA.

Homebuilder shares rose on their long-term prospects, with Pulte Homes (NYSE:PHM) up 2% and KB Home (NYSE:KBH) up 1.8%.  Micron Technology (NYSE:MU) shares rose 6.2% as the company swung to profitability during its fiscal first quarter, on improved revenue results. Red Hat (NYSE:RHT) shares surged 5.2% after the company reported estimate-beating quarterly numbers.

Stocks had recorded significant gains on Monday as a number of corporate deal announcements and analyst upgrades returned to boost confidence on the Street. 

On Tuesday, the S&P 500 added 0.4% to 1,118.03.  The Dow Jones Industrial Average gained 50.79 points, 0.5%, to 10,464.93.  The tech-heavy NASDAQ climbed 0.7% to 2,253.  The VIX volatility measure, the market’s fear gauge, slid 4.6% to 19.55, closing below 20 for the first time since August 2008.  Trading volume on the NYSE fell to 0.956 billion as traders went on holiday breaks. 

What encouraged investors the most was an existing home sales report which showed November existing home sales surged 7.4% to a 6.54 annual pace, helped by government stimulus efforts.  Housing company shares were quick to take the lead, with KB Home (NYSE:KBH) jumping 6.9%; Pulte Homes (NYSE:PHM) rising 4.7%; and Lennar (NYSE:LEN) climbing 3.2%.

The greenback, meanwhile, continued its advance Tuesday against a basket of currencies, edging up 0.3% to 78.28, as a brighter economic picture increased the odds that the Fed would begin raising the Fed funds rate sooner than expected.  And a higher dollar sent gold prices lower, off $9.30, to $1,087, its lowest in seven weeks.  Yields on US Treasuries remained near four-month highs, as the price on the 10-year note dropped 20/32 and its yield rose to 3.758%.

Crude prices gained 68 cents to $74.40 Tuesday on the improved prospects for demand recovery in the US. Yesterday's industry-sponsored inventory post, the API, showed inventories declined across the major categories; however, analysts expect this morning's EIA report to show drawdowns in crude and distillates, but gasoline inventories are expected to show further gains.

Chicago, IL – September 21, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes AutoZone (AZO), Bed, Bath & Beyond (BBBY), General Mills (GIS), KB Home (KBH), Lennar (LEN), Paychex (PAYX), CarMax (KMX), Research in Motion (RIMM) and Texas Industries (TXI). 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=5612.

This Week's Events

We will get another look at initial third-quarter results with 11 S&P 500 companies reporting. Included in this group are AutoZone (AZO), Bed, Bath & Beyond (BBBY), General Mills (GIS), KB Home (KBH), Lennar (LEN) and Paychex (PAYX). A total of 33 companies are on the calendar.

The Fed will hold a 2-day meeting starting on Tuesday. No change in rates is expected at either this or the November meeting. Traders will be looking for insight about the pace of recovery and updates on the various bailout programs.

In addition to the Fed meeting, the economic calendar features August Leading Indicators and home sales data.

• Monday: August Leading Indicators
• Tuesday: Federal Housing Finance Agency (FHFA) House Price Index
• Wednesday: FOMC rate decision (about 2:10 pm), weekly crude inventories, weekly mortgage applications
• Thursday: August existing home sales, weekly initial jobless claims, weekly natural gas inventories
• Friday: August new home sales, August durable good orders, revised August University of Michigan consumer confidence

The Chicago Fed will host an international banking conference in Chicago. Speaking at the event will be White House economics advisor Christina Romer (Thursday) and Fed Reserve Board Governor Kevin Warsh (Friday).

Another big round of treasury auctions is slated. During a 3-day span, starting on Tuesday, the Treasury Department will offer $43 billion in 2-year notes, $40 billion in 5-year notes and $29 billion in 7-year bonds. Recent auctions have been heavily oversubscribed.

Though old adage of "buy Rosh Hashanah, Sell Yom Kippur" has not really worked in investors' favor, the bulls continue to remain in control. Therefore, it seems likely that we will hit Dow 10,000 this week. Investors should be aware, however, that this is a fear and greed market run by fast money.

To our Jewish readers, L'Shana Tova.

Companies That Could Issue Positive Earnings Surprises

As I write this, shares of Bed Bath & Beyond (BBBY) are trading higher in response to raised fiscal second-quarter estimates from one brokerage analyst. The change has yet to be factored into the Zacks Consensus Estimate, which currently stands at 47 cents per share. The most accurate estimate is slightly higher at 48 cents per share. The home goods retailer has topped expectations for 2 consecutive quarters and could be a beneficiary of the rebound in housing. Bed, Bath & Beyond is scheduled to report on Wednesday, Sep 23, after the close of trading.

Though used cars did not qualify for the Cash for Clunkers rebates, optimism about CarMax's (KMX) second-quarter results has been growing. During the past few weeks, 4 brokerage analysts have raised their profit projections. The revisions have pushed the Zacks Consensus Estimate 2 cents higher to 18 cents per share. The most accurate estimate is slightly more bullish at 19 cents per share. KMX beat expectations over the past 2 quarters after previously missing twice. CarMax is scheduled to report on Tuesday, Sep 22, before the start of trading.

Though KB Home (KBH) is projected to have lost 68 cents per share, the actual fiscal third-quarter loss could be less than most analysts forecast. The most accurate estimate is far more bullish, calling for a loss of 61 cents per share, and the homebuilder has topped expectations for 2 consecutive quarters. KB Home is scheduled to report on Friday, Sep 25, before the start of trading.

Research in Motion (RIMM) has topped expectations for 3 consecutive quarters. Ahead of the company's fiscal second-quarter report, 3 analysts have raised their projections. The changes were not significant enough to move the Zacks Consensus Estimate from its current level of $1 per share, though the most accurate estimate is a penny higher, at $1.01 per share. Research in Motion is scheduled to report on Thursday, Sep 24, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Texas Industries (TXI) has missed expectations during 3 out of the last 4 quarters. Shareholders should brace themselves for another disappointment with 3 of the 8 covering analysts cutting their fiscal first-quarter estimates within the past few weeks. The revisions have caused the Zacks Consensus Estimate to drop 7 cents to a projected loss of 5 cents per share. Texas Industries is scheduled to report on Thursday, Sep 24, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

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 +26%. 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 111% annually (-0.8% versus +8%). 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=5614.

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=5615.

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

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

The Fed will hold a 2-day meeting starting on Tuesday. No change in rates is expected at either this or the November meeting. Traders will be looking for insight about the pace of recovery and updates on the various bailout programs.

In addition to the Fed meeting, the economic calendar features August Leading Indicators and home sales data.

• Monday: August Leading Indicators
• Tuesday: Federal Housing Finance Agency (FHFA) House Price Index
• Wednesday: FOMC rate decision (about 2:10 pm), weekly crude inventories, weekly mortgage applications
• Thursday: August existing home sales, weekly initial jobless claims, weekly natural gas inventories
• Friday: August new home sales, August durable good orders, revised August University of Michigan consumer confidence

The Chicago Fed will host an international banking conference in Chicago. Speaking at the event will be White House economics advisor Christina Romer (Thursday) and Fed Reserve Board Governor Kevin Warsh (Friday).

Another big round of treasury auctions is slated. During a 3-day span, starting on Tuesday, the Treasury Department will offer $43 billion in 2-year notes, $40 billion in 5-year notes and $29 billion in 7-year bonds. Recent auctions have been heavily oversubscribed.

Though old adage of "buy Rosh Hashanah, Sell Yom Kippur" has not really worked in investors' favor, the bulls continue to remain in control. Therefore, it seems likely that we will hit Dow 10,000 this week. Investors should be aware, however, that this is a fear and greed market run by fast money.

To our Jewish readers, L'Shana Tova.

Companies That Could Issue Positive Earnings Surprises

As I write this, shares of Bed Bath & Beyond (BBBY) are trading higher in response to raised fiscal second-quarter estimates from one brokerage analyst. The change has yet to be factored into the Zacks Consensus Estimate, which currently stands at 47 cents per share. The most accurate estimate is slightly higher at 48 cents per share. The home goods retailer has topped expectations for 2 consecutive quarters and could be a beneficiary of the rebound in housing. Bed, Bath & Beyond is scheduled to report on Wednesday, Sep 23, after the close of trading.

Though used cars did not qualify for the Cash for Clunkers rebates, optimism about CarMax's (KMX) second-quarter results has been growing. During the past few weeks, 4 brokerage analysts have raised their profit projections. The revisions have pushed the Zacks Consensus Estimate 2 cents higher to 18 cents per share. The most accurate estimate is slightly more bullish at 19 cents per share. KMX beat expectations over the past 2 quarters after previously missing twice. CarMax is scheduled to report on Tuesday, Sep 22, before the start of trading.

