Elonva is the first in a class of sustained follicle stimulants (SFS). It scores better than the current available treatment option − a single subcutaneous injection of Elonva is likely to replace the first seven injections of any daily recombinant follicle stimulating hormone (rFSH) preparation in a COS treatment cycle.

The positive opinion of the committee is based on data from Elonva’s phase III development program, the Engage trial, which is the largest double-blind fertility agent trial ever performed. The data was quite encouraging for Elonva. The primary endpoint of the trial, the ongoing pregnancy rate (assessed at ten weeks or more after embryo transfer), for Elonva treatment arm was similar to the patients receiving a daily dose of rFSH for seven days (38.9% vs 38.1% per started cycle respectively).

The fertility industry is worth an estimated £500 million (approximately $820 million) a year in the UK. We believe a positive opinion from the committee has increased the probability of final approval. Viewing the potential of the market, we expect Elonva to add value to Merck’s current product portfolio. We have a Neutral recommendation on Merck.

Company Description

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

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

Estimates are Bullish Ahead of Earnings Announcement

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

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

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

Rewarding Shareholders with Competitive Income

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

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

Stellar Sales

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

Company Description

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name. The company currently operates 562 warehouses, including 409 in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, 7 in Korea, 6 in Taiwan, 9 in Japan, 32 in Mexico and 1 in Australia. Costco also operates Costco Online at www.costco.com and at www.costco.ca in Canada. The company plans to open an additional five new warehouses (including the relocation of one warehouse to a larger and better-located facility), prior to the end of calendar 2009.

Recent Events

In recent news, it was reported that Costco will stop carrying Coke products due to a dispute over prices as the retail giant is trying to win over customers with low prices, while Coca-Cola Co. (KO) is working hard to maintain profits amid a recessionary environment.

Solid Sales

Costco recently posted October net sales of $5.68 billion, a 7% increase over last year's $5.30 billion. Comparable sales spiked 5% year-over-year.

Competitive Income

In early October, the company declared a quarterly dividend of 18 cents per share, which was paid out on November 6. The dividend translates into an industry-leading yield of 1.2%.

Bullish Forecasts

Analysts polled by Zacks are upbeat on earnings. For the fiscal year ending August 2010, the Zacks Consensus Estimate of $2.87 per share was increased from $2.71 over the past 60 days. For the following year, Zacks analysts are calling for $3.22 per share, up from the 2 months-ago level of $3.00.

Zacks Investment Research

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).

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

Here are highlights from Friday’s Analyst Blog:

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).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

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

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

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

About Zacks

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

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

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

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

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

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

Chicago, IL – November 13, 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: Hewlett Packard Company (HPQ), 3Com Corporation (COMS), Cisco Systems Inc. (CSCO), Wal-Mart Stores Inc. (WMT) and GlaxoSmithKline, plc (GSK).

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 Thursday’s Analyst Blog:

Hewlett-Packard to Acquire 3Com

Hewlett Packard Company (HPQ) is planning to take over networking gear maker 3Com Corporation (COMS). The acquisition, valued at $2.7 billion, enables HP to challenge networking leader Cisco Systems Inc. (CSCO) on its own turf.

HP’s current networking products, sold under the ProCurve brand, generate around $1 billion in annual sales (less than 1% of the company’s total revenue). The product line lacks competitive data center switches, which makes it hard to take market share from well-entrenched Cisco.

3Com's expertise is in networking products for data centers, which supports HP's ProCurve networking equipment. Although the company has seen better times, it has been beefing up its portfolio by utilizing its design capabilities in low-cost China. The company is, therefore, in a position to compete aggressively on price. 3Com’s challenges include its poor brand value in American and European markets and its weak position in these geographies.

The HP-3Com combination is therefore an ideal fit, in our opinion. If the deal closes, HP will acquire a new capability overnight, strengthen its position in China and grow at its competitor’s expense. 3Com will benefit from HP’s superior brand value and find a broader market for its new products.

Wal-Mart Sales Up in U.S., Europe

Wal-Mart Stores Inc. (WMT) reported strong fiscal third-quarter earnings of 84 cents per share, which surpassed the Zacks Consensus Estimate of 81 cents. Earnings grew 9.1% year over year from 77 cents recorded in the year-ago quarter, and exceeded management’s guidance of 78 cents to 82 cents per share.

