Chicago, IL – October 14, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Las Vegas Sands (LVS), Wynn Resorts Ltd. (WYNN), MGM Mirage (MGM), Advance Auto Parts (AAP) and O’Reilly Automotive (ORLY).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Macau Casino Growth Threatened?

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

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

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

Advance Auto Targets E-Commerce

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

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

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

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

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This morning’s US stock futures indicate a sharply higher opening, helped by positive signs emanating from overseas markets.  Today, Chinese stocks hit a 14-month high after data showed manufacturing activity is expanding in the country.  The Shanghai Composite Index rose 50.53 points, or 1.5%, to close at 3,462.59 points and Hong Kong's Hang Seng index rose 223.93 points, or 1.1%, to 20,807.26.  However, Japan's Nikkei 225 stock average bucked the trend, closing down 4.36 points, or about 0.1%.

On Friday, the Commerce Department said that U.S. gross domestic product – a measure of all the goods and services produced – contracted at a 1% annual rate last quarter, compared with economists’ expectations of a 1.5% contraction and markedly better than first quarter’s 6.4% pullback. 

The Dow Jones industrial average edged up a paltry 17 points, or 0.2%; while the S&P 500 managed to end the day in positive territory.  The tech-heavy NASDAQ, however, lost 0.3% to close the day at 1979.  Of the 67% S&P500 companies that have reported their earnings so far, about 76% have exceeded Street estimates and only 14% have reported a miss. On the New York Stock Exchange, 1.52 billion shares exchanged hands as advancing issues beat declining stocks three to two.  

Over the weekend, Treasury Secretary Geithner noted signs pointing to an economy starting to turn around, although echoing expectations that unemployment numbers may not begin to recover until the second half of 2010.  Economist Nouriel Roubini advised, "There is now potentially light at the end of the tunnel," with previous Fed Chairman Greenspan concurring, as he also noted the recession may be ending.

Today's primary posts include vehicle sales for July, which are expected to have risen from the prior month to their highest since September, with analysts expecting car sales could even top a 12 million annual rate. Ford (NYSE:F) may show sales up from the previous year on the late-month surge in the government's successful "cash-for-clunkers" program.  Key market-moving data this week could be ISM manufacturing, the service sector survey, consumer credit, personal spending, with Friday seeing the release of the month's non-farm payroll report. 

Companies reporting their earnings today include: Humana (NYSE:HUM), Marathon Oil (NYSE:MRO), MGM Mirage (NYSE:MGM), Tyson Foods (NYSE:TSN), Anadarko Petroleum (NYSE:APC), Chesapeake Energy (NYSE:CHK), and Principal Financial Group (NYSE:PFG).

Shares of MGM Mirage Inc. (MGM) shot up a day after the casino giant said it no longer faced a bankruptcy concern.

As the global economic slump took the shine off the once thriving gambling industry in Las Vegas, MGM Mirage warned in March that there was "substantial doubt about its ability to continue as a going concern" due to mounting debts. The stock had slumped below $2 at the height of bankruptcy concerns.

Billionaire investor Carl Icahn has been pressuring the company to restructure its $13.5 billion debt through bankruptcy protection.

In a filing with the Securities and Exchange Commission late on Tuesday, MGM Mirage said that the $2.6 billion it raised by selling debt and equity last month will enable it to retire its short-term debt that had given rise to the going concern clause.

This would certainly bring some relief to Kirk Kerkorian, who owns a majority stake in the beleaguered company. If MGM were to file for bankruptcy, secured debtholders would get priority over shareholders.

Shares of the company were up more than 13% to $6.64 at noon on the New York Stock Exchange after reaching as much as $6.83 earlier in the session. They are, however, still far from a 52-week high of $39.50.

* Talbots (NYSE:TLB) announced plans to eliminate an additional 20% of its workforce after reporting a first quarter loss

* The Swiss government is reportedly in talks with several potential buyers for a $5.5 billion stake in UBS (NYSE:UBS)

* Former AT&T (NYSE:T) chairman and CEO Whitacre was named to head bankrupt automaker General Motors (OTC:GMGMQ)

* S&P lowered its credit rating on the world's largest steelmaker, ArcelorMittal (NYSE:MT), also issuing a negative outlook on the firm

* Malaysian gaming group, Genting, has bought a 3.2% stake in MGM Mirage (NYSE:MGM) for $100 million, as well as $100 million in MGM secured notes

* Goldman Sachs (NYSE:GS) raised its price target for Research in Motion (NASDAQ:RIMM) to $96 from $85 for shares, but maintained its "buy" rating

