The energy that will be produced by EURUS is estimated to be sufficient to power a Mexican city of half a million inhabitants, reducing CO2 emissions by approximately 600 thousand metric tons each year, which is approximately 25% of the total emissions generated by such a community.
 
EURUS will be one of the largest wind farms in the world and the second largest in terms of emissions reduction registered under the Clean Development Mechanism of the United Nations (Kyoto Protocol). It will also have one of the largest emission reduction indexes per installed capacity in the world.
 
The wind farm represents a major contribution towards the global effort that Cemex is making to reduce its emissions footprint and to become more sustainable.

The recession is over! In the third quarter GDP grew by 2.8% (3.5%), slightly below (comfortably ahead) of expectations for 2.9% (3.0%) growth. This is a huge improvement over the 0.7% decline in the second quarter and the 6.4% plunge in the first quarter.

The internals of the report were strong as well, although it appears that much of the growth came from things like the Cash for Clunkers program and the extraordinary levels of support that are currently being given to the housing sector.

Growth Rates

The overall 2.8% (3.5%) growth of GDP was almost matched by its biggest component, Personal Consumption expenditures, or PCE, which grew 2.9% (3.4%), a big improvement over the 0.9% decline in the second quarter and the 0.6% increase in the first three months of the year.

It is important to note that during the recession, consumer spending declined far less than did overall GDP, especially in the first quarter, so the consumer was becoming a much bigger part of the overall economy. This is not healthy over the long run, but at this point I think people are happy to get some growth where ever we can find it

Now, you might wonder, what caused the recession to be so nasty last winter when Consumer spending wasn’t really all that bad? The answer is that Investment really fell of a cliff. The good news is that it is starting to come back.

Fixed investment is broken into two parts, Non-Residential or business investment and Residential investment, which is mostly homebuilding.

Overall Fixed investment rose by 0.3% (2.3%) following declines of 12.5% in the 2Q and 39.0% in the 1Q. Business investment, however, continued to decline, but at a much slower rate, falling 4.1% (2.5%) after 9.6% and 39.2% declines in the 2Q and 1Q, respectively. With massive amounts of unused capacity it is not surprising that businesses are cutting back on their capital spending still.

Spending on Equipment and Software (E&S) on the other hand is starting to come back, if only feebly, rising 2.3% (1.1%) after a 4.9% decline in the 2Q and a 36.4% plunge in the 1Q. Look for some stability in this line going forward as the new Microsoft operating system will probably generate a new PC cycle, but with capacity utilization still around 70% I would not expect a boom in orders for new factory equipment.

The real star of fixed investment though came on the residential side, which rose 19.5% (23.4%). This is the first increase in almost four years, and follows declines of 23.3% in the 2Q and 38.2% in the 1Q. The long string of declines had brought residential investment to a record low share of GDP. The extraordinary support of the housing sector by the government, including the first time buyer tax credit, the Fed buying up $1.25 Trillion of Fannie (FNM) and Freddie (FRE) backed paper to artificially suppress mortgage rates and the FHA acting like the old New Century Financial or Washington Mutual on their worst days have played a big role in the turnaround. I seriously question the sustainability of it after the support is removed, and I don’t think the support can continue indefinitely.

Government spending grew by 3.1% (2.3%) in the 3Q, a big slowdown from the 6.7% increase in the 2Q, but more than the 2.6% decline in the 1Q. It was all at the Federal level where spending rose at an annual rate of  8.3% (7.9%) down from a 11.4% increase in the 2Q, but up from the 4.3% decline in the 1Q.

Remember this measure of government spending does not include spending on transfer payments like Social Security and Medicare, which are largely captured in the consumption numbers. Defense spending was the big driver -- we are still a nation fighting two wars. It grew at an annual rate of 8.3% (8.4%) down from a 14.0% rate of increase in the 2Q but up from a 5.1% decline in the 1Q.

International trade has started to rebound, and we saw an increase in both imports and exports. Increasing exports are good for GDP and increases in Imports are bad for GDP, and unfortunately imports rose more than did exports. We were able to improve our overseas sales by 17.0% (14.7%) in the 3Q -- a nice turnaround from the 4.1% decline in the 2Q and the 29.9% plunge in the 1Q. Unfortunately we also increase what we bought from overseas by 20.8% (16.4%), a big turnaround from the 14.7% decline in the 2Q and the 36.4% plunge in the first three months of the year. Keep in mind that we import a lot more than we export, so not only was the percentage increase bigger for imports, it was coming off a higher base.

Contributions to Growth

Not all components of GDP are created equal.  Some are very big, and others relatively small. Some tend to be very stable over time, and some tend to swing violently from quarter to quarter. The bigger and more volatile they are, the more they will impact the overall growth rate of GDP. Thus looking at just the percentage changes in the componenets does not tell the full story. Of the 2.8% (3.5%) total growth, how many points were added or subtracted by each part of the economy?

The biggest part of the economy is the Consumer or PCE, over all it contributed 2.07 (2.36) of the 2.80 (3.50) points of total growth. In the second quarter it caused 0.62 of the 0.70 total decline in the 2Q. In the first quarter it actually offset 0.44 points of the 6.40 total decline. In other words, excluding the consumer the economy would have contracted 6.84% rather than 6.40%.

Within consumer spending, spending on goods added 1.60 (1.79) points after subtracting 0.71 points in the 2Q and adding 0.56 points in the 1Q. Spending on durables was the main driver, adding 1.34 (1.47) points after subtracting 0.41 points in the 2Q and adding 0.28 in the 1Q.  Non durable goods added 0.26 (0.31) points after subtracting 0.29 in the 2Q and adding 0.29 in the 1Q.

Investment spending was a big swing factor in the 3Q.  It added 0.91 (1.22) points to overall growth. That is a HUGE improvement over the 3.10 point subtraction in the 2Q and the 8.98 point implosion in the 1Q.  Unfortunately. 0.87 (0.94) points of that contribution came from inventories. Inventory investment is the “worst" type of GDP growth since large increases in one quarter are usually reversed in the next quarter, or in this case, large declines being reversed upwards. 

In the 2Q inventory investment subtracted 1.42 points from overall growth and in the 1Q they subtracted 2.36 points.  Even in the 4Q they subtracted 0.64 points from growth.  Three straight quarters of sharply lower inventories is highly unusual and we were due for a bounce.  Perhaps we have one more quarter of a solid contribution from inventory investment, but I would not expect it to last much beyond that. 

Overall fixed investment added just 0.04 (0.28) points to growth, but that sure was a nice improvement over the 1.68 point subtraction and the 6.62 point disaster that was the 1Q.

However, it was not coming from the business side.  Business investment subtracted 0.40 (0.24) growth points in the 3Q, so it is still very soft, but at least it is not imploding like it was earlier in the year.  In the 2Q it subtracted 1.01 points and in the 1Q it took away 5.29 growth points.  Within business investment it was spending on structures that caused the problem with a deduction of 0.55 (0.32) growth points while spending on E&S offset 0.15 (0.08) points of that.  In the 2Q both sides of business investment were drags on the economy with investment in Commercial real estate subtracting 0.69 growth points and spending on equipment deducting 0.32 points.  The 2Q was in turn a major improvement over the 1Q disaster where spending on structures subtracted 2.28 growth points and equipment spending subtracted 3.01 points.

Housing finally helped the economy in the 3Q, adding 0.45 (0.53) points to growth, after a string of 15 straight quarters where it was a drag on the economy.  In the 2Q it was a 0.67 point drag and in the 1Q it was a 1.33 point drag.  The long decline has, however, made housing a much smaller share of the overall economy.  In the 3Q residential investment totaled only $360.9 billion, or 2.52% of the overall economy.  At the peak of the housing bubble it represented 6.34% of the overall economy.  Thus the 19.5 (23.3%) increase in residential investment had far less of an overall impact than it did in the past.

Direct government spending had a small but positive impact on overall growth in the 3Q, adding 0.63 (0.48) points a fairly significant slowdown from the 1.33 contribution in the 2Q, but better than the 0.52 point drag in the 1Q.  All the help came from Washington , not city hall or the statehouse.

The Federal government added 0.65 (0.62) growth points, down from 0.85 points in the 2Q but up from a 0.33 point drag in the 1Q.  The Pentagon was the main factor in all three quarters, with defense spending adding 0.48 (0.45) points in the 3Q following a 0.70 addition in the 2Q and a 0.27 point drag in the 1Q.  Non-defense spending was sort of a non issue, adding just 0.17 (0.17) points in the 3Q, not much difference from the 0.15 point contribution in the 2Q, and up a little bit from the slight 0.06 point drag in the 1Q.

State and Local governments are not allowed to run operating deficits, and so when faced with declining tax revenues they have to cut back, unless Uncle Sam helps them out.  Well Washington is helping, but its not enough and S&L spending was a 0.02 (0.14) point drag in the 3Q.  The Federal help was enough in the 2Q and so the contribution to growth in the 2Q was a positive 0.48 points.  In the 1Q, before the stimulus package could get much traction S&L spending was a 0.19 point drag.

Net exports had been just about the only bright spot in the first half of the year, even though it came the wrong way, from both imports and exports plunging, only with imports falling more than exports did.  That reversed in the 3Q as both showed a nice expansion, but our appetite for foreign goods outstripping the desire for U.S. goods and services abroad.  The increase in exports added 1.71 (1.49) points to growth, but the increase in imports was a 2.53 (2.01) point drag, for a net negative contribution from net exports of 0.82 (0.52) points. In the 2Q falling exports subtracted 0.45 points but plunging imports added 2.09 points, for a net imports net help to the economy of 1.64 points.

