Zacks Buy List Highlights: Gillette, S1 Corporation, Illinois Tool Works, and Staples

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: The Gillette Company (NYSE:G) and S1 Corporation (NASDAQ:SONE). Further they announced #2 Rankings (Buy) on two other widely held stocks: Illinois Tool Works, Inc. (NYSE:ITW) and Staples, Inc. (NASDAQ:SPLS). 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:

The Gillette Company (NYSE:G) manufactures and sells a wide variety of consumer products throughout the world. Gillette has been the beneficiary of numerous upward revisions from analysts over the past several weeks, which helped to send earnings estimates for the year ending December 2004 higher by 11 cents, or about +7%, in the past two months. Analysts responded favorably to a strong first quarter performance, announced in late April, which included diluted net income of 37 cents per common share. The result was +48% better than the year-ago performance and more than +27% atop the consensus. Gillette stated that all the pieces are coming together, as it has the ongoing strength of its existing products and great trade acceptance of its new products; increased manufacturing productivity and cost savings; and high growth in key international markets. With continued momentum expected in the second quarter, investors may want to take a look at this consumer products giant.

S1 Corporation (NASDAQ:SONE) is a leading global provider of integrated front-office applications for banks, credit unions and insurance providers around the world. S1 Corporation had a very busy first quarter, which included signing 15 enterprise deals. In its first quarter report from late April, the company paid particular attention to signing multi-year global distribution agreements with two of the industry's leading financial services providers, which will expand its global reach for S1 Enterprise products in Europe, Africa, Latin America, and Asia. For the quarter, S1 reported net income of 1-cent per share, which reversed a year-ago loss and easily beat the consensus, which was expecting a loss of about (3 cents). Analysts liked what they saw in the quarter, and earnings estimates for the year ending December 2004 are up 4 cents, or about +67%, from levels two months ago. S1 Corporation went on to say that the successful first quarter performance establishes the company as the leader in the Enterprise financial services market, which bodes well for shareholders 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:

Illinois Tool Works, Inc. (NYSE:ITW) is a diversified manufacturer of highly engineered components and industrial systems and consumables. Last week, Illinois Tool Works decided to raise its earnings per diluted share from continuing operations guidance for the second quarter and full-year 2004. The news came as the company reported an operating revenue increase of +21% for the three months ended May 31, 2004. The company went on to say its improvement in base revenues reflected strength in its North America and international end markets. Illinois Tool Works has enjoyed several upward revisions from analysts in the past seven trading days, which has helped earnings estimates for the year ending December 2004 to rise 4 cents, or about +1%. Over the past three months, expectations moved forward 45 cents, or approximately +12%. The company, whose first quarter earnings per diluted share result beat the consensus by almost +15% in April, appears to have solid momentum moving forward. It is scheduled to release its next quarterly results on July 21st.

Staples, Inc. (NASDAQ:SPLS) sells a wide range of office products, including supplies, technology, furniture, and business services. Earnings estimates for the year ending January 2005 remain above levels from two months ago by 5 cents, or approximately +4%. In mid-May, Staples announced a strong fiscal first quarter performance, which included earnings of 25 cents per diluted share that eclipsed the consensus by almost +14% while surpassing last year's pro forma total by +39%. The company said its gaining market share and differentiating the company as a result of its focus on customer satisfaction and execution. Staples went on to say its recipe for achieving superior performance and differentiation stems from delivering on its promise to make buying office products easy for its customers, along with executing its strategy to drive return on net assets. Staples is moving in the right direction, and its earnings estimates could be in line for further advances if it can continue putting together solid quarterly performances.

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.

For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform the market. http://at.zacks.com/?id=90

The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.

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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.

SOURCE: Zacks.com

Zacks.com Jason Kissinger, 312-630-9880 x 260 myzacks@zacks.com www.Zacks.com

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