Zacks Buy List Highlights: Eastman Chemical, Gap, Inc., Adobe Systems, and Marvell Technology Group.

CHICAGO -- Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of +34.2% since inception in 1988 and has gained +139.7% since January 2000 when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today we highlight the following companies: Eastman Chemical Company (NYSE:EMN) and Gap, Inc. (NYSE:GPS). Further they announced #2 Rankings (Buy) on two other widely held stocks: Adobe Systems Inc. (NASDAQ:ADBE) and Marvell Technology Group (NASDAQ:MRVL). To see the full Zacks #1 Ranked list or the rank for any other stock then visit: http://at.zacks.com/?id=88

Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:

Eastman Chemical Company (NYSE:EMN) manufactures and markets chemicals, fibers and plastics worldwide. Eastman Chemical is scheduled to report its next quarterly results on July 29. Earnings estimates for the year ending December 2004 remain well above levels from three months ago by 53 cents, or approximately +29%, including a boost of 6 cents, or about +3%, in the past 30 trading days. Eastman Chemical's industry had been among the most challenged during the economy's malaise, but as its first quarter results demonstrated, the company is making progress toward improving its profitability. Late April had the company post earnings per diluted share of 52 cents, excluding items, which surpassed the consensus at the time by more than +62%. Sales revenue advanced +11% to $1.6 billion, thanks to higher sales volume, favorable foreign currency exchange rates, and higher selling prices. Eastman Chemical's industry continues to carry its fair share of challenges, but the company said improving economic conditions and normal seasonality should spark strong sales volume in the second quarter. Eastman Chemical appears to be back on track, so investors may want to take notice.

Gap, Inc. (NYSE:GPS) is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children. Positive traffic and strong product acceptance helped continue momentum at Gap, Banana Republic and Old Navy in May, according to the company. Gap reported net sales of $1.2 billion for the month, which was +7% better than a year-ago. Furthermore, same-store sales increased +6%. The company went on to say it continues to deliver year-over-year merchandise margin growth through more regular price selling and improved margins on full-price and markdown items. For its fiscal first quarter, which was announced in late May, Gap posted net earnings of 34 cents, excluding items, which exceeded the consensus by two cents, or more than +6%. Numerous analysts have raised revisions on the company over the past several weeks, and earnings estimates for the year ending January 2005 are up 10 cents, or approximately +8%, over the past two months. With Gap, Old Navy, and Banana Republic, this company operates some of the most popular brands in its industry, so investors may want to close the gap between their portfolio and higher profits by looking into a position.

Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:

Adobe Systems Inc. (NASDAQ:ADBE) is a provider of graphic design, publishing, and imaging software for Web and print production. Earlier this month, Adobe Systems posted fiscal second quarter diluted earnings of 44 cents per share, which moved past the consensus at the time by 2 cents, or almost +5%. Adobe Systems has now beaten Wall Street's earnings expectations for ten consecutive quarters. Revenue reached $410.1 million in the quarter, marking a +28% year-over-year improvement. The company said continued strong demand for the Adobe Creative Suites and the Adobe Acrobat product family, along with solid execution across its business, highlighted another solid quarter. The company has enjoyed a number of upward revisions from analysts recently, and earnings estimates for the year ending November 2004 moved higher by 12 cents, or approximately +8%, over the past two months. Adobe Systems went on to say that it expects to exceed its previous full year financial targets, which is good news for the company and its shareholders.

Marvell Technology Group (NASDAQ:MRVL) is the leading global semiconductor provider of complete broadband communications and storage solutions. Earnings estimates for Marvell Technology remain above levels from two months ago by 11 cents, or about +8%. In May, the company put together a solid fiscal first quarter report, with pro forma net income of 34 cents per diluted share that topped the consensus by more than +6%. Also, net revenue of $269.6 million jumped by +60% year-over-year. Marvell stated its solid execution is driving strong revenue growth and momentum in both the Enterprise and Consumer markets. Marvell is an innovative company that has a lot going for it heading forward. If the company can continue to report solid quarterly results, then its earnings estimates could be poised to move even further.

To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://at.zacks.com/?id=89

About the Zacks Rank

For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +34.2% compared to the (a)S&P 500 return of only +12.0%. Plus this exclusive stock list has generated total gains of +139.7% since January 2000 as the market suffered its worst downturn in 60 years. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 96.9% annually (12.0% vs. 6.1% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

For continuous coverage of Zacks #1 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight #1 Ranked stocks poised to outperform the market. http://at.zacks.com/?id=90

The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit http://at.zacks.com/?id=91

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

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.