Zacks Issues Buy Recommendations on the Following 4 Stocks: Ask Jeeves, First American Corporation, Broadcom, and NetScreen
Business Wire - April 29, 2003 06:03
CHICAGO--(BUSINESS WIRE)--April 29, 2003--Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of +33.6% since 1988 and has gained +13.3% annually since 2000 as the markets have been tumbling down. Among the #1 ranked stocks today we highlight the following companies Ask Jeeves, Inc. (NASDAQ:ASKJ) and The First American Corporation (NYSE:FAF). Further they announced #2 Rankings (Buy) on two other widely held stocks: Broadcom Corporation (NASDAQ:BRCM) and NetScreen Technologies Inc. (NASDAQ:NSCN). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. zacksrank1bw.zacks.com
Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:
Ask Jeeves, Inc. (NASDAQ:ASKJ) is a provider of natural-language question answering services on the Internet for consumers and companies, establishing a new way to interact with the World Wide Web. ASKJ reported pro forma net income in the first quarter of 7 cents per share, with revenues reaching $25.2 million. The earnings result surpassed Wall Street's expectations and reversed a year-ago loss, while revenues improved from $16.1 million. The company attributed its performance to growth in users, frequency and the percent of traffic monetized. ASKJ raised its 2003 earnings guidance to pro forma net income of about 25 cents per share from an earlier forecast of 20 cents and revenues at approximately $102 million instead of $100 million. ASKJ appears to be moving in the right direction with an excellent record of surpassing Wall Street's expectations, and earnings estimates for this year that have moved from a single-digit profit to a double-digit expectation over the past three months. With a strong performance in the past and a growing space in the front, ASKJ could be at the service of your portfolio.
Zacks Issues Buy Recommendations on the Following 4
Stocks: Ask Jeeves, First American Corporation, Broadcom, and NetScreen
The First American Corporation (NYSE:FAF) is the nation's leading provider of business information and related products and services. The company's three business segments include: title insurance and services; real estate information and services, and consumer information and services. FAF put together a strong first quarter with net income per diluted share of $1.05, which surpassed the Street's expectation and handily improved on last year, with total revenues rising to $1.34 billion from $1.04 billion. The company attributed the quarter's performance to elevated levels of mortgage applications in the fourth quarter of 2002 that produced strong order closings. Its earnings estimates for this year and next have been trending higher for several months, an recent upward revisions for this year have added about 17 cents in just the past seven trading days. Over the past four quarters, FAF has constructed an average earnings surprise of approximately +23%. FAF may be able to insure your investment universe during this unpredictable time.
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:
Broadcom Corporation (NASDAQ:BRCM) is a leading developer of highly integrated silicon solutions that enable broadband digital data transmission to the home and within the business enterprise. BRCM started its fiscal year on the right foot by returning to pro forma profitability with net income for the first quarter of 6 cents per diluted share. The result easily reversed a year-ago pro form net loss while tripling what Wall Street expected. Net revenue in the quarter jumped by +37.1% to $327.5 million from last year. Both of those results also marked improvement on a sequential basis, while the company completed its seventh straight quarter of revenue growth. Its earnings estimates have been on the rise, maturing by about 15 cents for this year over the past month and approximately 18 cents for next year. BRCM's accomplishments become all the more impressive when considering the sluggish technology environment. Given its ability to perform well under difficult circumstances, BRCM may be a very profitable link for your investments.
NetScreen Technologies Inc. (NASDAQ:NSCN) develops, markets and sells a broad family of network security systems and appliances that deliver high performance, cost-effective security for enterprises and service providers. At a time when security of all types is paramount, NSCN had a solid fiscal second quarter with pro forma net income rising to 15 cents per diluted share from 3 cents last year, beating Wall Street's expectations along the way. Revenue surged by more than +80% to a record $58.3 million from $32 million. The performance was achieved by strength in product sales and the ability to control operating expenses. NSCN raised its revenue projection for the fiscal year ending September 30, 2003 to between $237 million and $240 million, which would grow by +71% to +73% year-over-year. It had previously expected revenue at $225 million to $230 million. For the past several quarters, NSCN's earnings estimates have been rising and the company has shown the ability to surpass them, which suggests that it is on the right track and may be able to secure the loose ends of your portfolio.
To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. freezrguideprbw1.zacks.com
About the Zacks Rank
For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the *S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). This is a healthy change from traditional Wall Street Brokerage firms who rarely give stocks Sell ratings even as the share price and earnings forecast tumble. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.
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