Zacks Buy List Highlights: Nordstrom, Inc., National Semiconductor Corp., Charming Shoppes, Inc., and Rockwell Collins

Business Wire, Sept 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 Nordstrom, Inc. (NYSE:JWN) and National Semiconductor Corp. (NYSE:NSM). Further, Zacks announced #2 Rankings (Buy) on two other widely held stocks: Charming Shoppes, Inc. (NASDAQ:CHRS) and Rockwell Collins, Inc. (NYSE:COL). 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 JWN and NSM have a Zacks Rank of 1. Note that a #1 Strong Buy rating is applied to only 5% of all the stocks Zacks ranks:

Nordstrom, Inc. (NYSE:JWN) reported earlier this month that preliminary sales for the month of August grew 9.5% year-over-year. Same-store sales increased 8%. Last month, Nordstrom posted fiscal second-quarter earnings of 53 cents per share, beating the consensus estimate by almost 13% and improving on the year ago result. The company also raised its fiscal year outlook from $1.70-$1.75 to $1.80-$1.90. Analysts followed suit by increasing earnings estimates for the year ending January 2006 to $1.86 per share, 5% advancement from two months ago.

National Semiconductor Corp. (NYSE:NSM) recently announced fiscal first-quarter GAAP earnings of 24 cents per share, which was ahead of the consensus estimate by about 9%. The company stated that it is seeing strong demand for analog products, particularly from its wireless and flat panel display customers. Earnings estimate for the year ending May 2006 climbed 11 cents, or approximately 11%, over the past 30 trading days.

Here is a synopsis of why CHRS and COL 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 released total sales for August, showing a 21% increase over last year's August sales. Comparable store sales for Charming Shoppes' retail store brands improved 4% over the previous year. In mid-August, the company posted fiscal second-quarter earnings of 30 cents per share, jumping ahead of the consensus estimate by about 11% and beating the year ago result. The company noted that its results for the second quarter include solid improvement in its operating income for each of its retail store brands. Earnings estimates for the year ending January 2006 moved up two cents, or almost 3%, from two months ago.

Rockwell Collins, Inc. (NYSE:COL) recently reaffirmed its fiscal year 2005 full year earnings guidance of $2.15 to $2.20 per share. Analysts are in agreement as evidenced by current estimates of $2.20 per share for the year ending September 2005. The current earnings estimates are almost 3% above two months ago levels. For fiscal year 2006, COL expects earnings per share to be in the range of $2.45 to $2.55, which is also in line with Wall Street estimates. Earnings estimates for the year ending September 2006 are at $2.49 per share, also nearly 3% 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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