Though KB Home (KBH) is projected to have lost 68 cents per share, the actual fiscal third-quarter loss could be less than most analysts forecast. The most accurate estimate is far more bullish, calling for a loss of 61 cents per share, and the homebuilder has topped expectations for 2 consecutive quarters. KB Home is scheduled to report on Friday, Sep 25, before the start of trading.

Research in Motion (RIMM) has topped expectations for 3 consecutive quarters. Ahead of the company's fiscal second-quarter report, 3 analysts have raised their projections. The changes were not significant enough to move the Zacks Consensus Estimate from its current level of $1 per share, though the most accurate estimate is a penny higher, at $1.01 per share. Research in Motion is scheduled to report on Thursday, Sep 24, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Texas Industries (TXI) has missed expectations during 3 out of the last 4 quarters. Shareholders should brace themselves for another disappointment with 3 of the 8 covering analysts cutting their fiscal first-quarter estimates within the past few weeks. The revisions have caused the Zacks Consensus Estimate to drop 7 cents to a projected loss of 5 cents per share. Texas Industries is scheduled to report on Thursday, Sep 24, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Sep 21 - Sep 25. Prices are as of Thursday's, Sep 17, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Lennar Corp -A	LEN	($0.48)	($0.56)	80.7%	9/21	BTO	$16.60
Synnex Corp	SNX	$0.61	$0.66	18.8%	9/21	AMC	$31.81
Aar Corp	AIR	$0.25	$0.45	10.9%	9/22	AMC	$18.39
Carmax Gp (Cc)	KMX	$0.18	$0.06	175.0%	9/22	BTO	$18.79
Carnival Corp	CCL	$1.18	$1.65	13.8%	9/22	BTO	$32.86
Carnival Plc	CUK	$1.20	$1.65	60.0%	9/22	BTO	$34.08
Conagra Foods	CAG	$0.33	$0.27	0.0%	9/22	BTO	$22.15
Factset Resh	FDS	$0.73	$0.68	0.0%	9/22	BTO	$62.35
Finl Fed Corp	FIF	$0.37	$0.49	2.4%	9/22	AMC	$24.08
Fuller(Hb) Co	FUL	$0.36	$0.35	44.0%	9/22	AMC	$20.83
Progress Softwa	PRGS	$0.32	$0.30	0.0%	9/22	BTO	$23.05
Autozone Inc	AZO	$4.44	$3.88	9.7%	9/23	BTO	$147.37
Bed Bath&Beyond	BBBY	$0.47	$0.46	41.7%	9/23	AMC	$38.81
Cintas Corp	CTAS	$0.39	$0.51	5.6%	9/23	AMC	$29.46
Comtech Telecom	CMTL	$0.18	$0.61	31.8%	9/23	AMC	$34.50
Genl Mills	GIS	$1.03	$0.96	6.2%	9/23	BTO	$60.06
Paychex Inc	PAYX	$0.34	$0.41	(5.9%)	9/23	AMC	$29.74
Red Hat Inc	RHT	$0.11	$0.10	20.0%	9/23	AMC	$25.46
3Com Corp	COMS	$0.02	$0.09	150.0%	9/24	BTO	$4.71
Amer Greetings	AM	$0.06	$0.05	(65.0%)	9/24	BTO	$14.62
Analogic Corp	ALOG	$0.23	$0.55	(41.7%)	9/24	AMC	$37.76
Christopher&Bnk	CBK	($0.14)	$0.04	200.0%	9/24	AMC	$7.68
Finish Line-Cla	FINL	$0.21	$0.24	(999.0%)	9/24	AMC	$9.50
Mccormick & Co	MKC	$0.54	$0.50	2.4%	9/24	BTO	$33.87
Neogen Corp	NEOG	$0.26	$0.25	4.6%	9/24	BTO	$29.98
Research In Mot	RIMM	$1.00	$0.86	4.3%	9/24	AMC	$82.70
Rite Aid Corp	RAD	($0.15)	($0.27)	15.4%	9/24	BTO	$2.24
Saba Software	SABA	$0.01	($0.04)	66.7%	9/24	AMC	$4.12
Spectrum Contrl	SPEC	$0.18	$0.18	5.9%	9/24	AMC	$9.53
Steelcase Inc	SCS	$0.00	$0.28	114.3%	9/24	BTO	$7.11
Texas Inds	TXI	($0.05)	$0.28	(140.0%)	9/24	BTO	$44.95
Tibco Software	TIBX	$0.08	$0.09	28.6%	9/24	AMC	$9.13
Vail Resorts	MTN	($1.10)	($0.29)	8.39%	9/24	BTO	$34.19
KB Home	KBH	($0.68)	($1.87)	11.8%	9/25	BTO	$19.69

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

Zacks Investment Research

Chicago, IL – September 17, 2009 – Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include D.R. Horton (DHI), KB Home (KBH), Pulte Homes (PHM), Allstate (ALL), Hartford Financial Services (HIG), Travelers (TRV), Loews (L), Humana (HUM), Stericycle (SRCL), C.R. Baird (BCR), Celgene (CELG), Gilead Sciences (GILD), Anadarko Petroleum (APC), EOG Resources (EOG), AK Steel (AKS), Nucor (NUE), U.S. Steel (X), Fifth Third (FITB), Regions Financial (RF), Suntrust Banks (STI) and Zions Bancorp (ZION).

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

This week: Third-Quarter Earnings Forecast

Though the economy has stabilized, third-quarter results for the majority of companies will still be below year prior levels.

Per share profits for the S&P 500 are projected to fall 15.4%. The median company is forecast to report a 14% drop in per share earnings. (The difference being that the S&P 500 forecast is a weighted projection.) More than 340 companies may have experienced a year-over-year drop in profits.

On a revenue basis, things are not much better. Median company sales are forecast to have dropped 7.2%.* More than 360 companies are expected to report a year-over-year drop in earnings.

It's important to realize that during July and August 2008, the economy was in fairly good shape. Lehman did not collapse until September 2008. Furthermore, the credit crunch's grip severely tightened over the 2-month span of September and October 2008. As a result, many companies are now facing tough comparisons, meaning year-over-over declines in profits now.

It should be noted, however, that not all comparisons will be difficult. In fact, some industries are forecast to report actual earnings growth.

Industries Likely To Show Growth

Homebuilders

It may sound shocking, but homebuilders are likely to have some of the best year-over-year comparisons in terms of profitability.

There are 2 reasons for this. First, conditions in the housing industry were deteriorating last year, with mortgages becoming increasingly hard to get. Second, the housing market is now stabilizing, as is evidenced by the rising number of new and existing home sales.

This change will allow D.R. Horton (DHI), KB Home (KBH) and Pulte Homes (PHM) to encourage shareholders with bottom line improvements by 50% or more. The improvements are relative, however, since all 3 companies will report sizable losses for Q309.

Insurance

Several insurance companies could impress investors with double-digit growth. Though some, like Allstate (ALL) and Hartford Financial Services (HIG), have the benefit of prior-year losses, others like Travelers (TRV) and Loews (L) are experiencing true growth. (Revenues and earnings will rise for TRV and L).

The surprisingly calm hurricane season (fingers crossed that it stays this way) has helped property and causality insurers. Nearly all insurance companies have also benefited from the rebound in the financial markets. The economy is a drag, though there seem to be certain segments where premiums are rising.

Health Care

Despite all the talk about reform, profits for the entire medical sector continue to rise. The sector is less economically sensitive and less affected by swings in commodity prices. As result, several medical companies are likely growing both revenues and earnings this quarter.

Those with the strongest growth rates will include Humana (HUM), Stericycle (SRCL), C.R. Baird (BCR), Celgene (CELG) and Gilead Sciences (GILD).

Industries Likely to Report Contraction

Commodity-Related

Commodity-related companies face the toughest year-over-year comparisons. Oil peaked in July 2008 and, though the commodity bubble deflated throughout the remainder of the quarter, profits were still very, very strong. As a result, energy and metals companies are projected to report significant drops in Q309 profits.

In the Energy sector, exploration & production (E&P) companies such as Anadarko Petroleum (APC) and EOG Resources (EOG) will report the biggest declines. Among metals companies, AK Steel (AKS), Nucor (NUE) and U.S. Steel (X) could all report losses after large profits in Q308.

Banks

Though government intervention has stabilized much of the financial sector, many banks remain unprofitable. High unemployment, a sustained high level of foreclosures and a weak commercial real estate market are all problem spots for the sector. As a result, analysts are projecting Fifth Third (FITB), Regions Financial (RF), Suntrust Banks (STI) and Zions Bancorp (ZION) to post losses.