Overall

Relative to the first cut at the data, the downward revisions were broad based, with smaller contributions from all major areas of the economy, with the exception of the government.  Of particular concern is that fixed investments contribution to growth virtually disappeared.

 
Dirk van Dijk, CFA is the Chief Equity Strategist for Zacks.com. With more than 25 years investment experience he has become a popular commentator appearing in the Wall Street Journal and on CNBC. Dirk is also the Editor in charge of the market-beating Zacks Strategic Investor service.

Chicago, IL – November 24, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Encore Capital Group, Inc. (ECPG), American Express Company (AXP), Arena Resources Inc. (ARD) and Avnet, Inc. (AVT).
    
Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +26%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained +43.8%.

Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth – Encore Capital Group, Inc. (ECPG)
Encore Capital Group, Inc. just set a new 52-week high following the recent earnings report, which topped expectations.

Zacks Guide to Aggressive Growth Investing (free!): http://at.zacks.com/?id=4309

Growth & Income – American Express Company (AXP)
American Express Company has seen recent upward revisions of the Zacks Consensus Estimate for earnings. Shares staged a nice advance lately, outpacing the market by about 20% over the past 3 months.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum – Arena Resources Inc. (ARD)
Arena Resources Inc. has posted big gains over the last 8 months on strong earnings and elevated energy prices.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value – Avnet, Inc. (AVT)
Avnet, Inc. recently saw quarter over quarter growth as the global recession eased. The company is trading with a forward P/E of 13.2.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=5607
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

Today, Zacks is promoting its stock recommendations by offering four daily picks free to those who register at http://at.zacks.com/?id=5607 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin. 
  
More Free Stock Picks

Each weekday, new Zacks #1 Rank or Zacks #2 Rank stock picks are released on the free email newsletter, Profit from the Pros. Investors are invited to register for their free subscription at http://at.zacks.com/?id=5642

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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.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

or

Growth & Income Stocks:
Contact: Alex Kolb
Phone: 312-265-9149

or

Momentum Stocks:
Contact: Michael Vodicka
Phone: 312-265-9226

or

Value Stocks:
Contact: Tracey Ryniec
Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

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

Corporate profits increased $130.0 billion in the third quarter, compared with an increase of $43.8 billion in the second quarter.  Current-production cash flow, the internal funds available to corporations for investment, increased $41.6 billion in the third quarter, in contrast to a decrease of $30.5 billion in the second.

Consumer Confidence increased to 49.5 in November from 48.7 in October.  Appraisal of present day conditions were unchanged, as the short-term outlook improved slightly and the labor market outlook became less pessimistic.

Upcoming Releases
Initial Claims (11/25 at 8:30 AM EST)
Disposable Personal Income (11/25 at 8:30 AM EST)
Crude Inventories (11/25 at 10:30 AM EST)
Core PCE Inflation (11/25 at 8:30 AM EST)

• Analog Devices (NYSE:ADI) reported better-than-expected fiscal fourth quarter earnings of 36 cents a share, 10 cents above Zacks estimates, on revenues of $572 million, which beat projections of $523 million, but fell short of last year's $660.7 million. The firm expects fiscal first quarter results of 36 cents to 37 cents a share

• Heinz (NYSE:HNZ) reported fiscal second quarter earnings of 76 cents a share, beating estimates of 69 cents, on revenues of $2.67 billion, above estimates of $2.63 billion. Full-year guidance was raised to $2.72-$2.82 from earlier expectations of $2.60 to $2.70 a share

• Medtronic (NYSE:MDT) reported better-than-expected third quarter results of 77 cents ex-items, 3 cents above estimates, on revenues of $3.84 billion, which topped estimates of $3.75 billion. The company expects fiscal 2010 adjusted earnings of $3.17-$3.22, above Street projections of $3.15

• Reports said Citigroup (NYSE:C) is selling its Diners Club credit card enterprise to Bank of Montreal for about $1 billion

• UBS (NYSE:UBS) downgraded Union Pacific (NYSE:UNP) to "neutral" but maintained a $67 price target

• National Semiconductor (NYSE:NSM) was added to Citigroup's (NYSE:C) Top Picks Live List, with a $20 price target

• JP Morgan (NYSE:JPM) reiterated its "overweight" rating on General Electric (NYSE:GE) on improvements in fundamentals

On Monday, the 30-stock Dow Jones industrial average surged 132.79 points, or 1.29%, to 10,450.95.  The broad Standard & Poor's 500-stock index rose 14.86 points, or 1.36%, at 1,106.24 and the tech-heavy Nasdaq composite index jumped 29.97 points, or 1.40%, to 2,176.01. Trading volume was light, with NYSE volume less than 1 billion shares, as advancing shares outran decliners by a four-to-one margin.  Wall Street’s fear gauge, the CBOE Vix, plummeted 4.6% to 21.16.

Treasuries lost ground as investors’ risk appetite grew.  A number of analyst upgrades also helped shares yesterday and after the close Hewlett-Packard (NYSE:HPQ) came out with strong numbers and also announced plans to triple its repurchase plan.

Among the DJIA components, all but two gained, led by Verizon (NYSE:VZ), up 3.0%, AT&T (NYSE:T), up 2.9%, General Electric (NYSE:GE), up 2.9%, and Chevron (NYSE:CVX), up 2.6%.  A Barron's article suggested AT&T (NYSE:T) shares undervalued due to concerns its exclusive iPhone contract with Apple (NASDAQ:AAPL) might not be extended next year; Verizon (NYSE:VZ) shares jumped shot up on hopes the exclusivity agreement might not be extended.  And Chevron (NYSE:CVX) shares gained from the dollar’s retreat.

All ten S&P 500 industry groups advanced, led by consumer services and telecommunications, both up 2.7%, oil and gas, up 1.6%, and industrial and tech shares, both up 1.5%.

Gold prices jumped to fresh highs yesterday, before giving up some ground to settle at $1164.70, up $17.90.  Meanwhile, the greenback dropped 0.7% to 75.13 against a basket of currencies.  This afternoon's FOMC meeting minutes will be scrutinised by investors for any evidence of a timing change for its asset purchase programs.  Such considerations are also key to the trajectory for gold pricing, viewed as an inflation hedge.

Earnings reports are due from Barnes and Noble (NYSE:BKS), Borders (NYSE:BGP), Dollar Tree (NASDAQ:DLTR), Heinz (NYSE:HNZ) and Hormel (NYSE:HRL).

•  The Technology Solutions Group (TSG) was $14.1 billion down 2.6% year over year. Within TSG, Enterprise Storage and Servers (ESS) revenue declined 17.0% year over year, driven by declines across all three business units -- Industry Standard Servers, Business Critical Systems and Storage. Services revenue increased 8.0% year over year, mainly due to the addition of EDS’ revenue. EDS’ integration was ahead of the company’s plans. HP Software revenue fell 16.0% year over year with declines in both the Business Technology Optimization (BTO) portfolio and other software.
•  Personal Systems Group (PSG) revenue was $9.8 billion, which fell 12.0% year over year despite an 8% year-over-year increase in unit shipments. The company maintained its leading market position in PCs in every region. However, notebook revenue declined 8.0%, while Desktop revenue declined 16.0%. Commercial client revenue was down 15% and Consumer client revenue down 8.0%.
•  Imaging and Printing Group (IPG) continued to struggle as revenue was $6.4 billion, down 15.0% year over year. Ink supplies, commercial hardware and consumer hardware also reported substantial declines. We believe this segment has come under pressure due to strong competition from cheaper brands. Printer unit shipments decreased 20.0% from which period, with consumer and commercial printer hardware units down 14.0% and 138.0%, respectively. Consumer and commercial hardware revenue declined 17.0% and 32.0%, respectively.
•  HP Financial Services (HPFS) revenue was $0.7 billion, up 5.0% year over year. Financing volumes increased 6.0%, while in net portfolio assets increased 21.0%.

Chicago, IL – November 24, 2009 - Zacks Research Equity Strategist Dirk Van Dijk says that S&P 500 earnings are continuing to show red ink. He tracks companies on the Zacks.com web site, naming names, while forecasting trends for the months ahead.

Be Thankful for a Strong Earnings Season

The broad increases in earnings estimates seems to reflect a much better short-term outlook for the economy. Note that some of the most cyclical areas such as Retailers, Materials and Autos are seeing a large preponderance of upward over downward earnings revisions, and that most of the firms in those sectors are seeing their consensus estimates increase.

On the other hand, the defensive Staples sector has a very high revisions ratio of 8.55, so it’s not just the cyclicals. Then again, given the great performance by the Staples on the surprise front, a strong estimate revisions performance is not surprising.

One industry that has seen some remarkable increases in their estimates for both this year and next is the Semiconductor Equipment industry, with firms like Applied Materials (AMAT), KLA-Tencor (KLAC) and Novellus (NVLS) all seeing no estimates cut and double-digit numbers of increases leading to very large percentage gains in their mean estimates. Those are what one might term new economy cyclicals. Many of the old economy cyclicals like Ford (F) and Cummins Engine (CMI) have also seen large estimate increases.

Want stock picks from Zacks Equity Research that are based on earnings estimates? Subscribe to the free "Profit from the Pros" newsletter: http://at.zacks.com/?id=5617.

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=5618.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin.

The best way to unlock profitable Zacks' stock recommendations and market insights is through the free daily email newsletter: "Profit from the Pros." It provides a steady flow of profitable ideas GUARANTEED to be worth your time. Register for your free subscription at http://at.zacks.com/?id=5616

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Contact: Dirk Van Dijk, CFA
Company: Zacks.com
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Chicago, IL – November 24, 2009 – Zacks Equity Research highlights Petrobras (PBR) as the Bull of the Day and St. Jude Medical (STJ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Motorola Inc.(MOT), Sprint Nextel Corp.(S) and Alcatel-Lucent (ALU).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

Petrobras (PBR), the largest integrated energy firm in Brazil, stands to benefit from its country's economic growth and huge pre-salt oil reserves. The company recently reported a better-than-expected third-quarter, helped by strong downstream results that more than offset the sharp decline in commodity prices.

