Chicago, IL – November 16, 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: Apple Inc. (AAPL), Microsoft Corp (MSFT), Quality Systems Inc. (QSII), Allscripts-Misys Healthcare Solutions, Inc. (MDRX) and Cerner Corp. (CERN).

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Here are highlights from Friday’s Analyst Blog:

Apple Opens New Store in New York

Apple Inc. (AAPL) will open its newest retail store with an 8,500 square feet retail space in New York tomorrow. The store will help Apple deliver more Macs, iPods and iPhones, taking advantage of the coming holiday season. The new store is the fourth in Manhattan and fifteenth in New York.

To ensure a high-quality buying experience for its products, in which service and education are emphasized, the company has expanded and improved its distribution capabilities by opening its own retail stores in the U.S. and internationally.

The company operates a network of 280 retail stores in 10 countries across the world, including the U.S., U.K., Italy, Australia, Canada, Japan, China, Switzerland, Germany and France to drive the demand for its other products. Further, Apple is soon to open two new stores in Shanghai as well as London and Paris.

The company further plans to open 40 to 50 new larger retail stores next year, about half of which are expected to be outside the U.S. Apple had earlier estimated that it would open 25 to 50 new stores.

Retail sales increased 4.0% to $6.57 billion (averaging $26.0 million per store annually). Store traffic grew to around 170 million in fiscal 2009. The company has extended its footprint in international retail markets. Growing its presence in the international retail market, Apple opened its first store in Sydney and Beijing and opened stores in Switzerland, France and Germany during the calendar year 2008.

Apple's business strategy leverages its ability, through the design and development of its own operating system, hardware and many software applications and technologies, to provide its customers around the world with compelling new products and solutions, superior ease-of-use, seamless integration and innovative industrial design.

To attract customers during the holiday season, the company plans to offer gift-wrapping of any iPod or portable Mac for just $5. It will also allow customers to set aside a gift and pick it up at their local Apple store for free from Dec. 15 to Christmas Eve.

Apple’s stores hosted 42.7 million visitors during the last quarter, an increase of 7% from the year-ago period. The stores posted revenue of $1.87 billion ($7.6 million per store) in the quarter, the highest level ever and up 15% from the year-ago period.

Last month, Microsoft Corp (MSFT) announced the opening of its own first retail store in Arizona. But we do not expect Microsoft to catch up anytime.

Quality Systems Barely Beats

Quality Systems Inc. (QSII) reported fiscal second-quarter earnings of 41 cents, beating the Zacks Consensus Estimate by a penny and the year-ago earnings by 4 cents.

Total revenues for the quarter increased 21.5% to $71.69 million from $58.98 million. The company’s NextGen Healthcare Information Systems division posted revenue of $67.4 million for the reported quarter, representing a 23% increase from the previous year.

Category-wise, System sales, including software, hardware and supplies, increased 5.9% to $26.24 million from $24.78 million. Revenues from maintenance, electronic data interchange (EDI), revenue cycle management (RCM) and other services grew 32.9% to $45.46 million from $34.19 million in the year-ago period.

The total cost of system sales, including software, hardware and supplies increased 16.8% to $7 million. Total cost of maintenance, EDI, RCM and other services for the quarter were $21.27 million as against $15.2 million in the year-ago quarter, up 39.9%. Consequently, total cost of revenues for the quarter increased 33.4% to $28.3 million. The company reported a gross profit of $43.4 million for the quarter opposed to $37.8 million in the year-ago period, up 14.8%.

Research & development spend for the quarter increased 30% to $4.34 million for the quarter. Selling, general and administrative expenses for the reported quarter increased 11.7% to $20.4 million.

Quality Systems exited the quarter with cash and cash equivalents of $75.4 million opposed to cash and cash equivalents of $70.2 million at the end of fiscal 2009.

Quality Systems, headquartered in Irvine, California, develops and markets healthcare information systems that automate certain aspects of medical and dental practices, networks of practices such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. The company competes with players like Allscripts-Misys Healthcare Solutions, Inc. (MDRX) and Cerner Corp. (CERN).

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About Zacks Equity Research

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

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

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Company Description

Steve Madden manufactures footwear and accessories for men, women and children that are sold through 88 company-owned retail stores, department stores, specialty retailers and at the company's web site, www.stevemadden.com.

It is also the licensee for footwear for Elizabeth and James and l.e.i. which is sold at Wal-Mart, footwear, handbags and belts for Fabulosity and Olsenboye, and for handbags and belts for Betsey Johnson and Daisy Fuentes.