It's All About Expectations

The one positive for the third-quarter earnings season is that there is a general expectation that the numbers will be bad. Therefore, even those companies that report losses will be measured up against the consensus estimates and not the year prior results. What we could well see is a repeat of second-quarter earnings season, where brokerage analyst forecasts proved to be too pessimistic.

As always, pay attention to guidance and the level of visibility companies have about the fourth quarter and the early part of 2010. The markets will want assurance that business conditions are starting to improve, even if sales still remain at depressed levels.

*12 companies were excluded from the revenue forecasts due to a lack of broker estimates. The inclusion of these companies would have not significantly altered the median revenue forecast.

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=5611.

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 3:1 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=5610.

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

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

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

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

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

Per share profits for the S&P 500 are projected to fall 15.4%. The median company is forecast to report a 14% drop in per share earnings. (The difference being that the S&P 500 forecast is a weighted projection.) More than 340 companies may have experienced a year-over-year drop in profits.

On a revenue basis, things are not much better. Median company sales are forecast to have dropped 7.2%.* More than 360 companies are expected to report a year-over-year drop in earnings.

It's important to realize that during July and August 2008, the economy was in fairly good shape. Lehman did not collapse until September 2008. Furthermore, the credit crunch's grip severely tightened over the 2-month span of September and October 2008. As a result, many companies are now facing tough comparisons, meaning year-over-over declines in profits now.

It should be noted, however, that not all comparisons will be difficult. In fact, some industries are forecast to report actual earnings growth.

Industries Likely To Show Growth

Homebuilders

It may sound shocking, but homebuilders are likely to have some of the best year-over-year comparisons in terms of profitability.

There are 2 reasons for this. First, conditions in the housing industry were deteriorating last year, with mortgages becoming increasingly hard to get. Second, the housing market is now stabilizing, as is evidenced by the rising number of new and existing home sales.

This change will allow D.R. Horton (DHI), KB Home (KBH) and Pulte Homes (PHM) to encourage shareholders with bottom line improvements by 50% or more. The improvements are relative, however, since all 3 companies will report sizable losses for Q309.

Insurance

Several insurance companies could impress investors with double-digit growth. Though some, like Allstate (ALL) and Hartford Financial Services (HIG), have the benefit of prior-year losses, others like Travelers (TRV) and Loews (L) are experiencing true growth. (Revenues and earnings will rise for TRV and L).

The surprisingly calm hurricane season (fingers crossed that it stays this way) has helped property and causality insurers. Nearly all insurance companies have also benefited from the rebound in the financial markets. The economy is a drag, though there seem to be certain segments where premiums are rising.

Health Care

Despite all the talk about reform, profits for the entire medical sector continue to rise. The sector is less economically sensitive and less affected by swings in commodity prices. As result, several medical companies are likely growing both revenues and earnings this quarter.

Those with the strongest growth rates will include Humana (HUM), Stericycle (SRCL), C.R. Baird (BCR), Celgene (CELG) and Gilead Sciences (GILD).

Industries Likely to Report Contraction

Commodity-Related

Commodity-related companies face the toughest year-over-year comparisons. Oil peaked in July 2008 and, though the commodity bubble deflated throughout the remainder of the quarter, profits were still very, very strong. As a result, energy and metals companies are projected to report significant drops in Q309 profits.

In the Energy sector, exploration & production (E&P) companies such as Anadarko Petroleum (APC) and EOG Resources (EOG) will report the biggest declines. Among metals companies, AK Steel (AKS), Nucor (NUE) and U.S. Steel (X) could all report losses after large profits in Q308.

Banks

Though government intervention has stabilized much of the financial sector, many banks remain unprofitable. High unemployment, a sustained high level of foreclosures and a weak commercial real estate market are all problem spots for the sector. As a result, analysts are projecting Fifth Third (FITB), Regions Financial (RF), Suntrust Banks (STI) and Zions Bancorp (ZION) to post losses.

It's All About Expectations

The one positive for the third-quarter earnings season is that there is a general expectation that the numbers will be bad. Therefore, even those companies that report losses will be measured up against the consensus estimates and not the year prior results. What we could well see is a repeat of second-quarter earnings season, where brokerage analyst forecasts proved to be too pessimistic.

As always, pay attention to guidance and the level of visibility companies have about the fourth quarter and the early part of 2010. The markets will want assurance that business conditions are starting to improve, even if sales still remain at depressed levels.

Sector Rank as of Sep 16
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Consumer Staples	2.63	2.65	2.40	168	70
Conglomerates	2.73	2.73	4.67	14	3
Retail-Wholesale	2.76	2.74	1.88	506	269
Auto-Tires-Trucks	2.77	2.76	0.73	22	30
Computer and Technology	2.90	2.91	2.19	599	273
Medical	2.93	2.96	1.30	193	149
Construction	2.97	2.97	1.20	53	44
Basic Materials	2.98	3.02	1.55	118	76
Consumer Discretionary	3.00	2.97	1.05	122	116
Oils-Energy	3.00	3.01	0.87	238	274
Utilities	3.02	3.03	0.89	55	62
Industrial Products	3.05	3.03	1.36	87	64
Business Services	3.08	3.01	0.97	30	31
Finance	3.13	3.09	1.07	335	312
Aerospace	3.23	3.23	0.33	19	58
Transportation	3.23	3.23	0.70	81	115

View the Zacks Industry Rank List at http://www.zacks.com/zrank/zrank_inds.php. This interactive list allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. The table above is the Zacks Sector Rank List, which shows the trend in estimate revisions on a broader scale.

*12 companies were excluded from the revenue forecasts due to a lack of broker estimates. The inclusion of these companies would have not significantly altered the median revenue forecast.Zacks Investment Research

Chicago, IL - June 22, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Oracle (ORCL), Micron (MU), Monsanto (MON), Bank of America (BAC), KB Home (KBH), Lennar (LEN) and CKE Restaurants (CKR). 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=5612.

The Week's Events

We'll see another round of early second-quarter results this week. A total of 42 companies are scheduled to report, including 14 S&P 500 members. Oracle (ORCL), Micron (MU) and Monsanto (MON) will be among the mostly closely-watched reports.

The Fed will also grab traders' attention. A 2-day meeting is scheduled for Tuesday and Wednesday. No change in interest rates is expected, but traders will be listening for an update on the Fed's debt purchase program. The statement should also allude to signs of improvement in economic conditions.

On Thursday, Fed Chairman Ben Bernanke will again be in the spotlight. Bernanke will testify before a House committee about Bank of America's (BAC) acquisition of Merrill Lynch.

Housing data headlines the economic calendar. The release of new and existing homes sales will be matched with results from KB Home (KBH) and Lennar (LEN).

• Tuesday: May existing home sales
• Wednesday: May durable goods orders, May new home sales, weekly crude inventories, Fed statement
• Thursday: Final Q1 GDP, weekly initial jobless claims
• Friday: May personal income and spending, June revised University of Michigan consumer confidence

The Treasury Department will auction a record $104 billion worth of bonds. The securities being sold are 2-, 5- and 7-year notes.

We haven't seen any end-of-quarter window dressing yet, though I still expect it to occur. Many money managers have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This could cause them to move into some of the momentum stocks.

As far as the Fed meeting, I'm not expecting a big reaction, but it's hard to predict. Keep in mind that whatever happens on Wednesday afternoon could be reversed on Thursday.

Enjoy the summer weather.

Companies That Could Issue Positive Earnings Surprises

Late last month, CKE Restaurants (CKR) said its operating expenses, as a percentage of revenues, would be "essentially flat" with prior year levels. Though blended same-store sales were down, 2 of the covering analysts raised their forecasts after the announcement. The revisions pushed the consensus earnings estimate a penny higher to 24 cents per share. The most accurate estimate is even more bullish at 25 cents per share. The fast food chain has topped expectations during 2 out of the last 4 quarters. CKE Restaurants is scheduled to report on Thursday, Jun 25, before the start of trading.

Micron (MU) might just turn the tide and surprise to the upside. Though the company has missed expectations by wide margins during the past 3 quarters, fiscal third-quarter forecasts have been trending up recently. The consensus estimate calls for a loss of 43 cents per share, a penny better than a month ago. The most accurate estimate suggests far more upside, projecting a loss of just 36 cents per share. MU is scheduled to report on Thursday, Jun 25, after the close of trading.

Oracle (ORCL) has topped expectations during 8 out of the last 9 quarters. Ahead of the company's fiscal fourth-quarter report, 1 brokerage analyst raised his forecast. Though the revision was not significant enough to move the consensus earnings estimate from 43 cents per share, it did result in a slightly more bullish most accurate estimate of 44 cents. Oracle is scheduled to report on Tuesday, Jun 23, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

KB Home (KBH) has missed expectations during 7 out of the last 9 quarters and earnings estimates are pointing to another disappointment. One analyst lowered his forecast recently, widening the consensus projection to a loss of 67 cents per share. The most accurate estimate is more bearish and calls for a loss of 70 cents per share.