Near- to medium-term concerns include the uncertain commodity-price scenario, significant capital investment requirements, and Brazil's proposed new oil and gas regulatory framework. However, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook looks compelling.

As such, we recommend an Outperform rating for Petrobras ADRs. Our six-month target price is $55 per share.

Bear of the Day:

We look for global demographic trends -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth of St. Jude Medical (STJ). These trends give rise to growing demand for cardiovascular health care.

However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.

Earnings per share in the third quarter reached $0.59, beating the Zacks Consensus Estimate by one cent. However, we have chosen to downgrade the stock to an Underperform with a target price of $31.

Latest Posts on the Zacks Analyst Blog:

Motorola Boosts iDEN Business

Motorola Inc.(MOT) has decided to purchase iDEN base station assets of the privately held RadioFrame Networks Inc. The iDEN (Integrated Digital Enhanced Network) technology allows cell phone calls to move on the same network as communication from two-way radios. In general, this technology resembles walkie-talkie features on cell phones. Financial terms of this deal have not been disclosed so far. Motorola itself is the pioneer of the iDEN technology that RadioFrame had licensed for its base station products.

The main reason for this acquisition is the superior iDEN-based base station products of RadioFrame that are lower cost and more power efficient. This proposed acquisition will enhance Motorola's portfolio of multi-channel base stations products that are optimized to support non-contiguous spectrum allocations in the special mobile radio business. Motorola may use RadioFrame’s lower-cost iDEN architecture into entirely separated spectrum bands that are allocated to the wireless carriers in the international (outside the U.S.) markets. RadioFrame has a solid client base for its base station products, notable among them being Sprint Nextel Corp.(S).

RadioFrame’s base station products will be a part of Motorola’s Home and Network Mobility segment. This segment makes equipment for cable and wireless operators. Recently, industry rumors indicated that the company has decided to sell this segment for more than $4.5 billion. As of now, Home and Network Mobility is the largest segment of Motorola. In the third quarter of 2009, this segment generated more than $2 billion revenue and $199 million operating profit.

Earlier this month, Motorola’s Home and Network Mobility segment decided to purchase IPTV specialist BitBand and will do venture funding to the LTE chip making business of Sequans Communications together with Alcatel-Lucent (ALU). BitBand has more than 60 commercial IPTV deployments throughout the world and Paris based Sequans Communications has intended to demonstrate its first LTE chipset in early 2010. Whether Motorola sells its Home and Network Mobility segment or not, it seems that the company is increasingly focusing on optimizing the resources of its largest business segment.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

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.

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 analyst 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 by visiting http://at.zacks.com/?id=5508.

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=5509.

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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Web Content Editor
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Chicago, IL – November 24, 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: Skyworks Solutions (SWKS), Ericsson (ERIC), Alcatel-Lucent (ALU), Nokia (NOK) and Siemens (SI).

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 Monday’s Analyst Blog:

Skyworks Beats Estimates

Skyworks Solutions (SWKS) earlier reported revenues of $228.1 million in the fourth quarter of fiscal 2009, up 19% sequentially and surpassed management’s guidance range of $220 million - $225 million.

Operating margin came in at 14.4% compared to 12.0% in the previous quarter. Earnings per share came in at 24 cents, easily beating the Zacks Consensus Estimate of 18 cents.

During the quarter, the company retired $17.4 million in 2010 convertible bonds, which led to a dilution of the equity base by two million.

Going forward, although the management remains cautious about the broader economy, it expects revenues to grow by 15% - 20% year over year driven by mobile Internet, energy management and diversified analog applications. Management indicated improved order visibility and strength in backlog at the end of the quarter. This implies a revenue guidance of $238 million - $242 million. Operating margin is forecasted around 20%. Earnings per share are expected around 25 cents.

The company launched network infrastructure digital attenuators, voltage controller oscillators, synthesizers and mixers at Huawei, ZTE, Ericsson (ERIC), Alcatel-Lucent (ALU) and Nokia-Siemens (NOK)/(SI).

Skyworks is well positioned to benefit from recent trends in the handset market, which are favorable to increasing dollar content for RF components. In general, the increasing complexity of higher-end phones that offer multi-band communication across various air standards are expanding the market for Skyworks’ products due to the need for backward compatibility from 3G to 2G networks. There is a significant growth opportunity in the handsets market, propelled by the launch of 3G in China.

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

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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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• Ameron International Corp (AMN)
• Central European Distribution Corp (CEDC)
• Charles River Laboratories International Inc (CRL)
• Cooper Cos Inc (COO)
• Franklin Covey Co (FC)
• Gulfmark Offshore Inc (GLF)
• Harvest Natural Resources Inc (HNR)
• Republic Bancorp Inc (RBCAA)
• Toreador Resources Corp (TRGL)
• Ultrapetrol Bahamas Ltd (ULTR)

Chicago, IL – November 24, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Las Vegas Sands (LVS), Citigroup (C), Goldman Sachs (GS), Barclays PLC (BCS) and UBS AG (UBS).

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Here are highlights from Monday’s Analyst Blog:

Sands China Raises $2.5B in IPO

Las Vegas Sands (LVS) Macau unit, Sand China raised $2.5 billion through its Hong Kong initial public offering (IPO). The company has priced the IPO for 1.87 billion shares at HK$10.38 per share, the low end of the expected HK$10.38-HK$13.88 range.

The proceeds from this offering, combined with $1.75 billion in bank financing, would aid Sands China to restart its Macau's Cotai Strip construction projects. Last year, the company was forced to halt its casino expansion projects in Macau due to financial constraints, at which time it laid off 11,000 workers.

The IPO is being handled by five investment banks. Citigroup (C) and Goldman Sachs (GS) are the joint global coordinators for the offer while Barclays PLC (BCS), BNP Paribas SA and UBS AG (UBS) are the underwriters.

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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.

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Contact:
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• 8x8 Inc (EGHT)
• Advisory Board Co (ABCO)
• Agilent Technologies Inc (A)
• American Apparel Inc (APP)
• Amerco Inc (UHAL)
• Amerigon Inc (ARGN)
• AudioCodes Ltd (AUDC)
• Banco de Chile (BCH)
• Bancorp Inc (TBBK)
• Bare Escentuals Inc (BARE)
• Big 5 Sporting Goods Corp (BGFV)
• Black & Decker Corp (BDK)
• BP Prudhoe Bay Royalty Trust (BPT)
• Cantel Medical Corp (CMN)
• Clearwater Paper Corp (CLW)
• CNinsure Inc (CISG)
• Commerce Bancshares Inc (CBSH)
• Compellent Technologies Inc (CML)
• Ctrip.com International Ltd (CTRP)
• Domtar Corp (UFS)
• Dow Chemical Co (DOW)
• Finisar Corp (FNSR)
• Fossil Inc (FOSL)
• GAMCO Investors Inc (GBL)
• Gannett Co Inc (GCI)
• Genoptix Inc (GXDX)
• Goldman Sachs Group Inc (GS)
• Gulf Island Fabrication Inc (GIFI)
• Herbalife Ltd (HLF)
• Hertz Global Holdings Inc (HTZ)
• Hibbett Sports Inc (HIBB)
• Jarden Corp (JAH)
• Jinpan International Ltd (JST)
• Keynote Systems Inc (KEYN)
• Lubrizol Corp (LZ)
• Mercury Computer Systems Inc (MRCY)
• Meridian Interstate Bancorp Inc (EBSB)
• Micrus Endovascular Corp (MEND)
• National Grid PLC (NGG)
• NBTY Inc (NTY)
• Quanex Building Products Corp (NX)
• Quidel Corp (QDEL)
• Rentech Inc (RTK)
• Rewards Network Inc (DINE)
• Rocky Brands Inc (RCKY)
• Skechers U.S.A. Inc (SKX)
• Stanley Inc (SXE)
• Systemax Inc (SYX)
• Telecom Italia SpA (TI)
• Tupperware Brands Corp (TUP)
• Tween Brands Inc (TWB)
• Ultrapar Participacoes SA (UGP)
• Williams Partners LP (WPZ)
• Xilinx Inc (XLNX)

Chicago, IL – November 24, 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: Halliburton Company (HAL), Schlumberger Limited (SLB), Smith International Inc. (SII), National-Oilwell Varco (NOV) and Weatherford International Ltd. (WFT).

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Here are highlights from Monday’s Analyst Blog:

U.S. Rig Count Hits 8-Month High

Producers had scaled back oil and gas drilling operations over the past several months in the midst of falling commodity prices and tighter access to credit. However, during recent weeks, there have been signs that the companies were beginning to bring rigs back on line (especially oil rigs) amid signs of economic stabilization that could drive up energy demand. This pushed the nationwide rig count above 1,100 working units for the week ended Nov. 13, the first time since March.

The overall picture, though, remains weak, particularly for natural gas, whose inventories have recently hit a new record high of 3.83 trillion cubic feet (Tcf) and is threatening to test the maximum capacity of 3.89 Tcf. The supply picture is expected to reverse in the coming months as producers bet on colder weather and the lagging effect of the sharp drop in domestic drilling activity takes hold.