Steve Madden Posted Record Sales in the Third Quarter

Investors knew the news was going to be good from Steve Madden when it reported on Nov 3 because the company pre-announced its earnings and sales results on Oct 20.

As a result of the pre-announcement, analysts raised estimates on the quarter to the 97 cents the company said it was going to earn. Hence, it appears the company only "met" estimates when, in fact, it did much better.

Sales rose 9.4% to $140.1 million from $128.1 million in the year ago period. The wholesale business is what drove the quarter, with sales climbing 15% to $112 million from $97.3 million in the third quarter of 2008.

The strong divisions were Madden Girl, Steven by Steve Madden, Steve Madden Women's and Steve Madden Men's wholesale footwear segments. Boots were the driver of footwear sales in the quarter.

The newly acquired Madden Zone, formerly SML Brands, as well as the new Elizabeth and James brand, also boosted the quarter.

Retail was slightly weaker, falling to $28.2 million from $30.7 million in the year ago period. Same store sales also declined 7.6% compared to a 7.8% increase last year.

Gross margin, however, improved to 44.0% from 41.4% in the third quarter of 2008.

2009 Outlook

Steve Madden is bullish about the remainder of the year. It expects net sales to rise to the range of 7% to 8% over 2008. When it pre-announced on Oct 20, the company raised full year guidance to the range of $2.55 to $2.65 per share from the previous range in July of $2.05 to $2.15 per share.

Zacks Consensus Estimates Rise

Analysts are equally as optimistic about the company's future. The fourth quarter Zacks Consensus Estimate has jumped 11% in just the last 7 days to 61 cents from 55 cents.

For 2009, analysts have raised estimates to the high end of the company's guidance range to $2.64 from $2.61 per share.

The estimate revisions continue into 2010 with 1 out of 5 covering analysts raising estimates in the last week to $2.83 from $2.68 per share.

Value Fundamentals

Steve Madden is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book ratio of 2.67. The company has an outstanding 5-year average return on equity (ROE) of 15%.

Zacks Investment Research

Walgreen’s strong balance sheet has enabled it to grow its business through acquisitions even in the midst of recession. The company generated $852 million in the fourth quarter and $4.1 billion for the year in cash flow from operations, an increase of 55% and 35%, respectively driven by strong drugstore performance, including improved working capital. At the end of the last quarter, Walgreen had $2.1 billion in cash and cash equivalents. We had expected earlier that the company would use the available funds for suitable acquisitions as well as rewarding its shareholders with generous dividend payments.

In order to make the best use of available resources, Walgreen has scaled down its plan of opening stores from the current level of 9% to 4.5%-5% in 2010 and 2.5% - 3% in fiscal 2011. This is evident from the decline in opening of new stores during the quarter. During the fourth quarter, the company opened 149 new drugstores compared with 162 in the third quarter and 199 in the year-ago quarter. We believe this decision will benefit the company as new stores take 2-3 years to become profitable.

The current economic scenario is a major challenge for Walgreen but we expect it to withstand it based on its strong cash balance and vast network of retail stores. The current U.S. government’s agenda of reforming the healthcare system will affect the company on its margin and reimbursement front. However, the inclusion of about 47 million uninsured people under the insurance net will increase the prescription volume manifold, which should help boost the top-line. We have a Neutral rating on the stock.

Company Description

Guess?, Inc. designs, markets, distributes and licenses contemporary apparel, denim, handbags, watches, footwear and other related consumer products.

As of August 1, 2009, the Company operated 431 retail stores in the United States and Canada and 723 retail stores outside of North America, of which 106 were directly owned.

Bullish Estimates and Solid Momentum

During the past 2 months, analysts polled by Zacks boosted current full-year earnings forecasts from $1.92 to $2.17 per share.

For the following year, the Zacks consensus Estimate jumped from $2.22 per share to $2.46 over the past 2 months.

GES outperfromed the market by more than 40% over the past year and by more than 15% since reporting second-quarter results.

Record Results

In late August, the company posted second-quarter net earnings that hit a record $59.6 million, versus last year's $53.8 million. On an earnings per share basis, the second quarter saw 64 cents, beating the previous year's 57 cents and exceeding the Zacks Consensus Estimate by 45.5%. Guess boasts an excellent record of outpacing the Zacks Consensus Estimate dating back to January 2005.

Revenues soared to a record $522.4 million, 1.4% above last year's $515.2 million.

