Wednesday Stocks to Watch

The market is flip-flopping in the afternoon. The trend is still up. The bull is also tiring now. It may need some rest before advancing further in the near future. Keep your eyes on the stocks with strong uptrends and good fundamentals. Here is the list of movers from MarketWatch worthing watching:

Advancers:

Advanced Analogic Technologies Inc.'s (AATI, Trade ) shares rose Wednesday. The U.S. International Trade Commission has ruled in favor of the company in a patent infringement case brought by Linear Technology Corp. (LLTC, Trade ) .

Alcan (AL, Trade ) is reportedly in early stage talks with BHP Billiton (BHP, Trade ) after the Montreal aluminum producer's board urged investors to reject a $27 billion offer from Alcoa (AA, Trade ) late Tuesday.

AllianceBernstein Holding LP said its first quarter net income rose 16.6% as assets under management gained 20%. Quarterly profits hit $78.5 million, or 91 cents a unit. That was up from $65.6 million, or 78 cents a unit, a year earlier. Analysts polled by Thomson Financial had expected $1.07 per unit. First quarter revenue reached $1.04 billion, also up in double-digits. The firm ended the quarter with $741.7 billion in assets. Hedge-fund assets rose 23% to $9 billion.

Amazon.com (AMZN, Trade ) said Tuesday it's buying Brilliant Audio, the largest independent publisher of audio books in the U.S. Terms of the deal were not disclosed.

American Electric Power (AEP, Trade ) was upgraded by Lehman Brothers.

American Technology Corp. (ATCO, Trade ) shares rallied after the company said its LRAD 500 has been selected by the Navy and Army as their acoustic hailing and warning device for small vessels and vehicles.

B&G Foods Inc.'s shares rallied in its stock market debut.

Bristow Group Inc.'s (BRS, Trade ) fiscal fourth-quarter net income grew 54% to $27.4 million, or 91 cents a share, from a year-earlier profit of $17.8 million, or 75 cents a share. The Houston oilfield helicopter transport company's revenue for the quarter ended March 31 grew 14% to $228.7 million from $201.3 million. Wall Street expected fourth-quarter earnings of 64 cents a share on revenue of $218.7 million, according to Thomson Financial.

Crescent Real Estate Equities Co. (CEI, Trade ) said late Tuesday it has agreed to be acquired by funds managed by Morgan Stanley (MS, Trade ) for $22.80 a share, in a deal valued at roughly $6.5 billion including debt.

DaimlerChrysler (DCX, Trade ) shares rallied Wednesday to their highest level in almost eight years after Morgan Stanley reiterated its overweight rating on the stock, citing strength in Daimler's truck business.

Dick's Sporting Goods Inc.'s (DKS, Trade ) fiscal first-quarter earnings jumped 90%, boosted by its February acquisition of Golf Galaxy. The Pittsburgh-based sporting goods retailer had first-quarter earnings of $21.7 million, or 38 cents a share, compared with $11.4 million, or 21 cents, a year earlier. Dick's said revenue for the quarter ended May 5 rose 28% to $823.6 million from $645.5 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 37 cents a share on revenue of $851 million. Dick's affirmed its 2007 guidance, saying it expects earnings of $2.37 to $2.40 a share, and a 1% to 2% increase in same-store sales.

Dow Jones & Co. (DJ, Trade ) shares climbed Wednesday on word the company's controlling Bancroft family was meeting later in the day to discuss Rupert Murdoch's $5 billion buyout offer.

Dycom Industries Inc. (DY, Trade ) reported third-quarter net earnings of $12.4 million, or 31 cents a share. During the year-ago period, the Palm Beach Gardens, Fla.-based provider of specialty contracting services posted a net loss of $6.5 million, or 16 cents a share. Excluding certain gains and charges, earnings were $11.1 million, or 27 cents a share, compared with $8.3 million, or 21 cents a share, a year ago. Revenue rose to $291.6 million from $251.1 million. For the fourth quarter, Dycom said it expects per-share earnings from continuing operations of 29 cents to 34 cents on revenue from continuing operations of $295 million to $315 million.

