Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Agilent Technologies Inc. (NYSE: A) beat Q2 expectations and offered Q3 and full-year guidance.
• Barnes & Noble Inc. (NYSE: BKS) widened its Q1 loss but maintained its full-year profit forecast.
• Campbell Soup Co. (NYSE: CPB) Q3 profit rose due to the sale of Godiva, but shares tumbled.
• Fluor Corp. (NYSE: FLR) beat Q1 expectations and offered rosy full-year guidance.
• Gamestop Corp. (NYSE: GME) posted record Q1 earnings but offered weak Q2 and full-year guidance.
• Hewlett-Packard Co. (NYSE: HPQ) posted strong Q2 results in the wake of its announced EDS acquistion.
• Hot Topic Inc. (NASDAQ: HOTT) Q1 loss widened due to declines in same-store sales.
• Kenexa Corp. (NASDAQ: KNXA) beat Q1 expectations and raised its full-year guidance.
• Medtronic Inc. (NYSE: MDT) posted flat Q4 earnings despite strong sales, and missed full-year estimates.
• Napster Inc. (NASDAQ: NAPS) narrowed its loss and exceeded analysts' Q1 epectations.
• Ross Stores Inc. (NYSE: ROST) Q1 profits rose on same-store growth and a real estate settlement.
• Staples Inc. (NASDAQ: SPLS) swung to a modest Q1 profit after two quarterly losses.
• Target Corp. (NYSE: TGT) Q1 profits slipped but came in ahead of analysts' estimates.
• Tween Brands Inc. (NYSE: TWB) Q1 profit was hurt by a one-time charge but still beat expectations.

Additional earnings highlights:
Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

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Agilent Technologies (NYSE: A) provides electronic measurement and bio-analytical solutions to the communications, electronics, life sciences and chemical analysis industries. Its Electronic Measurement segment offers such instruments as data generators, multimeters, and oscilloscopes. The Bio-Analytical Measurement unit sells instruments, software, consumables and services for quantifying the physical and biological properties of substances. Customers include Cisco Systems (NASDAQ: CSCO) and Merck (NYSE: MRK). The firm was a 1999 spin-off of Hewlett-Packard (NYSE: HPQ).

Agilent pleased investors last week, when it announced fiscal Q2 EPS of 51 cents and revenues of $1.46 billion. Analysts had been looking for 48 cents and $1.43 billion. Management also guided Q3 EPS to 52-56 cents (55 cent consensus), Q3 revenues to $1.44-$1.49 billion ($1.46B consensus), FY08 EPS to $2.07-$2.15 ($2.08 consensus) and FY08 revenues to $5.82-$5.93 billion ($5.83B consensus). Needham subsequently reiterated its "buy" recommendation and boosted its price target to $42. Standard & Poor's raised its Agilent outlook from "stable" to "positive".

The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys", four "buys" and three "holds". Analysts expect a 16% growth rate, through the next year. The Agilent Price to Sales ratio (2.30), Price to Free Cash Flow ratio (17.23), EPS Growth rate (57.00%) and Return on Equity (19.58%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 76% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $28.79 and $40.42. A stop-loss of $31.15 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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• Sprint Nextel Corp. (NYSE: S) to report Q1 earnings; conference call at 8:00am.
• W.W. Grainger, Inc. (NYSE: GWW) to hold sales conference call at 8:00am.
• XM Satellite Radio Holdings, Inc. (NASDAQ: XMSR) and Sirius Satellite Radio, Inc. (NASDAQ: SIRI) to report quarterly earnings; the conference call is at 10:00am for XM and at 4:30pm for Sirius.

• Wal-Mart Stores, Inc. (NYSE: WMT) to report Q1 earnings; conference call at 7:30am.
• Toll Brothers, Inc. (NYSE: TOL) to report preliminary Q2 results and outlook at 2pm.
• Applied Materials, Inc. (NASDAQ: AMAT) to report Q2 earnings; conference call at 4:30pm.

• FCC Open Commission Meeting at 9:30am.
• SEC Open Commission Meeting at 10:00am.
• Macy's, Inc. (NYSE: M) to report Q1 earnings; conference call at 10:30am.
• Agilent Technologies, Inc. (NYSE: A) to report Q2 earnings; conference call at 4:30pm.