* Alcoa (NYSE:AA) shares gained 3.3% Friday after Goldman Sachs (NYSE:GS) resumed coverage of the company with a "buy" rating

* Toyota (NYSE:TM) announced a Prius hybrid face-lift, with 80,000 Japanese orders already placed. The firm expects to sell up to 400,000 units globally per year

* Takeda Pharmaceutical announced plans to purchase anti-cancer drug maker IDM Pharma (NASDAQ:IDMI) for $2.64 per share in a cash tender, which represents a 65% premium to Friday's close

* MGM Mirage (NYSE:MGM) was upgraded by JP Morgan (NYSE:JPM) to "overweight" from "neutral." JP Morgan (NYSE:JPM) also raised the price target to $11 from $9, due to improved liquidity from its capital raising and low projections from 2009-2010 Las Vegas returns

* Goldman Sachs (NYSE:GS) added shares of Bank of America (NYSE:BAC) to its conviction buy list, and raised the price target from $7 to $15, due to capital-raising efforts and solid results from mortgage and capital markets operations

* State Street (NYSE:STT) announced plans to offer non-government guaranteed senior notes and common shares.  The company also said it expects full-year earnings of $4.25 to $4.50 per share, ahead of Street estimates of $3.83 a share

After MGM Mirage (MGM) gained some breathing space by amending its senior credit facility, the casino giant said it would raise $2.5 billion through stock and bond offerings in order to pay down a chunk of its debt obligations.

The company, which is battling the biggest slowdown in the history of gambling in Las Vegas, said it would privately place $1.5 billion senior secured notes in the junk bond market and offer 81.0 million common shares for gross proceeds of about $1 billion.

The modifications made with its creditors will allow MGM to permanently waive potential defaults from the term "going concern" in its financial statements for fiscal years 2008 and 2009. The company was earlier handed a deadline of June 30 to formulate a restructuring plan that would help it stay afloat in the ongoing crisis.

The sale of the two-part senior secured bonds maturing in 2014 and 2017 is expected to help restructure MGM's debt load of more than $14 billion and provide some liquidity. The move from Kirk Kerkorian's dream project comes at a time when investors seeking high returns are showing their willingness to buy riskier bonds from lower-rated firms. All three major agencies have downgraded MGM's credit ratings repeatedly in the recent past due to its mounting debt.

We are seeing more and more encouraging data. Though definitely a positive, it's not enough to move me into the bull camp.

The Economy Is RELATIVELY Better

One of the indicators I follow regularly is the ISM manufacturing index. In terms of "real-time" economic data, it's about as close as we get.

Last month, the index reached its highest level since October. Though the survey still clearly suggests that the economy is contracting (April's reading was 40.1; scores above 50 imply expansion), the pace of contraction slowed notably. Equally important, key components, such as new orders and production, showed sizeable improvements from March.

April's job losses were the fewest in 7 months at 539,000. To put this number in perspective, nonfarm payrolls fell by an average of 700,000 per month between December and March.

Then there is Vegas, yes, that Vegas. The CEOs of MGM Mirage (MGM) and Boyd's Gaming (BYD) used terms like "sequential increases in occupancy levels" and "signs of stabilization". In layman's terms, business doesn't stink as much as it did during the first quarter.

Though casino hotel bookings are not what I would hinge my economic forecast on, combined with other data, they are a positive sign.

Keep in mind, however, that we are not out of the woods. The economy is still going downhill. However, the rate of deterioration is clearly slowing and that's a big positive.

Earnings Estimates Are Also Looking Better

Brokerage analysts are far more optimistic right now than they were 3 months ago.

During the past 4 weeks, 5,120 full-year earnings estimates have been revised upwards. Three months ago, just 2,152 estimates were revised higher. That's a 250% improvement.

Before you get too excited, understand that negative revisions still outnumber positive revisions (6,655 versus 5,120). Nonetheless, the revisions ratio (positive revisions divided by negative revisions) has improved for 16 out of the last 20 weeks.

Again, we're not out of the woods, but there is definitely some sunlight shining through.

Why I Remain Cautious

I've been bearish about the markets and think we could see a pullback in stock prices. There are a few reasons why.

First, April was not nearly as good as the bulls made it to be. Yes, the Dow Jones Industrial Average ($DJI) surged 5.5% during the first half of the month. But, in the second half, momentum slowed with the average rising just 1.7%.

