Zacks #1 Rank Top Performers: DryShips, Blue Nile, Warnaco Group, Potash Corporation and CF Industries Holdings

Business Wire, Sept 25, 2007

CHICAGO -- Zacks.com announces the latest list of top performing Zacks #1 Rank ("strong buy") stocks. The stocks on the prestigious list with the highest returns last week were DryShips, Inc. (NASDAQ: DRYS), Blue Nile, Inc. (NASDAQ: NILE), The Warnaco Group, Inc. (NASDAQ: WRNC), Potash Corporation of Saskatchewan Inc. (NYSE: POT) and CF Industries Holdings, Inc. (NYSE: CF). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of 32% 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 learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.

Here is a synopsis of the last week's best performing Zacks #1 Rank stocks.

DryShips, Inc. (NASDAQ: DRYS) makes its first appearance on the top-performing Zacks #1 Rank list since Aug 24. The international provider of drybulk carriers made the list two times last month and was one of the top performers for all of August. Bolstered by positive industry conditions, earnings estimates have been trending for several months. Earnings estimates for this year are up almost 48% over the past three months and 6.5% over the past 30 trading days. DryShips gained 15.95% last week. It was featured as a Momentum Stock of the Day at Zacks.com on Sep 19.

The company reported second quarter earnings per share, excluding items, of $1.59, eclipsing the consensus by more than 16%. Voyage revenue moved forward to $112.5 million from $54.5 million. DryShips also announced its fleet renewal highlights, explaining that its fleet will consist of 46 vessels once the activity is completed with an average age just below nine years. For 2008, the company's outlook remains positive with fewer vessels being delivered from the shipyards and Chinese demand remaining strong.

Blue Nile, Inc. (NASDAQ: NILE) displayed strong momentum by reaching the top performers list for two consecutive weeks. The leading online retailer of diamonds and fine jewelry gained 15.85% for the week ended Sep 21. Shares advanced 13.8% in the previous week.

In early August, Blue Nile reported second-quarter earnings per share of 23 cents on net sales of $72.1 million. EPS advanced year over year from 18 cents and beat the consensus by almost 28%. Net sales improved 26.7%. The company benefited from solid performances in all areas of its business. Blue Nile also raised its guidance for 2007. Earnings estimates for this year moved higher 13.2% over the past two months.

The Warnaco Group, Inc. (NASDAQ: WRNC) announced last week a repositioning of its Swimwear Group, including the sale of its Catalina[R], Anne Cole[R] and Cole of California[R] brands. That will leave the group consisting of Calvin Klein[R] and Speedo[R]. It will also explore strategic alternatives for its Lejaby businesses. Furthermore, by Jun 30, 2008, the apparel company intends to exit all of its private label and designer swimwear businesses, except Calvin Klein. The company believes such actions will enhance its productivity and profitability.

Warnaco updated its fiscal 2007 guidance, and now expects earnings per share from continuing operations between $2.05 and $2.15 and revenues to grow 9% to 11% over fiscal 2006. Earnings estimates for this year are up 10.6% from two months ago, including a gain of almost 1.5% over the past seven trading days. Shares of the company gained 15.6% last week, making it one of the best-performing Zacks #1 Ranks.

Potash Corporation of Saskatchewan Inc. (NYSE: POT) expects strong demand through 2008, according to recent statements made by its CFO at an investment conference. However, this isn't surprising news as prices for many major global crops have been at or close to historical levels for a while now. Global population growth and economic expansion in developing nations are fueling this demand. Shares of the company rose 15.5% last week.

Earnings estimates for this year are up 6.3% over the past two months. Potash's second-quarter earnings results turned out to be its best ever, thanks to strengthening price and volume performance in all three nutrients. Earnings per share of 88 cents beat the consensus by more than 3.5% and soared from the previous year. The company stated that the fundamentals driving its business have aligned for the foreseeable future, and it is well positioned to capitalize on the growing global need for all three primary nutrients.

CF Industries Holdings, Inc. (NYSE: CF) is the holding company for the operations of CF Industries, Inc., which is a major producer and distributor of nitrogen and phosphate fertilizer products. Shares of the company improved 14.8% for the week ended Sep 21, making it one of the top-performing Zacks #1 Ranks. Last week, CF Industries announced that it has agreed to acquire a 50% ownership position in KEYTRADE AG, a global fertilizer trading organization from Switzerland. According to the company, the combination provides CF Industries with a global platform to pursue its objectives of growth and diversification.