Until then, we believe that natural gas woes (especially in North America) will continue to haunt energy service firms like Halliburton Company (HAL), Schlumberger Limited (SLB), Smith International Inc. (SII), National-Oilwell Varco (NOV) and Weatherford International Ltd. (WFT). These oilfield service names have seen their revenues and earnings plunge in the last few quarters on the back of lower volumes and a very competitive pricing environment. We have Neutral recommendations on all the above-mentioned companies.

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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.

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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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Web Content Editor
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Chicago, IL – November 24, 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: Fannie Mae (FNM), Freddie Mac (FRE), Sherwin Williams (SHW), La-Z-Boy (LZB) and Campbell Soup Co. (CPB).

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Here are highlights from Monday’s Analyst Blog:

Existing Home Sales Soar Again

Lower mortgages rates -- greatly suppressed by the Fed’s policy of buying up $1.25 Trillion of mortgages backed by Fannie Mae (FNM) and Freddie Mac (FRE) but that buying spree is expected to end at the end of the first quarter -- have also helped the existing homes sales market. In October, 30-year fixed rate mortgages fell to an average of 4.95%, down 2.17% from 5.06% in September and down 20.16% from the year-ago level of 6.20%.

A third and very important reason for the rebound in existing home sales is that prices have come down. Overall, median existing home prices are now $173,100, a 7.1% decline from a year ago. Existing single-family home prices have held up a little bit better, down 6.8% from a year ago, while prices for Condos are down 10.4% from last year.

Regionally, existing home sales were up by double digits for the month in every region but the West. The Midwest led the way with sales up 14.4% to an annual rate of 1.43 million. From last year, sales in the region are up 28.8%.

In the very important South region, sales rose by 12.7% and are up 25.7% from a year ago. Sales in the South were at an annual rate of 2.30 million, or 37.7% of the total. While that is well below the over 50% rate that the region accounts for when it comes to new home sales, it still makes it the largest region of the country by a wide margin.

The Northeast is the smallest region, with sales at an annual rate of 1.06 million, but that rate was up 11.6% from September and is up 27.7% from a year ago. The rebound was much more muted out West, where sales were up just 1.6% for the month and just 12.0% year over year. The West has also suffered by far the largest decline in median prices, down 14.7% from a year ago -- more than double the next largest decline (the South -- 14.7%).

In the Northeast, which is the most expensive market (median price of $235,400) prices are down just 2.6% year over year. In the Midwest, the most inexpensive market (median price $146,600) prices are actually up 1.1% from a year ago.

While the news on existing home sales is good, and the existing home market is FAR larger than the new home market, it is also far less significant to the economy than is the new home market. New homes directly stimulate residential investment, which is an important (and volatile) component of GDP. Lots of labor and materials go into building a new home.

Existing home sales have only an indirect effect on the economy. They stimulate sales of things like paint from Sherwin Williams (SHW) and furniture from La-Z-Boy (LZB) as people redecorate, but such spending is much smaller than building a whole new house. In other words, this is good news, just don’t get too carried away about its significance.

Campbell’s Beats, Raises Guidance

Campbell Soup Co. (CPB) reported fiscal first-quarter earnings of 87 cents per share, which was above the Zacks Consensus Estimate of 81 cents. Quarterly earnings were up 14.5% compared to the prior-year quarter.

Quarterly net sales declined 2.1% year over year due to a negative impact of 4% from volume and mix and 1% from increased promotional spending, partially offset by positive contributions of 2% from price and allowances and 1% from currency translation. Gross margin for the quarter expanded 170 basis points (bps) to 41.9% versus 40.2% in the year-ago quarter, reflecting productivity improvements and pricing benefits.

Sales of the US Soup, Sauces and Beverages segment decreased 5% year over year. US soup sales fell 3%, driven by sales declines in condensed, RTS and broth. Prego pasta sauce and Pace Mexican sales dropped due to competitive pressures, while beverage sales declined due to weak sales of V-8 vegetable juice.

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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.

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Investors can find such funds by checking out the entire list of the Zacks #1 Rank Growth Equity Funds.

3 Burgeoning Picks

Barrett Growth Fund A (BGRWX) seeks to achieve long-term capital appreciation and to maximize after tax returns. It was incepted in October 2002.

The fund invests in common stocks of high quality companies that it believes have superior growth potential and stocks that can be purchased at reasonable prices. The fund generally undertakes a 'buy and hold' investment strategy in order to reduce turnover and maximize after-tax returns.

The fund has an expense ratio of 1.25%. It distributes dividends and capital gains, if any, annually.

Robert J. Milnamow has been lead manager of the fund since January 2004. Milnamow has been with Barrett Associates since 2003 and is a managing director with the firm.

Reynolds Blue Chip Growth Fund (RBCGX) was incepted in August 1988. It seeks long-term capital appreciation and, to a lesser extent current income.

The fund invests in common stocks of United States companies. Under normal market conditions, the fund primarily invests in common stocks of 'blue chip' companies. In seeking to achieve its secondary objective of current income, the fund invests in dividend-paying common stocks.

Shareholders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy") fund. As of June 2009, it has a portfolio turnover of 516%.

Frederick L. Reynolds has been lead manager of the fund since August 1988. Previously, Reynolds spent 14 years as a general partner with Robertson, Coleman and Siebel/Montgomery Securities.

Jamestown Equity Fund (JAMEX) seeks long term growth of capital. It was incepted in December 1992.

The fund invests primarily in common stocks, preferred stocks, convertible preferred stocks and convertible bonds. Equity investments are made using fundamental analysis, proprietary models and qualitative, judgmental evaluation as selection criteria. The fund seeks financially strong, relatively large companies, which offer above average earnings and relatively modest valuations.

Shareholders have to make a minimum initial investment of $5,000 to enter this Zacks#1 Rank (“Strong Buy") fund. It has an expense ratio of 1.10%.

Charles M. Caravati, III has been lead manager of the fund since December 1992. Caravati joined Lowe, Brockenbrough & Company, Inc in 1992 and is a vice president with the firm.

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 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

Encore, through its subsidiaries, buys and manages consumer receivable portfolios.

Collections up 29%

On Oct 28 the company released third-quarter results that included a 29% increase in gross collections, to $125.7 million. Revenue from receivables was up 22% to $76.4 million.

Net income tripled to $9.0 million, or 37 cents per share. One year ago EPS was just 13 cents. Coming into the report the Zacks Consensus Estimate for the quarter was just 28 cents, making it an earnings surprise of 32%.

Estiamtes Spike

As a result of the announcement analysts have raised forecasts. The Zacks Consensus Estimate for this year and the next are both up. Estimates for 2009 are averaging $1.34, up from $1.13.

Projections for 2010 are now averaging $1.63, up from $1.39. These levels represent year-over-year growth of 67% and 22%, respectively.

Solid Value

One share of ECPG is priced at just over 12 times forward earnings right now. The PEG ratio is a fair 1.0 times, compared to the industry average of 3.3 times.

The Chart

The stock went soaring after the late-October earnings release. Another positive aspect is that volume was higher for more than a week after the report, giving stability to the new level. Take a look at the chart below.

Zacks Investment Research

Company Description

Arena Resources, Inc. engages in the exploration and production of oil and natural gas properties in the united States. The company was founded in 200 and has a market cap of $1.58 billion.

With crude trading at elevated prices, exploration companies have fallen back into favor. This dynamic and strong third-quarter results, reported on Nov 5, has helped push shares of ARD back to the 52-week high.

Third-Quarter Results

Earnings for the quarter came in at 31 cents per share, 5 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last four quarters by an average of 2 cents, or 10%.

In a bid to expand its enhance and expand its operations, the Board of Directors approved a $27 million increase in its capital budget for 2009 to $107 million.

Estimates Rising

Estimates have generally been on the rise for the last few months. The current-year estimate has added 13 cents to $1.12. The next-year estimate is bullish, pegged at $1.75, a 57% growth projection.

Valuation

After the recent run up, shares do look a bit pricey, trading at 36X projected current-year earnings. The bullish next-year estimate helps temper the valuation a bit though.

The Chart

Shares of ARD have posted big gains over the last 8 months after bottoming out around $20 in early March. The 52-weke high is close at hand at $44.40, take a look below.

Zacks Investment Research

Company Description

Avnet distributes electronic components and computer products to customers in 70 countries worldwide. It also provides services such as supply-chain and design-chain services, logistics solutions, product assembly, device programming, computer system configuration and integration and technical seminars to allow its customers to operate efficiently.

Avnet Surprised By 29.41% in the Fiscal First Quarter

On Oct 29, Avnet reported better than expected fiscal first quarter 2010 results. It beat the Zacks Consensus Estimate by 10 cents. Earnings per share were 44 cents compared to the consensus of 34 cents. This was under the year ago period, however, which saw 67 cents.

Revenue fell 3.1% to $4.36 billion compared to the year ago period. The Electronics Marketing segment was the weaker segment with revenue falling 9.8% to $2.44 billion from the fiscal first quarter of 2009.

The Technology Solutions segment saw improvement as revenues rose 6.9% compared to last year.

Like every business, the company is still being impacted by the global recession but it saw growth rates rise sequentially which is improving confidence.

Second Quarter Guidance

Sales are expected to be between $4.1 billion and $4.7 billion in the second quarter with normal seasonality in the Technologies Segment and slightly better than normal in the Electronics Marketing segment.

Earnings per share are expected in the range of 52 cents to 60 cents per share assuming the average Euro to U.S. Dollar currency rate is $1.48 to 1.00 euro.

Zacks Consensus Estimates Rise

In the last month, analysts have raised both the second quarter and fiscal 2010 estimates. The second quarter Zacks Consensus Estimate jumped 6 cents to 56 cents.

The 2010 Zacks Consensus rose 13.7% to $2.08 from $1.83 with 10 out of the 11 covering analysts raising during the last 30 days.