Paul Marciano, Chief Executive Officer, commented, "We are extremely pleased with our second quarter financial performance. We increased both revenues and earnings over last year's results to record levels, which represents a significant achievement in today's challenging environment. The actions that we took to protect our margins and preserve our strong capital structure are clearly paying off. In the period, we delivered strong product margins, achieved significant SG&A leverage and generated solid operating cash flow, further strengthening our capital structure. Europe's performance was key to our results, posting revenue growth of 21% and increasing operating earnings by 30% in the period. Overall, these results truly underscore the strength and versatility of our brand and demonstrate our team's ability to adapt and deliver solid results, even in challenging conditions."

A Dividend Hike

The company also boosted its quarterly dividend by 25% to 12.5 cents per share, which translates into an industry-leading yield of 1.3%. The new dividend was paid on September 25.

Favorable Comparisons

Guess offers a return on equity of 27%, well above the industry average of 10%. The company's net profit margin of 10% compares favorably to a negative industry average. Zacks Investment Research

Company Description

China Biotics, Inc. develops and produces probiotics products in China. Its products contain live microbial food supplements, which affect the host by improving its intestinal microbial balance. The company was founded in 1999 and has a market cap of $243 million.

China continunes to be a hot destination for investors looking to score outsized gains. That has held true with China-biotics, whose share price has posted huge gains over the last few months, helped by the company's impressive first-quarter results, reported on August 21.

Revenue was up 36% from last year to $15.4 million. Earnings also came in strong at 31 cents per share, 14 cents ahead of the Zacks Consensus Estimate.

The company noted that its results were helped by strong demand for its products from the Shining-brand retail stores and more pricing power.

Guidance and Estimates

China Biotics was bullish on its future, saying it expects revenue growth of at least 50% in fiscal 2010. With only one analyst covering this company, there is no next-year estimate, but the current-year estimate is up 10 cents in the last 60 days to $1.30 per share.

Valuation

Based on the current-year estimate, this stock trades with a P/E multiple of 13X, a discount to the overall market.

The Chart

Shares of CHBT have been rallying since March, recently topping off above $17. Take a look below.

Zacks Investment Research

Chicago, IL – August 28, 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: BCE Inc (BCE), Palm Inc (PALM), Sprint Nextel (S), Telus (TU) and Rogers Communications (RCI).

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Here are highlights from Thursday’s Analyst Blog:

Palm Pre Lands in Canada

Bell Canada, the wireless subsidiary of BCE Inc (BCE), is set to launch Palm Inc’s (PALM) Pre touch-screen smartphone today in Canada. The highly-anticipated smartphone will be available at Bell Mobility retail stores at a price of $199.95 on a three-year service contract ($599.95 without contract).

Palm Pre entered the US market in June 2009 on Sprint Nextel’s (S) network. Since its launch, the handset has generated strong market response with around 90,000 to 100,000 units sold in the first week.

Bell Canada continues to experience decline in wireless revenue per user due to lower customer usage amid a weak economy and intense price war which forces customers to opt for cheaper price plans offered by competition. Additionally, wireless subscriber growth has slowed due to higher churn (customer switch) while the company’s major competitors Telus (TU) and Rogers Communications (RCI) continue to grow their respective subscriber bases at a healthy pace.

The Palm Pre is equipped with the ability to operate on a multi-tasking environment running several applications simultaneously. The device fits with the company’s CDMA wireless network platform, which is unable to carry the widely popular iPhones and Android-based smartphones. Bell Canada hopes to leverage Palm Pre’s multi-tasking functionality to increase minutes of use, thereby boosting ARPU (average revenue per user).

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About Zacks Equity Research

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

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

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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

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

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

The operator of book and music superstores posted an adjusted loss of 21 cents per share, compared to the Zacks Consensus Estimate for a 16-cents loss.

The company said sales dipped 17.7% to $616.8 million, primarily due to sluggish performances at its namesake and Waldenbooks specialty retail stores. Same-store sales slipped nearly 18% at Borders superstores and 10% at Waldenbooks.

Meanwhile, the Zacks Consensus Estimate for the fiscal year ending Jan 2010 is currently pegged at 3 cents per share, which has remained steady over the past 2 months.

BGP, a Zacks #3 Rank ("Hold") stock, is trading on higher-than-usual volume of about 635,000, compared to the average daily volume of approximately 484,000.

Company Description

Bed Bath & Beyond Inc. operates a chain of retail stores specializing in domestic merchandise like linens and kitchenware. The company was founded in 1971 and has a market cap of $9 billion.

The weak consumer environment has hurt many high-end discretionary retailers. But Bed Bath and Beyond has prospered due to its strong value proposition and emphasis on consumer necessities. That helped the company to solid first-quarter results, reported on June 24.

Second-Quarter Results

Sales were up 2.8% from last year to $1.65 billion. Earnings came in at 34 cents per share, 10 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 4 quarters by an average of 11 cents, or 33%.

