Zacks.com announces the latest list of top performing Zacks #1 Rank (“strong buy”) stocks. The stocks on the prestigious list with the highest returns last week were China Security & Surveillance Technology, Inc. (CSR), Take-Two Interactive Software, Inc. (TTWO), First Solar, Inc. (FSLR), H&E Equipment Services, Inc. (HEES) and The Perrigo Company (PRGO). Each of these stocks easily outperformed the S&P 500.

Stocks ranked #1 (Strong Buy) by Zacks have produced an average annual return of +32% since inception in 1988. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8% while the S&P 500 tumbled 37.6%. To learn more about the Zacks Rank, go to http://at.zacks.com/?id=3172.

Here is a synopsis of the last week’s best performing Zacks #1 Rank stocks.

China Security & Surveillance Technology, Inc. (CSR) was a top performer last week as shares improved by approximately 10.2%. Earnings estimates for this year have moved forward by 5.5% in just the past seven trading days.

In November, the company reported third-quarter results, which included revenue that increased 50.6% year-over-year to $65.4 million. In addition, earnings per share matched the consensus. CSR secured 49 new contracts during the quarter. China Security and Surveillance is excited about its opportunities in the security services market, as demand for its products and services continue to be strong. The company expects revenues between $80 million and $85 million for the fourth quarter and $350 million to $370 million for 2008.

Take-Two Interactive Software, Inc. (TTWO) spent a second consecutive week on the top performers list as shares gained approximately 8.5%. Last week, shares of the video game company advanced almost 14%. Analysts are expecting big things from the upcoming release of “Grand Theft Auto IV”, scheduled for early 2008. Anticipation for the latest release in this popular series has led to some brokerage upgrades for TTWO. Take-Two is also benefiting from favorable trends in its industry. Video game sales in November were strong, suggesting that this space may be a bright spot in an otherwise lackluster holiday selling season.

Take-Two Interactive is scheduled to report its fiscal fourth quarter results after the bell on Dec 18. Earnings estimates for the year ending October 2008 have been trending higher for several months, including a gain of 6.5% in the past seven trading days.

First Solar, Inc. (FSLR) is a manufacturer of solar modules, which means this Zacks #1 Rank stock is in a growth industry with lots of potential for the future. Earnings estimates for this year surged 100% over the past two months, including a gain of 5% in the past week. Expectations for next year are up 43% in two months and 4% in seven days. Shares of the company gained 6.9% for the week ended Dec 14.

In its third quarter report, announced in early November, First Solar earned 58 cents per share, which trounced the consensus by as much as 190%. Revenues of $159 million advanced from $77.2 million sequentially and from $40.8 million year over year. The company attributed its strong results, in part, to completing the ramp of its German production facility ahead of schedule. For 2008, the company forecasted revenue between $760 million and $800 million, which was better than what many analysts were expecting.

H&E Equipment Services, Inc. (HEES) is one of the largest integrated equipment services companies in the country. With a gain of almost 6.8%, HEES was a top performer for the week ended Dec 14. Earnings estimates for this year are up approximately 6% in the past month. During its third quarter report from November, the company increased its 2007 outlook thanks to favorable trends in its business.

H&E Equipment’s third-quarter performance included earnings per share that topped the consensus by about 20%, as well as revenues that increased 33% year-over-year to $270.6 million. The company stated that results in the quarter were very solid across all its major business segments. Another highlight of the quarter was the completion of the J.W. Burress, Inc. acquisition on Sep 1, which also helped the third-quarter’s strong performance.

The Perrigo Company (PRGO) announced last week that the FDA granted final approval to partner Dexcel Pharma for 20 mg Omeprazole delayed-release tablets. It is indicated for the treatment of heartburn. It is expected to be the largest product in the company’s 120-year history. The news helped shares of this global healthcare supplier rise by approximately 5.4% last week, putting it on the top-performing Zacks #1 Rank list.

Over the past two months, earnings estimates for this year are up 11.7%. On Dec 14, Perrigo was highlighted as an Aggressive Growth Stock of the Day on Zacks.com. For its first quarter, announced in early November, the company earned 36 cents per share, which beat the consensus by more than 38% while bettering the year-ago result. Revenue rose 12% to $382.7 million. Perrigo also raised its earnings guidance for 2008.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +32%. During the 2000-2002 bear market, Zacks #1 Rank 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). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 129% annually (+5 % vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

To view the current Zacks #1 Rank List and to see additional Zacks Rank resources, go to http://at.zacks.com/?id=3173.

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The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from January 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Mar 31, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.

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