Eaton Vance Corp. (EV, Trade ) said Wednesday that costs associated with an initial public offering of a $5.8 billion closed-end fund caused its net income to fall in the second quarter. The money management firm said it earned $23.1 million, or 17 cents a share, compared with $39.9 million, or 29 cents a share in the year-ago period. Eaton Vance said second-quarter earnings were reduced by 25 cents a share by expenses associated with the IPO of Eaton Vance Tax-Managed Global Diversified Equity Income Fund.

Forest Laboratories Inc. (FRX, Trade ) and Cypress Bioscience Inc. (CYPB, Trade ) said a Phase III study of the company's milnacipran drug showed significant therapeutic effects in patients with fibromyalgia syndrome. Forest and its licensor, Cypress, anticipate submitting a new drug application for milnacipran around the end of 2007. The pivotal trial studied 1,196 patients with primary pre-defined endpoints evaluating the treatment of the pain associated with fibromyalgia syndrome or the overall treatment of the disease itself.

Fremont General (FMT, Trade ) shares rallied for a second day after iStar Financial Inc. (SFI, Trade ) said Tuesday it would buy the company's commercial real-estate lending business for $1.9 billion in cash.

Hewlett-Packard Co. (HPQ, Trade ) won a seven-year technology and services contract worth as much as $5.6 billion from the National Aeronautics and Space Administration, the company said Wednesday.

Memc Electronic Materials Inc.'s (WFR, Trade ) shares rose Wednesday. Standard & Poor's said it would add the company to the S&P 500, replacing Kinder Morgan Inc., on a date to be announced. Also, Nationwide Health Properties Inc. (NHP, Trade ) will replace Memc Electronic in the S&P MidCap 400 Index on a date to be announced. Kinder Morgan is being acquired by an investment group led by Chairman and Chief Executive Richard Kinder.

Men's Wearhouse Inc.'s (MW, Trade ) fiscal first-quarter net income climbed 42% to $40.9 million, or 75 cents a share, from $28.9 million, or 53 cents a share, a year earlier. The April acquisition of After Hours Formalwear contributed 8 cents to the period's earnings, after acquisition-funding costs. Total sales for the Houston retailer of men's apparel grew 14% to $496.1 million from $434.6 million, as U.S. same-store sales declined 1.3%. Canadian same-store sales increased 5.8%.

Medtronic (MDT, Trade ) gained more than 6% in early trading Wednesday after posting a rise in its fiscal fourth-quarter profit that was buoyed by higher sales of its defibrillators and pacemakers.

Omnicell Inc. (OMCL, Trade ) said that it has priced an underwritten public offering of 3.9 million shares at $21.50 a share.

Omnicom Group Inc. (OMC, Trade ) said its board approved a 2-for-1 stock split and boosted its quarterly dividend 20% to 15 cents. Omnicom, a New York marketing and corporate-communications company, recently had 165.4 million shares outstanding. The company will distribute the stock split June 6 to shareholders of record on the same date. The increased dividend will be paid July 5 to shareholders of record on June 6.

Pacific Sunwear of California Inc. (PSUN, Trade ) named Sally Frame Kasaks as chairwoman and chief executive officer. Kasaks has served as interim CEO since October 2006, and has been a director since 1997. Kasaks' employment agreement extends through the completion of the fiscal year ending Jan. 31, 2010, the Anaheim, Calif.-based retailer said.

Stride Rite Corp. (SRR, Trade ) shares rocketed higher Wednesday after discount shoe retailer Payless ShoeSource Inc. (PSS, Trade ) said it will buy the company for roughly $800 million in cash as part of a bid to move up market.

Priceline.com Inc. (PCLN, Trade ) raised the high end of its guidance for 2007 gross travel bookings to $4.25 billion. The Norwalk, Conn., online travel-bookings provider had earlier forecast 2007 gross travel bookings of $4.1 billion to $4.2 billion. Priceline.com also reconfirmed its earnings guidance, saying it still expects 2007 pro forma net income of $2.90 to $3.10 a share. The company added that it expects 2007 earnings at or slightly above the high end of guidance, if full-year gross travel bookings come in at the high end of the revised range of guidance.