Guidance could also be troublesome as fiscal 2009 estimates have worsened by 16 cents over the last 30 days. The consensus now calls for a full-year loss of $2.50 per share. KB Home is scheduled to report on Friday, Jun 26, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

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 +26%. 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 111% annually (-0.8% versus +8%). 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=5614.

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=5615.

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

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 - June 22, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Oracle (ORCL), Micron (MU), Monsanto (MON), Bank of America (BAC), KB Home (KBH), Lennar (LEN) and CKE Restaurants (CKR). 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=5612.

The Week's Events

We'll see another round of early second-quarter results this week. A total of 42 companies are scheduled to report, including 14 S&P 500 members. Oracle (ORCL), Micron (MU) and Monsanto (MON) will be among the mostly closely-watched reports.

The Fed will also grab traders' attention. A 2-day meeting is scheduled for Tuesday and Wednesday. No change in interest rates is expected, but traders will be listening for an update on the Fed's debt purchase program. The statement should also allude to signs of improvement in economic conditions.

On Thursday, Fed Chairman Ben Bernanke will again be in the spotlight. Bernanke will testify before a House committee about Bank of America's (BAC) acquisition of Merrill Lynch.

Housing data headlines the economic calendar. The release of new and existing homes sales will be matched with results from KB Home (KBH) and Lennar (LEN).

• Tuesday: May existing home sales
• Wednesday: May durable goods orders, May new home sales, weekly crude inventories, Fed statement
• Thursday: Final Q1 GDP, weekly initial jobless claims
• Friday: May personal income and spending, June revised University of Michigan consumer confidence

The Treasury Department will auction a record $104 billion worth of bonds. The securities being sold are 2-, 5- and 7-year notes.

We haven't seen any end-of-quarter window dressing yet, though I still expect it to occur. Many money managers have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This could cause them to move into some of the momentum stocks.

As far as the Fed meeting, I'm not expecting a big reaction, but it's hard to predict. Keep in mind that whatever happens on Wednesday afternoon could be reversed on Thursday.

Enjoy the summer weather.

Companies That Could Issue Positive Earnings Surprises

Late last month, CKE Restaurants (CKR) said its operating expenses, as a percentage of revenues, would be "essentially flat" with prior year levels. Though blended same-store sales were down, 2 of the covering analysts raised their forecasts after the announcement. The revisions pushed the consensus earnings estimate a penny higher to 24 cents per share. The most accurate estimate is even more bullish at 25 cents per share. The fast food chain has topped expectations during 2 out of the last 4 quarters. CKE Restaurants is scheduled to report on Thursday, Jun 25, before the start of trading.

Micron (MU) might just turn the tide and surprise to the upside. Though the company has missed expectations by wide margins during the past 3 quarters, fiscal third-quarter forecasts have been trending up recently. The consensus estimate calls for a loss of 43 cents per share, a penny better than a month ago. The most accurate estimate suggests far more upside, projecting a loss of just 36 cents per share. MU is scheduled to report on Thursday, Jun 25, after the close of trading.

Oracle (ORCL) has topped expectations during 8 out of the last 9 quarters. Ahead of the company's fiscal fourth-quarter report, 1 brokerage analyst raised his forecast. Though the revision was not significant enough to move the consensus earnings estimate from 43 cents per share, it did result in a slightly more bullish most accurate estimate of 44 cents. Oracle is scheduled to report on Tuesday, Jun 23, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

KB Home (KBH) has missed expectations during 7 out of the last 9 quarters and earnings estimates are pointing to another disappointment. One analyst lowered his forecast recently, widening the consensus projection to a loss of 67 cents per share. The most accurate estimate is more bearish and calls for a loss of 70 cents per share.

Guidance could also be troublesome as fiscal 2009 estimates have worsened by 16 cents over the last 30 days. The consensus now calls for a full-year loss of $2.50 per share. KB Home is scheduled to report on Friday, Jun 26, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

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 +26%. 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 111% annually (-0.8% versus +8%). 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=5614.

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=5615.

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

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

The Fed will also grab traders' attention. A 2-day meeting is scheduled for Tuesday and Wednesday. No change in interest rates is expected, but traders will be listening for an update on the Fed's debt purchase program. The statement should also allude to signs of improvement in economic conditions.

On Thursday, Fed Chairman Ben Bernanke will again be in the spotlight. Bernanke will testify before a House committee about Bank of America's (BAC) acquisition of Merrill Lynch.

Housing data headlines the economic calendar. The release of new and existing homes sales will be matched with results from KB Home (KBH) and Lennar (LEN).

• Tuesday: May existing home sales
• Wednesday: May durable goods orders, May new home sales, weekly crude inventories, Fed statement
• Thursday: Final Q1 GDP, weekly initial jobless claims
• Friday: May personal income and spending, June revised University of Michigan consumer confidence

The Treasury Department will auction a record $104 billion worth of bonds. The securities being sold are 2-, 5- and 7-year notes.

We haven't seen any end-of-quarter window dressing yet, though I still expect it to occur. Many money managers have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This could cause them to move into some of the momentum stocks.

As far as the Fed meeting, I'm not expecting a big reaction, but it's hard to predict. Keep in mind that whatever happens on Wednesday afternoon could be reversed on Thursday.

Enjoy the summer weather.

Companies That Could Issue Positive Earnings Surprises

Late last month, CKE Restaurants (CKR) said its operating expenses, as a percentage of revenues, would be "essentially flat" with prior year levels. Though blended same-store sales were down, 2 of the covering analysts raised their forecasts after the announcement. The revisions pushed the consensus earnings estimate a penny higher to 24 cents per share. The most accurate estimate is even more bullish at 25 cents per share. The fast food chain has topped expectations during 2 out of the last 4 quarters. CKE Restaurants is scheduled to report on Thursday, Jun 25, before the start of trading.

Micron (MU) might just turn the tide and surprise to the upside. Though the company has missed expectations by wide margins during the past 3 quarters, fiscal third-quarter forecasts have been trending up recently. The consensus estimate calls for a loss of 43 cents per share, a penny better than a month ago. The most accurate estimate suggests far more upside, projecting a loss of just 36 cents per share. MU is scheduled to report on Thursday, Jun 25, after the close of trading.

Oracle (ORCL) has topped expectations during 8 out of the last 9 quarters. Ahead of the company's fiscal fourth-quarter report, 1 brokerage analyst raised his forecast. Though the revision was not significant enough to move the consensus earnings estimate from 43 cents per share, it did result in a slightly more bullish most accurate estimate of 44 cents. Oracle is scheduled to report on Tuesday, Jun 23, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

KB Home (KBH) has missed expectations during 7 out of the last 9 quarters and earnings estimates are pointing to another disappointment. One analyst lowered his forecast recently, widening the consensus projection to a loss of 67 cents per share. The most accurate estimate is more bearish and calls for a loss of 70 cents per share.

