Zacks Issues Buy Recommendations On the Following 4 Stocks: Eastman Kodak, Pacific Sunwear, Advance Auto Parts and Hotels.com.

Business Editors

CHICAGO--(BUSINESS WIRE)--Dec. 18, 2002

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% since inception in 1980 and is up +11.9% through July 1, 2002. Among the #1 ranked stocks today we highlight the following companies: Eastman Kodak Company (NYSE:EK) and Pacific Sunwear of California, Inc. (NASDAQ:PSUN). Further they announced #2 Rankings (Buy) on two other widely held stocks: Advance Auto Parts, Inc. (NYSE:AAP) and Hotels.com (NASDAQ:ROOM). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://www.zacksrank1bw.zacks.com

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 Kodak Company (NYSE:EK): If a picture is worth a thousand words, then a snapshot of EK's financial statements are worth far more. The company recently bought back about 7.4 million shares from the Kodak Retirement Income Plan, its U.S.-defined benefit pension plan, for about $260 million, thereby completing a $2 billion stock repurchase plan authorized three years ago. In October, the company reported earnings of $1.15 a share, including nonrecurring items, or $334 million, a whopping +248% ahead of its year-earlier profit of 33 cents, or $96 million. These dramatic gains were attributed to restructuring and cost-cutting efforts. To generate profits, Kodak has chopped 7,000 jobs, streamlined its corporate structure and improved manufacturing. This was a positive sign to analysts and EK appears to be making good on its promise to grow earnings this year. When the economic rebound comes, shareholders that own EK could be sitting pretty.

Pacific Sunwear of California, Inc. (NASDAQ:PSUN) is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. While some retailers seem to have problems with soft spending from consumers, PSUN reported that total sales for the four weeks of November of fiscal 2002 were $68.9 million, an increase of +20.5% over total sales of $57.2 million for the four weeks of November of fiscal 2001. Company same-store sales increased 11.7% for the comparable four-week period ended Nov. 30, 2002, with PSUN same-store sales up 10.3% and d.e.m.o. same-store sales up 25.5%. The company's earnings estimates have been advancing slightly over the past several months, and it looks like this Christmas might be much hotter than normal for this specialty retailer.

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:

Advance Auto Parts, Inc. (NYSE:AAP) operates more than 2,000 stores that sell automotive parts, accessories and maintenance items. The company announced that earnings per diluted share increased 73.6% to $0.92 for the third quarter ended October 5, 2002, before integration expenses and an extraordinary item, compared to $0.53 for the same quarter last year. After integration expenses and the extraordinary item, earnings per diluted share rose 45.3% to $0.77. The good news continued as third quarter sales increased 31.7% to $788.7 million, compared to $598.8 million last year. Same store sales grew 5.5% for the third quarter compared to 7.1% in the comparable period last year. In tough economic times, consumers may decide to keep cars and trucks longer which will only benefit premier parts suppliers like AAP.

Hotels.com (NASDAQ:ROOM) provides discount hotel rooms and other lodging accommodations through the Internet and now by phone. Although the travel industry has seen better days, ROOM recently reported a quarterly earnings result that surpassed the consensus view and significantly improved from year-ago levels. ROOM increased revenue by 83.4% to $277.4 million from $151.2 million a year earlier, and adjusted diluted EPS increased by 69.6% to $0.45 from $0.27. However, the biggest news for ROOM may be its announcement that earnings for the fourth quarter and full year show more growth than it expected. Even so, analysts have been a little hesitant to raise their estimates too high, bumping expectations by 2 cents for this year and 8 cents for next. If the company can continue to grab customers in this lackluster market, it may be clear sailing heading into 2003.

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://freezrguideprbw1.zacks.com

About the Zacks Rank

For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1980 #1 Ranked stocks have generated an average annual return of +34.0% compared to the (1)S&P 500 return of only +14.7%. Plus this exclusive stock list has gained +11.9% through 7/1/02, +18.7 in 2001 and +16.2% in 2000; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1980 the #5 Ranked Strong Sells have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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