SEI Investments Co. (SEIC, Trade ) Wednesday declared a 2-for-1 stock split, payable June 21 to shareholders of record as of June 11. The Oaks, Pa.-based asset manager also said it has approved a $50 million increase in its stock repurchase program.

SenoRx (SENO, Trade ) shares jumped after the Aliso Viejo, Calif.-based medical device maker said it has received 510(k) clearance from the Food and Drug Administration to market its Multi-Lumen Radiation Balloon Applicator for brachytherapy. The device is used to provide brachytherapy to the surgical margins following lumpectomy for breast cancer. The company expects to launch of the product in early 2008.

Shanda Interactive Entertainment Ltd. (SNDA, Trade ) reported first-quarter net earnings of 448 million yuan ($58 million) or 6.14 yuan (80 cents) per American Depositary share, up from 11.8 million yuan, or 0.16 yuan per ADS, in the year-ago period. Excluding a net gain from the disposal of Sina shares, Shanda earned 36 cents a share. The Shanghai-based media company said revenue in the three months ended March 31 rose 56% to 532.3 million yuan from 341.4 million yuan in the comparable period last year.

Talbots Inc.'s (TLB, Trade ) fiscal first-quarter net income dropped to $5.24 million, or 10 cents a share, from $27.4 million, or 51 cents a share, a year earlier. The retailer said Wednesday the latest quarter was hurt by bad weather in April, the Easter holiday shift and a broad-based consumer slowdown. The Hingham, Mass., company earned 23 cents a share excluding 13 cents a share in acquisition related costs, and said first-quarter profit totaled 32 cents a share excluding a loss of 9 cents a share related to its J. Jill brand. Same-store sales for the first quarter fell 3.5% on weaker-than-anticipated customer response to Talbot's casual merchandise.

Target Corp. (TGT, Trade ) said first-quarter earnings rose 18% to $651 million, or 75 cents a share, from $554 million, or 63 cents, a year earlier. The Minneapolis-based retailer said total revenue rose 9.2% to $14.04 billion from $12.86 billion in the year-ago period, helped by a 4.3% increase in same-store sales, contributions from new stores and its credit-card operations. Analysts polled by Thomson Financial expected on average, first-quarter earnings of 71 cents a share on revenue of $14.17 billion. Target said it bought back 9.2 million shares in the first quarter for $549 million.

Wet Seal (WTSLA, Trade ) posted a $7.6 million, or 7 cents a share, profit in the first quarter ending May 5, with sales up to $138 million from $125 million. Analysts polled by Thomson Financial expected earnings of 6 cents a share on revenue of $139 million. Comparable-store sales rose 2.7% during the quarter. It lost $14 million, or 22 cents a share, in last year's first quarter. It expects low single-digit rise in comparable-store sales in May and the second quarter. Earnings are seen between 5 cents and 8 cents a share in the second quarter on sales between $147 million and $152 million.

Decliners

Alaska Air Group (ALK, Trade ) said Wednesday its adjusted net income for the second quarter of 2007 and the full-year would be below 2006 amounts, taking into account fuel costs and revenue trends. Alaska Air also said it would sell four MD-80 aircraft in the second quarter, when capacity at its Alaska Air unit would rise 5%. Unit costs at Alaska Air are expected to fall in the second quarter by 4% to 7.5 cents, excluding fuel, the company said.

Analog Devices (ADI, Trade ) reported a 14% profit decline in the second quarter and said current-quarter earnings will be below market estimates.

Autozone (AZO, Trade ) was downgraded to hold from buy at Citigroup. "While we still see fair value at $145 over the next 12 months, we believe the 9% price appreciation potential from present levels isn't sufficient enough to stomach the macro headwinds ahead," the broker said.