The company noted that it was helped by a continued focus on cost control and strong inventory management.

Estimates Jump

After the solid quarter, estimate moved higher, with the current year advancing 17 cents to $1.76 per share. The next-year estimate stands at $2.00, a 13.5% growth projection.

Valuation

In spite of the recent gains, shares still look reasonably priced, trading with a P/E multiple of 19X, only a slight premium to the overall market.

The Chart

Shares of BBBY bottomed out last November just above $16 before taking flight and recently topping off above $17. Take a look at the nice trend below.

Zacks Investment Research

Net revenue increased 17.6% year over year to $24.9 billion. Same-store sales grew 6.1% as pharmacy same-store sales rose 7.5% (negatively impacted by 478 basis points due to recent generic introductions), and front-end (general merchandise) same-store sales increased 3.0%.

Revenue in the Pharmacy Services segment grew 22.1% to $13.0 billion and retail pharmacy revenue climbed 17.2% to 13.8 billion. The top line also benefited from the conversion of RxAmerica accounting pattern, a shift in Easter holiday and a positive impact of 85 basis points as product cost rose due to a hike in federal cigarette excise tax.

Net interest expense in the quarter increased 11.5% to $142.1 million, primarily due to the higher debt attributable to the Longs Drug acquisition. The company opened 51 new retail pharmacy stores during the period, closed 14 retail pharmacy stores, and relocated 26 new retail stores.

Despite industry wide pricing pressure in the pharmacy business, results over the past several quarters have demonstrated strong sales trends with comparable same-store sales (comps) growing at solid rates. Comps increased 4.5% in 2008 and 5.3% in 2007. The company is benefiting principally from increased generic prescriptions.

Therefore, management remains optimistic about domestic demographic trends, which are expected to drive utilization rates for years to come as the population ages. The company’s mail order service is also gaining popularity and will provide additional top-line opportunities.

Management raised its guidance for the remainder of 2009, based on the strong performance during the first half of the year. Annual earnings are now expected to be in the range of $2.59 to $2.64 per share. Previous guidance was in the range of $2.55 to $2.63 per share.

With the deal, ProLogis has fully leased its recently completed facility at ProLogis Park PDX. The facility is located in the close proximity of the Portland International Airport and provides immediate access to key interstate highways. The leased site would be utilized by CNH to distribute spare parts across its vast dealer network in the Pacific Northwest region.

The leased property has all state-of-the-art facilities and certain green design features, including skylights and vision panels that increase natural daylight and reduce electricity usage, low-VOC (volatile organic compound) rated paints, carpets and other materials that minimize the impact on air quality. In addition, the building has a 518-kilowatt solar power facility installed on its roof space.

With approximately 3.7 million square feet of distribution space, ProLogis is the largest providers of distribution facilities in Portland. Currently, its portfolio is 92% leased in the region. Its major customers in the area include DHL – a leading global logistics company; Bunzl – a multinational distribution and business outsourcing company and PETCO – a chain of retail stores that offers pet supplies and services.

The current leasing agreement signifies that despite the continuing economic downturn, ProLogis has the wherewithal to sign new leases across the globe. The company also has a strong balance sheet to support further growth. We reiterate our Buy rating of the company.

Company Description

The Buckle is a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company's casual apparel products include denims, bottoms, tops, sportswear, and outerwear.

Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the company's exclusive brand, BKE.

Headquartered in Kearney, Nebraska, Buckle currently operates 393 retail stores in 40 states, including the recent opening of 3 new stores in Savannah, Georgia; Newport News, Virginia; and Pineville, North Carolina. BKE also closed one store in fiscal April. The Company operated 374 stores in 39 states as of May 7, 2008.

Stellar Sales

The company recently posted sales results for the month of June. Comparable store net sales were up 9.6% on a year-over-year basis. Net sales jumped 14.4% to $70.8 million.

Competitive Income

The Buckle declared a dividend of 20 cents in early June, noting that it is payable on July 27 to shareholders of record at the close of business on July 15. The retailer offers an industry-leading dividend yield of 3%.

Rising Estimates

Current full-year earnings forecasts to $2.65 per share are above the 3 months-ago level of $2.53. For the following year, analysts boosted projections to $2.76 per share, versus the 3 months-ago level of $2.57.

The Buckle's earnings came in, on average, 8.55% ahead of analysts' expectation over the past 4 consecutive quarter.

Solid Earnings in the First Quarter

The Zacks #1 Rank (Strong Buy) play posted first-quarter earnings of 58 cents per share, surpassing the previous year's 41 cents and topping the consensus estimate by 18%.

