Zacks Buy List Highlights: CryptoLogic, Inc., Arthur J. Gallagher & Co., Ralcorp Holdings, Inc. and Cascade Corporation

Business Wire, Sept 13, 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 CryptoLogic, Inc. (Nasdaq: CRYP), Arthur J. Gallagher & Co. (NYSE: AJG), Ralcorp Holdings, Inc. (NYSE: RAH), and Cascade Corporation (NYSE: CAE).

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 - CryptoLogic, Inc. (Nasdaq: CRYP)

One reason that CryptoLogic, Inc. is a Zacks #1 ranked stock is that it consistently exceeds analyst estimates. The company has done so in five consecutive quarters, four of which registered double-digit surprises. Both analysts covering the stock raised their numbers for this year, while one has done so for next year. Over the past two months, this year's estimates have increased 10.5% to $2.10 per share. Next year's numbers have jumped 8.8% to $1.74 per share.

Growth & Income - Arthur J. Gallagher & Co. (NYSE: AJG)

Arthur J. Gallagher & Co. is the world's fourth-largest insurance brokerage and risk management services firm. Analysts' earnings estimates have been on the rise for this Zacks #1 Rank stock. The Board of Directors recently declared a quarterly cash dividend of 30 cents per share. AJG is currently yielding 4.5% and has a five-year average dividend yield of 2.9%.

Momentum - Ralcorp Holdings, Inc. (NYSE: RAH)

On Aug 8, Ralcorp Holdings, Inc. reported earnings for the June quarter at $1.03 per share, marking a 28.8% surprise above analysts' consensus estimates. On Monday, RAH set a new 52-week high on heavier-than-normal trading volume. New highs for the stock confirm that the market is recognizing the financial improvements occurring at RAH.

Value - Cascade Corporation (NYSE: CAE)

Cascade Corporation, which is a Zacks #1 Rank stock, exceeded analysts' earnings expectations in five out of the past six quarters, most recently by 18.2%. Consensus estimates have shot upward over the past seven days. The Board of Directors recently declared a quarterly dividend of 15 cents per share and authorized a share repurchase program of up to $80 million over a two-year period. The company has a price-to-book ratio of 1.9, compared to 5.1 for the market.

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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