Zacks Buy List Highlights: SonicWall, Gap, Hutchinson Technology and France Telecom

Business Wire, Nov 28, 2007

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 SonicWall, Inc. (Nasdaq: SNWL), Gap, Inc. (NYSE: GPS), Hutchinson Technology (Nasdaq: HTCH) and France Telecom (NYSE: FTE).

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 32.2% 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 - SonicWall, Inc. (Nasdaq: SNWL)

SonicWall Inc. is securing profits for its shareholders. The stock recently hit a five-year high after its third-quarter earnings release. One analyst called the company's deferred revenue "amazing". What is amazing is its ability to dramatically exceed estimates. It has done so by an average of 333% over the past three quarters.

Growth & Income - Gap, Inc. (NYSE: GPS)

Gap just declared a quarterly dividend of eight cents per share. The company's current dividend yield of 1.6% is above the industry average. The company recently announced fiscal third-quarter earnings of 30 cents per share, outperforming the previous year's 23 cents and exceeding the consensus estimate by a penny. Gap's increased fiscal year adjusted earnings per share outlook ranges between 99 cents and $1.05. Of the 14 covering analysts, 11 increased fiscal year earnings forecasts from 96 cents to $1.04 over the past month.

Momentum - Hutchinson Technology (Nasdaq: HTCH)

Hutchinson Technology's revenue grew by 11% in the third quarter, while its net income increased from break-even to $18.6 million. The results were far ahead of analysts projections. Five of eight covering analysts have now increased their current-quarter projections within the last 30 days.

Value - France Telecom (NYSE: FTE)

France Telecom is introducing new products such as VOIP and broadband services which is clearly paying off. This year's earnings estimates have risen 25 cents to $2.88 per share over the past 90 days. Next year's most accurate estimate shows 9.5% upside potential over the current estimate.

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." Since inception in 1988, #1 Rank stocks have generated an average annual return of 32.2%. 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% annually ( 5.3% vs. 12.1%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.

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