• FERC Open Commission Meeting at 10:00am.
• Hewlett Packard Company (NYSE: HPQ) to report Q2 earnings; conference call at 5:00pm.

• PDUFA date for Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP)'s Colazal for treating mild to moderate ulcerative colitis.
• Landstar System (NASDAQ: LSTR) to give mid-quarter update conference call.

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AMETEK Inc. (NYSE: AME) manufactures and markets electronic instruments and electromechanical devices in North America, Europe, Asia and South America. The firm's Electronic Instruments Group makes testing, monitoring and calibration instruments for the aerospace, transportation, research, industrial and power markets. Its Electromechanical Group produces motors, blowers, fans, heat exchangers and connectors for appliance, defense, medical and computer applications. This group also makes industrial specialty metals. General Electric (NYSE: GE) and Agilent Technologies (NYSE: A) are major competitors.

The firm pleased investors earlier in the week, when it reported Q1 EPS of 62 cents and revenues of $611.2 million. Analysts had been looking for 58 cents and $585.7 million. Management also predicted Q2 EPS of 61-63 cents (62 cent consensus) and FY08 EPS of $2.47-$2.52 ($2.45 consensus). The CEO cited the company's global customer base, its exposure to long-cycle aerospace and power markets, and the full-year impact of recent acquisitions in support of the favorable guidance.

The stock popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with five "strong buys", four "buys" and one "hold". Analysts expect a 16% average annual growth rate, through the next five years. The AME Sales Growth rate (20.96%), EPS Growth rate (29.17%), Operating Margin (18.41%), Return on Assets (9.69%), Return on Investment (12.58%) and Return on Equity (21.22%) compare favorably with industry and S&P 500 averages. Institutions own about 83% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $35.79 and $50.78. A stop-loss of $42.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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EXFO Electro-Optical Engineering (NASDAQ: EXFO) specializes in the design and manufacture of equipment used by telecommunications carriers, cable television companies and public utilities operators to test and monitor their networks. It also provides light-based systems used in medical device and opto-electronics assemblies, as well as fluorescence microscopy and electrophysiology instruments used in the life sciences sector. Customers include AT&T (NYSE: T) and Nortel Networks (NYSE: NT). Agilent Technologies (NYSE: A) is a major competitor.

The company pleased investors last week, when it reported fiscal Q2 EPS of six cents and revenues of $43.3 million. Analysts had been expecting two cents and $42.3 million. Management also guided Q3 EPS to between four and seven cents (five cent consensus) and Q3 revenues to between $45 million and $48 million ($46.93 million consensus). Further, the firm announced a deal to acquire Internet Protocol applications tester Brix Networks for $28.5 million in cash. RBC Capital Markets and Roth Capital subsequently reiterated "buy" ratings on the stock and declared price targets in the $7-$8 range

The issue popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers now recommend the shares with nine "buys" and one "hold". Analysts see a 28% average annual growth rate, through the next five years. The EXFO Price to Sales ratio (2.53), Price to Book ratio (1.50), Price to Cash Flow ratio (9.01), EPS Growth rate (50.00%), Net Profit Margin (24.40%), Return on Assets (15.16%) and Return on Investment (16.48%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 17% of the outstanding shares. Over the past 52 weeks, the stock has traded between $3.75 and $7.83. A stop-loss of $5.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Dionex Corporation (NASDAQ: DNEX) manufactures chromatography systems for chemical analysis. The company's devices are used to identify contaminants and impurities in a range of materials from foods and beverages to industrial chemicals. They are also used by life science investigators to separate and identify biological molecules such as amino acids, carbohydrates and proteins. The Dionex sales force is active throughout North America, Europe and Asia. Agilent Technologies (NYSE: A) is a major competitor.

The firm pleased the Street last week, when it reported Q2 EPS of 77 cents and revenues of $98 million. Those figures topped analyst expectations of 72 cents and $91.4 million. The CEO cited solid demand in the chemical/petrochemical and food/beverage markets for the strong quarter. U.S. sales were said to have shown marked improvement. Management also guided Q3 EPS to 66-70 cents (68 cent consensus), Q3 revenues to $92-$96 million ($90.52M consensus), FY08 EPS to $2.62-$2.69 ($2.61 consensus) and FY08 revenues to $363-$370 million ($358.17M consensus). Wedbush Morgan subsequently upgraded the stock from "hold" to "buy".