Wal-Mart’s net sales recorded a growth of 1.1% year over year to $98.7 billion, as a 1.2% expansion in Wal-Mart's U.S. segment coupled with a 1.6% increase in the International segment was partially offset by 0.7% decline in the Sam’s Club segment. The growth in International sales was driven by robust performance in the U.K., Mexico and Brazil, but was limited by unfavorable currency fluctuations.

The retailing behemoth, widely considered as a barometer of the country’s economy, said U.S. same-store sales dipped 0.5% year-over-year, while that for Sam’s Club rose by 0.1%.

Glaxo Reports Higher Revenues

GlaxoSmithKline, plc (GSK) reported third quarter income of 92 cents per American Depository Share (ADS), 3 cents below the Zacks Consensus Estimate. The company reported earnings of 94 cents in the year-ago period.

Third quarter 2009 revenue increased 3%, with growth being driven by strong performances in emerging markets (up 25%), Japan (up 19%) and Consumer Healthcare (up 8%). We were pleased to see growth in Consumer Healthcare revenue despite the global slowdown.

Meanwhile, US sales continued to be impacted by generic competition with revenue declining 12%. Sales of products like Imigran (down 74%), Lamictal (down 21%) and Requip (down 30%) and Wellbutrin XL (down 81%) kept declining.

Pharmaceutical product revenue increased 2% with sales being driven by Advair/Seretide (up 5%) and Relenza. Relenza benefited from continued orders from several governments for stockpiling.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

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

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

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

About Zacks

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

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

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

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

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

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

Chicago, IL – November 12, 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: Vodafone Group Plc (VOD), Telefonica (TEF), Deutsche Telekom (DT), France Telecom (FTE) and Verizon (VZ).

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 Wednesday’s Analyst Blog:

Vodafone Profit Leaps, Lifts Savings

Vodafone Group Plc (VOD), the largest wireless carrier in the world by revenue, has announced interim results for fiscal year 2010 with adjusted net income of £4.58 billion (US$7.3 billion) increasing 15% year over year from £3.99 billion (US$6.4 billion) reported a year ago, driven by favorable exchange rate movements and reduced tax. Adjusted earnings exclude one-time items such as impairment losses.

The telecom giant reported consolidated revenues of £21.8 billion (US$34.8 billion) for the period, representing a 9.3% year over year growth. Favorable exchange rate (euro-sterling) swings and net impact of merger and acquisition initiatives contributed to this growth. Excluding these impacts (organic basis), revenue declined 3% year over year.

Group service revenue declined 2.6% year over year on an organic basis to £20.5 billion (US$32.7 billion), primarily due to weaker contributions from European markets as recessionary conditions curbed demand for wireless services. Adjusted EBITDA increased 2.9% year over year to £7.5 billion (US$12 billion) driven by cost control.

Revenues for the European segment increased 3% year over year (down 5.1% on organic basis) to £14.9 billion (US$23.8 billion). Service revenue in Europe declined 4.5% organically as growth in Italy and the Netherlands was more than offset by decreases across Spain, Germany and the UK due to a weaker economy, regulatory pressure and intense competition.

Decline in voice revenue continues to offset growth in data. Revenue in Germany and the UK remains under pressure due to mobile termination rate (inter-operator fees) cuts. Vodafone is also losing customers in the UK as subscribers switch to its major rival Telefonica’s (TEF) O2 which is marketing iPhone in the UK.

Moreover, Deutsche Telekom (DT) and France Telecom (FTE) have recently finalized an agreement to combine their UK units, which will create the largest mobile carrier in the UK.

This segment posted revenues of £3.7 billion (US$5.9 billion), up 36% year over year. Organically, service revenue fell 3.2% as consistent growth at Vodacom (South Africa) and increase in subscriber count were partly offset by weak contributions from Romania and Turkey. Service revenue at Vodacom increased 4.2% on an organic basis as a result of healthy subscriber accretion.

Asia Pacific & Middle East segment continues to perform in line with expectation. Revenue surged 15.9% year over year (11.3% organically) to £3.1 billion (US$4.9 billion), driven by continued strong growth in India , the single biggest contributor to organic revenue growth. Service revenue in India increased 20.5% organically boosted by roughly 55% growth in wireless customer base amid intense price competition.

During the six-month period, Vodafone registered roughly 20.6 million net new mobile connections across its operations, bringing the total subscriber base to 323.3 million (83.5% represented by prepaid). India continues to be a key driver for subscriber growth with a net addition of 14 million customers in the first six months of fiscal 2010.

