Zacks Analyst Blog Highlights: Microsoft, Sony, GameStop, Penn Virginia Resource Partners and ATA Inc.

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft (NASDAQ: MSFT), Sony (NYSE: SNE), GameStop (NYSE: GME), Penn Virginia Resource Partners (NYSE: PVR) and ATA Inc. (NASDAQ: ATAI).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Tuesday’s Analyst Blog:

January Video Game Sales Up

Late last week, the NPD Group reported video game sales for the month of January. Hardware sales increased 17% year-on-year. Driving those sales were the Nintendo Wii with 670,000 consoles, Microsoft (NASDAQ: MSFT) Xbox 360 with 390,000, and Sony’s (NYSE: SNE) Playstation 3 with 203,000.

Accessories and software sales were strong as well with year-on-year growth of 11% and 10%, respectively. Nintendo owned most of the top spots in the software sales. The Wii Fit, Wii Play, and Mario Kart were the top three sellers for the month. Other titles in the top ten include Left 4 Dead (Xbox 360, Call of Duty: World at War (Xbox 360), Guitar Hero World Tour (Wii).

I think this data points to continued strength in video games even during challenging economic times, and that will benefit video game retailer GameStop (NYSE: GME), which we rate a Buy with a six-month target price of $34.

Penn Virginia on Solid Ground

Penn Virginia Resource Partners (NYSE: PVR), like other master limited partnerships (MLPs), is valued on different metrics than the typical publicly traded corporation. The nature of an MLP is to distribute, to its unit holders, a significant portion of cash generated from its operations each quarter. As such, earnings per unit or price to earnings ratios have less significance. The common and more appropriate valuation metrics are distributable cash flow, and distribution yield.

We are maintaining our Buy recommendation on PVR but decreasing our target price from $25.00 per unit to $21.00 per unit. Although weak commodity prices will likely impair frac margins in the partnership's midstream segment, growth in throughput volumes and another year of favorable per-ton coal royalty prices will help PVR grow operating income and distributable cash flow in '09.

ATAI Getting Average Marks

Incorporated in 2006, ATA Inc. (NASDAQ: ATAI) is the leading provider of computer-based testing services in China. The company offers its services for the creation and delivery of computer-based tests based on its proprietary testing technologies and test delivery platform. The Company also provides career-oriented, test-based educational programs and test preparation solutions in China.

We maintain our Hold rating and price target on shares of ATAI following the release of Q3 results. We believe that the delay in the implementation of a testing contract with the Ministry of Culture provides a clear example of the risk currently inherent in the company's business model.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.