DNEX shares jumped on the news and are now consolidating the gain in a bullish "flag" pattern. Equities frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the issue with one "buy" and two "holds". Analysts see an 18% average annual growth rate, through the next five years. The DNEX Operating Margin (21.58%), Net Profit Margin (13.76%), Return on Assets (17.49%), Return on Investment (23.69%) and Return on Equity (25.74%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past fifty-two weeks, it has traded between $60.51 and $88.39. A stop-loss of $67.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in the stocks mentioned above.

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AMETEK Inc. (NYSE: AME) manufactures and markets electronic instruments and electromechanical devices in North America, Europe, Asia and South America. The firm's Electronic Instruments Group makes testing, monitoring and calibration instruments for the aerospace, transportation, research, industrial and power markets. Its Electromechanical Group produces motors, blowers, fans, heat exchangers and connectors for appliance, defense, medical and computer applications. The group also makes industrial specialty metals. General Electric (NYSE: GE) and Agilent Technologies (NYSE: A) are major competitors.

The firm pleased investors last week, when it reported fiscal Q4 EPS of 57 cents and revenues of $583.3 million. Analysts had been looking for 53 cents and $553 million. Management also predicted FY08 EPS of $2.40-$2.45, versus Street consensus of $2.43. Friedman Billings subsequently boosted its rating on the shares to "outperform".

The stock popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the shares with four "strong buys", three "buys" and three "holds". Analysts expect a 16% average annual growth rate, through the next five years. The AME Price to Book ratio (3.81), Sales Growth rate (21.35%), Operating Margin (18.09%) and Return on Equity (20.66%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 82% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $32.35 and $48.45. A stop-loss of $37.40 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Xilinx (NASDAQ: XLNX) develops and markets integrated circuits that users program themselves to perform specific functions. The firm also offers a broad range of design software helpful in customizing its chips. Clients are primarily original equipment manufacturers in the telecommunications, computer, aerospace, industrial control and networking markets. Agilent (NYSE: A), Cisco Systems (NASDAQ: CSCO) and IBM (NYSE: IBM) are among the firms using Xilinx devices.

The company had good news for investors last week, when it reported fiscal Q3 EPS of 35 cents and revenues of $474.8 million. Analysts had been looking for 32 cents and $463.6 million. Management attributed the solid numbers to strong sales of new products. The company also issued Q4 revenue guidance of about $470-$489 million ($480.64M consensus). XLNX shares popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the stock with nine "strong buys," three "buys" and thirteen "holds." Analysts see a 16% average annual growth rate, through the next five years. The XLNX P/E ratio (17.65), PEG ratio (1.09), Price to Book ratio (3.52), Price to Cash Flow ratio (14.03), EPS Growth rate (40.00%), Operating Margin (21.37%) and Net Profit Margin (20.19%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 93% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $18.87 and $30.50. A stop-loss of $18.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Verigy Ltd (NASDAQ: VRGY) is a leading manufacturer of advanced test systems for the flash memory, high speed memory and system-on-a-chip segments of the semiconductor industry. Verigy's scalable systems are used by chip makers in the design validation, characterization and high volume testing of their products. An Agilent Technologies (NYSE: A) spin-off in 2006, the firm traces its roots back to Hewlett-Packard (NYSE: HPQ).

The company surprised the Street earlier in the week, when it reported fiscal Q4 EPS of 58 cents and revenues of $209 million. Analysts had been expecting 50 cents and $200 million. Management also guided Q1 EPS to 49-54 cents (38 cent consensus) and Q1 revenues to $195-205 million ($180.27M consensus). Stifel Nicolaus subsequently boosted its recommendation to "buy" and declared a $32 price target.

Altogether, brokers now recommend the issue with three "strong buys", five "buys" and one "hold". Analysts see a 20% average annual growth rate, through the next five years. The VRGY P/E ratio (15.82), PEG ratio (0.79), Price to Sales ratio (2.00), Price to Book ratio (3.05), Return on Assets (13.42%), Return on Investment (20.06%) and Return on Equity (21.90%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 75% of the outstanding shares. Over the past 52 weeks the stock has traded between $17.13 and $30.25. A stop-loss of $22.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Tech stocks seem to be the ones to watch. Among companies reporting earnings next week are Applied Materials Inc. (NASDAQ: AMAT) and Agilent Technologies Inc. (NYSE: A), and here are quickie earnings previews for them.

