Schaeffer's S&P 500 Index Hot Stocks Features T. Rowe Price Group, Citrix Systems, Best Buy, BJ Services, and ITT Industries

Business Wire,  March 31, 2006  

Tags: Best Buy Co. Inc., Citrix Systems Inc., S&P 500

• E-mail
• Print
• Link

CINCINNATI -- Among the stocks featured in the March 31 edition of Schaeffer's S&P 500 Index Hot Stocks are T. Rowe Price Group (NASDAQ:TROW), Citrix Systems (NASDAQ:CTXS), Best Buy (NYSE:BBY), BJ Services (NYSE:BJS), and ITT Industries (NYSE:ITT). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSHS12M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Friday, March 31, 2006:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,295.86) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

After the Commerce Department, University of Michigan, and the Chicago Fed released positive data this morning, it certainly appeared that we weren't going to be in our current position heading into the final hour of trading. The first quarter of the year is winding to an end, and it definitely seems that the SPX would rather exit the month like a lamb. For the better part of the past two weeks, the SPX has enjoyed the support of the 1,300 level. Unfortunately, this level gave way today. Fortunately, the 20-day trendline provided a layer of support for the index, as it has since the 10th of the month. Staring down the barrel of the last hour of trading for the week, 164 (33 percent) of the SPX's components are in positive territory.

I must apologize for what I am about to write, but let's blame it on my eight-month old daughter Tess and the fact that her teething has cost me (and my wife) precious hours of sleep this week. Traders on the floor have a new favorite song for the day, and it goes something like this: "TROW, TROW, TROW your boat, gently up the charts." (I warned you) T. Rowe Price Group (NASDAQ:TROW) has done just that, gaining nearly five percent today. The reason for the company's strong performance was an upgrade from Friedman Billings Ramsey to "outperform" from "market perform." In addition, the brokerage upped TROW's 12-month price target from $82 to $85. The upgrade and target price hike followed the brokerage house's meeting with TROW management. The equity now enjoys the support of its 10-day and 20-day moving averages, but it is dealing with overhead resistance at the 78 level.

Just a stone's TROW from the top spot (I promise that is the last one) is Citrix Systems (NASDAQ:CTXS). Lazard Capital reiterated the infrastructure products company at "buy" this morning. Along with that reiteration, RBC Capital Markets upped the company's price target to $40. CTXS is up more than three percent on the announcements from the brokerage houses.

After the bell yesterday, the largest home-electronics retailer in the U.S., Best Buy (NYSE:BBY) posted fourth-quarter earnings of $1.29 per share, matching the consensus estimate. RBC Capital Markets noted that BBY "remains our favorite stock and we would be aggressive buyers at current levels." The brokerage continued, noting that "even our newly raised estimates could prove to be very conservative." Furthermore, Hewlett-Packard (HPQ) announced that it will begin selling its digital television at BBY. This combination of news has BBY nearly three percent higher on the day.

The stocks slipping down the slick slope of the Hot Stocks list can not get a foothold thanks to oil. To this point, crude has dropped 60 cents, and taken energy-related stocks with it. Leading the way lower this afternoon is BJ Services (NYSE:BJS), which has lost more than 3.5 percent on the day. EOG Resources (EOG), and Nabors Industries (NBR) also find themselves in the bottom five this afternoon.

The final stock we will cover in this week's edition of Hot Stocks is ITT Industries (NYSE:ITT). This morning, Citigroup cut ITT to "hold" from "buy," citing valuation. The brokerage house noted that ITT's business outlook "remains solid," but defense comparisons are tough and capital allocation risks are "mounting." Citigroup also noted the "defense spending may peak in '08 and we expect the market will begin to discount defense earnings." ITT has lost more than three percent in today's trading action.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=15687 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=15687 .