Guidance could also be troublesome as fiscal 2009 estimates have worsened by 16 cents over the last 30 days. The consensus now calls for a full-year loss of $2.50 per share. KB Home is scheduled to report on Friday, Jun 26, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Jun 22 - 26¹. Prices are as of Thursday's, Jun 18, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Smith & Wesson	SWHC	$0.10	$0.08	150.0%	6/22	AMC	$4.93
Walgreen Co	WAG	$0.56	$0.58	(3.0%)	6/22	N/A	$31.72
Aerovironment	AVAV	$0.26	$0.30	(22.2%)	6/23	AMC	$27.60
Americas Car-Mt	CRMT	$0.38	$0.51	8.8%	6/23	BTO	$17.65
Apogee Entrprs	APOG	$0.25	$0.36	33.3%	6/23	AMC	$13.00
Commercial Metl	CMC	($0.13)	$0.50	(375.0%)	6/23	BTO	$15.88
Fuller(Hb) Co	FUL	$0.25	$0.44	0.0%	6/23	AMC	$18.09
Jabil Circuit	JBL	($0.02)	$0.22	57.1%	6/23	AMC	$6.90
Kroger Co	KR	$0.61	$0.58	1.9%	6/23	BTO	$21.42
Oracle Corp	ORCL	$0.43	$0.45	9.7%	6/23	AMC	$20.25
Sonic Corp	SONC	$0.21	$0.28	(11.1%)	6/23	AMC	$8.73
Steelcase Inc	SCS	($0.14)	$0.20	(300.0%)	6/23	BTO	$5.10
Bed Bath&Beyond	BBBY	$0.24	$0.30	25.0%	6/24	AMC	$27.82
Cke Restaurants	CKR	$0.24	$0.31	0.0%	6/24	AMC	$8.54
Darden Restrnt	DRI	$0.86	$0.78	17.6%	6/24	N/A	$33.54
Herman Miller	MLHR	$0.18	$0.71	(14.3%)	6/24	AMC	$14.93
Monsanto Co-New	MON	$1.17	$1.45	2.9%	6/24	BTO	$82.30
Nike Inc-B	NKE	$0.96	$0.98	23.8%	6/24	AMC	$56.30
Omnova Solution	OMN	$0.08	($0.07)	200.0%	6/24	BTO	$3.00
Paychex Inc	PAYX	$0.33	$0.38	0.0%	6/24	AMC	$26.80
Red Hat Inc	RHT	$0.10	$0.08	0.0%	6/24	AMC	$20.23
Rite Aid Corp	RAD	($0.13)	($0.20)	(27.3%)	6/24	BTO	$1.24
Xyratex Ltd	XRTX	($0.34)	$0.07	-28.57%	6/24	AMC	$3.80
Accenture Ltd	ACN	$0.64	$0.74	1.6%	6/25	AMC	$32.02
Amer Software A	AMSWA	$0.04	$0.03	0.0%	6/25	AMC	$5.38
Arcadia Rsrcs	KAD	$0.00	($0.02)	(100.0%)	6/25	BTO	$0.68
Christopher&Bnk	CBK	($0.05)	$0.32	(1.6%)	6/25	AMC	$5.49
Conagra Foods	CAG	$0.41	$0.44	8.1%	6/25	BTO	$18.96
Electroglas Inc	EGLS	($0.15)	($0.15)	(6.3%)	6/25	N/A	$0.03
Finish Line-Cla	FINL	$0.02	$0.02	12.5%	6/25	AMC	$6.96
Jackson Hewitt	JTX	$1.70	$2.02	1.4%	6/25	BTO	$6.85
Lennar Corp -A	LEN	($0.57)	($0.76)	62.0%	6/25	BTO	$7.52
Mccormick & Co	MKC	$0.41	$0.39	0.0%	6/25	BTO	$32.14
Micron Tech	MU	($0.43)	($0.29)	(35.0%)	6/25	N/A	$5.26
Palm Inc	PALM	($0.72)	($0.27)	(35.4%)	6/25	AMC	$13.06
Robbins & Myers	RBN	$0.25	$0.62	12.2%	6/25	AMC	$21.11
Smart Modular	SMOD	($0.03)	$0.05	500.0%	6/25	N/A	$2.81
Spectrum Contrl	SPEC	$0.17	$0.16	(15.0%)	6/25	AMC	$8.47
Standard Micros	SMSC	($0.32)	$0.20	(5.9%)	6/25	BTO	$18.96
Tibco Software	TIBX	$0.07	$0.05	16.7%	6/25	AMC	$6.17
Kb Home	KBH	($0.67)	($3.30)	12.8%	6/26	BTO	$13.19
Shaw Comms-Cl B	SJR	$0.27	$0.30	(4.0%)	6/26	N/A	$16.74

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

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

Zacks Investment Research

On Tuesday, U.S. stocks shot higher for the first time in five sessions as the Conference Board's consumer confidence index rose sharply in May, refueling hopes that the consumers are getting more optimistic about the economy.  The surprise rise in consumer confidence, which vaulted to 54.9 from 40.8 in April, offset dismal housing news and put investors back on buying track.  Traders, back after a long weekend, bought enthusiastically pushing every industry group on the S&P 500 stock index higher.  Nevertheless, declining home prices served a reminder that the economic outlook is yet to show signs of stabilization.  The consumer confidence index jumped to an eight-month high and marked its third rise in as many months. Volume on the NYSE was light as only 1.4 billion shares exchanged hands and advancing shares outpaced declining issues by a five to one margin.

The broad-based rally saw 28 of the 30 Dow components ending the day higher, with JP Morgan Chase (NYSE:JPM) leading the list of gainers, followed by a 5% rise in American Express (NYSE:AXP) shares.   Technology-focused Nasdaq surged 3.4%, helped by gains in computer manufacturers, Internet firms and search engines.  Apple (NASDAQ:AAPL) surged 6.7% after it was upgraded by Morgan Stanley (NYSE:MS) to "overweight."  Morgan Stanley (NYSE:MS) said analysts are underestimating demand for iPhones.  Qualcomm Inc. (NASDAQ:QCOM) jumped 4.8% to $43.29, after Barclays Plc raised its 2010 earnings estimates on the company.  Energy stocks also advanced as crude prices jumped to a six-month high, fueled by comments from Saudi Arabian Oil Minister Ali al-Naimi, who expects oil to hit as much as $75 per barrel between the third and fourth quarter on higher China consumption.  Exxon Mobil Corp. (NYSE:XOM) added 1.4% to $69.81.  Reuters expects crude inventory levels fell 1.1 million barrels over the past week, while gasoline levels dropped 1.8 million barrels. Tomorrow's OPEC meeting is generally expected to result in members maintaining current production levels.

Gains on the S&P 500 were led by financials and consumer-related stocks.  Financials were the leading gainers, up 4.1%.  Technology stocks rose 3.3%.  Industrials gained 3.3%.  Defensive areas of health care and consumer goods rose 1.6% and 1.2%, respectively.

J.C. Penny Co. (NYSE:JCP) rose 6.5% to $26.76 and Best Buy (NYSE:BBY) added 5.3% to $37.05.  Among financial shares, Wells Fargo (NYSE:WFC) added 5.5% to $25.65 and PNC Financial (NYSE:PNC) rose 5% to $43.25.  Restaurant chains and home builders also advanced.  Darden Restaurants Inc. (NYSE:DRI) rose 7.9% to $35.64. CKE Restaurants (NYSE:CKR) jumped 13.8% to $8.80.  Home builder KB Home (NYSE:KBH) rose 5.9% to $15.50, and DR Horton Inc. (NYSE:DHI) rose 5.1% to $9.47.

One of the bones of contentions of the past week had been the overhanging Treasury auctions scheduled for this week amid a ballooning budget deficit necessitating further sales to meet the $2 trillion in extra debt needs expected this year.  However, the record-tying $40 billion in 2-years auctioned yesterday met with bids 2.94 times the offered amount and the 2-year note sale received strong response, with $117.5 billion in bids coming in for $40 billion in debt.  The US dollar edged up 0.1% against a basket of currencies.

Today's data includes the expected turndown by General Motors' (NYSE:GM) bondholders of its offer to convert their holdings into company shares, making bankruptcy the foregone conclusion it has been for a while.

Pre-market futures suggest a higher opening on the Wall Street, following better-than-expected earnings from Home Depot (NYSE:HD), which reiterated full-year guidance and reported a 44% jump in profit despite lower sales.

On Monday, U.S. stocks rallied as Lowe's (NYSE:LOW) improved earnings outlook fueled optimism of a rebound in housing sector.  Chief Executive Robert Niblock advised, "Encouraging signs in recent weeks that suggest perhaps the worst is behind us."  Lowe's (NYSE:LOW) jumped 8.1%. Shares of Home Depot (NYSE:HD) also rallied on the news and ended the day with a 6.6% gain.  Lowe's results beat Street expectations and the firm's full-year guidance was ahead of consensus views. Goldman (NYSE:GS) added Macy's (NYSE:M) to "conviction buy" list, citing its $400 million cost savings plan and a likely recovery in profits as the economic situation rebounds.

On Monday, the S&P 500 gained 3% to 909.71 for its steepest gain in two weeks. The Dow Jones Industrial Average added 235.44 points, or 2.9%, to 8,504.8.  The NASDAQ led the indices with a 3.1% advance to 1,732.

The National Association of Home Builders' latest Housing Market Index which rose to 16 from 14 in April suggested home builders are growing increasingly confident. Citigroup (NYSE:C) raised its rating on Lennar (NYSE:LEN) from "hold" to "buy;" Lennar (NYSE:LEN) shares jumped 13.7%.  Taking the cue, DR Horton (NYSE:DHI) rose 8.8%; Centex (NYSE:CTX) 8.4%, and KB Home (NYSE:KBH) 8.2%.

The 3-month LIBOR declined 4 basis points to 0.79%, its steepest fall since March 19 and market's volatility index, the CBOE Vix, plunged 8.70% to 30.24.  On the NYSE, advancing issues outpaced declining stocks by a seven-to-one margin.  Volume was relatively moderate at 1.42 billion.

Of the thirty DJIA components, twenty-nine closed higher on Monday.  Financials were the leading gainers, up 6.7%, followed by a 4.8% jump in basic materials stocks, 3.9% in consumer services, and 3.4% surge in oil and gas and industrial sector shares.

