Dear Subscribers,

Friday capped off another poor week for the market. Pulling back to the bigger picture we still have an ongoing fight between those calling for a double dip recession and those believing in modest economic growth. If the double dippers are correct, then the economy will worsen, corporate earnings contract and market tumbles 20-30% from current levels. If the modest growth crowd is correct then corporate earnings stay aloft and market moves modestly higher, like +5-10% per year. I still happen to be in the modest growth camp, but realize that the double dippers have more sway at this time. That is why I continue to believe there will be more pain in the short run which will provide good entry points for long term investors.

Watch "Profit From The Pros TV"-New Episode – August 21, 2010
•  Sheraz Mian discusses the economy and why stocks are still the place to be.
•  Bull & Bear Stocks of the Week.
•  Tracey Ryniec & Mike Vodicka, dissect a software giant in Stock Talk.
•  Roundtable Review panel reacts to the uptick in merger activity and gives their Top Stock Picks of the Week.

View Profit from the Pros TV

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

p.s. The "Double Your Money" stock portfolio that I personally run for Zacks is re-opening to new members through Monday August 30th. Learn more about “Double Your Money"

Today's Top Stories: Monday- August 23, 2010

ZACKS RANK BUY STOCKS

• Aggressive Growth - Nanometrics Inc. (NANO) reported quarterly results that showed a 37% sequential increase in revenue, to $51 million. Earnings per shares came in at a company record of 51 cents. Read More...
   
• Growth & Income - WD-40 Company (WDFC) updated its July guidance and is now expecting EPS to meet or top its prior range of $2.05 to $2.14. Sales growth is expected between 7.2% and 9.2% compared to fiscal 2009. Read More...
   
• Momentum - Watts Water Technology, Inc. (WTS) Q2 earnings came in at 57 cents per share, 21% ahead of the Zacks Consensus Estimate calling for 47 cents. The company now has an average earnings surprise of 21% over the last four quarters. Read More...
   
• Value - Cato Corporation (CATO) reported its second quarter results which saw earnings per share of 54 cents, beating the Zacks Consensus by 2 cents. The company made 56 cents in the year ago quarter. Read More...
   

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

• Top 5 Health Funds
  Add health to your portfolio with Rydex Health Care (RYHIX), Eaton Vance Worldwide Health Sciences A (ETHSX), Invesco Global Health Care A (GGHCX), Prudential Jennison Health Sciences A (PHLAX) and Fidelity Select Health Care (FSPHX). Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: Energizer Holdings (ENR)
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Lowe's Companies, Inc. (LOW)
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: U.S. Banks Stock Update - August 2010
  The banking system is not yet out of the woods, as there are persistent problems that need to be addressed by the government before shifting the strategy to growth. Read More...
  
  
• Saks (SKS) Narrows Loss
• Gap (GPS) Barely Beats, Affirms Outlook
• Tech Data (TECD) Beats

INVESTMENT IDEAS: 6 Safe Stocks

Dividend-paying stocks are an ideal place to park your money in an uncertain market. Read More...

• Gold is glittering again. But why? @ CNNMoney.com
• Government Mortgage Program: There's A Bright Side @ TheStreet.com
• Obama on the Dollar Bill? @ MAINSTREET.com
• For-Profit Colleges Under Fire @ FOXBUSINESS.com
• 7 Bargain Stocks You Can Feel Good About Now @ Kiplinger.com

EDUCATION: Aggressive Growth

Earnings Estimates Primer Read More...

PeopleAndPicks.com:

VIP "Eversar" constructed a portfolio to withstand the market drop with BUY calls in (AGN), (CPA), (NXTM) and (WBD). Read More...

• Momentum Stock Picks-Aug.19, 2010
• Aggressive Growth Stock Picks-Aug. 18, 2010
• Value Stock Picking

EARNINGS TRENDS: Estimates Rise in Response to Surprises

The high number of positive earnings surprises has caused analysts to increase more than two estimates for each one they cut over the last month. Read More...

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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.

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