Zacks Buy List Highlights: Best Buy, Broadcom Corp., Cooper Cameron, and LSI Logic

Business Wire, August 12, 2005

CHICAGO -- Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Rank (Strong Buy) List. The #1 Rank stocks highlighted today are Best Buy (NYSE:BBY) and Broadcom Corp. (NASDAQ:BRCM). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Cooper Cameron (NYSE:CAM) and LSI Logic (NYSE:LSI). To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 32.8% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%.

Here is a synopsis of why BBY and BRCM have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Best Buy (NYSE:BBY) recently announced first-quarter earnings of 34 cents per share, surpassing the consensus estimate by 70% and outperforming last year's result. Revenues grew 12% to $6.1 billion, driven by opening new stores and same store sales gains. Consumer electronics products such as MP3 players, digital cameras, and notebook computers were strong during the quarter. Full year earnings estimates have increased 19 cents, or 9.4% over the past two months.

Broadcom Corp. (NASDAQ:BRCM) recently reported fiscal second-quarter earnings of 34 cents per share, eclipsing the consensus estimate by 36%. Net sales advanced to $604.9 million, up 9.9% from this year's first quarter. The company mentioned that its second-quarter performance benefited from strong demand across all of its product lines. Full year fiscal 2005 earnings estimates are above one month ago levels by 27 cents, or almost 26%.

Here is a synopsis of why CAM and LSI have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks ranked by Zacks:

Cooper Cameron (NYSE:CAM) recently reported first quarter earnings of 70 cents per share, on revenues of $594.7 million. That earnings result exceeded the consensus and improved upon the year-earlier result. The company attributed their success to strong sales of their shorter-cycle businesses. Earnings estimates for the year ending December 2005 have increased 22 cents, or about 8.2%, over the past month.

LSI Logic Inc. (NYSE:LSI) earnings estimates for the December 2005 year advanced four cents, or almost 11%, in the past month. The company said its second-quarter performance displayed strong execution and growth, which continued momentum into 2005. Earnings per share came in at 11 cents, compared to 7 cents in the year-ago quarter. The result topped the consensus by more than 37%. The company cited strong storage product revenues for the out-performance during the quarter.

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About the Zacks Rank

For over 16 years, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of 32.8%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 155.5% annually ( 4.65% vs. 11.88%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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