In Europe, the company registered a net loss of 262,000 subscribers during the half-year period. Verizon’s (VZ) mobile unit, Verizon Wireless, in which Vodafone holds a 45% stake, however, posted a net addition of 1.1 million customers.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

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

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

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

About Zacks

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

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

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

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

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

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

Company Description

NBTY manufactures and distributes nutritional supplements in the United States and around the globe. The company offers 22,000 products under the name brands Vitamin World, Puritan's Pride, Holland & Barrett, Rexall, Sundown, Worldwide Sport Nutrition and GNC (UK), among others.

NBTY Reports Record Fourth Quarter Results

On Nov 9, NBTY reported fiscal fourth quarter results which easily beat on the Zacks Consensus Estimate by 12.05%. Earnings per share were 93 cents compared to the Zacks Consensus of 83 cents. EPS was 28 cents in the year ago period.

Sales soared by 12% to a record $674 million from $602 million. Sales for the Wholesale/US Nutrition division rose 13% to $404 million. It markets brands such as Nature's Bounty, Rexall and Sundown.

For the quarter, the division outperformed the industry, which saw industry-wide sales of vitamins and other supplements rise by 11% while the company's wholesale brands segment climbed 13.6%.

On the retail side, the company's Vitamin World Stores in the U.S. and LeNaturiste stores in Canada saw net sales up 2% in the quarter but comparable store sales were flat.

Zacks Consensus Estimates Rise

Analysts like what they've heard in the fourth quarter results. The fiscal 2010 first quarter and full year Zacks Consensus Estimates are both moving higher.

The first quarter Zacks Consensus Estimates rose 6 cents to 84 cents in the last 7 days, as 3 out of 6 covering analysts raised in that time.

For fiscal 2010, half of the 8 covering analysts raised in the last week to $3.33 from $3.17 per share. Analysts expect 2010 earnings per share growth of 33.89%.

Value Fundamentals

NBTY is a Zacks #1 Rank (strong buy) stock. It is trading with a forward P/E of 12.32 and a price-to-book of 2.31. The company has a strong 5-year average return on equity (ROE) of 15.67%.

Zacks Investment Research

Chicago, IL – November 4, 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: France Telecom (FTE), Apple (AAPL), Telefonica (TEF), Vodafone (VOD) and Deutsche Telekom (DT).

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 AnalystBlog:

Orange UK Confirms iPhone Launch

France Telecom’s (FTE) subsidiary Orange UK has revealed the iPhone launch date as the carrier will officially unveil the iconic handset in the UK on Nov. 10, 2009. Moreover, the operator has also released pricing and tariff details for iPhone 3G and iPhone 3GS, which will be sold through direct retail distribution channels including on-line stores, shops and telesales channels.

Orange will sell the iPhone to consumer and business customers through various price plans such as "pay as you go" (PAYG) and "pay monthly" basis. Under the PAYG plan, customers who top up £50 ($82) at purchase will get the iPhone 3G for £343 ($563), iPhone 3GS (16GB) for £440 ($722) and iPhone 3GS (32GB) for £539 ($884), along with 250MB of data usage per month and unlimited Wi-Fi (wireless broadband) access for a year.

Under the "pay monthly" option, iPhone 8GB, 16GB and 32GB models will be sold under a range of monthly plans. With a two-year service contract, iPhone 3GS (16GB) will be offered free on all £45 ($74) monthly tariff plans while iPhone 3G is free on £30 ($49) plans.

Orange sealed the marketing rights to Apple’s (AAPL) iPhones on Sept. 2009, which effectively ended Telefonica (TEF) O2 UK’s two-year exclusive distribution rights to sell the device in the UK. However, O2 UK, which has been offering the iPhone since Nov. 2007 and has amassed more than 1 million customers, will continue selling the handset in the UK. Moreover, Vodafone (VOD) is expected to market iPhones in the UK in early 2010.

Orange UK is currently the third-largest operator in the British mobile market with 21.5% share. However, the company remains challenged by the cut-throat price competition as its bigger rivals such as O2 UK and Vodafone continue to boost their respective market shares through aggressive product/price offerings.

To strengthen its foothold in the UK wireless market, Orange UK is merging with Deutsche Telekom’s (DT) subsidiary T-Mobile UK (the fourth-largest mobile carrier in the UK) under a 50-50 joint venture. The combined entity would dethrone O2 UK as the largest wireless operator in the UK, with roughly 37% market share.

iPhone represents a significant opportunity for Orange UK to further bolster its presence in the UK mobile market by attracting new high-end subscribers. The company will leverage its market leading 3G network to roll out the popular handset, addressing a significant portion of the UK’s cellular user base.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

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

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

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

About Zacks

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

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

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

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

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

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

For 2010, analysts polled by Zacks are calling for earnings of $1.53 per share, versus last month's $1.48.