Results for the second quarter are scheduled for release on August 20.

Strong Fundamentals

The Buckle boasts a strong balance sheet with no debt. The company's return on average (ROE) of 32% more than triples the industry average of 9%. Its net profit margin of 13.5% sits high above the industry average of 2%. Zacks Investment Research

Company Description

Gymboree is a specialty children's retailer with stores in the United States, Canada and Puerto Rico. The company operates 901 retail stores including 619 Gymboree stores, 126 Gymboree outlets, 118 Janie and Jack shops and 38 Crazy 8 stores.

It also has several online stores for its three brands.

Gymboree Surprised by 4.23% in the First Quarter

On May 20, Gymboree beat Wall Street estimates for the first quarter of 2009 by 3 cents reporting 74 cents compared to analysts' estimates of 71 cents. Despite the surprise, it was still under the year ago EPS of 86 cents per share.

Revenue fell 5% to $228 million from $238.9 million in the year ago period. Comparable store sales were down 10% year over year.

The company has been actively reducing product costs and operating expenses which helped the quarterly numbers.

The company doesn't expect the economic conditions to improve in the near term but is focusing on its core business of acquiring new customers and opening new stores.

Consensus Estimates Jumped

Despite the rough economic environment, covering analysts are optimistic about the second quarter and the rest of the year.

Second quarter consensus estimates rose 9 cents to 16 cents in the last 60 days. 2009 consensus estimates jumped 8.9% in the last 60 days with 1 out of 8 covering analysts raising in just the last week.

Value Fundamentals

Gymboree is a Zacks #1 Rank (strong buy) stock. It has a forward P/E of 11.67 and a price-to-book of 2.77. The company also has an outstanding 5-year return on equity of 23.25%.

Zacks Investment Research

The maker of lawn and garden care products now anticipates adjusted profit of $2.35 to $2.45 per share, against the prior outlook of $2.10 to $2.30 per share.

Analysts expect the company to earn $2.34 per share, which has moved up 4 cents, or 1.7%, over the past month as 2 of 10 analysts revised higher.

CEO Jim Hagedorn attributed the enhanced guidance to coordinated marketing and promotion initiatives, higher advertising spending and increased hours spent by the sales team in retail stores.

Scotts also raised its free cash flow forecast to a minimum of $180 million from the previous guidance of $150 million to $170 million.

SMG, a Zacks #3 Rank ("Hold") stock, has advanced more than 1% on volume of approximately 1 million, which is right around its daily average.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Thursday's Analyst Blog:

Retailers Facing Tough Comps

According to the International Council of Shopping Centers (ICSC), US chain store sales for May fell by 4.6%. The ICSC had expected May sales to be drop 3%. Additionally, the 25 retailers that we track experienced a sales drop of 4.8%, and roughly two out of three retailers missed sales estimates for the month of May.

The year-over-year decline in sales was due in large part to difficult comparisons. At this time last year, Uncle Sam was sending out $600 tax rebate checks to consumers, who used a portion of those funds to go shopping. Of course, rising unemployment, lower wages and a penchant for saving over spending might have had something to do with the weak sales.

During May, the winners were specialty retailers Aeropostale (ARO), up 19%, and Buckle (BKE), up 13.4%. Retailers that disappointed were Abercrombie (ANF), down 28%, and Target (TGT), down 6.1%. We would like to point out this is the first time in about 30 years that Wal-Mart (WMT) did not report monthly sales. Wal-Mart accounts for over half of sales from retail stores, and it has a significant impact on overall results. The world's largest retailer announced last month that it was going to stop reporting monthly sales and will only report sales on a quarterly basis.

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About Zacks Equity Research

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

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

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

About Zacks

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

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

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

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

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Medtronic's (MDT) story is improving -- product approvals and launches, and a renewed focus on operating margins should drive healthy near-term EPS growth. While sales growth has been hampered by weak U.S. end-markets, the company produces solid free cash flow to be used for acquisitions.

Full-year results showed resilience despite a weak Q409. Good execution moves our estimates to the top of management's FY10 guidance.

Further, we see valuation rising inline with peers, rather than below it. Our recommendation moves up to BUY.

Bear of the Day:

At the outset of the summer driving season, we are downgrading Valero (VLO) shares to Sell to reflect our weak outlook for margins and a growing list of medium- to long-term macro challenges. A combination of weak demand, excess production capacity, and narrowing crude quality spreads are expected to weigh on near-term margins.

The medium- to long-term outlook also remains cloudy, with unfavorable regulatory changes weighing on demand growth and capacity creep limiting margin gains.

Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop. Our current target price is $15 per share.

Latest Posts on the Zacks Analyst Blog:

GameStop Getting Played Out?

GameStop (GME) shares sold-off about 6% on Tuesday due to concerns that the world's largest video game retailer is quickly becoming the next Blockbuster (BBI) or Sam Goody.

Specifically, at the Electronic Entertainment Expo (E3), Microsoft (MSFT) announced that it is going to roll out a new service called "Games On Demand." Xbox 360 console owners will be able to download full video games (not just demos) to their hard drives. The downloading service is scheduled to begin on August this year. Initially, "Games On Demand" will offer 30 videogames, including Mass Effect, BioShock and Call of Duty 2, and will add new games each week.

The initial take on this announcement is that Microsoft is plotting to cut out the middleman, i.e., retailers like GameStop. We disagree. While we like the idea of being able to download certain videogames, we do not believe the download service will be a substitute for regular visits to GameStop. Microsoft plans to offer a limited selection of older games and will probably avoid selling newer games that are still selling well in retail stores.

By limiting the selection to older titles, it is unlikely that "Games On Demand" will replace GameStop anytime soon. Xbox Live general manager, Marc Whitten, shares our view. He indicated that Microsoft has been working closely with its retail partners. And Whitten personally believes that "going into a store and seeing that back of the box of the game, talking about the game - that's not going away."

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

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Here are highlights from Thursday's Analyst Blog:

Toys "R" Us Gets FAO Schwartz

FAO Schwarz operates only two retail stores -- its flagship location in New York City, and a location at Caesar's Palace in Las Vegas. The acquisition also includes the company's e-commerce and catalog operations, and gives Toys "R" Us control of an iconic brand name in the toy industry.

This move has implications for the two largest toy manufacturers, Mattel (MAT) and Hasbro (HAS), as Toys "R" Us is a major customer for both companies.

During 2008, Toys "R" Us accounted for approximately 11.9% of total sales by Mattel, or $700 million, making it the company's the second-largest customer. For Hasbro, Toys "R" Us accounted for approximately 10% of sales, or roughly $400 million, last year, making it the company's third-largest customer.

Wal-Mart (WMT) remains the largest customer for both Mattel and Hasbro.

REITs Continue Selling Equity

In an effort to raise cash, REITs continue to tap the capital markets through new equity sales. Highwoods Properties (HIW), an office developer, is the latest REIT to announce an equity offering. The company plans to raise about $125 million through the issuance of new shares.

Earlier this month, HCP, Inc. (HCP), a health care operator, closed a $440 million offering. So far in 2009 (excluding May), according to NAREIT data, REITs have raised a combined $8.7 billion of capital through common share sales, vs. $11.1 billion for all of 2008.

April was by far the busiest month, with $6.4 billion of stock sold -- the highest monthly amount in years. With secured and unsecured debt becoming more expensive and harder to obtain, companies are biting the bullet and selling equity at depressed prices. The mini REIT rally over the past quarter has also helped.

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About Zacks Equity Research

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

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

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

About Zacks

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

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

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

Contact:
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Company Description

Carter's markets baby apparel and young children's apparel in the United States. Carter's products are offered in department stores and retail stores. The company sells products under the Tykes brand in Target stores and under its Child of Mine brand in Wal-Mart stores.

Doubles the Consensus

On Apr 28 the baby apparel maker releases fantastic first-quarter results that included a net sales increase of 8.1%, to $357 million. Carter's saw solid growth in both its retail and wholesale segments.

The increase in sales yielded net income of $16.4 million, a 42% increase. After adjustments for one-time expenses earnings per shares were $0.38, topping Wall Street expectations by 22 cents. This was the company's third surprise in the past 4 quarters.

Carter's opened 7 new locations during the quarter, bringing the total for Carter's stores to 260. The company has an additional 185 OshKosh stores.

Capitalizing on Value Shopping

In the press release the CEO, Michael D. Casey, said, "The trends in our business continue to be favorable, despite a very difficult retail market." "In this economy, consumers are more cautious with their spending, and we believe that the compelling value and nature of our product offerings, combined with the investments we have made in product benefits, brand presentation, and retail store operations, give us a competitive advantage."

Analysts React

Immediately following the report analysts began raising full-year guidance for the next two years. Current estimates are averaging $1.54 for 2009, up 15 cents since the announcement. The consensus for next year is $1.69, up 18 cents.

If met, these projections represent year-over-year growth of 11% and 10%, respectively.

The Chart

Shares of CRI have been bouncing off of the $20 level and it looks like a MACD cross over could be just days away. Take a look at the chart below.

