Zacks Issues Buy Recommendations On the Following 4 Stocks: Apache Corp., OfficeMax, Foundry Networks, and NetScreen Technologies

Business Wire, Jan 31, 2003

Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 31, 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 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: Apache Corporation (NYSE:APA) and OfficeMax, Inc. (NYSE:OMX). Further they announced #2 Rankings (Buy) on two other widely held stocks: Foundry Networks, Inc. (NASDAQ:FDRY) and NetScreen Technologies, Inc. (NASDAQ:NSCN). 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:

Apache Corporation (NYSE:APA) is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. APA finished 2002 with its best quarter of the year. The company more than doubled its net income in the fourth quarter 2002 to $1.24 per diluted commons share from 53 cents last year. APA attributes the significant uptick to improved crude oil and natural gas prices. It said that substantial earnings and cash flow achieved in 2002 made it possible for the company to enter 2003 with a lower debt-to-capitalization ratio while replacing 138% of production. Estimates for the 2003 year have improved by about 85 cents over the past month. The company has an excellent record over the past several quarters of meeting or slightly exceeding Wall Street's predictions. Since the company made good moves to combat its sluggish market and now enters 2003 with solid momentum, investors may want to think about exploring APA for profits.

OfficeMax, Inc. (NYSE:OMX) is the largest operator of high-volume, deep-discount office product superstores in the United States in terms of the number of stores and breadth of geographic coverage. The company recently reported a domestic, same-store sales rise of more than 8% in its fourth quarter, which marks OMX's fifth straight quarter of year-over-year improvement. The company enjoyed positive trends during the holiday selling season, which most of its peers did not, along with January's higher margin back-to-business selling season. It also reiterated its pro-forma earnings guidance for the fourth quarter of 11 cents to 13 cents per share. Furthermore, OMX ended fiscal 2002 in its best financial position in six years, with more than $130 million in cash and practically no debt. It expects further market share and same-store sales growth in the new year. OMX appears to be on a very good track at the moment and could mean more profit supplies for your portfolio.

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:

Foundry Networks, Inc. (NASDAQ:FDRY) designs, develops, manufactures and markets a comprehensive suite of high performance networking products for enterprises and Internet service providers. FDRY showed good improvement in the fourth quarter over year-ago totals, with net income of 8 cents per diluted share reversing a year-ago loss of 9 cents and beating Wall Street's expectations. Furthermore, net revenue in the quarter improved to $86.7 million from $65.4 million. Both of those totals also surpassed the sequential quarter's results. FDRY said it experienced growth in all of its core vertical markets, driven by both its JetCore and 10-Gigabit Ethernet products as business activity improved across all regions. Estimates for the 2003 year have improved slightly over the past three months, but could be in store for more growth if FDRY can continue putting together solid performances. Over the past three quarters, FDRY has put together an average earnings surprise of more than 100%, which is quite impressive given the rather lackluster condition of its industry. FDRY believes that it's well positioned for even stronger growth once the global economy improves.

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. Estimates for NSCN have improved over the past seven trading days, after the company reported solid fiscal first quarter results, with record $51.1 million in revenues. That revenue total was 76% better than the year-ago result of $29 million. In addition, NSCN reported pro forma earnings of 13 cents per diluted share, which easily surpassed Wall Street's expectations and last year's breakeven result. NSCN has seen an average earnings surprise of almost 100% over the past four quarter. Estimates for this year and next have improved by about 15 cents and 8 cents respectively in the last seven days. The company said it strengthened its foundation through product enhancements, the expansion of its Global Alliance partnerships, and the continued penetration of the Global 2000 enterprise market and the government sector. An investment in NSCN may help to secure some solid returns for your investment universe.