The company recently announced that it will return to television advertising in November and that it will continue to invest internationally, including: opening its first Gap store in China in 2010; expanding its Outlet store presence internationally; and launching online businesses in Canada and the United Kingdom in 2010.

"Old Navy's performance this year has shown what we can deliver through consistent products, re-invigorated marketing, and an enhanced store environment," said Glenn Murphy, chairman and CEO of Gap Inc. "With our improved economic model, we're ready to step up our investments and strategies to regain market share and expand our international platform."

Gap saw net sales of $1.33 billion in September, a 1% dip year-over-year. Comparable store sales also decreased by 1%.

Read the September 30 commentary.

Last Week's Growth and Income Zacks Rank Buy Stocks

Tupperware Brands Corporation (TUP) recently reported third-quarter earnings of 54 cents per share, topping the Zacks Consensus Estimate by 29% and surpassing the previous year's 47 cents. Sales were up 9% in local currency. The company also declared a dividend of 25 cents, representing a 14% boost. Read the full story on TUP.

Ross Stores, Inc. (ROST) recently announced September sales of $629 million, a 12% increase year-over-year. Same store sales jumped 8%. The company also hiked its third-quarter earnings guidance to a range of 75 to 77 cents per share. Analysts polled by Zacks are in agreement, boosting forecasts from last month's 63 cents to 77. Read the full story on ROST.

Guess? Inc. (GES) is outpacing the market on record second-quarter results and higher Zacks Consensus Estimates. During the past 2 months, analysts polled by Zacks boosted full-year earnings forecasts from $1.92 to $2.17 per share. Read the full story on GES.

Avon Products Inc. (AVP) is seeing bullish earnings estimates ahead of reporting next week. The full-year Zacks Consensus Estimate of $1.66 per share is up 5 cents over the past 90 days. For 2010, analysts polled by Zacks are projecting earnings of $2.11 per share, versus last month's $2.08 and the 3 months-ago forecast of $1.95. Read the full story on AVP. Zacks Investment Research

(From Bloomberg)

U.K. gross domestic product unexpectedly dropped in the third quarter as enduring slumps in services, manufacturing and construction kept the economy mired in its longest recession on record.

Gross domestic product dropped 0.4 percent from the previous three months, the Office for National Statistics said today in London. Economists predicted a 0.2 percent increase, according to the median of 33 forecasts in a Bloomberg News survey. The economy has now contracted in six quarters, the most since records began in 1955.

Chancellor of the Exchequer Alistair Darling said this week he will focus on spurring economic growth as he struggles to cement a recovery in time for a general election due by June. Today’s data may add to pressure on Bank of England officials to expand bond purchases at their Nov. 5 decision after completing a plan to buy 175 billion pounds ($291 billion) in assets.

Where goes Sterling on this?

Company Description

Cott manufactures non-alcoholic beverages and is one of the world's largest retailers of brand soft drinks. It partners with customers to produce private label soft drinks as well as distributes its own brands under the names Cott, RC, Ben Shaws, Stars & Stripes, Vintage and Vess.

Cott also recently introduced ready-to-drink teas, flavored waters, energy drinks, juice drinks and smoothies. The company's brands are sold in over 60 countries.

Zacks Consensus Estimates Rising

Cott is scheduled to report third quarter results on Oct 29. The third quarter Zacks Consensus Estimate rose 1 cent in the last 30 days to 16 cents as 1 out of 6 covering analysts raised during that time.

The full-year Zacks Consensus Estimates have been holding at 65 cents in the last 60 days, up from 38 cents in the last 3 months. Analysts expect 2009 earnings growth of 645%.

Cott Surprised by 240% in the Second Quarter

On July 27, Cott reported its second quarter results which easily surpassed the Zacks Consensus Estimate by 36 cents per share. Earnings per share were 51 cents compared to the estimate of 15 cents. The company posted a loss of 3 cents a share in the year ago period.

Revenue, however, declined by 5.9% to $438.8 million from $466.5 million in the second quarter of 2008. Global beverage case volume slid 2.5%. The Mexican market saw the worst of it, as beverage case volume fell 32.5% due to the global recession and the impact of the H1N1 virus. Mexican revenues fell 41.1% year over year.

North American beverage case volume was basically flat compared to the year ago period.

However, the company saw reasons for optimism.