Value Fundamentals

Avnet is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book of 1.43. The company has a solid 5-year return on equity (ROE) of 10.82%.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

Zacks Investment Research

However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.

Earnings per share in the third quarter reached $0.59, beating the Zacks Consensus Estimate by one cent. However, we have chosen to downgrade the stock to an Underperform with a target price of $31.Zacks Investment Research

Near- to medium-term concerns include the uncertain commodity-price scenario, significant capital investment requirements, and Brazil's proposed new oil and gas regulatory framework. However, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook looks compelling.

As such, we recommend an Outperform rating for Petrobras ADRs. Our six-month target price is $55 per share.Zacks Investment Research

Company Description

American Express Company is a leading global payments and travel company. The company's products and services include charge and payment card products as well as travel-related services offered to customers and business globally.

Rewarding Shareholders with Solid Income

American Express just declared a regular quarterly dividend of 18 cents per share, noting that it is payable on February 10 to shareholders of record on January 11.

The company rewards shareholders with an industry-leading yield of 1.7%.

Bullish Forecasts and Strong Momentum

American Express has seen recent upward revisions of the Zacks Consensus Estimate for earnings. Full-year forecasts are up from last month's $1.34 per share to $1.46, which included a 1-cent increase over the past week.

For 2010, analysts polled by Zacks hiked estimates from last month's $2.15 per share to $2.32, which included a 2-cent increase over the past week.

Shares staged a nice advance lately, outpacing the market by about 20% over the past 3 months.

Leading the Industry

The company boasts a return on equity (ROE) of 12%, topping the industry average of 8%. Its net profit margin of 6.5% beats the industry average of 4%. The aforementioned dividend yield of 1.7% stands out as most of AXP's competitors offer no dividend.

A Stellar Third Quarter

American Express posted third-quarter earnings of 44 cents per share in late October, exceeding the Zacks Consensus Estimate by 22%. Earnings surprised on estimates by an average of 31% over the past 4 consecutive quarters. Revenues slipped 16% year-over-year.

Zacks Investment Research

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.

REFICAR has chosen CB&I to be the single contractor to engineer, procure, and construct this important project, which is key to enhancing Ecopetrol's position as a leading producer for the entire region. Refinería de Cartagena S.A. is owned by Ecopetrol, Colombia's national oil company.

CB&I will provide project management and the engineering, procurement services, fabrication and construction for the new refinery, including the following major components: Crude and Vacuum Distillation, Fluid Catalytic Cracker Naphtha Hydrotreater, Diesel Hydrotreater, Hydrocracker, Hydrogen Plant, Sulfur Plant, Delayed Coker, HF Alkylation, C4 Isomerization, Power Generation and Offsites and Utilities.

In October, the company was awarded a contract in excess of US$100 million by UGI LNG, Inc. to engineer, procure and construct the expansion of the Temple LNG peak shaving facility near Reading, Pennsylvania. CB&I's work scope includes the addition of a new 50,000 cubic meter liquefied natural gas storage tank and related processing facilities designed to provide 150 million cubic feet of natural gas per day during peak demand periods. The Temple LNG expansion will connect directly into the Texas Eastern pipeline to provide gas supplies for the Mid-Atlantic and northeast markets.

Chicago Bridge & Iron Company N.V. provides engineering, procurement, and construction (EPC) solutions, as well as process technologies for the energy infrastructure projects. It primarily focuses on projects related to oil and gas companies. CB&I operates approximately 80 locations around the world. The company was founded in 1889 and is based in The Hague, the Netherlands . Its major competitor is Matrix Service Co. (MTRX).

We maintain our cautious Neutral recommendation on the stock.

Data from the first trial – GOlimumab After Former anti-TNF (tumor necrosis factor) Therapy Evaluated in RA (GO-AFTER) revealed that patients previously treated with TNF inhibitors (adalimumab, etanercept or infliximab) responded as well as showed continued response to the drug for an entire year. At week 52, data measured by American College of Rheumatology (ACR 20) response found a 20% improvement in arthritis symptoms in 63% of patients receiving the drug while 41% of the patients achieved a 50% improvement in arthritis symptoms measured by ACR 50 response.

Results from the second trial - GOlimumab FOR subjects With Active RA Despite Methotrexate (GO-FORWARD) study proved the effectiveness of Simponi in patients with active RA despite prior treatment with methotrexate. Like the earlier trial, this trial also presented positive results for Simponi. At week 52, 64% of patients taking the drug and methotrexate achieved ACR 20 response while 25% achieved a 70% improvement in arthritis symptoms as measured by ACR 70 response. Both these studies were carried out with Simponi in 50 mg dosage as a once-monthly subcutaneous injection.

Earlier in April 2009, Simponi received approval from the US Food and Drug Administration and Health Canada approved Simponi for the treatment of moderate to severe active RA, active psoriatic arthritis (PsA) and active ankylosing spondylitis. Thereafter, in October 2009, the drug received approval from the European Commission as well.

As a reminder, on May 27, 2009 Johnson & Johnson announced an arbitration demand against Schering-Plough (now a part of Merck, MRK) requesting a ruling regarding the ex-US rights of Remicade and Simponi. J&J developed both compounds and licensed marketing rights outside the US to Schering-Plough. However, J&J contends that the merger between Schering-Plough and Merck has triggered a change of control provision in the licensing agreement, resulting in its termination, thereby returning full rights to the compounds to J&J.
 
Remicade is approved for 15 indications in the US alone including RA. Remicade generated almost $5.9 billion in worldwide revenues in 2008, including $2.1 billion in sales outside the US, which Schering-Plough booked as revenues. The pending case is of great importance to both companies given the sales contribution from the product. We are Neutral on J&J.

Infineon’s revenues in the fourth quarter were €855 million, a strong increase of 12%, compared to the third quarter, but a decline of 18% year over year. The company’s quarterly combined Segment Result was €52 million, a significant improvement, compared to break-even in the third quarter. Income from continuing operations increased to €24 million, up from a loss from continuing operations of €26 million in the prior quarter. Net income was also positive at €14 million, compared to a net loss of €23 million in the third quarter. 

The sequential increase in revenues reflects growth in all of the company’s four operating segments, driven by the economic recovery and improved demand in the supply chain as well as at end customers. All of the company’s four operating segments achieved positive Segment Result. Higher sales levels, continued tight cost control, and higher factory loading were the main drivers of the earnings improvement, which were, however, partially offset by the weaker U.S. dollar against the Euro. 

For the fourth quarter, income from continuing operations improved significantly on a sequential basis and was €24 million, with basic and diluted earnings per share from continuing operations of €0.03. For the third quarter, net loss from continuing operations was €26 million, and basic and diluted loss per share from continuing operations was €0.03.
 
Infineon reported a loss from discontinued operations, net of income taxes, of €10 million for the fourth quarter. Net income of the Wireline Communications (WLC) business was also included in this amount, which was classified as discontinued operations in the company’s consolidated financial statements for the entire 2009 fiscal year and prior periods, reflecting the sale of this business to Lantiq, affiliates of Golden Gate Private Equity Inc.
 
For the fourth quarter, Infineon’s free cash flow from continuing operations was €151 million, compared to free cash flow from continuing operations of €143 million in the third quarter. The sequential increase in free cash flow was driven by the improvement of the operating results as well as ongoing tight working capital management and low capital expenditures (CapEx). CapEx, including capitalized intangible assets, were €40 million in the fourth quarter, compared to €25 million in the third quarter.
 
Infineon’s gross cash position increased to €1,507 million as of September 30, 2009, compared to €883 million at the end of the fiscal 2008, despite voluntary repurchases and redemption of the 2010 exchangeable and convertible notes, including the voluntary early final repayment of the exchangeable bonds and repayments of other debt. In total, during the 2009 fiscal year, total short-term and long-term debt decreased by €320 million compared to the end of the 2008 fiscal year, resulting in a net cash position of €657 million as of September 30, 2009. This compares to a net debt position of €287 million at the end of the 2008 fiscal year.
 
Infineon focuses on the three central challenges facing modern society: Energy Efficiency, Communications and Security and offers semiconductors and system solutions for automotive and industrial electronics, chip card and security applications as well as applications in communications.
 
We currently have a neutral recommendation on IFNNY.

• Tyson Foods (NYSE:TSN) reported better-than-expected earnings of 28 cents a share, beating Zacks estimates by 2 cents, on revenues of $7.2 billion, which exceeded Zacks estimates of $6.85 billion

• India’s Reliance Industries bid $12 billion in cash for Lyondell Bassell when it exits bankruptcy

• Microsoft (NASDAQ:MSFT) is reportedly in discussions with News Corp. (NASDAQ:NWSA) to "de-index" the firm's news websites from Google (NASDAQ:GOOG)

• Coca-Cola (NYSE:KO) announced plans to more than double the number of its bottling plants in China over the next ten years as part of its goal to triple sales to the country

• Hershey (NYSE:HSY) trust encouraged the firm to counter Kraft's (NYSE:KFT) hostile, $16.2 billion bid with its own, $17 billion offer

• According to S&P most US banks are failing to meet adequacy standards comfortably enough to avoid ratings downgrades. Both HSBC (NYSE:HBC) and Goldman Sachs (NYSE:GS) showed stronger-than-average balance sheets, with UBS (NYSE:UBS) and Citigroup (NYSE:C) well below average

On Friday, the 30-share Dow Jones industrial average fell 14 points, or 0.1%, to close at 10,318.16.  The broader S&P 500 index closed 0.3% lower at 1091.38 and the tech-heavy Nasdaq finished the day at 2146.04, off 0.5%.  On the week, the Dow average managed to hang on to gains, registering a paltry 0.5% advance.  The S&P 500 and the Nasdaq fell 0.2% and 1%, respectively.  On the New York Stock Exchange, 1.1 billion shares exchanged hands, with declining issues ahead of those that advanced in price by a three-to-two margin.

