Zacks Buy List Highlights: Patterson-UTI Energy, Inc., Timken Co., Emerson Electric, and Ryland Group

Business Wire, May 11, 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 Patterson-UTI Energy, Inc. (NASDAQ:PTEN) and Timken Co. (NYSE:TKR). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Emerson Electric (NYSE:EMR) and Ryland Group, Inc. (NYSE:RYL). 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 PTEN 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:

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) recently released first quarter earnings of 35 cents per share, outpacing last year's 13 cents and jumping ahead of the consensus estimate by almost 17%. The company stated that the results for the quarter continue to demonstrate the earnings leverage it is able to achieve as rig utilization and pricing increase. Revenues were 60% above last year's first quarter. Earnings estimates for the year ending December 2005 are up 23 cents, or about 16%, from one month ago.

Timken Co. (NYSE:TKR) recently stated that over the past few years, it has taken steps to improve competitiveness in preparation for the upturn in global markets and it is now benefiting from these actions. The company's first-quarter earnings of 64 cents per share, excluding special items, soared past last year's 31 cents and eclipsed the consensus estimate by almost 7%. Analysts advanced earnings estimates for the year ending December 2005 by 11 cents, or approximately 5%, from one month ago.

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

Emerson Electric (NYSE:EMR) recently posted fiscal second quarter earnings of 83 cents per share, improving on last year's 71 cents and beating the consensus estimate by about 2%. The company mentioned that second-quarter results reflect outstanding strength in Process Management, which saw sales increase 12% and profits grow 55%. Emerson Electric also said that its operating improvements should allow it to deliver earnings per share of between $3.35 and $3.45 for fiscal 2005, which is an increase over its prior guidance. The company has topped Wall Street's earnings per share estimates for the past seven consecutive quarters.

Ryland Group, Inc. (NYSE:RYL) recently raised its full-year 2005 earnings guidance as did analysts. Analysts' earnings estimates have improved 38 cents, or approximately 5%, over the past month. The company recently reported the highest first-quarter consolidated net earnings, revenues, new orders, closings, backlog and earnings per share in its history. Earnings of $1.25 per share, eclipsed last year's $1.03 and surpassed the consensus estimate by about 5%.

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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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