Zacks Buy List Highlights: Rite Aid, SonicWALL, Electronic Arts, and j2 Global Communications

Business Wire, July 13, 2004

CHICAGO -- 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 +34.2% since inception in 1988 and has gained +139.7% since January 2000 when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today we highlight the following companies: Rite Aid Corporation (NYSE:RAD) and SonicWALL, Inc. (NASDAQ:SNWL). Further they announced #2 Rankings (Buy) on two other widely held stocks: Electronic Arts (NASDAQ:ERTS) and j2 Global Communications (NASDAQ:JCOM). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88

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:

Rite Aid Corporation (NYSE:RAD) is one of the nation's leading drugstore chains. Late June saw Rite Aid report a solid fiscal first quarter, including net income of 10 cents per diluted share, which topped the consensus at the time by as much as +150%. The company has now met or surpassed Wall Street's quarterly earnings expectations for five straight quarters, and nine out of the last ten. Revenues reached $4.2 billion, which was +4.9% better than the year-ago result of $4 billion. Same-store sales advanced +5.3%. Rite Aid felt comfortable enough to raise its fiscal 2005 net income guidance. Some recent analyst revisions to the upside have helped earnings estimates for the year ending February 2005 to rise 3 cents, or approximately +12%, in the past month, including an improvement of 1-cent, or about +4%, in the past seven trading days. More recently, Rite Aid reported a same-store sales advance of 2.4% for the month of June. With a solid performance in the past and an encouraging outlook for the future, Rite Aid may have what it takes to keep your portfolio healthy.

SonicWALL, Inc. (NASDAQ:SNWL) is a leading provider of integrated network security, mobility, and productivity solutions for the SMB, enterprise, e-commerce, education, healthcare, retail/point-of-sale, and government markets. SonicWALL heads into its second quarter report on July 26th with earnings estimates for the this year still above levels from three months ago by 2 cents, or about +18%. In late April, the company reported first quarter pro forma earnings of 3 cents per diluted share, topping the consensus by a penny, or about +50%. That marked the eight consecutive quarter of earnings that met or beat Wall Street's expectations. Also, revenues reached $31.8 million, which was up +57% year-over-year. SonicWALL said it continued to score competitive wins with end customers, while continuing to win over key distributors and resellers who have realized the value of partnering with a vendor who has a superior business proposition and completely committed to their success. SonicWALL appears to have solid momentum moving forward, and might be worth a look 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:

Electronic Arts (NASDAQ:ERTS) develops, markets, publishes and distributes interactive software games. Electronic Arts capped off its fiscal year in late April with a strong fourth quarter report, which included non-GAAP diluted earnings of 25 cents per share that beat the consensus at the time by more than +19%. The result marked the eighth consecutive quarter of earnings per share that surpassed Wall Street's expectations, which bodes well moving forward. Also in the quarter, net revenue reached $598 million, which marked a year-over-year advance of +29%, thanks to products such as James Bond 007: Everything or Nothing(TM); Need for Speed Underground, NFL STREET; MVP Baseball(TM) 2004 and Final Fantasy(R) X-2. Earnings estimates for the year ending March 2005 are above levels from three months ago by 4 cents, or about +2%. Electronic Arts is a leading company in a very popular industry, so it may be able to help your portfolio earn a higher score moving forward.

j2 Global Communications (NASDAQ:JCOM) provides outsourced, value-added messaging and communications services to individuals and businesses around the world. Over the past three months, earnings estimates for the year ending December 2004 moved forward 6 cents, or about +6%, including a rise of 2 cents, or approximately +2%, in the past 30 trading days. The company will report its second quarter results on July 19th. In April, j2 Global reported net earnings of 25 cents per fully diluted share, topping the consensus by almost +9% while beating the year-ago result of 20 cents. Total revenues jumped +51% to $22.9 million. The company stated its year-over-year revenue growth provides a solid foundation to build its business the rest of the year. j2 Global also said it's very enthusiastic about its growth prospects heading into 2004, which is good news for shareholders. If the company can put together another solid report next week, then its earnings estimates could be poised to move higher.