Zacks Buy List Highlights: HealthSpring, Inc., Smith International, Inc., Valley National Gases Incorporated, and AT&T, Inc

Business Wire, August 4, 2006

CHICAGO -- Zacks.com releases the latest list of Zacks Rank Buy Stocks. Everyday on Zacks.com, four stocks are selected based on how well they match the criteria for the four main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are HealthSpring, Inc. (NYSE:HS), Smith International, Inc. (NYSE:SII), Valley National Gases Incorporated (AMEX:VLG), and AT&T, Inc. (NYSE:T).

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 32.4% 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%. To see the full Zacks #1 Rank (Strong Buy) List, or the rank for any other stock, visit: http://at.zacks.com/?id=88

Here is a synopsis of today's Zacks Rank Buy Stocks:

Aggressive Growth - HealthSpring, Inc. (NYSE:HS)

HealthSpring, Inc. reported robust second-quarter earnings and guided higher going forward. Not surprisingly, earnings estimates have been significantly rising. Over the past week, this year's estimates have jumped 27.7% to $1.43 per share. Two analysts raised their numbers. Third-quarter numbers increased 12.5% to 36 cents over the same time period. HS is currently trading at 13.1x this year's estimates, well-below the projected long-term growth rate of 19.38%, giving the stock a PEG ratio of 0.68.

Growth & Income - Smith International, Inc. (NYSE:SII)

Smith International, Inc., which was first featured as a Growth and Income pick on Feb 23, has maintained its Zacks #1 Rank. The company met or beat analysts' earnings estimates in the past 14 quarters, most recently by 7.6%. SII recently upped its 2006 earnings guidance, and consensus estimates have been trending higher. The company's return on equity tops that of the industry average--24% compared to 21%.

Momentum - Valley National Gases Incorporated (AMEX:VLG)

Valley National Gases Incorporated has not delivered a negative earnings surprise in the last seven straight quarters. The company will report fourth-quarter results on Aug 16. VLG set at least a six-year high on Wednesday with heavier-than-normal volume. Given that the stock trend has been consistent for more than a year, and given that the company has a history of not disappointing on earnings, this is a stock with plenty of momentum left.

Value - AT&T, Inc. (NYSE:T)

AT&T, Inc., which was first featured as a Value stock on Feb 10, has continued its winning ways. The company exceeded analysts' earnings expectations in the past six quarters, most recently by 9.4%. In March, T announced its plans to acquire Bell South for $67 billion in equity. The company has a return on equity of 20%, compared to 9% for the industry average.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions," provides an insightful background about this wealth-building tool. Download your free copy of the report now to prosper in the years to come by visiting http://at.zacks.com/?id=93.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.80 million - equivalent to a 32.4% annualized return! 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 145.9% annually ( 4.7% vs. 11.6%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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