Zacks Buy List Highlights: VistaPrint Limited, Schering-Plough Corporation, Key Technology, Inc. and ALLETE, Inc.

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 VistaPrint Limited (Nasdaq: VPRT), Schering-Plough Corporation (NYSE: SGP), Key Technology, Inc. (Nasdaq: KTEC), and ALLETE, Inc. (NYSE: ALE).

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 – VistaPrint Limited (Nasdaq: VPRT)

VistaPrint Limited has exceeded earnings estimates in each of the past six quarters, with five of them posting double-digit surprises. One analyst raised his forecast for this year. Earnings estimates for next year have risen five cents to 93 cents per share over the past month. Analysts forecast robust earnings growth of 33.67% over the long term.

VPRT also has an above-industry average ROE of 20%.

Growth & Income – Schering-Plough Corporation (NYSE: SGP)

Schering-Plough Corporation exceeded analysts’ earnings expectations in five out of the past six quarters by an average margin of 35.2%. The company recently reported strong second-quarter results, with seven out of its 10 largest-selling products posting double-digit sales growth. Analysts have upped their profit forecasts for this year and next over the past week. This Zacks #1 Rank stock has a current dividend yield of 0.84%.

Momentum – Key Technology, Inc. (Nasdaq: KTEC)

On May 3, Key Technology, Inc. reported fiscal second-quarter earnings of 11 cents per share, up from a loss of one cent per share in the prior-year period and three cents above expectations. Currently, KEY is trading in a strong, well defined uptrend and has been for some time. In addition, the stock is trading at 52-week highs, a level not seen since 1996.

Value – ALLETE, Inc. (NYSE: ALE)

ALLETE, Inc. exceeded analysts’ earnings expectations for the past three quarters, most recently by 16.3% in the first quarter. Consensus earnings estimates for this quarter and for the full year have risen over the past seven days. On Jul 19, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. This Zacks #1 Rank stock has a price-to-book ratio of 2.1, compared to 4.6 for the market and 2.9 for the industry.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. 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.

Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through June 2007 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR’s.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contacts:

Zacks.com
Aggressive Growth Stocks:
Roopak Chakravarty, 312-265-9188
or
Growth & Income Stocks:
Jim Licato, 312-265-9226
or
Momentum Stocks:
Ryan Whitmore, 312-265-9265
or
Value Stocks:
Jim Licato, 312-265-9226
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