Even then, the statistics don't tell the whole story. From the Apr 16 close to the Apr 30 close, the Dow gained a mere 43 points, or 0.5%.

That's a big difference in return for someone who bought the Dow Diamonds ETF (DIA) on Apr 16 instead of just a couple of weeks earlier. (DIA is an ETF that tracks the performance of the Dow.)

Secondly, volume is not signaling a lot of conviction on the part of buyers. Throughout March, the SPDR S&P 500 ETF (SPY) experienced average volume of 400 million shares per day. In April, daily volume declined to 287 million shares.

Yet, during this entire time, stocks have risen. And the higher they go, the more the rally is losing steam. That's not good.

Thirdly, I'm worried about the banks.

Yes, everyone passed the stress test, but it was a questionable test to begin with. Plus, Bank of America (BAC) and 9 others have lots of time to raise funds. But, foreclosures are still rising, credit card defaults will get worse and, despite all of the analysis, nobody still knows how to value the toxic assets.

The government might keep the large banks afloat, but their stock prices and earnings could still suffer. And that alone would cause problems for the stock market. Not to mention that financial stocks (and related ETFs such as Financial Select Sector SPDR (XLF)) are overdue for a pullback based on technical analysis alone.

Fourthly, as earnings season comes to an end, we should see fewer positive revisions to profit forecasts. The ratio of positive to negative revisions typically falls after earnings season, even during good times. I don't see any reason for this to change.

A drop in positive revisions would be one less catalyst for stocks to go higher.

Finally, the General Motors (GM) situation remains unresolved. If bankruptcy proceedings turn messy, it will cause a big disruption across the entire automotive industry. This, in turn, could create problems for the market.

Be A Buyer, But A Cautious One

The improvement in the data is significant and should not be ignored. If you've been sitting on the sidelines, start looking at stocks closely.

What I wouldn't do, however, is take unnecessary risks. Rather, look for industries with strong signs that business conditions are improving, such as rising earnings estimates on several companies.

And don't be afraid to dollar-cost average. You still have plenty of time to gradually build new positions.

On the other hand, if you have large gains in risky stocks that you bought in March, consider Bernard M. Baruch's infamous advice, "Nobody ever lost money taking a profit."

Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst,
Zacks.com

Charles is a world-class expert on industry trends and runs the Industry Analysis section on Zacks.com. So his comment about looking for industries with rising earnings estimates should be carefully noted.

On Wednesday, May 13, he will open a new alert service to the Zacks.com community. It unleashes the full power of the earnings-based Zacks Industry Rank to pinpoint market trends that underlie big stock moves.

Through ETFs, this service lets you command the hottest industries and trends without the added expense and risk of buying numerous stocks.

Getting aboard the best industries offers mega-profit potential. Studies show that picking the right industry is just as important as picking the right stock. In fact, stocks from industries ranked in the top 50% of the Zacks Industry Rank outperform the others 4-to-1.

Find out more about Charles' brand-new ETF Trader >>

Zacks Investment Research

The economy is clearly showing a relative improvement. Take a look at the data we've seen over the past week or so. The ISM manufacturing index is at its highest level since last October. April's job loss estimate was the lowest in 7 months. Cisco System's (CSCO) CEO, John Chambers, said customers are "seeing some stabilization". MGM Mirage's (MGM) CEO, Jim Murren, observed a "sequential increases in occupancy levels" at his properties.

However, the economy is still going downhill. Manufacturing continues to contract and the unemployment rate is at its highest level since 1983. It's just that the pace of economic deterioration is slowing. A positive sign, but still a long way from actual growth.

Ahead of these improving signs has been a strong rally in stock prices. Volume has been tapering off, meaning that the buyers are losing conviction. And now we are looking at fewer catalysts to push stocks higher.

As earnings season comes to an end, the number of positive revisions will drop. Also, the results of the stress tests have been released.

What's left? 10 banks need to raise capital, which could dilute current shareholders. General Motors (GM) needs to reach a resolution with its debt holders and its unions. A messy bankruptcy would be disruptive to the entire automotive sector.

The economic data could provide some fuel for the bulls, but given the extent of the rally and the fact that we know there is some improvement, the data had better really good. Right now, I'm not sure that it will be good enough.

So where does that leave us? I'm expecting a pullback, but remain hopeful for a prolonged trading range.

Portfolio Updates

Digital Fast Channel (DGIT) missed both revenue and profit expectations. I don't like selling stocks quickly, but this was a case where the most prudent move was to close the position as fast as possible.