Among financial components, Bank of America (NYSE:BAC) led the advancing issues with a 9.9% gain, followed by a 7.8% jump in American Express (NYSE:AXP), and a 6.7% advance in JP Morgan (NYSE:JPM) stocks.  Morgan Stanley (NYSE:MS) shares jumped 8.2%, Goldman Sachs (NYSE:GS) added 6.5%, and Wells Fargo (NYSE:WFC) surged 8.3%.  Financials got a boost after Goldman Sachs (NYSE:GS) added Bank of America (NYSE:BAC) to its "conviction buy" list, citing confidence in the banks' ability to come out of the current credit crisis, as well as expectations of improved second quarter results due to strength in refinancing and capital markets.  Citigroup (NYSE:C) raised its price target on Goldman Sachs (NYSE:GS) shares 10% to $160, citing improved debt and equity underwriting activity.

Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) applied for permission to repay TARP funds worth $45 billion.  State Street (NYSE:STT) shares jumped 8.5% in spite of news the firm would take a $3.7 billion loss putting conduits on its balance sheet.  The company said it will sell stocks to pay back funds borrowed under TARP.  However, after the markets' close, American Express (NYSE:AXP) announced plans to cut 6% of its global workforce, or 4000 jobs, citing increased defaults generated by the weak economy.

Today's economic posts include the 8:30 AM ET housing releases on building permits and housing starts. Both the posts are expected to show modest improvements.  April permits are expected to have risen to 530,000 from 516,000, and starts to 527,000 from 510,000. Minneapolis Fed President Gary Stern speaks at 1:15 PM ET on financial conditions. Crude prices hit $60 this morning, following yesterday's 4.8% increase, upon reports of a Sunoco (NYSE:SUN) refinery fire impacting Northeastern US supplies, and Nigerian militant threats to block waterways.

The company, which is dealing with inventory oversupply, declining home prices and several other factors, lost only 75 cents in the quarter, which is significantly narrower than last year's loss of $3.47. Analysts were expecting a loss of 86 cents.

Total revenues dropped 61% to $307.4 million, compared to $794.2 million a year earlier. The company attributed the decline to a 58% drop in housing revenues, which were driven by fewer deliveries and a lower average selling price.

However, company-wide net orders for new homes increased 26% to 1,827, up from 1,449 in the previous year.

In response to inventory oversupply, declining home prices, tightening lending standards, rising unemployment and weakening consumer confident, KBH said it is "adjusting our business to these market conditions to position the company for a return to profitability."

KBH is a Zacks #3 Rank ("Hold") company. Earnings estimates for this fiscal year, ending November 2009, and next fiscal year, ending November 2010, are both below levels from 3 months ago. However, analysts are currently expecting a return to profitability next fiscal year.

Shares are currently up by 6.5%.

Chicago, IL - March 19, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Centex Corporation (CTX), Intel Corporation (INTC), Stericycle Inc. (SRCL), Tesoro Corporation (TSO) and U.S. Steel Corporation (X).

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

This week: Q1 Earnings: Winners and Losers

First-quarter profits are going to stink. The consensus projections call for S&P 500 (SPX) profits of $16.33, which equates to a decrease of approximately 14% from a year prior.

On a company-specific basis, the numbers could be worse. Median earnings are likely to decline 19.3%. More than 10% of S&P 500 members are expected to report triple-digit drops in profits (57 companies with declines of 100% or more). Conversely, just 8 companies will please shareholders with increases of 100% or more.

Overall, 364 companies are forecast to report a year-over-year decrease in earnings. The actual number will be somewhat less given the probability of positive surprises, but first-quarter profits will clearly reflect the ongoing recession.

Behind the headline numbers will be a mixed bag of reports, with some winners and some losers.

Potential Winners

The biggest winners could be oil refiners Sunoco, Inc. (SUN), Tesoro Corporation (TSO) and Valero Energy Corporation (VLO). SUN and TSO could see profit gains of 219% and 160%, respectively, while VLO could report a 41% increase in earnings.

The drop in oil prices and improvement in margins are helping these companies. Refiners are dependant on the crack spread (the difference between what they pay for oil and how much they sell gasoline and heating oil). An upward, albeit volatile, improvement in the crack spread - combined with cost-cutting measures - has helped profits and offset the impact of lower demand.

SUN, TSO and VLO are Zacks #2 Rank ("buy") stocks and are classified in Oil Refining & Marketing.

Medical Profits Growing, As Expected

Investors preferring a group not dependent on commodity prices may want to look at medical care companies. Several of these companies should report double-digit growth, including Stericycle Inc. (SRCL) and Medco Health Solutions Inc. (MHS).

The advantage of medical companies is that they are less economically sensitive. Therefore, while their rate of growth won't wow anybody, these companies are capable of delivering good numbers even in the midst of a recession.

Stericycle handles medical waste. The company gave a bullish outlook for 2009 last month and the consensus earnings estimate has been rising. Though SRCL has a pricey valuation, it also has a history of topping estimates. The consensus estimate calls for the company to earn 47 cents this quarter, an increase of about 20% from last year.

MHS reaffirmed its full-year 2009 guidance last month. The pharmacy benefits manager is seeing strength in its specialty pharmacy business as well as its mail-order prescription business.

Though first-quarter estimates have been trimmed over the past 30 days, down 2 cents, brokerage analysts are still calling for growth. The consensus earnings estimate of 62 cents represents growth of 13%. Medco has topped expectations for 11 consecutive quarters.

SRCL is a Zacks #2 Rank stock and is classified in Medical-Hospitals. MHS is a Zacks #3 Rank ("hold") stock is and classified in Medical-HMO.

Homebuilders Should Report Smaller Losses

Several homebuilders will face easier comps, resulting in impressive year-over-year gains. For example, D.R. Horton, Inc. (DHI), Centex Corporation (CTX) and KB Home (KBH) are all projected to report losses that are at least 75% smaller.

The housing slump is not over, however, especially given that unemployment continues to rise and credit remains tight. Furthermore, homebuilder profit forecasts for fiscal 2010 are also falling. Therefore, while the year-over-year comps might look good, business conditions will remain tough.

DHI is a Zacks #2 Rank stock and CTX and KBH are Zacks #3 Rank stocks. All 3 are classified in Building-Residential/Commercial.

(Fiscal 2009 forecasts for DHI have improved over the past 60 days, though are down over the last 30 days. The good Zacks Rank is a reflection that the change in the outlook for DHI is relatively better than for most other companies. In other words, estimates for DHI already reflect more bad news.)

Potential Losers

It is going to be another difficult quarter for the semiconductor industry. The worldwide economic contraction has hurt demand at a time when the industry was already dealing with downward pricing pressures and excessive inventory.

Not a single chip company within the S&P 500 is forecast to experience growth in the first quarter.

National Semiconductor Corporation (NSM) provided a good example of the industry's woes when it reported last week. Adjusted earnings totaled 4 cents per share, a decrease of 86% from a year prior. Sales fell 36% and gross margins worsened. Furthermore, NSM anticipates a sequential drop of 5% to 10% in sales this quarter.

LSI Corporation (LSI), Broadcom Corporation (BRCM), SanDisk Corporation (SNDK) and Texas Instruments Inc. (TXN) could all report triple-digit declines in profits. Even Intel Corporation (INTC) is expected to suffer with profits falling to just 3 cents per share, from 29 cents a year prior.

NSM is a Zacks #2 Rank stock. BRCM, INTC, SNDK, TXN are Zacks #3 Rank stocks. LSI is a Zacks #4 Rank ("sell") stock. All of these companies are classified in Electronic Computer-Semiconductor

Steel Producers Are Melting

The bursting of the commodity bubble will have a dramatic effect on the numbers reported by steel companies. For example, U.S. Steel Corporation (X) is projected to report a loss of $1.39 per share, versus a profit of $2.36. AK Steel Holding Corporation (AKS) should lose 44 cents after earning 90 cents a year prior.

These companies fared well when commodity prices were soaring. Strong demand and speculative trading allowed steel producers to enjoy pricing power. Now, the worldwide economic slump has hurt demand. Though the stimulus package could eventually revive demand, it has yet to have any effect.

AKS and X are Zacks #3 Rank stocks and are classified in Steel-Producers/

Bank Earnings

I'll finish with a quick note about banks. The numbers will be horrible. Although several firms recently made comments about being profitable in the first-quarter, few details were given and the assessments likely did not reflect the large write downs that are still being taken.

As I said last week, you should be aware that financial stocks are trading mostly on sentiment and news flow, not actual fundamental data or technical analysis.

The Zacks Rank is a short-term quantitative indicator that factors revisions toearnings estimates and earnings surprises.

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=2564.

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 3:1 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://www.zacks.com/performance.

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

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

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

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

First-quarter profits are going to stink. The consensus projections call for S&P 500 (SPX) profits of $16.33, which equates to a decrease of approximately 14% from a year prior.

