Qualcomm Inc (QCOM)

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Zacks Buy List Highlights: Ceradyne, KB Home, Altera & QUALCOMM

CHICAGO--(BUSINESS WIRE)--July 13, 2004--Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of +34.2% since inception in 1988 and has gained +139.7% since January 2000 when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today we highlight the following companies: Ceradyne, Inc. (NASDAQ:CRDN) and KB Home (NYSE:KBH). Further they announced #2 Rankings (Buy) on two other widely held stocks: Altera Corporation (NASDAQ:ALTR) and QUALCOMM, Inc. (NASDAQ:QCOM). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88


Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:

Ceradyne, Inc. (NASDAQ:CRDN) develops, manufactures and markets advanced technical ceramic products and components for industrial, defense, consumer and microwave applications. Earnings estimates for the year ending December 2004 remain above levels from three months ago by 21 cents, or approximately +19%. Late April saw Ceradyne put together a robust first quarter thanks in large part to demand for high-quality lightweight ceramic body armor. The company reported net income of 31 cents per diluted share on sales of $36.7 million. That earnings result eclipsed the consensus by about +24%, while marking the company's sixth consecutive quarter of earnings per share that beat Wall Street expectations. New bookings for the quarter reached $34 million, compared to $29.1 million a year ago. Looking forward, Ceradyne said lightweight ceramic armor for a wide variety of other applications, especially ground-based vehicles, represent promising growth areas for the company. Ceradyne's products are in demand right now, so investors may want to consider steeling their portfolios with a position.

KB Home (NYSE:KBH) is one of America's premier homebuilders with domestic operating divisions in some of the fastest-growing regions and states. In mid-June, KB Home posted fiscal second quarter diluted earnings of $2.40 per share, which was +24% better than the year-ago result of $1.94. It also bettered the consensus by almost +15%. Total revenues rose to $1.57 billion, compared to $1.44 billion last year. Furthermore, company-wide net orders grew +28% to 10,726 in the quarter from 8,397 in the year-ago quarter. Earnings estimates for the year ending November 2004 are above levels from one month ago by 40 cents, or approximately +4%. KB Homes currently operates in 35 of the country's top 75 markets, and continues to seek out expansion opportunities in regions with robust growth in jobs and population. With an excellent record of topping Wall Street's quarterly earnings expectations, and a strong plan for the future, KB Home looks to have a lot of momentum moving forward.

Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:

Altera Corporation (NASDAQ:ALTR) is the world's pioneer of system-on-a-programmable-chip (SOPC) solutions. In late April, Altera enjoyed another quarter of strong growth for its new products, and reported first quarter net income of 15 cents per diluted share that almost doubled the year-ago results of 8 cents. The result was also more than +15% in front of the consensus, while marking the ninth consecutive quarter of earnings per share that either matched or topped Wall Street expectations. Sales reached $242.9 million in the quarter, marking jumps of +12% and +25% on a sequential and year-over-year basis respectively. Earnings estimates for this year, ending December 2004, remain above levels from three months ago by 11 cents, or approximately +19%. Altera is an innovative company that appears to have a bright future ahead as it continues to advance its leadership position in SOPC solutions. The company will report its second quarter results on July 21st.

QUALCOMM, Inc. (NASDAQ:QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on its CDMA digital technology. QUALCOMM is scheduled to report its fiscal third quarter numbers on July 21. In May, the company said it expects revenues in the quarter to increase by about +44% to +46% year-over-year, excluding the QUALCOMM Strategic Initiatives segment. That compares to its prior guidance of growth between +41% and +44%. Likewise, the company said it now expects earnings per share, excluding the segment, of 51 cents to 53 cents, instead of 48 cents to 40 cents. QUALCOMM also decided to increase its guidance for fiscal 2004. This all comes in the wake of the company's fiscal second quarter report in late April, where earnings per share, excluding the QSI segment, topped the consensus by more than +10%. QUALCOMM has enjoyed numerous upward revisions from analysts in the past several weeks, and earnings estimates for the year ending September 2004 are up 29 cents, or about +16%, from three months ago. QUALCOMM is an innovative company with a lot of potential for the future, which is good news for shareholders moving forward.

To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=89

About the Zacks Rank

For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +34.2% compared to the (a)S&P 500 return of only +12.0%. Plus this exclusive stock list has generated total gains of +139.7% since January 2000 as the market suffered its worst downturn in 60 years. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 96.9% annually (12.0% vs. 6.1% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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