We made 2 additions to the Growth & Income portfolio this week, IBM (IBM) and Yum Brands (YUM). We think IBM could benefit from the eventual economic recovery, like its global reach and view the dividend as being very safe. YUM gives us exposure to China. Plus, the company had strong first-quarter results.

To make room for YUM, we sold McDonald's (MCD) from the Growth & Income portfolio. We wanted to add YUM, but did not want 2 fast food companies in the same portfolio. Plus, the move ends the overlap we had between the Growth & Income portfolio and the Focus List.

Western Digital (WDC) was added back to the Focus List. Some of you might remember that we sold the stock last October. At the time, guidance was being cut. Now, earnings estimates are starting to rise again. The valuation is cheap.

The additions of both IBM and WDC also play into what I talked about last week: traders' risk tolerances are rising. Therefore, we are looking for ways to get more aggressive without venturing onto thin ice.

The Markets

As I write this near lunchtime on Friday, the stock markets are rallying. A positive reaction to the stress test results and the employment numbers laid the groundwork for higher prices. As stated above, my concern is that the rally has gotten too long in the tooth.

We'll see if positive earnings surprises from retailers next week give the rally one last boost or if a "sell on the news" scenario develops.

Charles Rotblut, CFA is the Senior Market Analyst for Zacks.com. He can be reached at crotblut@zacks.com. Zacks Investment Research

Chicago, IL - May 7, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include Ameristar Casinos (ASCA), Boyd Gaming (BYD), Monarch Casino & Resort (MCRI), MGM Mirage (MGM), Penn National Gaming (PENN), Pinnacle Entertainment (PNK) and Williams Industries (WMS).

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

What Are Bank Stocks Really Worth?

Shares of MGM Mirage (MGM) soared nearly 37% yesterday after saying business conditions were starting to improve.

"Our resorts have seen sequential increases in occupancy levels through the first quarter and into April, and our forward booking pace is improving. This is allowing us the opportunity to better yield our room pricing," Chairman and CEO Jim Murren revealed.

This morning, Boyd Gaming (BYD) echoed the message.

"We're encouraged by some positive trends that developed during the quarter. In our Las Vegas Locals region, we began to see signs of stabilization", stated CEO Keith Smith.

The optimistic comments followed positive surprises from several other casino operators, including Ameristar Casinos (ASCA), Monarch Casino & Resort (MCRI), Penn National Gaming (PENN), and Pinnacle Entertainment (PNK). Even gaming equipment maker Williams Industries (WMS) gave investors a reason to keep rolling the dice.

Marketing and Cost-Cutting Measures Paying Off

Revenues for most casino operators were down, as would be expected in the midst of a bad recession. A focus on marketing helped to limit the decline in gaming and lodging revenues, however.

For example, PENN credited "revenue enhancement" strategies by its managers for keeping net revenues just below last year's levels.

Cost-cutting at many companies helped to support profits, including ASCA. The company realized a record high in its quarterly adjusted EBITDA margins.

Expansion and Regulation Helping Outlook

A few companies said changes in state regulations helped, or were expected to help, gaming revenues.

ASCA and PNK particularly cited the repeal in Missouri's loss limit rule. Last November, a ballot initiative removed a prohibition on buying more than $500 of tokens or chips every 2 hours.

Several of the companies also suggested they were continuing to work on current projects and/or look for opportunities to expand. Such comments were well received not only due to the potential for future growth, but also because it suggests that the companies are adequately capitalized and/or have access to financing.

WMS Realizes Higher Gaming Revenues

Unlike the other companies mentioned in this article, WMS does not operate casinos. Rather, it designs and manufactures gaming machines. Therefore, I wanted to give its earnings report special attention.

The company sold fewer units during its fiscal third-quarter, but was able to realize higher revenues per machine. This led to record gross margins of 64.9% and its 17th quarter of double-digit year-over-year growth.

A key driver for WMS is high-return, high-earnings games. Given the economic backdrop, casinos are more focused on higher earnings games - a focus that helps both casinos and WMS alike.

Positive Surprises Translating Into Higher Forecasts

ASCA, MCRI, PNK and WMS all reported per share earnings that were above expectations. These positive surprises have, in turn, led to higher profit projections - a bullish sign.

ASCA beat by 19 cents. Nearly all of the 13 covering analysts raised their forecasts. The revisions pushed the consensus estimate 38 cents higher to $1.49 per share.

MCRI beat by 7 cents with profits of 6 cents per share. Positive revisions by all 4 covering analysts sent the consensus estimate 12 cents higher to 30 cents per share.