Applied Materials' five-year earnings per share growth of 45.7 percent is better than the semiconductors industry average and the S&P 500. Applied Materials beat earnings expectations in the first three quarters of 2007. When it reported third quarter results back in August, earnings were 35 cents per share, three cents better than the consensus estimate of analysts surveyed by Thomson Financial, as well as the actual EPS in the same period of the previous year. For the fourth quarter, analysts expect only 29 cents per share, or $1.25 for the full year.

The analysts' consensus recommendation has been to buy Applied Materials for the past six months, but a closer look shows that most analysts are split between buy and hold. The share price has been slipping since reaching a 52-week high of $23.00 in August, almost falling during the week's Nasdaq volatility back to its 52-week low of $17.33 from a year ago.

For news about tech stocks that could influence Applied Materials' results, check out BloggingStocks' Applied Materials coverage.

Agilent's five-year earnings per share growth of 30.5 percent is better than the industrials sector average and the S&P 500. But Agilent hasn't beat Wall Street expectations since the third quarter of 2006; however, the EPS only missed by a penny in the past two quarters. Analysts surveyed by Thomson Financial expect earnings of 52 cents per share for the fourth quarter 2007 (which is the same as in the fourth quarter last year), or $1.81 for the full year.

The consensus recommendation from the analysts is to buy Agilent, and has been for at least six months. Agilent's share price has fought back from its plunge after the third quarter report in August, but has a ways to go to reclaim its 52-week high of $40.42 in July.

For more on acquisitions, launches, and other news that may influence Agilent's results, see BloggingStocks' Agilent coverage.

Applied Materials is scheduled to report earnings on Wednesday, Agilent on Thursday.

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Once generally restricted to university research laboratories, big-ticket instruments like mass spectrometers are now commonly found in a variety of business-oriented environments. One of the leading manufacturers of higher-end instrumentation is headquartered in Milford, Massachusetts.

Waters Corporation (NYSE: WAT) manufacturers scientific instruments used to chemically and physically characterize chemical substances. Its liquid chromatography devices and mass spectrometers separate and identify chemical species. Its thermal analyzers and rheometry instruments determine the physical characteristics of polymers and viscous liquids. Researchers use these systems to develop new drugs, identify the nutritional content of foods, and test the quality of air and water samples. Agilent Technologies (NYSE: A) is a major competitor.

Waters pleased investors last week, when it reported Q3 EPS of 62 cents and revenues of $353 million. Analysts had been expecting 60 cents and $344.5 million. The CEO attributed the solid results to "the ongoing success of our major programs and a generally favorable spending environment." The share price popped on the news and then moved into a bullish pennant consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy," four "buys" and five "holds." Analysts expect a 16% growth rate through the next year. The WAT EPS Growth rate (26.53%), Operating Margin (22.91%), Net Profit Margin (17.50%), Return on Assets (15.17%), Return on Investment (26.19%) and Return on Equity (69.45%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 88% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $48.35 and $76.50. A stop-loss of $65.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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MOST NOTEWORTHY:

• JP Morgan upgraded shares of Viacom (NYSE: VIA) to Overweight from Neutral as they believe contractual rate increases and distribution of the company's newer networks will drive higher earnings growth in 2008. The firm does not believe this growth is priced into shares.
  
• JP Morgan also upgraded Agilent Technologies (NYSE: A) to Overweight from Neutral and added shares to its Focus List. Shares were upgraded based on its sum-of-the-parts valuation and sees further upside given that strategic buyers are back in the marketplace.
  
• AudioCodes (NASDAQ: AUDC) was raised to Buy from Accumulate at Think Equities, as they expect the company to benefit from the newly acquired CTI squared business, the security gateway business, and traction in the SBC business, with Microsoft's OCS launch of a new driver today.
  
• Goldman added Microsoft Corporation (NASDAQ: MSFT) to its Conviction Buy List, citing valuation and overwhelmingly negative sentiment, and expects shares to trade higher on a better Q1 report.

