Zacks Buy List Highlights: King Pharmaceuticals, Inc., Timken Co., Charming Shoppes, Inc., and Internet Security Systems, Inc

Business Wire, July 20, 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 King Pharmaceuticals, Inc. (NYSE:KG) and Timken Co. (NYSE:TKR). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Charming Shoppes, Inc. (NASDAQ:CHRS) and Internet Security Systems, Inc. (NASDAQ:ISSX). 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 KG and TKR have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

King Pharmaceuticals, Inc. (NYSE:KG) reported first-quarter earnings, excluding items, of 31 cents per share in early May, exceeding the consensus estimate by 55% and beating last year's first-quarter result. The company said first-quarter results reflect the positive effect of the completion of wholesale inventory reductions for its key products. Earnings estimates for the year ending December 2005 moved up 10 cents, or about 12%, over the past 90 trading days.

Timken Co. (NYSE:TKR) will announce second-quarter financial results on July 28, 2005. Analysts have been issuing upward revisions of year 2005 earnings estimates. Current estimates are above levels from three months ago by 12 cents, or almost 6%. In mid-April, the company released first-quarter earnings of 64 cents per share, excluding special items, more than doubling last year's 31 cents and eclipsing the consensus estimate by almost 7%. TKR mentioned that it continued to see broad strength in industrial markets, leading the Industrial and Steel Groups to deliver solid earnings.

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

Charming Shoppes, Inc. (NASDAQ:CHRS) recently announced that total sales for June increased 22% compared to last year's June sales. Comparable store sales for Charming Shoppes' retail store brands advanced 8%. On the same day, the company stated that stronger than planned June sales and solid improvement in gross margins at its retail store brands are the drivers of its upward revision of projected earnings per share for the second quarter. Analysts followed suit and increased fiscal second-quarter earnings estimates by three cents, or almost 13%, from one month ago. The second-quarter earnings report will be issued on August 17, 2005.

Internet Security Systems, Inc. (NASDAQ:ISSX) will release financial results for the second quarter on July 27, 2005. In late April, the company posted first-quarter non-GAAP earnings of 19 cents per share improving on last year's 13 cents and surpassing the consensus estimate by almost 6%. Revenues climbed 15% year-over-year. Earnings estimates for the year ending December 2005 increased one penny, or approximately 1%, over the past seven trading days.

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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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