Zacks Buy List Highlights: Netflix, Snap-on, Covanta Holding Corporation and Sierra Wireless

Business Wire, Feb 7, 2008

CHICAGO -- Zacks.com releases the latest list of Zacks Rank Buy Stocks. Every day on Zacks.com, four stock picks are made based on criteria for the each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum and Value. The four Zacks Rank Buy stocks highlighted today are Netflix, Inc. (Nasdaq: NFLX), Snap-on, Inc. (NYSE: SNA), Covanta Holding Corporation (NYSE: CVA) and Sierra Wireless, Inc. (Nasdaq: SWIR).

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 - Netflix, Inc. (Nasdaq: NFLX)

Netflix just blew the cover off of its fourth-quarter earnings report. This was the third straight quarter in which the company exceeded analyst expectations. The stock has an ROE of 13%, much better than the 2% industry average. The balance sheet is clean with no debt. Additionally, the stock is trading at a low 1.3x sales.

Zacks Guide to Aggressive Growth Investing (free!): http://at.zacks.com/?id=4309

Growth & Income - Snap-on, Inc. (NYSE: SNA)

Snap-on recently posted record sales and earnings for both the fourth quarter and full year. Analysts responded by upping full-year 2008 earnings estimates. EPS growth for SNA is projected to increase by 11% over the next 3 - 5 years, which is in line with the industry average. Snap-on declared a quarterly dividend of 30 cents per share in early November, an increase of 11.1% over its previous quarterly dividend. The company has paid consecutive quarterly cash dividends, without interruption or reduction, since 1939. SNA's dividend yield of 2.3% beats the industry average of 0.6%.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310

Momentum - Covanta Holding Corporation (NYSE: CVA)

Covanta Holding Corporation is a fairly large company, particularly within its own industry (market cap $3.9 billion), that is operating in the high-growth industry of alternative energies. Covanta's particular brand of alternatives lies in the disposal and conversion of waste products into energy. Covanta is operating in a fairly volatile sector, but its stock price has been a steady climber for a number of years, and recently held-up very well in market duress. The company is set to report its quarterly results on Feb. 26.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value - Sierra Wireless, Inc. (Nasdaq: SWIR)

Sierra Wireless, Inc. is riding the worldwide wireless wave to record quarterly revenues and earnings. Sierra has beat analysts' estimates four straight quarters on average of 34.30%. Yet the stock remains a value play, with a P/E of only 11.60.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

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 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 January 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. These performance numbers have been audited from 1995 through 2003 by Virchow, Krause & Company, LLP.