Zacks Issues Buy Recommendations On the Following 4 Stocks: ERTS, RYL, ADBE, AMTD

Business Wire, Oct 28, 2002

Business Editors

CHICAGO--(BUSINESS WIRE)--Oct. 28, 2002

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 34% since inception in 1980 and is up +11.9% through July 1, 2002. Among the #1 ranked stocks today we highlight the following companies: Electronic Arts Inc. (Nasdaq:ERTS) and The Ryland Group, Inc. (NYSE:RYL). Further they announced #2 Rankings (Buy) on two other widely held stocks: Adobe Systems Incorporated (NASDAQ:ADBE) and Ameritrade Holding Corp. (NASDAQ:AMTD). To see the full Zacks #1 Ranked list or the rank for any other stock then visit: http://www.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:

Electronic Arts Inc. (Nasdaq:ERTS) is a leading video game manufacturer for gaming systems like Sony and Microsoft. The company announced record financial results last week for the fiscal quarter that ended on September 30, 2002. Net revenues for the quarter were $453 million, up 89% compared with $240 million for ERTS' fiscal quarter ending September 30, 2001. Growth was driven by strong sales of Madden NFL 2003, NCAA Football 2003, Medal of Honor Frontline and The Sims products. Analysts see continued success going forward as ERTS expects to release over 35 new titles in 75 countries in 20 languages -- including Harry Potter and the Chamber of Secrets; The Lord of the Rings, The Two Towers; James Bond 007: NightFire; Need for Speed Hot Pursuit 2; FIFA Soccer 2003; NBA Live 2003; and The Sims Online. Since the company raised its guidance, investors can expect analysts to be raising their targets faster than ERTS' titles are leaving store shelves.

The Ryland Group, Inc. (NYSE:RYL) builds homes and also provides mortgage-financing services for more than 20 markets across the country. The company announced record results for its third quarter ended Sept. 30, 2002, including the highest third-quarter consolidated net earnings, homebuilding pretax earnings, homebuilding revenues, new orders, closings, backlog and earnings per share in its history. Over the past month, estimates for this year and next have both risen by 13 cents. The past four quarters have seen an average earnings surprise of almost +31%. RYL operates in a market that has held up quite well during the economic downturn and it's shown an ability to capitalize on its opportunities. New homes sold in September reached a record 1.02 million, the Commerce Department reported Friday, a 0.4% gain from the previous month. Since companies on the right track tend to stay that way until something knocks them off, RYL looks like a good bet for investors.

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:

Adobe Systems Incorporated (NASDAQ:ADBE) is a leading provider of graphic design, publishing, and imaging software for Web and print production. The company last week announced a pair of new products aimed at strengthening its push to get big companies and government agencies to use its Acrobat software to manage paperwork over the Web. Earnings estimates have moved up by 3 cents for this year and 1 cent for next. This doesn't sound like a major increase, but considering all the companies lowering guidance and analyst jumping of the tech wagon, this is a considerable accomplishment. Unfortunately, cost saving measures mean 260 workers will be laid off in the wake of lower tech spending by companies. Analysts look for this cost cutting move to pay dividends as the economy becomes stronger. Adobe is an industry leader that looks to have brighter days ahead.

Ameritrade Holding Corp. (NASDAQ:AMTD) is one of the premier online brokerage providers. It has been rough going for brokerage firms as many investors choose to stay on the sidelines, however AMTD was able to match the Street's EPS estimates for their fiscal fourth quarter ending in September. The company has warned that earnings may be soft going forward if the markets don't pick up. They managed to raise revenue to $115.6 million, up from $92.2 million, and added 75,000 new accounts. Analysts are hopeful that the Datek acquisition will immediately contribute to Ameritrade's earnings and cash flow. It's still a rough market, but Ameritrade looks to be heading in the right direction since its July lows. Now might be the time to get back into the market by investing in an industry leader like Ameritrade.

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. http://freezrguideprbw1.zacks.com

About the Zacks Rank

For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1980 #1 Ranked stocks have generated an average annual return of +34.0% compared to the (1)S&P 500 return of only +14.7%. Plus this exclusive stock list has gained +11.9% through 7/1/02, +18.7 in 2001 and +16.2% in 2000; 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 1980 the #5 Ranked Strong Sells have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.