On a company-specific basis, the numbers could be worse. Median earnings are likely to decline 19.3%. More than 10% of S&P 500 members are expected to report triple-digit drops in profits (57 companies with declines of 100% or more). Conversely, just 8 companies will please shareholders with increases of 100% or more.

Overall, 364 companies are forecast to report a year-over-year decrease in earnings. The actual number will be somewhat less given the probability of positive surprises, but first-quarter profits will clearly reflect the ongoing recession.

Behind the headline numbers will be a mixed bag of reports, with some winners and some losers.

Potential Winners

The biggest winners could be oil refiners Sunoco, Inc. (SUN), Tesoro Corporation (TSO) and Valero Energy Corporation (VLO). SUN and TSO could see profit gains of 219% and 160%, respectively, while VLO could report a 41% increase in earnings.

The drop in oil prices and improvement in margins are helping these companies. Refiners are dependant on the crack spread (the difference between what they pay for oil and how much they sell gasoline and heating oil). An upward, albeit volatile, improvement in the crack spread - combined with cost-cutting measures - has helped profits and offset the impact of lower demand.

SUN, TSO and VLO are Zacks #2 Rank ("buy") stocks and are classified in Oil Refining & Marketing.

Medical Profits Growing, As Expected

Investors preferring a group not dependent on commodity prices may want to look at medical care companies. Several of these companies should report double-digit growth, including Stericycle Inc. (SRCL) and Medco Health Solutions Inc. (MHS).

The advantage of medical companies is that they are less economically sensitive. Therefore, while their rate of growth won't wow anybody, these companies are capable of delivering good numbers even in the midst of a recession.

Stericycle handles medical waste. The company gave a bullish outlook for 2009 last month and the consensus earnings estimate has been rising. Though SRCL has a pricey valuation, it also has a history of topping estimates. The consensus estimate calls for the company to earn 47 cents this quarter, an increase of about 20% from last year.

MHS reaffirmed its full-year 2009 guidance last month. The pharmacy benefits manager is seeing strength in its specialty pharmacy business as well as its mail-order prescription business.

Though first-quarter estimates have been trimmed over the past 30 days, down 2 cents, brokerage analysts are still calling for growth. The consensus earnings estimate of 62 cents represents growth of 13%. Medco has topped expectations for 11 consecutive quarters.

SRCL is a Zacks #2 Rank stock and is classified in Medical-Hospitals. MHS is a Zacks #3 Rank ("hold") stock is and classified in Medical-HMO.

Homebuilders Should Report Smaller Losses

Several homebuilders will face easier comps, resulting in impressive year-over-year gains. For example, D.R. Horton, Inc. (DHI), Centex Corporation (CTX) and KB Home (KBH) are all projected to report losses that are at least 75% smaller.

The housing slump is not over, however, especially given that unemployment continues to rise and credit remains tight. Furthermore, homebuilder profit forecasts for fiscal 2010 are also falling. Therefore, while the year-over-year comps might look good, business conditions will remain tough.

DHI is a Zacks #2 Rank stock and CTX and KBH are Zacks #3 Rank stocks. All 3 are classified in Building-Residential/Commercial.

(Fiscal 2009 forecasts for DHI have improved over the past 60 days, though are down over the last 30 days. The good Zacks Rank is a reflection that the change in the outlook for DHI is relatively better than for most other companies. In other words, estimates for DHI already reflect more bad news.)

Potential Losers

It is going to be another difficult quarter for the semiconductor industry. The worldwide economic contraction has hurt demand at a time when the industry was already dealing with downward pricing pressures and excessive inventory.

Not a single chip company within the S&P 500 is forecast to experience growth in the first quarter.

National Semiconductor Corporation (NSM) provided a good example of the industry's woes when it reported last week. Adjusted earnings totaled 4 cents per share, a decrease of 86% from a year prior. Sales fell 36% and gross margins worsened. Furthermore, NSM anticipates a sequential drop of 5% to 10% in sales this quarter.

LSI Corporation (LSI), Broadcom Corporation (BRCM), SanDisk Corporation (SNDK) and Texas Instruments Inc. (TXN) could all report triple-digit declines in profits. Even Intel Corporation (INTC) is expected to suffer with profits falling to just 3 cents per share, from 29 cents a year prior.

NSM is a Zacks #2 Rank stock. BRCM, INTC, SNDK, TXN are Zacks #3 Rank stocks. LSI is a Zacks #4 Rank ("sell") stock. All of these companies are classified in Electronic Computer-Semiconductor

Steel Producers Are Melting

The bursting of the commodity bubble will have a dramatic effect on the numbers reported by steel companies. For example, U.S. Steel Corporation (X) is projected to report a loss of $1.39 per share, versus a profit of $2.36. AK Steel Holding Corporation (AKS) should lose 44 cents after earning 90 cents a year prior.

These companies fared well when commodity prices were soaring. Strong demand and speculative trading allowed steel producers to enjoy pricing power. Now, the worldwide economic slump has hurt demand. Though the stimulus package could eventually revive demand, it has yet to have any effect.

AKS and X are Zacks #3 Rank stocks and are classified in Steel-Producers/

Bank Earnings

I'll finish with a quick note about banks. The numbers will be horrible. Although several firms recently made comments about being profitable in the first-quarter, few details were given and the assessments likely did not reflect the large write downs that are still being taken.

As I said last week, you should be aware that financial stocks are trading mostly on sentiment and news flow, not actual fundamental data or technical analysis.

The Zacks Rank is a short-term quantitative indicator that factors revisions toearnings estimates and earnings surprises.

Zacks Premium and Zacks Elite subscribers can view the Zacks Industry Rank List at http://www.zacks.com/zrank/zrank_inds.php. This interactive list allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. Shown below is the Zacks Sector Rank List, which shows the trend in estimate revisions on a broader scale.

Sector Rank as of Mar 18
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Medical	2.63	2.62	0.75	491	658
Retail-Wholesale	2.81	2.83	0.49	304	621
Computer and Technology	2.87	2.88	0.49	406	837
Consumer Discretionary	2.98	2.98	0.33	135	415
Consumer Staples	3.00	3.02	0.33	90	271
Aerospace	3.00	3.00	0.15	12	82
Utilities	3.01	3.01	0.34	89	259
Business Services	3.05	2.97	0.16	33	205
Construction	3.09	3.11	0.21	39	185
Auto-Tires-Trucks	3.17	3.19	0.17	20	116
Oils-Energy	3.18	3.15	0.26	246	958
Transportation	3.24	3.21	0.13	36	268
Basic Materials	3.26	3.24	0.37	131	350
Finance	3.26	3.29	0.19	221	1143
Industrial Products	3.32	3.28	0.13	49	365
Conglomerates	3.46	3.33	0.04	3	69

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

Zacks Investment Research

Tontine Capital Partners - Holding Analysis

Related to Tontine Capital Partners:

• Geographical Hedge Fund Guides
• Hedge Fund Database
• Hedge Fund Administrator
• Hedge Fund Attorneys andLawyers
• Investment Book
• Hedge Fund Terms and Definitions
• Hedge Fund Tracker Tool
• Financial Certification
• Hedge Fund Forum

The temporary ban on short selling could also affect trading early in the week. Part of Friday's rally was the result of quadruple witching. Traders are being forced to close short positions rather than roll them over into new contracts.

On the earnings front, we have confirmed reports from 33 companies. Included in this group are S&P 500 members Autozone (AZO), Bed Bath & Beyond (BBBY), Discover Financial (DFS), Jabil Circuit (JBL), KB Home (KBH), Lennar (LEN), McCormick (MKC), Nike (NKE) and Paychex (PAYX). I expect only limited reaction to the homebuilders (KBH and LEN), because of the proposal under discussion.

The economic calendar includes two reports on August home sales, but is otherwise light.

• Wednesday: August existing home sales, weekly crude inventories
• Thursday: August durable goods orders, August new home sales, weekly initial jobless claims
• Friday: Final September University of Michigan consumer confidence survey, final Q2 GDP

Bernanke has three scheduled appearances before Congress.

On Tuesday, he will discuss the financial markets before the Senate banking committee. The chairman will provide his economic outlook to the Joint Economic Committee on Wednesday. Finally, on Thursday, Bernanke will review the recent proposals and actions before the House financial services committee.

Companies That Could Issue Positive Earnings Surprises

AutoZone Inc. (AZO) has topped market expectations twice in the last three quarters. Ahead of the company's fiscal fourth-quarter report, brokerage analysts have raised their forecasts. The consensus earnings estimate now calls for earnings of $3.90 per share, a penny higher than a week ago. The most accurate estimate is even more bullish at $3.92 per share. Autozone is scheduled to report on Monday, Sep 22, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

H.B. Fuller (FUL) recently cut its profit forecast, citing high costs of raw materials. The chemical manufacturing company now expects third-quarter earnings of 35 cents per share, excluding a tax benefit. Brokerage analysts responded by lowering their forecasts to 35 cents per share from 48 cents per share. FUL has missed consensus earnings estimates in two consecutive quarters. H.B. Fuller will report on Tuesday, Sep 23, after the close of trading.

