Zacks Buy List Highlights: bebe stores, Cree, Charles River Labs, and Gillette

Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list. The #1 ranked stocks highlighted today include the following companies: bebe stores, inc. (NASDAQ:BEBE) and Cree, Inc. (NASDAQ:CREE). Further they announced #2 Rankings (Buy) on two other widely held stocks: Charles River Laboratories International, Inc. (NYSE:CRL) and The Gillette Company (NYSE:G). To see the full Zacks #1 Ranked list or the rank for any other stock then visit: http://at.zacks.com/?id=88

Stocks ranked #1 (Strong Buys) by Zacks have produced an average annual return of +32.9% since inception in 1988. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked stocks gained +43.8% while the S&P 500 tumbled -37.6%.

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 Zacks ranks:

bebe stores, inc. (NASDAQ:BEBE) recently reported that same-store sales for October surged +30.6%, while retail sales jumped +40.5%. For its fiscal first quarter, the company posted diluted earnings of 29 cents per share, versus 15 cents in the year-ago quarter. The result topped the consensus by more than +7%. Over the past month, earnings estimates for the year ending June 2005 improved 14 cents, or approximately +14%.

Cree, Inc. (NASDAQ:CREE) posted fiscal first quarter net income of 32 cents per share on revenue of $95.9 million. That earnings result compared favorably to last year's 12 cents while also beating the consensus by more than +14%. Revenue advanced +45% from $66.2 million. As for its fiscal second quarter, Cree forecasted earnings between 30 cents and 32 cents per diluted share, which was ahead of the consensus and helped to send earnings estimates upward by 11 cents, or about +9%, in the past 30 trading days.

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 ranked by Zacks:

Charles River Laboratories International, Inc. (NYSE:CRL): Earnings estimates for the year ending December 2004 are up 3 cents, or about +2%, in the past month for Charles River Labs, including a rise of 1-cent in the past seven trading days. The company earned 51 cents per diluted share in the third quarter, which eclipsed the consensus by +4% and easily exceeded last year's 40 cents. Net sales of $176 million improved +16.4% from last year. Both of its business segments delivered strong results, according to the company, benefiting from increased spending by pharmaceutical and biotechnology companies, along with academic research institutions.

The Gillette Company (NYSE:G) reported a solid third quarter late last month thanks to excellent retail and consumer demand for its established products, strong interest in new offerings from its shaving, oral care and personal care businesses, and heightened hurricane-related sales of its batteries. Net sales rose +12% to $2.69 billion while diluted net income per common share advanced +15% to 47 cents. The consensus was expecting around 43 cents, marking a positive surprise of more than +9%. Earnings estimates for the year ending December 2004 have improved over the past month.

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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 +32.9%. During the recent Bear market from 2000 through 2002, the Zacks #1 Ranked 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). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 168.2% annually (11.8% vs. 4.4% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the portfolio trading.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks #1 Ranked stocks highlighting those 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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(a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

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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