Zacks Investment Research

Company Description

The Buckle is a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company's casual apparel products include denims, bottoms, tops, sportswear, and outerwear.

Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the company's exclusive brand, BKE.

Headquartered in Kearney, Nebraska, Buckle currently operates 393 retail stores in 40 states, including the recent opening of 3 new stores in Savannah, Georgia; Newport News, Virginia; and Pineville, North Carolina. BKE also closed one store in fiscal April. The Company operated 374 stores in 39 states as of May 7, 2008.

Stellar Sales

The Buckle recently reported a year-over-year increase of 18.2% in same-store store sales for the month of April. Net sales jumped 25.6% year-over-year, from $47 million to $59.1 million.

On a year-to-date basis, same-store sales grew 17.7% from the year-prior year-to-date period. Year-to-date net sales are up 24.6%.

The company is slated to report first-quarter results on May 21, 2009.

Strong Fundamentals

The Buckle boasts a strong balance sheet with no debt. The company's return on average (ROE) of 29% more than quadruples the industry average of 7%. Its net profit margin of 13% sits high above the industry average of 2%. BKE also offers an industry-leading dividend yield of 2.5%.

Estimates are on the Rise

Analysts are calling for earnings of $2.56 per share for the year ending January 2010, versus last month's forecast of $2.53. The most accurate estimate is more bullish at $2.63.

For the following year, analysts project earnings of $2.62, up from last month's $2.53. The most accurate estimate accurate forecast is a higher $2.89. Zacks Investment Research

Company Description

The Buckle is a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company's casual apparel products include denims, bottoms, tops, sportswear, and outerwear.

Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the company's exclusive brand, BKE.

Headquartered in Kearney, Nebraska, Buckle currently operates 391 retail stores in 40 states, versus 369 stores in 38 states as of March 5, 2008. This includes the February 25th opening of two new stores in Destin, Florida and Buffalo, New York (BKE's first store in the state of New York) as well as the March 4th opening of two new stores in Lehigh Valley, Pennsylvania and Westlake, Ohio.

Solid Income

The company recently declared a dividend of 20 cents per share, noting that it is payable on April 27 to shareholders of record at the close of business on April 15. BKE's dividend yield of 2.3% is well above the industry average.

Quarterly Results Reflect Growth

The Buckle posted strong results for the fourth quarter. Comparable store net sales grew 14% year-over-year, while net sales came in 22% ahead of last year. Annual comparable net sales increased by 21%. Net sales for the year jumped 28%.

Fourth-quarter earnings per share of 74 cents topped the consensus estimate by a penny and eclipsed the previous year's 63 cents. Full-year earnings per share of $2.24 topped the year-prior $1.63.

Bullish Forecasts

Wall Street boosted earnings estimates on the stellar report. Current year earnings projections of $2.46 per share are above last month's $2.31.

Healthy Fundamentals

The Buckle boasts a strong balance sheet with no debt. The company's return on average (ROE) of 29% more than triples the industry average of 9%. Its net profit margin of 13% sits high above the industry average of 3%. Zacks Investment Research

Carter's, Inc. (CRI), the children's clothing retailer, continues to outperform much of the retail sector as the company reported on Feb 24 that fourth quarter sales rose 7.3%.

The company followed through with its prior plans to actually open stores in the fourth quarter, even as retail seemingly struggled, launching 19 Carter's and 3 OshKosh retail stores, as well as closing one OshKosh retail store. Carter's now operates 253 Carter's and 165 OshKosh retail stores around the country.

Fourth Quarter 2008 Sales Jumped

Both of the company's brands saw net sales increases in the quarter. Carter's brand rose 9.0% while OshKosh gained 2.2%.

Retail store sales also jumped 12.8% to $213.2 million with Carter's sales growing 16.1% to $130.9 million and OshKosh sales gaining 8% to $82.3 million. Both brands same comparable store sales increased with Carter's rising 4.1% and OshKosh gaining 3.6%.

The company's sales to Wal-Mart and Target also were strong in the quarter. The Child of Mine brand, sold in Wal-Marts, and the Just One Year brand, sold in Target stores, saw sales climb 16.4% to $63.8 million. The Just One Year brand saw the largest sales increase, of 29.3%, due to the launch of new products during the quarter.

Net income fell 4.4% to $27.3 million, or 47 cents per share, from $28.6 million, or 48 cents, in the year ago period. Earnings per share met analysts' estimates.

2009 Consensus Estimates Rise

Covering analysts are bullish on Carter's as 2 out of 5 analysts have raised 2009 estimates in the last 30 days, with 1 raising in just the last week. Consensus estimates are up 2 cents to $1.39 per share in the last 7 days.