PNK beat by 10 cents with EPS of 8 cents per share. The positive surprise followed 3 previous quarters of disappointments. 11 of the 15 covering analysts raised their full-year projections, sending the consensus estimate 18 cents higher to 11 cents per share.

WMS beat by 6 cents, its 6th consecutive surprise. Nearly all of the 14 covering brokerage analysts raised their fiscal 2009 projections in response, sending the consensus estimate 9 cents higher to $1.53 per share.

MGM reported an adjusted loss of 6 cents per share, 2 cents wider than analysts expected. It's too early to tell what impact the CEO's comments will have on full-year forecasts.

This morning, BYD reported adjusted profits totaling 15 cents per share, 7 cents above the consensus forecast.

ASCA, MCRI, PENN, and WMS are Zacks #2 Rank ("buy") stocks. BYD, MGM and PNK are Zacks #3 Rank ("hold") stocks. All of them are classified in Leisure & Recreation-Gaming.

Related ETFs

There is one gaming ETF, Market Vectors Gaming (BJK). However, as I told Zacks ETF Trader subscribers yesterday, the funds' largest holdings are foreign companies. Therefore, it is not a good way to play the positive momentum in the Leisure & Recreation-Gaming group.

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

Shares of MGM Mirage (MGM) soared nearly 37% yesterday after saying business conditions were starting to improve.

"Our resorts have seen sequential increases in occupancy levels through the first quarter and into April, and our forward booking pace is improving. This is allowing us the opportunity to better yield our room pricing," Chairman and CEO Jim Murren revealed.

This morning, Boyd Gaming (BYD) echoed the message.

"We're encouraged by some positive trends that developed during the quarter. In our Las Vegas Locals region, we began to see signs of stabilization", stated CEO Keith Smith.

The optimistic comments followed positive surprises from several other casino operators, including Ameristar Casinos (ASCA), Monarch Casino & Resort (MCRI), Penn National Gaming (PENN), and Pinnacle Entertainment (PNK). Even gaming equipment maker Williams Industries (WMS) gave investors a reason to keep rolling the dice.

Marketing and Cost-Cutting Measures Paying Off

Revenues for most casino operators were down, as would be expected in the midst of a bad recession. A focus on marketing helped to limit the decline in gaming and lodging revenues, however.

For example, PENN credited "revenue enhancement" strategies by its managers for keeping net revenues just below last year's levels.

Cost-cutting at many companies helped to support profits, including ASCA. The company realized a record high in its quarterly adjusted EBITDA margins.

Expansion and Regulation Helping Outlook

A few companies said changes in state regulations helped, or were expected to help, gaming revenues.

ASCA and PNK particularly cited the repeal in Missouri's loss limit rule. Last November, a ballot initiative removed a prohibition on buying more than $500 of tokens or chips every 2 hours.

Several of the companies also suggested they were continuing to work on current projects and/or look for opportunities to expand. Such comments were well received not only due to the potential for future growth, but also because it suggests that the companies are adequately capitalized and/or have access to financing.

WMS Realizes Higher Gaming Revenues

Unlike the other companies mentioned in this article, WMS does not operate casinos. Rather, it designs and manufactures gaming machines. Therefore, I wanted to give its earnings report special attention.

The company sold fewer units during its fiscal third-quarter, but was able to realize higher revenues per machine. This led to record gross margins of 64.9% and its 17th quarter of double-digit year-over-year growth.

A key driver for WMS is high-return, high-earnings games. Given the economic backdrop, casinos are more focused on higher earnings games - a focus that helps both casinos and WMS alike.

Positive Surprises Translating Into Higher Forecasts

ASCA, MCRI, PNK and WMS all reported per share earnings that were above expectations. These positive surprises have, in turn, led to higher profit projections - a bullish sign.

ASCA beat by 19 cents. Nearly all of the 13 covering analysts raised their forecasts. The revisions pushed the consensus estimate 38 cents higher to $1.49 per share.

MCRI beat by 7 cents with profits of 6 cents per share. Positive revisions by all 4 covering analysts sent the consensus estimate 12 cents higher to 30 cents per share.

PNK beat by 10 cents with EPS of 8 cents per share. The positive surprise followed 3 previous quarters of disappointments. 11 of the 15 covering analysts raised their full-year projections, sending the consensus estimate 18 cents higher to 11 cents per share.

