Zacks Buy List Highlights: The Goodyear Tire & Rubber Co., Unit Corporation, Caremark Rx, Inc., and Emerson Electric

Business Wire, Sept 16, 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 The Goodyear Tire & Rubber Co. (NYSE:GT) and Unit Corporation (NYSE:UNT). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Caremark Rx, Inc. (NYSE:CMX) and Emerson Electric Co. (NYSE:EMR). 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 GT and UNT have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

The Goodyear Tire & Rubber Co. (NYSE:GT) earnings estimates for the year ending December 2005 moved up 20 cents, or about 17%, from two months ago. In early August, the company announced second-quarter earnings results that surpassed the consensus estimate by 110% and topped the prior year result. The company noted that five of its businesses had record second quarter sales, and margins improved in its North American and European Union tire businesses.

Unit Corporation (NYSE:UNT) earnings estimates for the year ending December 2005 are above the two months ago levels by 50 cents, or approximately 16%. In late July, the company posted second-quarter earnings of 86 cents per share compared to 44 cents for the prior year. The result was almost 18% ahead of the consensus estimate. UNT mentioned that favorable commodity prices and industry conditions are producing great results and more growth opportunities.

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

Caremark Rx, Inc. (NYSE:CMX) posted second-quarter earnings of 47 cents per share in early August, beating last year's 30 cents and outperforming the consensus estimate by about 2%. The company mentioned that it continues to perform well both operationally and financially. CMX also raised its full year earnings guidance to a range of $1.95 to $1.97. Analysts have been increasing estimates as well. Current full year 2005 earnings estimates of $1.96 per share are above two months ago levels by three cents, or almost 2%.

Emerson Electric Co. (NYSE:EMR) reported fiscal third-quarter earnings of $1.00 per share, excluding an item. The result improved on last year's 81 cents and eclipsed the consensus estimate by approximately 5%. The company stated that its continued focus on strategic technology investments allows it to better meet its customers' needs, anywhere in the world. EMR increased its fiscal year 2005 expectations. Analysts are in agreement as evidenced by their upward revisions of earnings estimates for the year ending September 2005. Current estimates of $3.51 per share are approximately 1% above two months ago levels.

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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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