"We are pleased with our second quarter results which were driven by the steady improvement of our North American operations and a stronger volume performance in our U.K. business," said Jerry Fowden, CEO.

Value Fundamentals

Cott is a Zacks #1 Rank (strong buy) stock. It has a forward P/E of 12.7 and a price-to-book ratio of 1.98. The company also has a stellar 1-year return on equity (ROE) of 18.80%.

Zacks Investment Research

SAFC Pharma's Carlsbad site specializes in the process development and manufacturing of viral vaccines and viral therapeutics − including a full menu of support services − from preclinical process and analytical development to final fill/finish and commercial bulk drug supplies. The new expansion, designed for multi-lot campaigns, includes dedicated cell expansion, bioreactor production, purification and cleanroom suites. The expansion will enable both 100-liter batch production in stirred tank bioreactors and 1,000-liter batch manufacturing in disposable bioreactors and is Biosafety Level 2 compliant, allowing manipulation of human pathogens.

SAFC has announced worldwide investments totaling $90 million to expand capacity for active pharmaceutical ingredients production and biologic drug products. With respect to this, SAFC’s Pharmorphix Solid State Research Laboratories in Cambridge, UK have recently installed a new single crystal X-ray diffraction system. The Oxford Diffraction SuperNova™ system, which can determine the crystal structures from the most challenging crystal samples, is the first industrial installation in the world.

Equipped with a powerful high flux dual wavelength microsource X-ray generator, the SuperNova instrument is capable of performing single crystal X-ray analyses on small microcrystalline fragments with dimensions of 30 to 50 microns. The dual wavelength capability will allow the rigorous determination of absolute stereochemistry of chemical entities, which contain first row elements only. Solid-form characterization and research is an essential part of the drug development process.

Earnings estimates for COT haven't moved much in the past 2 months, but remain well above levels from 3 months ago in reaction to its second-quarter numbers.

COT is one of the world's largest non-alcoholic beverage companies, and also 1 of only 2 companies from the beverages-soft industry on today's Zacks #1 Rank List, which includes 218 stocks. The other name from the space is Dr. Pepper Snapple Group, Inc. (DPS).

Earnings Estimates

The Zacks Consensus Estimate for this year rests at 65 cents per share currently. There has been no movement in the target over the past 2 months, but it remains above the level from 3 months ago by 71%.

Meanwhile, the Zacks Consensus Estimate for next year of 72 cents per share has only shown a penny improvement in 30 days, but is staying approximately 41% atop the 3-month ago mark of 51 cents.

Furthermore, next year's profit suggests year-over-year growth at nearly 11%.

Second-Quarter

Earnings estimates spiked higher a few months ago because COT announced solid second-quarter numbers in late July.

The company reported earnings per share of 51 cents, marking an impressive 240% surprise over the Zacks Consensus Estimate of 15 cents. This was the company's second straight triple-digit quarterly earnings surprise.

Revenue declined nearly 6% to $438.8 million from $466.5 million. Excluding the impact of foreign exchange, revenue increased 2.3%.

The quarter's results were driven by improvement in its North American operations and a stronger volume performance in its U.K. business.

"We will continue to support our customers' efforts to increase private label penetration, while executing our plan to reduce operating costs and optimize capital expenditures," said CEO Jerry Fowden.

"Our focus remains on improving year-over-year cash flow and reducing our level of debt, thereby allowing us to strengthen our position as a low cost, high service supplier," Mr Fowden continued.

Zacks Investment Research

Investors can find such funds by checking out the entire list of the Zacks #1 Rank International Bond Fixed Income Funds.

3 Solid Samples

Loomis Sayles International Bond A (LSIAX) seeks high total investment return through a combination of high current income and capital appreciation.

The fund normally invests at least 80% of its net assets in fixed-income securities of issuers located outside the United States. It is non-diversified.

Shareholders have to make a minimum initial investment of $2,500 to enter this Zacks#1 Rank (“Strong Buy") fund. It has an expense ratio of 1.10%.

Putnam Global Income A (PGGIX) was incepted in June 1987. The investment seeks current income with preservation of capital and long-term total return as secondary considerations.

The fund primarily invests in investment-grade debt securities. It invests mostly in bonds that have maturities of at least three years.

D. William Kohli has been lead manager at the fund since July 1994. It has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Goldman Sachs Global Income A (GSGIX) seeks current income; capital appreciation is a secondary consideration. The fund normally invests a bulk of its assets in fixed-income securities.

