Zacks Buy List Highlights: Grant Prideco, Inc., Patterson-UTI Energy, Inc., Black & Decker Corporation, and Compuware Corporation

Business Wire, Oct 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 Grant Prideco, Inc. (NYSE:GRP) and Patterson-UTI Energy, Inc. (NASDAQ:PTEN). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Black & Decker Corporation (NYSE:BDK) and Compuware Corporation (NASDAQ:CPWR). 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 33% 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 GRP and PTEN have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Grant Prideco, Inc. (NYSE:GRP) earnings estimate for the year ending December 2005 are above three months ago levels by 39 cents, or about 30%. The company will release third-quarter financial results on October 26, 2005. In late July, GRP reported second-quarter earnings per share of 41 cents, which was much higher than the prior year's 10 cents and almost 37% above the consensus estimate.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) earnings estimates for the year ending December 2005 moved up 26 cents, or approximately 15%, over the past 90 trading days. In late July, the company posted second-quarter earnings of 45 cents per, more than tripling last year's 12 cents and exceeding the consensus estimate by almost 10%. The company commented that customer demand for its drilling services has continued to increase and available land drilling rigs remain scarce, resulting in further improvement in pricing for these services. PTEN will announce earnings for the third quarter on October 27, 2005.

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

Black & Decker Corporation (NYSE:BDK), a company that has topped expectations each time over the past five consecutive quarters, released second-quarter earnings from continuing operations of $1.88 per share in late July. The result outperformed last year's $1.50 and exceeded the consensus estimate by approximately 7%. The company mentioned that outstanding organic sales and margin growth in the Power Tools and Accessories segment drove its excellent results during the quarter.

Compuware Corporation (NASDAQ:CPWR) earnings estimates for the year ending March 2006 climbed four cents, or about 12%, from three months ago. In mid-July, the company reported fiscal first-quarter earnings of six cents per share versus a break-even result for the previous year. The six cents also outpaced the consensus estimate by three cents. The company noted that the quarterly results featured year-over-year increases in software license fees, maintenance fees and total revenues.

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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 33%. 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 143.5% annually ( 4.9% vs. 12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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