CSS Industries Inc. (CSS, Trade ) shares dropped after the Philadelphia-based maker of gift wrap and greeting cards reported a fiscal fourth-quarter net loss of $5.6 million, or 52 cents a share, vs. a year-ago net loss of $7.67 million, or 73 cents a share. Revenue fell to $45.3 million from $52.2 million. For fiscal 2008, the company expects earnings of $2.45 to $2.60 a share.

Dillard's Inc. (DDS, Trade ) said that its first-quarter net income decreased to $42.9 million, or 53 cents a share, from $61.3 million, or 77 cents a share, a year ago. Analysts had been expecting the company to produce earnings of 73 cents a share, according to data compiled by Thomson Financial. Sales dipped to $1.76 billion, from $1.84 billion last year. Sales of shoes significantly outperformed the average company performance during the quarter, while sales of juniors' and children's clothing declined significantly more than trend.

GameStop Corp.'s (GME, Trade ) fiscal first-quarter net income more than doubled to $24.7 million, or 15 cents a share, from $11.7 million, or 7 cents a share, a year earlier. The latest period included debt retirement costs of 3 cents a share. The Grapevine, Texas, video game retailer said sales for the quarter ended May 5 climbed 23% to $1.28 billion from $1.04 billion, as same-store sales grew 15.3%. On average, analysts polled by Thomson Financial expected earnings of 16 cents a share on revenue of $1.25 billion. Analyst estimates typically exclude items. GameStop expects second-quarter earnings of 7 cents to 8 cents a share and a same-store sales increase between 16% to 18%. Wall Street estimates earnings of 8 cents a share. GameStop raised its full-year earnings forecast to $1.39 to $1.42 a share, from $1.37 to $1.40 a share.

Nationwide Financial (NFS, Trade ) was downgraded to neutral from buy at UBS, with the broker saying its shares have outperformed rival life insurers this year. "Trading at around 1.6 times price-to-book, NFS seems fairly value if credited for a 13% return-on-equity by 2009 and a little rich based on sub-13% return-on-equity for 2007 and 2008," the broker said.

Northfield Laboratories (NFLD, Trade )said in a Phase III trial of red blood cell substitute PolyHeme, the difference in mortality at 30 days between patients who received PolyHeme and control patients who received standard care was not statistically significant.

Pep Boys (PBY, Trade ) reported first-quarter earnings from continuing operations before cumulative effect of change in accounting principle of $3.22 million, or 6 cents a share. During the same period a year ago, the company posted a net loss from continuing operations of $867,000, or 2 cents a share. The Philadelphia-based automotive aftermarket retail and service chain posted revenue of $546 million vs. $556.6 million.

Possis Medical Inc. (POSS, Trade ) shares slid after the Minneapolis-based medical device maker reported fiscal third-quarter net earnings of $44,000, or breakeven a share, vs. a year-ago net loss of $277,608, or 2 cents a share. Excluding items, the company posted a profit of 5 cents vs. 3 cents last year. Revenue rose to $16.2 million from $15.2 million. Analysts polled by Thomson Financial were expecting, on average, a per-share profit of 5 cents on revenue of $17.2 million.

RSC Holdings Inc.'s (RRR, Trade ) shares fell in the company's initial public offering.

TRM Corp. (TRMM, Trade ) shares fell after the Portland, Ore.-based provider of ATM services named Chief Operating Officer Richard Stern as president and chief executive Jeffrey Brotman will remain with the company as non-executive chairman.

Shares of online advertising company ValueClick Inc. (VCLK, Trade ) were downgraded to neutral from outperform by Credit Suisse analyst Heath Terry on Wednesday.

Vion Pharmaceuticals Inc. (VION, Trade ) suspended the Phase III trial of its Cloretazine drug for patients with relapsed adult myelogenous leukemia, pending a detailed review of data from the trial. The New Haven, Conn., biopharmaceutical company said a review of interim data by the trial's independent data safety monitoring board found that any advantage in complete remission could be compromised by the observed on-study mortality to date. Vion said data from the trial, which included 210 patients, will remain blinded while a complete medical review is conducted.