• RBC Capital Markets upgraded Citrix Systems (NASDAQ: CTXS) to Outperform from Sector Perform.
  
• Eaton Corporation (NYSE: ETN) was upgraded to Outperform from Market Perform at Friedman Billings.
  
• Citigroup upgraded Broadcom Corporation (NASDAQ: BRCM) to Buy from Hold.

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MOST NOTEWORTHY:

• Orbitz Worldwide (NYSE: OWW) was initiated by a host of firms today:
  
• Thomas Weisel and Morgan Stanley started Orbitz with an Overweight rating.
  
• Pacific Crest and Piper Jaffray started shares with Overweight ratings, and $18 and $16 targets, respectively.
  
• Stifel initiated Orbitz with a Buy rating and $16 target, while JP Morgan started shares with a Neutral rating.

• Citigroup finds the valuation of Agilent (NYSE: A) attractive at current levels and started shares with a Buy rating, They expect a recovery in the company's Electronic Measurement business to drive shares to $43.

• Citigroup initiated National Instruments (NASDAQ: NATI) with a Hold rating and $40 target, saying that shares could suffer if PMI decelerates in 3Q07 or negatively inflects in 1Q08.

• Ametek (NYSE: AME) is is CIBC's top pick in the mid-cap Industrial Diversified area, due to the company's attractive asset portfolio and growth opportunities. CIBC initiated Ametek with a Sector Outperformer rating and $45 target...

• Jefferies initiated WNS Holdings (NYSE: WNS) with a Hold rating.

• Cuisine Solutions (AMEX: FZN) was initiated with a Buy rating at BB&T.

• Gabelli initiated Interpublic Group (AMEX: IPG) with a Buy rating and $19 target.

• Ferris Baker Watts initiated DirecTV (NYSE: DTV) with a Buy rating and $29.50 target.

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Industrial, scientific and engineering operations are critically dependent on the precise measurement of basic physical parameters. Among the best known manufacturers of many of the devices required for these purposes is headquartered in Santa Clara, California.

Agilent Technologies (NYSE: A) provides electronic measurement and bio-analytical solutions to the communications, electronics, life sciences and chemical analysis industries. Its Electronic Measurement segment offers such instruments as data generators, multimeters, and oscilloscopes. Its Bio-Analytical Measurement segment provides instruments and consumables that enable customers to quantify the biological properties of substances. Customers include Cisco Systems (NASDAQ: CSCO), Dow Chemical (NYSE: DOW), Intel (NASDAQ: INTC) and Merck (NYSE: MRK). The firm was a 1999 spin-off of Hewlett-Packard (NYSE: HPQ).

Agilent announced the acquisition of life science research and diagnostic products firm Stratagene last week and said that, as a result, it expects Q3 revenues to be in the range $1.38-$1.42 billion. Analysts had been looking for $1.38 billion. The acquisition did not affect the company's earnings outlook. The news kept Agilent shares cycling through a positive two-month trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD, Momentum, RSI and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average curve to the base of the channel backs the rebound notion.

Brokers recommend the issue with two "strong buys," three "buys" and four "holds." Analysts expect a 19% growth rate through the next year. The Agilent Price to Free Cash Flow ratio (21.92), Operating Margin (11.09%), Net Profit Margin (12.48%), Return on Assets (7.82%) and Return on Investment (10.00%) compare favorably with industry averages.

Institutional investors hold about 74% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $26.96 and $38.97. A stop-loss of $32.70 looks good here. Note that the firm expects to report Q3 results in mid-August.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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The semiconductor industry is one of the most competitive anywhere and efficient product testing is an essential part of the manufacturing process. One of the recognized leaders in the art of making reliable test equipment is headquartered in Singapore.

Verigy Ltd (NASDAQ: VRGY) is a leading manufacturer of advanced test systems for the flash memory, high speed memory and system-on-a-chip segments of the semiconductor market. Verigy's scalable systems are used by chip makers in the design validation, characterization and high volume testing of their products. An Agilent Technologies (NYSE: A) spin-off in 2006, the firm traces its roots back to Hewlett-Packard (NYSE: HPQ).