The fund may invest more than 25% in the securities of corporate and governmental issuers located in Canada, Germany, Japan and the United Kingdom as well as in the securities of US issuers. It must invest at least 30% of assets in securities dominated in US dollar.

The fund enters into foreign currency transactions. It distributes dividends monthly and capital gains annually.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Company Description

Carlisle Companies is a diversified global manufacturing company that serves a wide variety of industries, including construction materials, commercial roofing, specialty tire and wheel, foodservice and aerospace to name a few.

Recent Acquisitions

The company recently announced that it acquired from its joint venture partner, The Yokohama Rubber Company, Ltd., the remaining interest in Japan Power Brake, Inc. (JPB) of Atsugi, Japan.

Carlisle stated that with annual sales of approximately $10 million, JPB is a leading provider of high performance braking solutions for off-highway equipment, primarily in the mining and construction industries in Japan.

Carlisle also recently announced the acquisition of privately-held Electronic Cable Specialists, Inc. (ECS), a leading designer and manufacturer of electrical and structural products and services for the aviation, medical and industrial markets.

ECS has annual sales of $50 million and it is headquartered in Franklin, WI with various distribution points in the US, France and the United Kingdom.

A Recent Dividend Hike

Carlisle boosted its quarterly dividend 3.2% to 16 cents per share. The dividend was paid out on Sept 1 and marked the 33rd straight year of dividend increases.

The company's dividend yield of 2% is in line with the industry average.

Solid Momentum and Higher Forecasts

Carlisle is outpacing the market and seeing bullish Zacks Consensus Estimates ahead of reporting. Full-year projections of $1.83 per share jumped from $1.43 over the past 3 months.

For 2010, analyst polled by Zacks are calling for earnings of $2.13 per share, versus the 3 months-ago projections of $1.65.

Third-quarter forecasts of 68 cents per share were increased from 50 cents over the past 3 months.

The company is scheduled to report third-quarter results on Oct 20.

Second Quarter Results

The second quarter saw earnings of 79 cents per share, beating the Zacks Consensus Estimate by 76%. Earnings per share were ahead of the consensus by an average 18% over the past 4 consecutive quarters.

David A. Roberts, Chairman, President and CEO, said, "Our end market conditions continue to be a challenge. However, despite a 28% decline in our second quarter sales, we were able to increase our operating margins. We were especially pleased with results at our Construction Materials segment, which increased their operating margin to 16.3%, as compared to 12.2% for the same period last year, despite a 29% decline in sales.

Roberts added that in addition to the margin improvement, the company continued its strong cash flow performance in the quarter, generating $205 million in net cash from operations.

"As a result of the positive cash flow, we were able to reduce our outstanding debt by $185 million during the second quarter. Our balance sheet and available credit lines position us to take advantage of potential acquisitions and further invest in our core businesses to grow our revenue and expand our operating margins," said Roberts.

Zacks Investment Research

The company will test run its 4G LTE network in six countries across Europe and Latin America. The outcome of the trials will help Telefonica to chalk out its next phase of network deployment strategy.

Telefonica will conduct 4G LTE trials during the next six months in multiple European countries such as Czech Republic, Germany, Spain and the UK, while the Latin American trials will be staged in Brazil and Argentina. The company has already conducted its first LTE trial in Madrid in April 2009, which has demonstrated encouraging throughput levels.

Telefonica has also announced network infrastructure and equipment vendors to facilitate the field testing. It has reportedly selected six technology providers: Alcatel-Lucent (ALU), Ericsson (ERIC), Huawei, NEC, Nokia Siemens Networks and ZTE.

Leading carriers across the world have adopted LTE as the base technology standard for 4G network upgrade initiatives due to its fast data transfer capability. LTE offers rapid downlink and uplink speeds that averages 100 megabits per second (Mbps) and 50 Mbps, respectively, which is competitive or faster than other leading 4G standards, including WiMax.

Telefonica has recently expanded its strategic alliance with the second-largest Chinese carrier China Unicom (CHU). This extended collaboration is expected to offer significant technological and operational synergies. Additionally, the companies are likely to collaborate in future technology upgrades, such as the development of 4G LTE technology.

By moving to the 4G LTE network, Telefonica will offer its customers super-fast mobile broadband experience, representing an encouraging opportunity to improve customer retention. The company hopes to offer peak network speed of up to 340 Mbps in ideal conditions. Moreover, the ultra high-bandwidth multimedia data applications fostered by the 4G LTE network will boost revenue per user through increased minutes of use.