Dear Subscriber,

The summer rally has increased both stock prices and valuations.

Though everyone likes to buy a stock with a low valuation, a rising valuation can also be good. As Kevin Matras points out, this is particularly the case when both prices and earnings are rising.

To find out why, and get 5 stocks that could rise over short-term, read Increasing P/Es for Stocks on the Move.

Wishing you prosperity,
Charles Rotblut, CFA
Senior Market Analyst & Editor,
Profit From the Pros

Today's Top Stories: Wednesday- August 12, 2009

ZACKS RANK BUY STOCKS

• Aggressive Growth - Cognizant Tech Solutions Corp. (CTSH) shares are setting a new 52-week high after the most recent earnings surprise. Reported second-quarter results included a 13% revenue growth and a 36% increase in year over year earnings of 47 cents. Read More...
   
• Growth & Income - Syntel Inc. (SYNT) recently posted second-quarter earnings of 61 cents per share, eclipsing the previous year's 42 cents and exceeding the Zacks Consensus Estimate by 20%. Revenue slipped 3% year-over-year. Read More...
   
• Momentum - Perfect World Co, Ltd. (PWRD) revenue was up 56% from last year to $76.3 million. Earnings came in at 78 cents per share, 17 cents ahead of the Zacks Consensus Estimate. Perfect World has surprised in each of the last four quarters by an average 13 cents, or 31%. Read More...
   
• Value - Ruth's Hospitality Group, Inc. (RUTH) surprised by 100% in the second-quarter with earnings per share of 14 cents. It is trading with a forward P/E of just 9.95 and a price-to-book of 2.01. It has a 5-year average return on equity (ROE) of 279.13%. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

Sponsor

How To Prepare for the Second Half of 2009>>

Zacks Investment Management is offering 3 FREE Timely Reports to investors.

Find Out:

How to benefit from current market conditions

Where our analysts predict the economy is headed

The secrets behind our investing philosophy

Click Here Now

• Best of Funds: Top European Equity Funds
  Get European exposure with Metzler/Payden European Emerging Markets (MPYMX), Fidelity Nordic (FNORX) and T. Rowe Price European Stock (PRESX). Read More...
  
• Best Of Fund Family
  John Hancock offers many excellent funds, including Zacks Mutual Fund #1 Rank (Strong Buy) J Hancock Health Sciences A (JHGRX), J Hancock Strategic Income A (JHFIX) and J Hancock Bond A (JHNBX). Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: AutoNation (AN)
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Canon, Inc. (CAJ)
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: Healthcare: HMOs and Hospitals
  Long-term growth of the healthcare sector overall continues to be fuelled by aging of the population and decisions in Congress related to government funding. We discuss (UHS), (MD) and (AGP). Read More...
  
  
• New Swap Legislation Proposed
• Chase (JPM) Expands in Florida
• Affirmative (AFFM) Results Disappointing

• New Credit-Card Rules Take Effect Soon
• Too Late to Get Cash for Your Clunker?

EDUCATION: Aggressive Growth

Sustainable Growth Rates Read More...

PeopleAndPicks.com:

VIP "LeveneOMurray" cheers to profit with BUY calls in (AGNC), (AIG), (AMGN) and (UHS). Read More...

• Aggressive Growth Stock Picks-Aug. 11, 2009
• Increasing P/Es for Stocks on the Move
• Value Stock Picks-August 10, 2009

FACEBOOK

Visit the Zacks.com Facebook page and get the latest insight on stocks and the market:
Zacks On Facebook

TWITTER

Get the Zacks.com newsfeed delivered straight to your Twitter account:
Zacks On Twitter

OTHER ZACKS RESOURCES:

• Read current and past issues of this newsletter online
• Zacks.com Home Page
• All Zacks #1 Rank Buy Stocks (Premium)
• Private Zacks #1 Picks were recently added to our Timely Buys Portfolio, and we want you to share these picks. See what Hulbert Financial Digest has rated #1 over the past 10 years. Click here for free picks.
• Zacks Method for trading Options: Discover 3 Smart Ways to Make Money with Options (two of which you probably never heard about). Learn more.

Manage your Profit from the Pros subscription:

• Free Subscription
• Would you like to give us input on new products and features for Zacks.com?
• Unsubscribe

REFER-A-FRIEND

If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. THANKS!
Refer a Friend

Regards and Happy Investing,

Charles Rotblut, CFA
Senior Market Analyst
Zacks.com

p.s. What is the mission for Zacks Profit from the Pros? To find out how we will help you become a more successful investor, click here.

Visit /performance for information about the performance numbers displayed in this newsletter.

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.

To contact us by mail:

Zacks Investment Research
Attn: Profit from the Pros
111 N. Canal St., Suite 1101
Chicago, IL 60606

To unsubscribe from receiving "Zacks.com Profit from the Pros"
e-mail newsletter, Click here....