Last week’s disappointing reports on housing and weak forecasts from technology companies had antsy investors swooping up safe haven investments like Treasury bonds and dollar.  The demand for safe havens also spiked after European Central Bank President Jean-Claude Trichet remarked that the bank is planning to unwind some of its stimulus measures.  A higher dollar pushed crude prices lower and pressured stocks.

Nevertheless, at the center of the activity on the Wall Street is the ascending price of such physical assets as gold, which touched its fresh highs of $1146.80 on Friday, and a declining dollar.  The metal, although lacking fundamental valuation measures, has surged 29.7% so far this year.  Since India's central bank bought 200 tons from the IMF, the metal has jumped 11.5% on its dollar-alternative, safe-haven, inflation-resistant appeal.

Meanwhile, the decline in the US dollar has raised valuation expectations for the major industrial companies, with offshore sales expected to boost revenues.  Nevertheless, this week’s highlight remains today’s after-market-close earnings from Hewlett-Packard (NYSE:HPQ).  Last week the company preannounced strong quarterly numbers, anticipating record sales results of $30.36 billion, and earnings of $1.13, and also lifted its 2010 guidance.

Last week, the 1% decline in the technology shares came after weaker-than-expected guidance from two software companies, Autodesk (NASDAQ:ADSK) and Salesforce.com (NYSE:CRM), was compounded by disappointing numbers from Dell (NASDAQ:DELL).  Technology companies felt the heat after Dell (NASDAQ:DELL) reported quarterly earnings that were well below analysts’ expectations.  The company said sales of its computers to big businesses remain weak.  Shares in the company plunged 10% to $14.29.  So far in November, the NASDAQ has advanced 5%, and is up 36.1% year-to-date. 

The 0.2% pullback in S&P500 was caused by declines in oil and gas (-1.4%) and tech (-1.3%) sector shares that offset gains in health care issues (+1.5%) and basic materials (+1.2%).

The earnings calendar has slowed, but companies still due to report include: Campbell Soup (NYSE:CPB) on Monday; American Eagle (NYSE:AEO), Barnes and Noble (NYSE:BKS), Dollar Tree (NASDAQ:DLTR) on Tuesday, with Deere (NYSE:DE), J Crew (NYSE:JCG) and Tiffany (NYSE:TIF) on Wednesday.

Chicago, IL – November 23, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Deere (DE), Tyson (TSN) and BJ Services (BJS). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.

Give Thanks for a Great 3Q

Historically the best indicators of firms which are likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. Some of the companies that have these characteristics include:

Deere (DE) is expected to post EPS of just $0.05, down from $0.81 last year. That low expectation sets it up for a positive surprise. Last time out they beat by 73.7%. However there has been no change in the estimate over the last month, and the stock has a neutral Zacks Rank of 3

Tyson (TSN), the poultry producer, might just make its investors thankful. It is expected to earn $0.26, up from $0.14 last year. Last time out it beat by 83.3%. However, analysts have slightly shaved the mean estimate by 0.6% over the last month.

In keeping with the overall very positive tone of this earnings season, the potential negative firms are less clear cut. However:

BJ Services (BJS) is expected to post EPS of just $0.03, down from $0.57 last year. It badly missed estimates last time, reporting a loss instead of income and analysts have cut the estimates for this year’s quarter by 11.1% over the last month.

Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5614.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=5615.

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

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

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

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Company: Zacks.com
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Chicago, IL – November 23, 2009 – Zacks Equity Research highlights Caterpillar (CAT) as the Bull of the Day and Cost Plus, Inc. (CPWM) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Gap Inc.(GPS), J.M. Smucker Company (SJM) and Stone Energy Corporation (SGY).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

Caterpillar (CAT) is a market leader in construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. With its strong brand name, pricing power and global dealer network, we believe Caterpillar is well positioned to take advantage of the growing need for infrastructure development globally.

Though the company expects 2009 sales to decline more than 35% year-over-year, it anticipates an improvement in its top-line in 2010. The company forecasts a 10% to 25% increase in sales for 2010, compared to the midpoint of the 2009 outlook range.

Asserting its optimistic outlook, the company recently announced plans to increase its machinery prices by 2% effective January 2010. We are upgrading the stock to Outperform.

Bear of the Day:

Specialty retailer Cost Plus, Inc. (CPWM) is closing stores, cutting costs, and trying to preserve cash, but those moves will do little to reverse its weak sales trends and merchandise margins.

In addition, management's guidance for the third quarter cautioned investors to prepare for more weakness. Cost Plus expects same-store sales to decrease 6%-11% and a pre-tax loss from continuing operations of $19-$24 million.

Cost Plus is scheduled to report third quarter results on December 3. We have an Underperform rating on CPWM shares. Our six-month target price is $0.50.

Latest Posts on the Zacks Analyst Blog:

Gap’s Earnings Improve

Gap Inc.(GPS), a premier international specialty retailer, has reported healthy third quarter results despite challenging market conditions. The company reported net income of $307 million or 44 cents per share during the quarter compared to $246 million or 35 cents per share in the year-earlier quarter.

The robust earnings were primarily driven by strong sales at its low-price Old Navy segment and the highest third quarter operating margins in a decade. Net sales during the quarter were $3.59 billion compared to $3.56 billion in the year-ago quarter, largely due to a 10% increase in comparable sales across 1,060 Old Navy stores that account for about 40% of the total sales.

The Old Navy chain has benefited from the increasing preference among U.S. shoppers for lower-price and discount stores due to the continued challenging macroeconomic environment. Gross margins increased 380 basis points year-over-year to 42.5%. Operating margins during the quarter increased to 13.9% from 11.1% in the year-ago quarter due to effective cost-control measures and prudent inventory management policies.

Smucker’s Beats, Raises Guidance

J.M. Smucker Company (SJM) reported second quarter results with earnings of $1.22 per share, which was well above the Zacks Consensus Estimate of 99 cents. Quarterly earnings were up 21% compared to $1.01 reported in the prior-year quarter.

Net sales for the quarter grew 51.7% year-over-year, primarily due to the addition of the Folgers coffee business. Excluding Folgers, volumes increased 1%, driven by Pillsbury, Crisco oils, Jif peanut butter and Hungry Jack brands. These were partially offset by declines in canned milk, fruit spreads, foodservices and natural foods.

On a segment basis -- the U.S. retail coffee market segment posted $445.1 million in sales during the quarter. Volume also increased by approximately 5%. The continued expansion of the Dunkin' Donuts brand in the gourmet category and strong growth in traditional roast and ground coffee led to the improvement.

Stone Energy Outdoes Estimates

Stone Energy Corporation (SGY) reported third-quarter 2009 earnings of $1.06 per share, beating the Zacks Consensus Estimate of 66 cents and the year-earlier earnings of $1.04. The robust results were driven by increased production volumes and reduced costs.

Production during the quarter averaged 239 million cubic feet of gas equivalent per day (MMcfe/d), compared to average daily production of 209 MMcfe/d in the prior quarter and 129 MMcfe/d in the year-ago quarter. This increase was primarily due to the company’s successful execution of its hydraulic rig work over program, reduced cycle time and optimization of individual well rates.

Stone expects net daily production to average 225-235 MMcfe in the fourth quarter and 210-220 MMcfe in 2009.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

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.

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 analyst 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 by visiting http://at.zacks.com/?id=5508.

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=5509.

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

Chicago, IL – November 23, 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: Pozen (POZN), Sanofi-Aventis (SNY), Bristol-Myers (BMY), AstraZeneca (AZN) and ADC Telecommunications Inc. (ADCT).

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:

Pozen Initiates New Phase III

This morning, Pozen (POZN) initiated phase III studies on PA-325/40, a fixed-dose combination of 325mg enteric coated aspirin and 40mg of immediate release omeprazole. The phase III program will consist of two pivotal trials conducted under a Special Protocol Assessment (SPA) agreed upon with the U.S. FDA, and one long-term safety study.

The two pivotal programs will enroll approximately 500 patients per study at over 100 sites around the U.S. The primary endpoint of the pivotal studies is the cumulative incidence of gastric ulcers over the six-month treatment period for PA32540 versus 325 mg of enteric-coated aspirin. The long-term study will enroll approximately 400 patients and assess safety over a period of one year.

Pozen is developing PA-325/40 for use in the secondary prevention of heart attacks and strokes in patients at risk for associated gastric ulcers. Aspirin is the No. 1 recommended agent for at-risk patients, with some 50 million Americans take daily aspirin therapy for secondary prevention of heart attacks and strokes.

However, according to data presented at the American College of Gastroenterology and at the American Heart Association meeting, the use of low-dose aspirin for cardiovascular disease prophylaxis is associated with a 2- to 4-fold increase in gastro-intestinal (GI) complications, including gastric ulcers. Enteric coating is not a sufficient to reduce the risk of GI bleeding, and thus the majority of patients that should be taking 325mg aspirin are non-compliant or taking suboptimal low-dose (81mg) "baby" aspirin instead.

Pozen’s PA-325/40 is designed to provide immediate-release omeprazole as a GI-protectant for patients taking full-dose 325mg daily aspirin therapy. If the phase III trials meet the primary endpoint of reduction in cumulative incidence of gastric ulcers, we expect PA-325/40 to be approved by the U.S. FDA with the full cardiovascular label claims of regular enteric-coated aspirin. This is a significant market opportunity in our view, considering less than 15% of the 50 million Americans on daily aspirin therapy are taking a GI-protectant such as omeprazole.