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

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Sep 22 - 26¹.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time
3Com Corp	COMS	$0.06	$0.02	50.0%	9/22/2008	AMC
Autozone Inc	AZO	$3.90	$3.23	3.1%	9/22/2008	BTO
Carmax Gp (Cc)	KMX	$0.11	$0.29	(31.8%)	9/22/2008	BTO
Factset Resh	FDS	$0.64	$0.58	3.2%	9/23/2008	BTO
Fuller(Hb) Co	FUL	$0.35	$0.46	(2.2%)	9/23/2008	AMC
Lennar Corp -A	LEN	($0.53)	($3.25)	(43.4%)	9/23/2008	BTO
Qualstar Corp	QBAK	($0.03)	$0.02	(200.0%)	9/23/2008	AMC
Worthington Ind	WOR	$0.58	$0.27	71.43%	9/23/2008	AMC
Bed Bath&Beyond	BBBY	$0.46	$0.55	11.1%	9/24/2008	AMC
Neogen Corp	NEOG	$0.23	$0.21	5.0%	9/24/2008	BTO
Nike Inc-B	NKE	$0.93	$0.92	1.0%	9/24/2008	AMC
Paychex Inc	PAYX	$0.41	$0.40	0.0%	9/24/2008	AMC
Red Hat Inc	RHT	$0.13	$0.09	(38.5%)	9/24/2008	AMC
Accenture Ltd	ACN	$0.67	$0.50	7.3%	9/25/2008	AMC
Analogic Corp	ALOG	$0.52	$0.60	1.9%	9/25/2008	BTO
Christopher&Bnk	CBK	$0.03	$0.09	23.1%	9/25/2008	AMC
Cra Intl Inc	CRAI	$0.89	$0.72	41.2%	9/25/2008	BTO
Diamond Foods	DMND	$0.13	$0.06	16.7%	9/25/2008	AMC
Discover Fin Sv	DFS	$0.35	$0.42	16.7%	9/25/2008	BTO
Mccormick & Co	MKC	$0.48	$0.45	0.0%	9/25/2008	BTO
Phc Inc-A	PHC	$0.03	$0.04	(75.0%)	9/25/2008	N/A
Research In Mot	RIMM	$0.87	$0.50	(1.2%)	9/25/2008	AMC
Rite Aid Corp	RAD	($0.14)	($0.10)	(122.2%)	9/25/2008	BTO
Smart Modular	SMOD	$0.04	$0.17	(16.7%)	9/25/2008	AMC
Spectrum Contrl	SPEC	$0.16	$0.22	(11.1%)	9/25/2008	AMC
Synnex Corp	SNX	$0.58	$0.46	7.7%	9/25/2008	AMC
Texas Inds	TXI	$0.85	$0.64	(31.0%)	9/25/2008	BTO
Tibco Software	TIBX	$0.06	$0.03	0.0%	9/25/2008	AMC
Vail Resorts	MTN	($0.17)	($0.88)	(8.2%)	9/25/2008	BTO
Amer Greetings	AM	$0.15	$0.16	(55.0%)	9/26/2008	BTO
Azz Inc	AZZ	$0.80	$0.66	51.8%	9/26/2008	BTO
Jabil Circuit	JBL	$0.25	$0.26	69.2%	9/26/2008	BTO
Kb Home	KBH	($1.57)	($6.19)	(258.7%)	9/26/2008	BTO
Solera Holdings	SLH	$0.29	$0.23	10.7%	8/27/2008	AMC
Sport Supply Gp	RBI	$0.15	($0.03)	13.6%	8/27/2008	BTO
Sws Group Inc	SWS	$0.28	$0.25	33.3%	8/27/2008	AMC
Synovis Lif Tec	SYNO	$0.11	$0.10	11.1%	8/27/2008	BTO
Talbots Inc	TLB	($0.33)	($0.25)	75.0%	8/27/2008	BTO
Tivo Inc	TIVO	($0.02)	($0.11)	500.0%	8/27/2008	AMC
Valuevision Cla	VVTV	($0.27)	($0.11)	(28.1%)	8/27/2008	AMC
Xeta Tech Inc	XETA	$0.05	$0.04	0.0%	8/27/2008	AMC
Aruba Networks	ARUN	($0.06)	($0.04)	(16.7%)	8/28/2008	AMC
Ata Inc-Adr	ATAI	$0.06	$999.00	N/A	8/28/2008	N/A
China Fin Onlin	JRJC	$0.14	$0.08	25.0%	8/28/2008	AMC
Conns Inc	CONN	$0.38	$0.40	19.1%	8/28/2008	BTO
Credence Sys Cp	CMOS	($0.05)	$0.09	(25.0%)	8/28/2008	N/A
Del Monte Foods	DLM	($0.05)	$0.03	11.5%	8/28/2008	BTO
Delias Inc	DLIA	($0.17)	($0.16)	(62.5%)	8/28/2008	AMC
Dell Inc	DELL	$0.36	$0.34	11.8%	8/28/2008	AMC
Dollar Finl Cp	DLLR	$0.59	$0.48	(1.8%)	8/28/2008	AMC
Energy Conv Dev	ENER	$0.20	($0.16)	725.0%	8/28/2008	BTO
Esterline Tech	ESL	$0.64	$0.61	9.1%	8/28/2008	AMC
Fleetwood Entrp	FLE	($0.18)	($0.03)	46.2%	8/28/2008	BTO
Freds Inc	FRED	$0.10	$0.08	12.5%	8/28/2008	BTO
Genesco Inc	GCO	$0.04	$0.00	55.6%	8/28/2008	BTO
Jamba Inc	JMBA	$0.02	$0.04	(55.6%)	8/28/2008	AMC
Kirklands Inc	KIRK	($0.12)	($0.29)	63.3%	8/28/2008	BTO
La Barge	LB	$0.27	$0.18	0.0%	8/28/2008	BTO
Layne Christens	LAYN	$0.62	$0.60	0.0%	8/28/2008	BTO
Magma Design	LAVA	$0.00	($0.03)	(11.1%)	8/28/2008	AMC
Marvell Tech Gp	MRVL	$0.13	($0.04)	266.7%	8/28/2008	AMC
Micros Sys	MCRS	$0.33	$0.33	3.5%	8/28/2008	AMC
Net 1 Ueps Tech	UEPS	$0.38	$0.31	23.7%	8/28/2008	AMC
Netezza Corp	NZ	$0.03	($0.19)	0.0%	8/28/2008	BTO
Novell Inc	NOVL	$0.03	$0.01	25.0%	8/28/2008	AMC
Omnivision Tech	OVTI	$0.16	$0.15	(15.0%)	8/28/2008	AMC
Petsmart Inc	PETM	$0.28	$0.36	3.2%	8/28/2008	AMC
Royal Bank Cda	RY	$1.05	$1.03	(32.0%)	8/28/2008	N/A
Sears Hldg Cp	SHLD	$0.36	$1.17	(394.4%)	8/28/2008	BTO
Sourceforge Inc	LNUX	($0.01)	$0.01	0.0%	8/28/2008	AMC
Telvent Git Sa	TLVT	$0.28	$0.19	19.4%	8/28/2008	BTO
Tiffany & Co	TIF	$0.55	$0.45	22.0%	8/28/2008	BTO
Toronto Dom Bnk	TD	$1.40	$1.18	(7.0%)	8/28/2008	BTO
Williams-Sonoma	WSM	$0.08	$0.24	400.0%	8/28/2008	N/A
Wind River Sys	WIND	$0.02	$0.05	144.4%	8/28/2008	AMC
Zale Corp New	ZLC	($0.55)	$0.00	2.33%	8/28/2008	N/A
Knightsbridge	VLCCF	$0.54	$0.42	(20.9%)	8/29/2008	N/A

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

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

"MCM" Free Stock Analysis: Buy? Sell? Hold?
"KBH" Free Stock Analysis: Buy? Sell? Hold?
"LEN" Free Stock Analysis: Buy? Sell? Hold?
"NIKE" Free Stock Analysis: Buy? Sell? Hold?
"PAYX" Free Stock Analysis: Buy? Sell? Hold?
"JBL2" Free Stock Analysis: Buy? Sell? Hold?
"AZO" Free Stock Analysis: Buy? Sell? Hold?
"HFL" Free Stock Analysis: Buy? Sell? Hold?
"BBUY" Free Stock Analysis: Buy? Sell? Hold?
"DFS3" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research