Zacks Brokerage Buy List: Comcast, HP, Microsoft and Pfizer

Business Wire,  Jan 14, 2004  

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Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 14, 2004

Today Zacks.com releases the names of 4 more stocks that are on their coveted Brokerage Buy List portfolio. This portfolio includes just those stocks that currently appear on the core recommended lists of at least three of the top 15 brokerage firms. These stocks are considered the best large cap stocks to own for the long term according the Wall Streets top players. In 2003 this portfolio has gained +17.1% outpacing the +13.2% rise of S&P 500. Here are 4 stocks that are currently members of this prestigious list: Comcast Corporation (NASDAQ:CMCSA), HP (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT) and Pfizer Inc. (NYSE:PFE). View the entire list of stocks on the Brokerage Buy List at http://at.zacks.com/?id=139

Here is a synopsis of why these stocks are on the Brokerage Buy List:

Comcast Corporation (NASDAQ:CMCSA) is among the world's leading communication companies, provides basic cable, digital cable and high speed internet services that connect people to what's important in their lives. The company's integration is continuing to exceed all of their previous expectations. In the most recent quarter, Comcast delivered outstanding financial and operational performance. Comcast Cable added over 318,000 Digital Cable subscribers to end the third quarter with 7.273 million Digital Cable subscribers, a pro forma increase of 16.6% over the same prior year period, representing a subscriber penetration rate of 34.0%. Comcast Cable continued to enhance its Digital Cable offering by expanding availability of video-on-demand (VOD) and high- definition television (HDTV). Operating cash flow from their cable business exceeded $1.6 billion this quarter, a +35% increase over the prior year and operating cash flow margin continues its rapid improvement from 30% last year to 37% this quarter. Comcast's business strategy is producing better than expected results. The picture is clear and three brokerage firms have CMCSA on their Focus Lists.

HP (NYSE:HPQ) is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium businesses. Recently, HP announced that it has filed an application to dual list its common stock on the Nasdaq Stock Market. If HP's application is approved, HP's common stock will be listed on both the NYSE and the Nasdaq under the stock ticker "HPQ." The listing of HP's stock on Nasdaq is expected to take effect in the next few weeks. HP and Apple (NASDAQ: AAPL) also announced recently a strategic alliance to deliver an HP-branded digital music player based on Apple's iPod, the No. 1 digital music player in the world, and Apple's award-winning iTunes digital music jukebox and pioneering online music store to HP's customers. Back in November the company announced that for the sixth consecutive quarter, HP leads in worldwide server unit shipments, with 30.6% of the market, according to figures released by IDC. Almost one of every three servers shipped is from HP. With market dominance and strong financials, three top brokerage firms are recommending HPQ as a long-term Core Holding.

Microsoft Corporation (NASDAQ:MSFT) develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft software includes scalable operating systems for servers, personal computers, and intelligent devices; server applications for client/server environments; knowledge worker productivity applications; and software development tools. In its most recent quarterly report from late October, the company posted fiscal first quarter diluted earnings of 30 cents per share, excluding items, which surpassed the consensus by more than +7%. Revenue advanced by about +6% to $8.22 billion from $7.75 billion last year. The company saw strength across all of its consumer businesses, helped by new, innovative software such as Office System, Exchange Server 2003, and Small Business Server. Strong 'back-to-school' customer demand helped Client revenue move above expectations, while its Server and Tools segment rose +15% to $1.87 billion. This has over +50% of the top brokerage firms listing MSFT as a Core Holding for investors.

Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures and markets leading prescription medicines for humans and animals and many of the world's best-known consumer brands. In December the company announced that it has entered into an agreement to acquire Esperion Therapeutics, Inc., a biopharmaceutical company focused on the development of high-density lipoprotein targeted therapies for the treatment of cardiovascular disease. Pfizer will commence a cash tender offer to acquire the shares of Esperion stock for $1.3 billion at a price of $35 per share, subject to certain conditions. This price represents a 54 percent premium over Esperion's average closing share price during the last 20 trading days. This acquisition should help increase revenues in the long run. Analysts are looking forward to the fourth quarter numbers, which should be released this month. The company's performance in the third quarter was characterized by strong revenue growth from the industry's broadest product line, impressive earnings growth, and continued progress in advancing promising candidates from its research and development pipeline. Third-quarter revenues grew +56% to $12.504 billion, compared to the same period in the prior year. With strong market position, strong financials and a solid pipeline, it's no wonder that four of the top brokerage firms recommend PFE as a Core Holding.