The company surprised the Street late last month, when it reported Q2 EPS of 40 cents and revenues of $183 million. Analysts had been expecting 35 cents and $176.2 million. Management also guided Q3 EPS to 45-50 cents (39 cent consensus) and Q3 revenues to $195-$205 million ($173.56M consensus). Banc of America Securities subsequently reiterated its "buy" recommendation and boosted its price target to $34. VRGY shares popped on the news and subsequently moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the issue with two "strong buys," four "buys" and one "hold." Analysts see a 32% growth rate through the next five years. The stock's Price to Sales ratio (2.25), Price to Book ratio (3.93), EPS Growth rate (-0.22 to 0.40 yr/yr), Return on Assets (12.56%), Return on Investment (21.45%) and Return on Equity (23.54%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 77% of the outstanding shares. Over the past 52 weeks the stock has traded between $13.55 and $30.00. A stop-loss of $25.30 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Although markets started the day in the green they were not able to hang onto the gains closing mixed. Core CPI numbers came in a 0.2% this morning in line with analysts expectations and easing inflation worries.

The NYSE had volume of 3 billion shares with 1,225 shares advancing while 1,992 declined for a loss of 0.65 points to close at 9,764.73. On the NASDAQ, 2.2 billion shares traded, 888 advanced and 2,136 declined for a loss of 21.15 to 2,525.29.

Stocks moving today included: Agilent Technologies (NYSE: A) rose $1.87 (5%) to $37.78. Akamai Technologies (NASDAQ: AKAM) fell $1.97 (-4%) to $42.30. Amgen (NASDAQ: AMGN) fell $2.06 (-4%) to $54.01 on announcement of limited Medicare coverage on its Aranesp anemia drug. Applied Materials (NASDAQ: AMAT) fell $0.64 (-3%) to $19.78 before earnings. Ingersoll-Rand Company Limited (NYSE: IR) rose $2.68 (6%) to $49.29 on a possible spin-off of Bobcat.

Amgen (NASDAQ: AMGN) saw heavy volume on the January 75 puts (YAAMO) with over 43,000 contracts moving. Not all that surprising considering the drug announcement. Being options expiration week we are seeing some dividend arbitrage in the most active options. 3M Co. (NYSE: MMM) pays a 0.48 cent dividend tomorrow and it saw (NYSE: MMM) very heavy volume on the May 80 calls (MMMEP) with over 181,000 contracts. The May 75 calls (MMMEO) moved 90,000 contracts of 3M stock. Likewise Wal-Mart (NYSE: WMT) options were active in front of its 22 cent dividend. The Walmart May 45 calls (WMTEI) crossed 74,000 contracts. ChevronTexaco (NYSE: CVX) saw volume on the May 75 calls (CVXEO) with over 73,000 options trading. In options there were 5.4 million puts and 7.2 million calls traded for a put/call open interest ratio of 0.76

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.

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• Orders up 10%, revenue up 7%
• ROIC at 25%
• Bio-analytical business grew 15%, with particular strength in emerging markets

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Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Heinz-(NYSE: HNZ) out of the money May 50 calls active; HNZ trades to Record. HNZ is recently up $1.35 to $48.28. Nelson Peltz, an activist shareholder, has been a holder of HNZ shares over the last 20-months in an attempt for HNZ to lower annual costs, sell assets and return more to shareholders. HNZ May 50 calls have traded 254 times on transaction volume of 5,990 contracts above its open interest of 402 contracts. HNZ May 50 calls are bid .35 cents, near its theoretical value of .35 cents according to Track Data, suggesting non-directional price fluctuations.

Advanced Micro-(NYSE: AMD) calls active, May option implied volatility increases to 46. AMD, a global semiconductor company, is recently up .64 to $14.56. On 12/1/05 Silver Lake and Kohlberg Kravis Roberts formed Avago Technologies through the acquisition and carved out of the Semiconductor Products Group from Agilent Technologies, Inc. (NYSE: A) (formerly a division of HPQ) for $2.66 billion, one of the largest private equity buyouts of a semiconductor company. AMD call option volume of 52,272 contracts compares to put volume of 28,105 contracts. AMD May option implied volatility of 46 is above yesterday's level of 43 and its 26-week average of 43 according to Track Data, suggesting slightly larger price risks.

Option volume leaders today are: Yahoo (NASDAQ: YHOO), Motorola (NYSE: MOT), Amgen (NSDAQ: AMGN) and Intel (NASDAQ: INTC).

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