Recently, data from a retrospective analysis of patients that use Sanofi-Aventis (SNY) / Bristol-Myers’ (BMY) Plavix (clopidogrel) showed an increased risk of major adverse cardiovascular events (MACE) by as much as 50% while taking a proton pump inhibitor (PPI) such as AstraZeneca’s (AZN) omeprazole (Prilosec) or esomeprazole (Nexium). The data included analysis of outcomes from 16,700 patients who underwent percutaneous coronary intervention and continued Plavix for 12 months after the procedure.

ADC Dips on Weak Outlook

Yesterday, after market close, ADC Telecommunications Inc. (ADCT) declared financial results for the fourth quarter of fiscal 2009. Earlier, the Board of Directors of ADC had taken a decision to change its fiscal year from Oct 31 to Sep 30. As a result, fiscal year 2009 ended on Sep 30, 2009, which means the company got only two months as its fourth quarter. The fourth quarter of fiscal 2009 would, therefore, not be comparable to either the prior-year quarter or the previous quarter. For this reason, management has presented pro forma results for the three month period ending Sep 30 and its comparable quarter.

Actual revenue of fourth quarter 2009 was $183.9 million, below the Zacks Consensus Estimate of $189 million. Quarterly pro forma revenue was $293.6 million, down 17.5% year-over-year. This significant decline in revenue is the result of the global economic recession across all the three business segments.

On a GAAP basis, net loss in the quarter was $19.8 million or a loss of 20 cents per share compared to a net loss of $5.6 million or a loss of 5 cents per share in the prior-year quarter. However, adjusted net income (excluding $25.5 million special charges and $0.6 million loss from discontinued operations, net of taxes) in the reported quarter was $6.3 million or an income of 6 cents per share, higher than the Zacks Consensus Estimate of an income of 4 cents per share.

Pro forma gross margin for the quarter was 34.6% compared to 33% in the year-ago quarter. This reflects the aggressive cost cutting measures taken by management during the past one year. Pro forma quarterly operating expenses were $113 million compared to $106.2 million in the prior-year quarter.

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

Chicago, IL – November 23, 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: China Mobile (CHL), Alcatel-Lucent (ALU), China Unicom (CHU), China Telecom (CHA) and Vodafone (VOD).

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:

China Mobile Outlines 4G Plan

China Mobile (CHL), the world’s largest wireless carrier by subscriber, has revealed its plan to commence the trial run of its 4G network during World Expo 2010 to be held in Shanghai from May 1 to Oct 31, 2010. The company’s 4G service is based on the TD-LTE (Time Division Duplex Long Term Evolution) mobile broadband technology. Roughly 200 participants and 70 million visitors are expected to assemble at the Expo.

China Mobile has recently selected Alcatel-Lucent (ALU) for the responsibilities of design, construction, installation and integration of communication infrastructure to facilitate the 4G network trial. The TD-LTE network will provide advanced wireless services (including high-definition TV and ultra-fast broadband Internet access) to the visitors at the exposition.

The three major Chinese telecom operators China Mobile, China Unicom (CHU) and China Telecom (CHA) are investing heavily in Shanghai to improve the city’s network infrastructure, thereby ensuring the delivery of smooth network coverage for Word Expo 2010. China Mobile plans to invest RMB 15 billion ($2.19 billion) over the next three years in Shanghai.

China Mobile’s TD-LTE venture is being supported by the British telecom giant Vodafone (VOD).

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

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

Chicago, IL – November 23, 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: Dell Inc. (DELL), Berkshire Hathaway (BRK.A), Burlington Northern Santa Fe Corporation (BNI), JPMorgan Chase (JPM) and Wells Fargo (WFC).

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:

Dell Falls Short of Expectations

Dell Inc. (DELL) reported third quarter 2010 EPS of 23 cents, below the Zacks Consensus Estimate of 27 cents.

Revenue for the quarter was $10.75 billion, down 17.0% from $12.97 billion reported in the year-ago quarter and up 1.0% from $10.62 billion reported in the previous quarter. The company’s third quarter reported revenue was adversely affected by the timing of the Windows 7 launch and due to backlog buildup in the company’s SMB and consumer businesses.

Large Enterprise posted revenue of $3.4 billion, an increase of 4.0% sequentially and decline of 23.0% year-over-year. In the last quarter, the company expended its networking partnership with Brocade and Juniper, and introduced products like PowerEdge 11g servers and expanded PowerVault storage systems.

Public revenue for the quarter was $3.7 billion, down 3.0% on sequentially and 7.0% from the year-ago quarter. Shipments were down 12.0% on a sequential basis, due to seasonality in the U.S. public sector business.

Small and Medium Business revenue for the quarter was $3.0 billion, up 5.0% sequentially and down 19.0% from the year-ago quarter. Shipments increased 9% sequentially. The segment benefited from steadily improving demand in both the Americas and the Asia-Pacific region, as well as better performance in EMEA during the second half.

Revenues for Consumer Business were down 10.0% year-over-year, but flat sequentially to $2.8 billion with shipments growing 4% sequentially.

Dell’s total sales in China, India, Brazil and Russia increased 18.0% sequentially and 5.0% over last year. China, the second-largest revenue generating country for Dell, reported revenue increase of 20.0% sequentially and 8.0% from the year-ago quarter.

Buffett Borrows for Rail Acquisition

Warren Buffett, the CEO and Chairman of Berkshire Hathaway (BRK.A) announced on Thursday to borrow $8 billion of loan for the acquisition of Burlington Northern Santa Fe Corporation (BNI). Berkshire Hathaway, which already owns a 22% stake in Burlington Northern, announced earlier this month it would acquire the rest for a total value of $34 billion. Buffet agreed to pay $100 a share in cash and stock to buy the rest of the company.

The $8 billion loan that will be provided by JPMorgan Chase (JPM) and Wells Fargo (WFC) is intended to be paid back in three years’ time.

For Berkshire, the acquisition of Burlington Northern, or BNSF, the second largest railroad, will be its biggest to date. With it, Berkshire is adding a railroad transportation business with its already diverse range of businesses including retail, manufacturing and insurance, as well as several regional electric and gas utilities.

The acquisition is expected to close in early 2010 and is subject to Burlington Northern’s shareholder approval. Post acquisition, Burlington Northern will operate from its headquarters as a wholly owned subsidiary of Berkshire Hathaway.

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• Build-A-Bear Workshop Inc (BBW)
• Casella Waste Systems Inc (CWST)
• China Distance Education Holdings Ltd (DL)
• China Medical Technologies Inc (CMED)
• Digimarc Corp (DMRC)
• Hawaiian Holdings Inc (HA)
• Sierra Bancorp (BSRR)
• SPX Corp (SPW)
• SunOpta Inc (STKL)
• TAL International Group Inc (TAL)

• 3D Systems Corp (TDSC)
• 3M Co (MMM)
• Ajinomoto Co Inc (AJINY)
• Ameriprise Financial Inc (AMP)
• Archer-Daniels-Midland Co (ADM)
• Avnet Inc (AVT)
• Balchem Corp (BCPC)
• Banco Santander Chile (SAN)
• RG Barry Corp (DFZ)
• Bell Microproducts Inc (BELM)
• Briggs & Stratton Corp (BGG)
• Cadbury PLC (CBY)
• Cato Corp (CATO)
• China Green Agriculture Inc (CGA)
• Conceptus Inc (CPTS)
• Consolidated Graphics Inc (CGX)
• Crane Co (CR)
• Cymer Inc (CYMI)
• Donaldson Co Inc (DCI)
• DryShips Inc (DRYS)
• Elbit Systems Ltd (ESLT)
• Expedia Inc (EXPE)
• Hawk Corp (HWK)
• Healthspring Inc (HS)
• Iberiabank Corp (IBKC)
• Ingram Micro Inc (IM)
• Integrated Silicon Solution Inc (ISSI)
• iRobot Corp (IRBT)
• Kadant Inc (KAI)
• Lancaster Colony Corp (LANC)
• Lincoln Educational Services Corp (LINC)
• MDU Resources Group Inc (MDU)
• MeadWestvaco Corp (MWV)
• Medical Action Industries Inc (MDCI)
• Merchants Bancshares Inc (MBVT)
• Neenah Paper Inc (NP)
• NetApp Inc (NTAP)
• OSI Systems Inc (OSIS)
• Park National Corp (PRK)
• Penske Auto Group Inc (PAG)
• Planar Systems Inc (PLNR)
• Plantronics Inc (PLT)
• Quaker Chemical Corp (KWR)
• Rogers Corp (ROG)
• Saga Communications Inc (SGA)
• Schawk Inc (SGK)
• Shoe Carnival Inc (SCVL)
• Spartech Corp (SEH)
• Stein Mart Inc (SMRT)
• Steiner Leisure Ltd (STNR)
• TeleTech Holdings Inc (TTEC)
• Ticketmaster Entertainment Inc (TKTM)
• US Auto Parts Network Inc (PRTS)
• Vantage Drilling Co (VTG)
• Vivo Participacoes SA (VIV)

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

3 Solid Samples

Transamerica High Yield Bond A (IHIYX) seeks high level of current income. It was incepted in June 1985.

The fund invests at least 80% of fund assets in a diversified portfolio of fixed-income securities including investment grade bonds and high-yield/high risk bonds. It may invest some or all of its assets in short-term U.S. government, obligations.

Shareholders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank ("Strong Buy") fund. As of April 2009, its portfolio turnover was 36%.

Bradley J. Beman has been lead manager of the fund since August 1998. Beman has been with AEGON since 1988 and is director of public fixed income.