WMS beat by 6 cents, its 6th consecutive surprise. Nearly all of the 14 covering brokerage analysts raised their fiscal 2009 projections in response, sending the consensus estimate 9 cents higher to $1.53 per share.

MGM reported an adjusted loss of 6 cents per share, 2 cents wider than analysts expected. It's too early to tell what impact the CEO's comments will have on full-year forecasts.

This morning, BYD reported adjusted profits totaling 15 cents per share, 7 cents above the consensus forecast.

ASCA, MCRI, PENN, and WMS are Zacks #2 Rank ("buy") stocks. BYD, MGM and PNK are Zacks #3 Rank ("hold") stocks. All of them are classified in Leisure & Recreation-Gaming.

Related ETFs

There is one gaming ETF, Market Vectors Gaming (BJK). However, as I told Zacks ETF Trader subscribers yesterday, the funds' largest holdings are foreign companies. Therefore, it is not a good way to play the positive momentum in the Leisure & Recreation-Gaming group.

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 May 6
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Retail-Wholesale	2.61	2.62	2.77	623	225
Medical	2.75	2.70	1.16	691	597
Computer and Technology	2.87	2.85	1.23	1148	937
Consumer Discretionary	2.90	2.94	1.21	356	295
Consumer Staples	2.93	2.94	1.10	240	219
Business Services	3.04	3.06	0.74	106	143
Auto-Tires-Trucks	3.04	3.17	0.61	59	97
Utilities	3.04	3.07	0.66	128	194
Basic Materials	3.10	3.08	0.57	195	344
Aerospace	3.18	3.25	0.98	85	87
Finance	3.19	3.18	0.43	737	1704
Construction	3.20	3.23	0.66	83	125
Oils-Energy	3.21	3.27	0.43	369	849
Industrial Products	3.35	3.37	0.44	155	354
Transportation	3.38	3.37	0.33	131	401
Conglomerates	3.50	3.61	0.17	14	84

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

Zacks Investment Research

MGM Mirage (MGM) shares slumped at the open on Friday following reports that activist investor Carl Icahn was pressing the distressed gambling giant to restructure its $13.5 billion debt by seeking bankruptcy protection.

Late Thursday, The Wall Street Journal said Icahn and private-equity fund Oaktree Capital Management have been pursuing MGM Mirage to clean up its balance sheet as soon as possible since last month. Citing sources familiar with the matter, the paper said the two investors, who have separately amassed hundreds of millions of dollars in MGM Mirage debt in recent months, stressed bankruptcy as the best option.

Icahn's strategy endangers the majority stake billionaire investor Kirk Kerkorian owns in MGM. Kerkorian's 53% stake would amount to nothing if the company files for bankruptcy, giving secured debtholders priority over shareholders.

MGM Mirage, which has been working hard to avoid bankruptcy, has to make a new equity payment on a big Las Vegas project by Friday. Shares of the company were down nearly 13% to $5.15 in morning trade on the New York Stock Exchange.

MGM Mirage earned 10 cents per share for the quarter, while the consensus estimate was pegged at 17 cents.

The company, which had earlier warned that it might violate debt covenants, said on Tuesday that it repaid $300 million to its lenders for a waiver on its senior credit facility through May 15.

MGM is a Zacks #3 Rank ("Hold") stock.

MGM Mirage (MGM) said it may default on its debt this year if the economy does not rebound and delayed the filing of its annual report.

The casino operator owned by billionaire investor Kirk Kerkorian said it was in compliance with loan covenants under its senior credit facility as of Dec. 31 but will be forced to breach them if the recent adverse conditions in the economy in general -- and the gaming industry in particular continue.

The Las Vegas-based company has suffered over the last year as gaming revenues slumped with fewer gamblers frequenting slot machines in the wake of the global recession. Last week, MGM Mirage borrowed the remaining $842 million in its revolving credit facility and is now negotiating with senior creditors for a covenant waiver or amendment.

The company postponed filing its fourth-quarter and annual report until March 17. MGM Mirage also said its auditor would include an explanatory paragraph raising doubt about its ability to continue as a going concern in the filing. Shares of the company fell 18% to $2.14 at noon on the New York Stock Exchange.

This from Today’s Financial News:

Despite the substantial drop in the U.S. equity markets, Las Vegas Sands Corp. (NYSE:LVS) gained over 9% today. The company is currently in talks with a syndicate of banks to raise between $1.5 billion and $2 billion to finance new casino projects in Macau. The company had suspended construction on its expansion into Chinese gaming, laying off most of the 11,000 construction staff.

The stock price has dropped from over $122 last December…