Zacks Buy List Highlights: Avnet, Parker-Hannifin, Corning, Inc., and Starbucks

Business Wire, June 22, 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: Avnet, Inc. (NYSE:AVT) and Parker-Hannifin Corporation (NYSE:PH). Further they announced #2 Rankings (Buy) on two other widely held stocks: Corning, Inc. (NYSE:GLW) and Starbucks Corporation (NASDAQ:SBUX). 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:

Avnet, Inc. (NYSE:AVT) is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical components, enterprise network and computer equipment, and embedded sub-systems from leading manufacturers. Earnings estimates for the year ending June 2004 remain above levels from two months ago for Avnet by 15 cents, or approximately 17%, including a rise of 3 cents, or about 3%, in the past 30 trading days. In late April, Avnet reported fiscal third quarter net income of 34 cents per share, excluding items, which topped the consensus at the time by more than 17%, while marking the 11th consecutive quarter of earnings per share that met or beat Wall Street's expectations. Furthermore, revenues rose 13% year-over-year to $2.64 billion. The company stated that the increase in Electronics Marketing sales across all geographies demonstrates that Avnet is enjoying a significant uplift from the technology industry recovery. That's definitely good news for the company and its shareholders moving forward, so investors may want to take a look at Avnet.

Parker-Hannifin Corporation (NYSE:PH) is a leading worldwide full-line manufacturer of motion control products, including fluid power systems, electro-mechanical controls and related components. Last week, Parker-Hannifin raised its earnings estimates for the fiscal fourth quarter to between 85 cents and 95 cents per diluted share, compared to its previous range of 70 cents to 80 cents. The company said recent orders continued to exceed expectations, driving sales and profits higher, with substantially lower operating costs and robust shipments. As a result of the raised guidance, the company also revised its full year range upward to between $2.70 and $2.80. Earnings estimates for the year ending this month moved forward by 8 cents, or approximately 3%, over the past month, including a rise of 5 cents, or about 2%, in the past seven trading days. If demand continues at the current pace, Parker-Hannifin said 2005 should be an upbeat year. With its Win Strategy delivering solid results, Parker-Hannifin looks to have a lot of momentum driving it forward.

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:

Corning, Inc. (NYSE:GLW) is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Last week, Corning reiterated its 2004 second quarter earnings per share guidance of between 7 cents and 9 cents, which was above the consensus when originally issued. Also at its meeting with investors in Boston, the company stated its three near-term growth initiatives represent a significant opportunity for Corning. Those initiatives include fiber in the local access network, or fiber to the premises; emission control for products in heavy-duty and light-duty diesel engines; and the expanding market for liquid crystal display (LCD) glass. Looking back a bit further, in late April Corning reported first quarter net income of 8 cents per share, excluding items, which eclipsed the consensus by 3 cents, or approximately 60%. Earnings estimates for the year ending December 2004 are above levels from two months ago by 11 cents, or approximately 46%. With several opportunities for growth, especially a solid presence in the growing LCD market, Corning appears to be moving in the right direction and could be in line for further earnings estimate advances in the future.

Starbucks Corporation (NASDAQ:SBUX) is the leading retailer, roaster and brand of specialty coffee in the world. In late May, Starbucks reported consolidated net revenues of $404 million for May, which marked an increase of 27% from a year-ago. Furthermore, same-store sales at company-owned stores advanced 11%. For its fiscal second quarter results, announced in late April, Starbucks posted diluted earnings of 19 cents per share on consolidated net revenues of $1.2 billion. That earnings result topped the consensus by almost 12% and beat the year-ago total of 13 cents, while revenues advanced by 30%. The company said that all of its businesses delivered strong a strong financial performance. Starbucks also felt comfortable enough to raise its full year earnings per share target. The company has enjoyed several upward revisions from analysts over the past several weeks, and earnings estimates for the year ending September 2004 are up 4 cents, or about 5% in the past two months. Starbucks went on to say it is well-positioned to aggressively pursue its goals of about 20% revenue growth and 20% to 25% earnings per share growth over the next three to five years.