Lord Abbett Bond Debenture A (LBNDX) was incepted in April 1971. The fund's objective is to provide investors with high current income and the opportunity for capital appreciation to produce a high total return.

The fund invests at least 80% of its net assets plus the amount of any borrowings in fixed income securities of various types, 20% of fund asset is any combination of investments grade securities, U.S. government securities and cash equivalents.

The fund offers dividends monthly and capital gains annually. As of June 2009, it has a portfolio turnover of 44.20%.

Christopher J. Towle has been Lead Manager of the fund since 30-Dec-93. Towle is a Chartered Financial Analyst and has been with Lord Abbett since 1987.

Fidelity Capital & Income (FAGIX) seeks to provide income and capital growth. It was incepted in November 1977.

The fund invests mainly in equity and debt securities, including defaulted securities, with an emphasis on lower-quality debt securities. It may invest in companies in troubled or uncertain financial condition and in domestic and foreign issuers.

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 0.74%.

Mark Notkin has been lead manager of the fund since 21-Jul-03. Notkin joined Fidelity in 1994 and is a vice president and co-manager with the firm.

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 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.

Solid Income

Coach announced that its dividend of $0.075 is payable on December 28 to shareholders of record as of the close of business on December 7.

Bullish Forecasts

Analysts polled by Zacks are bullish on earnings for COH. For the year ending June 2010, the Zacks Consensus Estimate of $2.07 was increased by a penny in the past week and hiked from $1.92 over the past 60 days. For the following year, forecasts of $2.27 are up 2 cent in the past week and climbed from $2.07 over the past 60 days.

Favorable Benchmark Comparisons

The company offers solid fundamentals, trading with a forward P/E of 17. Coach's return on equity (ROE) of 38% soars past the industry average of 10%. The company's net profit margin of 19% compares to an industry average of 3%.

COH is also strong technically, outpacing the market by nearly 100% over the past year.

Read the October 27 commentary on COH.

Last Week's Growth and Income Zacks Rank Buy Stocks

Crane Co. (CR), which boasts an industry-leading yield of 2.7%, recently declared a quarterly dividend of 20 cents per share. The company also posted solid results for the third quarter, raising the lower end of its earnings outlook. Read the whole story on CR.

Gap Inc. (GPS), which announces third-quarter results after today's closing bell, just declared a quarterly dividend of $0.085 per share, which translates into an industry-leading dividend yield of 1.5%. The company also reported sales growth for the month of October. Read the whole story on GPS.

Costco Wholesale Corporation (COST) 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. Read the whole story on COST.

Casey's General Stores Inc. (CASY) is watching analysts boost estimates ahead of reporting fiscal second quarter results in early December. For the year ending April 2010, the Zacks Consensus Estimate jumped from $2.19 to $2.21 per share in 1 month’s time. Read the whole story on CASY. Zacks Investment Research

Estimates Continue to Climb

Over the past month full-year estimates are on the rise. The Zacks Consensus Estimate for this year is up 7 cents to 96 cents. Next year's estimates are averaging $1.09, up 6 cents.

These levels are good enough for growth rates of 63% and 13%, respectively.

Valuation

Shares are trading at a great value. The forward P/E is just 13 times and the PEG ratio comes in at a solid 0.8.

The Chart

Shares of DM had a great run just after the April feature but have leveled off since then. However, with estimates still climbing the gains should not be to far off into the future. Take a look at the chart below.

Read the April 23rd Feature Here

Last Week's Aggressive Growth Zacks Rank Buy Stocks

Universal Health Services, Inc (UHS) remains a good value as the Zacks Consensus Estimate continues to climb. Read Full Article.

OPNET Technologies, Inc. (OPNT) analysts are raising estimates after the company showed strong growth in a recent quarterly report.

Read Full Article.

Cantel Medical Corp (CMN) posted yet another earnings surprise with a 65% increase in net income. Read Full Article.

Ctrip.com International Ltd. (CTRP) has been taking advantage of the rebound in the Chinese economy. The company is expected grow 2009 earnings by 35.79%.

Read Full Article.Zacks Investment Research

Earnings per share for the third quarter rose 233% to 10 cents from 3 cents in the year ago period. The Zacks Consensus called for 9 cents.

The company bucked the negative retail trend by increasing sales by 6% to $191 million from $179.8 million in the year ago period. Same store sales also rose 4%, surprising even the company.

The gross margin rate also rose to 34.8% from 29.3% in the year ago quarter mainly due to better merchandise margins and lower freight costs.

The company is being cautious about the fourth quarter given the economic uncertainties even though it outperformed in the third quarter. It is still forecasting same store sales down 3% to flat and maintained its original guidance of between 8 to 13 cents. Guidance for the full year is expected to be up 21% to 25% from 2008 to $1.38 to $1.43 per share.

Analysts have not yet adjusted their earnings estimates to reflect the third quarter results. The Zacks Consensus Estimate for 2009, however, has risen a penny to $1.42 per share in the last 7 days which is at the high end of the company's guidance range.

Value Fundamentals

Cato is now a Zacks #2 Rank (buy) stock. It still has attractive value fundamentals. The company is trading with a forward P/E of 14.5 and a price-to-book of 1.97. Cato has a 1-year return on equity (ROE) of 14.74%.

Read the Jul 30 article.

Update to Previous Value Zacks Rank Buy Stocks

Bristow Group Inc. (BRS) has surprised on estimates 3 out of the last 4 quarters by an average of 10.50%. The company is trading at 11.7x forward earnings.Read the full article.

DryShips Inc. (DRYS) is a Zacks #1 Rank (strong buy) stock as estimates rise after a tough year where earnings per share dropped by 90%. The stock is now cheap, trading at just 6.6x forward earnings. Read the full article.

Ameriprise Financial Inc. (AMP) has seen revenue rise as the financial markets have rallied. The company has surprised on estimates 3 out of 4 quarters by an average of 50.73%. Ameriprise is trading with a forward P/E of 14.25. Read the full article.

Cooper Tire & Rubber Company (CTB) has surprised on estimates 4 consecutive quarters by an average of 330.99%. The company trades is attractively valued with a forward P/E of 10.6. Read the full article.

Zacks Investment Research

Third-Quarter Results

Sales were up 119% from last to $86.2 million. Earnings also came in strong at 43 cents per share, 12 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last four quarters by an average of 6 cents, or 44%.

E House CEO Xin Zhou said that he is confident the company will maintain its strong growth trajectory as the Chinese economy continues to boom on both organic growth and government monetary and stimulus policy.

Estimates Jump

Analysts agree, with the current-year estimate adding 26 cents in the last week to $1.22. The next-year estimate is pegged at $1.51, a 24% growth projection.

Valuation

With estimates up, valuations look attractive. Shares are trading with a forward P/E of 15X, a discount to the overall market with the nice growth projection in tow.

The Chart

Shares of EJ have posted big gains over the last 8 months, but have recently pulled back a bit to hit a the long-term trend line at $17. Take a look below.

Last Week's Momentum Zacks Rank Buy Stocks

Nordstrom Inc. (JWN) continues to trade near its 52-week high on the heels of better than expected Q3 results. Read Full Article.

Fossil Inc. (FOSL) recently gapped higher and hit a new 52-week high on a strong Q3 earnings surprise. Read Full Article.

China Green Agriculture, Inc. (CGA) is once again pressuring its 52-week high after jumping higher on a recent third-quarter earnings surprise. Read Full Article.

Skechers USA Inc. (SKW) reported third-quarter results on Oct 21 that came in far ahead of expectations on strong international sales and margin expansion. Read Full Article. Zacks Investment Research

In response, analysts have revised earnings estimates higher in the past 7 days, while LZB finds itself on the Zacks #1 Rank Top Performers List for Monday with a gain of more than 7%.

Volume is at 733,000 shares, compared to the daily average of more than 927,000.

La-Z-Boy is, of course, part of the Furniture industry. It is 1 of 3 companies from this space on today's Zacks #1 Rank List. The other 2 names are Select Comfort Corporation (SCSS), which was the Top Performer on Thursday, and Tempur-Pedic International Inc. (TPX).

Estimates for La-Z-Boy Up in Past Week

Analysts have responded positively to La-Z-Boy's most recent quarterly report. All 3 covering analysts for this fiscal year, ending April 2010, have revised higher in the past week. The Zacks Consensus Estimate has, therefore, gained 13.2% in that time and now sits at 43 cents per share, compared to 38 cents previously.

The Zacks Consensus Estimate for next fiscal year, ending April 2011, has also improved in 7 days to 82 cents per share, marking a 6.5% advance from 77 cents. Two of 3 covering analysts contributed to this increase. The guidance also suggests profit growth of up to 91% over the previous year.

Fiscal Second Quarter

Excluding items, La-Z-Boy earned 12 cents per share in its fiscal second quarter, which is 20% better than the Zacks Consensus Estimate. It has put together an average surprise of 122% in the past 3 quarters, as the surprises for the fiscal first and fiscal fourth quarters were 183.3% and 163.6%, respectively.

The quarterly result also reversed a year-ago loss.

However, net sales still felt the impact of the tough macroeconomic environment and dropped 9.4% to $300.7 million.

La-Z-Boy is concerned about the overall environment and believes it is too early to predict a recovery for the industry, but it has made several moves to make its company more efficient at this uncooperative time. It is also keeping a close eye on its balance sheet.

"Today, La-Z-Boy Inc. is operating from a more competitive platform and, over the next 12 to 18 months, our operations will be further strengthened by previously announced projects under way," said President/CEO of La-Z-Boy Kurt L. Darrow.

"Additionally, we are encouraged that despite lower volumes, our retail segment continues to make progress and has significantly reduced year-over-year losses for each of the last 4 quarters," he continued.

Zacks Investment Research