Zacks.com Announces That the Following Companies Will Release Earnings This Week: Adobe Systems, Bear Stearns, KB Home, OmniVision Technologies and Pier 1 Imports

Business Wire, June 14, 2006

CHICAGO -- Zacks.com releases its exclusive Earnings Trends update written by Dirk Van Dijk, Director of Research for Zacks Equity Research. In addition, the following companies will report earnings this week: Adobe Systems, Inc. (NASDAQ:ADBE), The Bear Stearns Companies, Inc. (NYSE:BSC), KB Home (NYSE:KBH), OmniVision Technologies, Inc. (NASDAQ:OVTI) and Pier 1 Imports, Inc. (NYSE:PIR). To see this week's full report then visit: http://at.zacks.com/?id=105

This vital update provides investors with timely information regarding companies that will be reporting their earnings in the coming week, how companies' earnings faired the week prior, exclusive sector rankings, and earnings commentary. Below you will find a synopsis of this week's earnings commentary including estimates and the Zacks Rank for the previously mentioned companies.

Companies Making an Announcement This Week:

Ticker   Company Name      Date    EPS Estimate   ZacksRank
------   ------------      ----    ------------   ---------

ADBE     Adobe Systems     06/15       .27            3
BSC      Bear Stearns      06/15      3.10            2
KBH      KB Home           06/15      2.46            4
OVTI     OmniVision Tech   06/15       .38            3
PIR      Pier 1 Imports    06/15      (.26)           3

To see the complete Weekly Earnings and Sector Update with the entire list of companies reporting this week and sector rankings, click http://at.zacks.com/?id=106

Synopsis of Weekly Earnings and Sector Update by Dirk Van Dijk

With the recent drop in the equity markets, it is important to remember one extremely important thing: earnings are very robust, and there are no signs that they are going to soften up anytime soon. The median firm in the S&P 500 is expected to earn 11.9% more in 2006 than it did in 2005, and 2005 hardly qualified as depressed earnings. On a total earnings basis, the expected growth for the S&P 500 is even more robust at 13.5%.

Looking forward to 2007, the median firm is expected to post 12.7% growth. On a total earnings basis, growth is expected to be 10.9%. Analysts are raising more estimates than they are cutting. Over the last month there have been 615 estimate increases for S&P 500 firms 2006 earnings versus only 468 cuts, a ratio of 1.31.

Rates have generally eased back down over the last month, and they yield curve is still basically flat, with a slight inversion in the six-month to five-year area. The market is currently betting that the fed funds rate will be raised to 5.25% at the end of the month. The probability of that move is about 70% based on the futures markets right now, with about a 25% chance of a pause, and a 5% chance of a bump all the way to 5.50%. While the curve right now is better described as flat than really inverted, if the Fed bumps rates at the end of June, the curve will be unambiguously inverted, unless long rates move up. Inverted yield curves are generally very bad news for the economy, particularly if they resist for an extended period. Dirk Van Dijk's guess is that long rates will start going up. The earnings yield on the S&P 500, based on 2006 earnings remains well above the yield on the 10-year T-note (6.74% versus 4.97%). This indicates that stocks are undervalued relative to bonds.

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 $1.82 million - equivalent to a 33% 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 129.7% annually ( 5.2% vs. 11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. That's why we created the free special report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come by going to http://at.zacks.com/?id=107

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