Value Fundamentals

When we last reviewed Carter's in Nov 2008 it was a Zacks #1 Rank (strong buy) stock. It is now a Zacks #2 Rank (buy) stock.

Its forward P/E is 12.05 and the price-to-book ratio is 2.39. Carter's has an outstanding 1-year return on equity (ROE) of 20.02%. The company has surprised on estimates 3 out of the last 4 quarters.

Read the Nov 26, 2008 analysis.

Update to Previous Value Zacks Rank Buy Stocks

Matrix Initiatives Inc. (MTXX), the drug manufacturer, is cashing in on over-the-counter cough and cold products as revenue rose 26% in the fiscal third quarter. MTXX has a PEG ratio of only 0.9. Read the Mar 10 analysis.

MasTec Inc. (MTZ), the infrastructure builder, expects to see profit from the economic stimulus plan. The company has surprised the last 4 quarters by an average of 17.06%. MTZ has a PEG ratio of only 0.7. Read the Mar 11 analysis.

DRDGOLD Limited (DROOY), the South African gold miner, is growing its profits as gold remains at multi-decade highs. The stock is cheap, trading at only 4.6x forward earnings. Read the Mar 12 analysis.

Dress Barn, Inc. (DBRN), the women's clothing retailer, recently reaffirmed fiscal 2009 guidance during an extremely tough retail environment. The company has surprised on estimates 3 out of the last 4 quarters. Read the Mar 13 analysis.

Zacks Investment Research

Company Description

The Buckle, Inc is a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company's casual apparel products include denims, bottoms, tops, sportswear, and outerwear.

Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the company's exclusive brand, BKE.

Headquartered in Kearney, Nebraska, Buckle currently operates 391 retail stores in 40 states, versus 369 stores in 38 states as of March 5, 2008. This includes the February 25th opening of two new stores in Destin, Florida and Buffalo, New York (BKE's first store in the state of New York) as well as the March 4th opening of two new stores in Lehigh Valley, Pennsylvania and Westlake, Ohio.

Sales Growth

At time when many retailers experience losses, BKE announced that February same-store sales jumped 21% on a year-over-year basis, while total sales of $63.3 million came in 28% ahead of last year's result.

Estimates are Bullish as BKE Prepares to Announce Earnings

The company is scheduled to report tomorrow on its fourth quarter. Analysts have fourth-quarter earnings pegged at 73 cents per share, up last 72 cents over the past 2 months.

Wall Street is forecasting full-year 2009 earnings of $ 2.22 per share, an increase from $2.20 over the past 2 months.

For 2010, earnings projections were boosted by 5 cents to $2.36 per share in just the past week.

The company's earnings topped analysts' estimates by an average of 7% over the past 4 consecutive quarters.

Strong Fundamentals

The Buckle boasts industry-leading numbers and a solid balance sheet with no debt. BKE's return on equity (ROE) of 28% beats the industry average of 9%. The company's net profit margin of 23% is well ahead of the industry average of 2.5%.

BKE offers a dividend yield of 3.5%, which stands high above the industry average as companies slash dividends. Zacks Investment Research

More troubling was the report issued by ShopperTrak. It reported that customer visits to retailers declined 24% (the largest drop ever) last weekend versus last year. Keep in mind that the weekend before Christmas is usually the busiest shopping time of the year, as shoppers look for last-minute gifts. ShopperTrak also estimated that retails sales for Dec 19- Dec 21 fell 5.3%.

Our take is that sales trends have deteriorated from November into December. Falling gasoline prices are not enticing consumers to consume more. In light of a weak economy, higher unemployment, and tighter credit markets, consumers are choosing to spend less and save more. Those who are spending money in retail stores are buying heavily discounted items at name brand stores, trading down to discounters/liquidators, and only buying what is needed.

The biggest surprise during the holidays is that the huge decline in gasoline did not spur even a slight uptick in spending. Instead, the savings at the pump has been saved or used to pay down existing debt. A higher savings rate is a long-term positive for the economy.

Unfortunately, the transition from borrowing and spending to saving is going to put a great deal of pressure on retailers in the near term. As a result, retailers including JC Penney (JCP), Sears (SHLD), Best Buy (BBY), AnnTaylor (ANN), Saks (SKS), and Macy's (M) are offering huge post-holiday discounts beginning today to clear out inventories.

Read the full analyst report on JCP

Read the full analyst report on SHLD

Read the full analyst report on BBY

Read the full analyst report on ANN

Read the full analyst report on SKS

Read the full analyst report on M