Business Services Industry

Zacks Upgrades and Revisions Strategy Highlights: CA, MicroStrategy, Oceaneering International and Synaptics

Business Wire, Dec 21, 2007

CHICAGO -- Earnings estimate revisions are the most powerful force impacting stock prices. Couple that with the proven benefits of upgrades in ratings from brokerage firms and you have a strategy that delivered a 23.3 return in 2006. Four stocks meeting this screen's exclusive criteria are CA, Inc. (NYSE: CA), MicroStrategy, Inc. (NASDAQ: MSTR), Oceaneering International, Inc. (NYSE: OII) and Synaptics (NASDAQ: SYNA). View the entire list of stocks for the Upgrades and Revisions Profit Track at http://at.zacks.com/?id=1844

Here are details on four companies currently identified by the Upgrades and Revisions Profit Track:

CA, Inc. (NYSE: CA) reported a strong fiscal second-quarter report in November, which was followed in subsequent weeks by some brokerage upgrades. Given such developments, it's easy to see why this management software company is on the Upgrades and Revisions profit track. The above-mentioned quarter included an earnings per share surprise of 28% and a revenue advance of 8%. CA also updated its full-year outlook. Earnings estimates for this year are up 9% in the past two months. Over the past five years, this Zacks #1 Rank company has displayed EPS growth of almost 36%.

MicroStrategy, Inc. (NASDAQ: MSTR) has the one-two punch of positive earnings per share revisions and rating upgrades, which are the foundation of this profit track. The business software company is also a Zacks #1 Rank with earnings estimates for this year that are up 15.5% in two months. Its third quarter report included an earnings per share surprise of more than 41% and revenue that moved to $95.8 million from $77.7 million. Its five-year historical EPS growth is almost 46%.

Oceaneering International, Inc. (NYSE: OII), a global oilfield provider of engineered services and products, announced a positive earnings surprise of almost 13% in its most recently-reported quarter. That passes one of the main parameters of the screen, which calls for the last EPS surprise to be at or greater than 10%. Furthermore, EPS growth over the past five years has been an impressive 42%, which passes another important requirement for this profit track. Such data shows that this Zacks #2 Rank stock has a great track record of consistent high growth, and the potential for more moving forward. OII's third-quarter report also included a year-over-year revenue advance to $485 million from $337 million, and an enhanced EPS guidance for 2007.

Synaptics (NASDAQ: SYNA) got a solid start to its fiscal year in November, continuing an impressive track record of earnings success. In fact, over the past five years, earnings per share growth for this developer of human interface solutions advanced by almost 29%. In its fiscal first quarter, Synaptics reported a positive EPS surprise of 60%. Both of these factors qualify the company for the Upgrades and Revisions profit track. Other highlights of the quarter included year-over-year revenue growth of 58% to $86.7 million from $54.8 million. Earnings estimates for this fiscal year are up 27% over the past two months.

Discover all the current stocks currently on the Upgrades and Revisions Profit Track at: http://at.zacks.com/?id=1869

About Profit Tracks

What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of 56.5% followed by the Discounted Fundamental screen with a 34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838

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