For Immediate Release

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

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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

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More regulatory trouble for commodity funds. a href="http://www.marketwatch.com/story/deutsche-bank-to-redeem-leveraged-oil-etn-shares-2009-09-01?siteid=yhoof"Duetsche Bank announced it will redeem shares /afor its double-long oil fund, which I refer to as DXO, which is the symbol. These funds have been under scrutiny from the CFTC for owning too many contracts. I'm worried the same fate will happen to UNG, or the natural gas fund, which I own shares. They already halted new shares in July, and I haven't had a good feeling with it since. On one hand, a lot of people want to own natural gas because it has gotten so cheap, and the prospects are great (like I've said many times). But because of the halt of new shares, demand has held UNG at a large premium (around 20%) over NAV, which is around 9.33 as of this morning. If UNG decides to go the same route, I ...

As I've been outlining for a couple of weeks, there are still some good values out there. I'm still concerned we will see a meaningful correction sometime before year end. Its impossible to try to predict when, but I'm hoping to use that opportunity to take some larger positions. I've been extremely patient as of late (holding current longs, doing research but little buying). Here are a couple of stocks I'm looking to buy:br /br /Compass Diversified Holdings (a href="http://finance.yahoo.com/q?s=codi"CODI/a). They just reported a solid quarter. They key here is that they've got the cash ready to make their next acquisition which will increase cash flow. The question now is what and when. We got some insight into the when, as the CEO said it would be accurate to expect it to happen in 2009. I see this event as being ...

I finally got a chance to read through Loews' a href="http://seekingalpha.com/article/153392-loews-corporation-q2-2009-earnings-call-transcript?source=yahooamp;page=1"conference call /afrom this morning. By the way, Seeking Alpha is an awesome resource not only for stock research, but they post transcripts of conference calls if you don't have a change to listen to it. I do post things there from time to time as well, so feel a href="http://seekingalpha.com/author/michael-brisky/articles"free to check that out/a.br /br /I thought Loews had a pretty darn good quarter. I've read great things about the Tisch family and their ability to manage businesses as well as buy assets at the right price. Here are a couple of quotes from CEO Jim Tisch, about their various businesses:br /br /Diamond Offshore:br /br /blockquoteDiamond Offshore had an excellent quarter, reporting its second highest earnings on record. For the quarter, average day rates and utilization for Diamond’s fleet were strong. Its revenue backlog currently ...

The market is moving higher again today, and the Samp;P briefly touched 1000. Here's what I'm following this morning:br /br /Loews reported and missed on estimates. Yet were still seeing the stock rally 5+%. Their results have been hurt mostly by CNA financial (a href="http://finance.yahoo.com/q?s=cna"CNA/a) and their exposure to mortgage-related investments. I kind of view this as a back door way to play Diamond Offshore, which is a great company. Loews is an interesting play as you can buy most of their assets (which the exception of Loews Hotels) directly on the open market. But by buying Loews stock you get a little more diversification, but still ownership in some great businesses, and you get Loews management, which is outstanding. And because of their ownership in things that have seen their value decrease, you can buy the entire company at a discount, which potentially gives you access to shares of ...

• According to reports, UBS (NYSE:UBS) and the US government have reached an agreement in principal to settle tax litigation.  The settlement, most notably, is not expected to result in a fine against the company

• Europe's biggest bank, HSBC (NYSE:HBC) surprised with a first half profit of $3.35 billion, versus expectations of a $600 million loss, although down 57% from last year's $7.72 billion profit. According to the bank, "It may be that we have passed, or are about to pass, the bottom of the cycle in the financial markets"

• Tyson Foods (NYSE:TSN) reported third quarter earnings of 33 cents a share, 11 cents above estimates, on in-line revenues of $6.7 billion

• Humana (NYSE:HUM) reported second quarter earnings of $1.67 a share, three cents better than expected. For the year the company sees earnings of $6.10 to $6.20 a share

• James River Coal (NASDAQ:JRCC) reported a second quarter miss at

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Every time the United States goes through a recession, the pundits all race to be the first to proclaim that “Buy and Hold” is dead.  I can’t watch a financial news channel or read a financial website without some mention of this proclamation.  Well I’m growing tired of it, and if it were up to me, I’d prohibit anyone else from making this point for the rest of 2009.

Buy and Hold is not dead, and I’m on a mission to prove it.  Buy and Hold has worked brilliantly for decades, and it will continue to do so in the future.  The stock you bought in 2007 is worth less now than what you bought it for?  Oh boohoo, go cry me a river…somewhere else.  The economy has peaks and troughs, and we’re in the middle of one of the more serious

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Despite the global slowdown, strong results were reported today from two offshore drillers, Diamond Offshore (a href="http://finance.yahoo.com/q?s=do"DO/a) and Noble Corp. (a href="http://finance.yahoo.com/q?s=neamp;.yficrumb=XeUMJb0thgn"NE/a).br /br /First, lets take a a href="http://www.reuters.com/article/marketsNews/idAFN2327011520090423?rpc=44"look at Diamond/a.br /br /ulliDiamond Offshore Drilling Incspan id="symbol_DO.N_0"/span, the world's second-largest contract oil and gas driller, reported a 20 percent jump in quarterly profit, boosted by gains from its floating rigs./li/ululliNet profit climbed to $348.6 million, or $2.51 per share, from $290.5 million, or $2.09 per share, a year earlier, the company reported on Thursday. Analysts' average earnings forecast was $2.21 per share, according to Reuters Estimates./li/ulDiamond has a great group of rigs, especially in the deep water sector. a href="http://online.barrons.com/article/SB123820180286962525.html?page=1"Barron's profiled these companies a couple of weeks ago/a, and had this to say about Diamond:br /br /blockquoteCash-rich Diamond, in any protracted downturn, has the wherewithal to snap up first-rate equipment on the cheap. The ...

On August 13, 2008, USA Today magazine devoted an entire page to Bright Strike Tactical Illumination Products Incorporated, a company devoted to the manufacturing and sales of tactical police flashlights, citizen safety lights and personal protection systems. Bright Strike’s products are already in use by many satisfied customers, including members of all four military branches, FBI and CIA agents, and thousands of women concerned with safety and self-defense.

The market potential for this product is huge and includes the 650,000+ uniformed police officers in the US as well as military personnel and women seeking personal security. The company’s products are on sale not only at their website but Herringtons, BJ’s, Loews and other retail stores. All products are made from world-class components using the latest technology and are held to the highest design and manufacturing standards. They even

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