Schaeffer's S&P 500 Index Hot Stocks Features Robert Half International, Affiliated Computer Services, Equifax, Caterpillar, and Fiserv

Business Wire, Oct 21, 2005

CINCINNATI -- Among the stocks featured in the October 21 edition of Schaeffer's S&P 500 Index Hot Stocks are Robert Half International (NYSE:RHI), Affiliated Computer Services (NYSE:ACS), Equifax (NYSE:EFX), Caterpillar (NYSE:CAT), and Fiserv (NASDAQ:FISV). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSHS1M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Friday, October 21, 2005:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,184.05) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

Another day, another hot stocks. Fortunately, the SPX and the Nasdaq Composite (COMP) have been able to focus on Google (GOOG) rather than Caterpillar (NYSE:CAT), which we will address in a few minutes. The SPX has inched higher amidst the struggles for the Dow Jones Industrial Average (DJIA). The index has crept higher on a general lack of news and despite crude advancing back above the 60 level.

Robert Half International (NYSE:RHI) posted third-quarter earnings of $64.4 million, or 37 cents per share. The staffing company announced that revenue totaled $867 million in the period, up from $708 million in the same period last year. Analysts had forecast earnings of 34 cents per share. This news made RHI more popular than the iPod video, as investors gobbled it up to the tune of a 15-percent gain on the day.

Much like the yearly ascension of sea turtles up the beach to lay their eggs, Affiliated Computer Services (NYSE:ACS) has ascended up the hot stocks chart. Bear with me here, the sea-turtle comparison is relevant because that happens once a year, and this is the first time in the past year that I have written about ACS. The company announced that its quarterly profit came in little changed from the previous year as it posted first-quarter earnings of 74 cents per share on revenue of $1.31 billion. Excluding items, ACS would have earned 78 cents per share, matching the Street's estimate, but the Street was a bit shocked by the revenue. The consensus estimate was for revenue of $1.29 billion. The firm announced that it still expects full-year earnings of $3.30 to $3.55 per share, which engulfs the Street's estimate of $3.40 per share.

Yesterday, Equifax (NYSE:EFX) posted third-quarter earnings of 47 cents per share. Taking out an item for the Fair and Accurate Credit Transaction Act, EFX earned 45 cents per share in the quarter, matching the Street's expectations. Today, JMP Securities upgraded the credit company to "outperform" from "market perform."

Just in case you have been too caught up in the latest news about Jude Law and Sienna Miller's little relationship problems and couldn't catch the news from CAT today, here is a recap. CAT issued third-quarter earnings of 94 cents per share, which missed the Street's estimate of $1.06 per share. CAT blamed the loss on manufacturing costs that offset increased sales and higher prices. The machinery company lowered its earnings forecast to $3.85 to $4 per share, down from $4 to $4.20 per share and short of the Street's expected $4.15 per share. As a result, the firm's shares dropped more than nine percent on the day. Ouch!

Finally, Fiserv (NASDAQ:FISV). After the close yesterday, the firm posted a third-quarter profit that rose roughly 22 percent over the previous year along with revenue that increased over the past year. Not only did FISV top last year's numbers, but it beat the consensus estimate as well. So, why has the firm fallen? An analyst from Wachovia Securities issued a downgrade on the company, from "market perform" to "underperform." The brokerage didn't downgrade FISV because it forgot last week's Sweetest Day (it's a Midwest thing) "Holiday," Wachovia cited decelerating organic revenue growth, weak cash flow, and higher valuation than faster-growing peers as reasons for the hit with the downgrade stick. Unfortunately for FISV, investors chose to focus on the downgrade than on the impressive earnings. The company has dropped more than six percent today.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14440 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14440 .

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