Zacks Issues Buy Recommendations on the Following 6 Stocks: OfficeMax, Qualcomm, Tractor Supply, Cognos, WebMD Corp., and UnitedHealth

Business Wire, March 19, 2003

Business Editors

CHICAGO--(BUSINESS WIRE)--March 19, 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: OfficeMax, Inc. (NYSE:OMX), QUALCOMM, Inc. (NASDAQ:QCOM), and Tractor Supply Company (NASDAQ:TSCO). Further they announced #2 Rankings (Buy) on two other widely held stocks: Cognos, Inc. (NASDAQ:COGN), WebMD Corporation (NASDAQ:HLTH) and UnitedHealth Group Inc. (NYSE:UNH). 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:

OfficeMax, Inc. (NYSE:OMX) operates a chain of high-volume, deep-discount office products superstores. OMX put together a significant improvement in its fourth quarter results from last year, with net income, assuming an approximate 40% tax rate, of 13 cents per diluted share. That result was ahead of Wall Street expectations and compares to a pro-forma loss of 19 cents from last year. Furthermore, same-store sales advanced by 8.5% for its U.S. operations, marking OMX's fifth straight quarter of year-over-year same-store sales improvement. Overall sales pushed forward by 5%. The company has a very ambitious attitude toward the future, and expects to use its strong financial position to gain market share at the retail level while investing in programs to improve execution at other levels of its business. The company's improved results bode well for the company and its shareholders moving forward, leaving investors with a chance to pick up some profitable supplies with OMX.

QUALCOMM, Inc. (NASDAQ:QCOM) is engaged in developing and delivering digital wireless communications products and services based on the Company's CDMA digital technology. Earlier this month, QCOM raised its expectation for shipments of MSM phone chips in the second quarter of fiscal 2003 to 28 million from its previous estimate of 27 million. That would mark a sharp improvement over 14 million units shipped in the year-ago quarter. Furthermore, in the third quarter of fiscal 2003, QCOM expects to ship about 23 million to 25 million MSM phone chips, versus approximately 16 million chips last year. Such growth is a good indicator for a company operating in a challenging space. In addition, over the past four quarters, QCOM's earnings estimates have been rising and the company has met or exceeded those expectations each time. Analysts have taken note and have put the company's earnings estimates at heightened levels from three months ago.

Tractor Supply Company (NASDAQ:TSCO) is a specialty retailer which supplies daily farming and maintenance needs of its target customers: hobby, part-time and full-time farmers and ranchers, as well as contractors, tradesmen and rural customers. In the company's fourth quarter, TSCO posted net income that rose by more than 83% and net sales that advanced by more than 48%, as same-store sales moved forward by 6.2%. Its earnings result of 88 cents surpassed Wall Street predictions, as the company has been able to do for several consecutive quarters now. Analysts have responded by raising TSCO's earnings estimates by a significant degree for this year from levels three months ago, while next year's estimates have also shown improvement. Investors may want to hop on a piece of TSCO and till the market for profits.

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:

Cognos, Inc. (NASDAQ:COGN) delivers e-commerce software that enables effective decision making at all levels of an organization. The company recently announced that the 88th Regional Support Command (RSC), a division of the U.S. Army Reserve Command, will implement its Cognos Metrics Manager. Specifically, COGN will provide a dashboard that will allow senior personnel to monitor, analyze and report on the readiness of troops. In addition, analysts have been responding favorably to the company's string of positive earnings surprises, which has averaged approximately 17% over the past four quarters. COGN's earnings estimates for this year and next have moved forward slightly in the past several months, but could move further if the company can continue generating solid quarterly performances. With a steady stream of earnings success, an investment in COGN may improve the readiness and performance of your portfolio.

WebMD Corporation (NASDAQ:HLTH) provides connectivity and a full suite of services to the healthcare industry that improve administrative efficiencies and clinical effectiveness enabling high-quality patient care. In the company's fourth quarter, HLTH posted income, before taxes, restructuring, non-cash and other items, of 13 cents per share, which eclipsed what a consensus of analysts expected and substantially improving upon the year-earlier breakeven result. Revenue in the quarter improved by 8% to $241.4 million. HLTH has been beating rising earnings estimates over the past several quarters, which signals good momentum moving forward. Its earnings estimates for this year have shown improvement in just the past seven trading days. HLTH plans to continue making investments in new applications, technology, and markets during 2003 to help deliver substantial, long-term growth. Under the weather investors may want to consider a piece of HLTH in their investments.