Zacks Issues Buy Recommendations on the Following 4 Stocks: ExpressJet, Zimmer Holdings, Bed Bath & Beyond, and Performance Food.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 30, 2003

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 +33.6% since 1988 and has gained +13.3% annually since 2000 as the markets have been tumbling down. Among the #1 ranked stocks today we highlight the following companies: ExpressJet Holdings, Inc. (NYSE:XJT) and Zimmer Holdings, Inc. (NYSE:ZMH). Further they announced #2 Rankings (Buy) on two other widely held stocks: Bed Bath & Beyond Inc. (NASDAQ:BBBY) and Performance Food Group (NASDAQ:PFGC). 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:

ExpressJet Holdings, Inc. (NYSE:XJT) is an operator of regional jets that provides Continental Airlines all of its regional airline capacity at its hub airports in Houston, Cleveland and Newark. In April, ExpressJet reported first quarter net income of $25.6 million, or 40 cents per diluted earnings per share, which was an increase of 28% over the prior-year period. Beating estimates even in a difficult industry has become a habit for XJT. Over the past four quarters, XJT has averaged double-digit earnings surprises while the consensus kept rising. While other airlines are contracting, XJT announced during the quarter that it had accepted delivery of 12 aircraft, bringing its total fleet to 200. Additionally, it also expanded the number of routes. The company attributed its success to committed employees responsible for operational excellence and efficiency, which are both critical to their success. Analysts have jumped on board and investors may want to fasten their seatbelts before this airline leaves the gate.

Zimmer Holdings, Inc. (NYSE:ZMH) is engaged in the design, development, manufacturing and marketing of orthopedic reconstructive implants and fracture management products, including artificial knees, hips and other joints. Shareholders of ZMH are waiting to see if the revised proposal that the company made yesterday to purchase Centerpulse will be accepted. In the first quarter, net earnings before the cumulative effect of a change in accounting principle increased +47% to $80.2 million versus $54.6 million for the prior year. Excluding the 1.4-cent effect of the instrument accounting change, first quarter diluted earnings per share increased by +39% to 39 cents per share versus 28 cents for the prior year. ZMH also raised its previous guidance pre-takeover bid for both revenue and earnings per share as a result of its first quarter financial performance. Revenues for the full year 2003 are expected to grow +16% to +17% over prior year and earnings per share are expected to increase +23% to +24% over prior year, implying $1.61 to $1.62 for the full year. Analysts have been positive on ZMH and it looks like investors agree.

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:

Bed Bath & Beyond Inc. (NASDAQ:BBBY) is a nationwide operator of superstores selling predominantly better quality domestics merchandise and home furnishings typically found in better department stores. The company ended fiscal 2002 in February with a strong quarterly performance. Net earnings were 35 cents per share on net sales of $1.05 billion. The earnings result surpassed both the year-ago total of 28 cents and Wall Street's expectations by +6%. Net sales improved by more than +19%, while same-store sales of the Bed Bath & Beyond stores rose by +4.1%. Beating earnings estimates has become a habit for BBBY, which bodes well for the company and its shareholders moving forward. It appears BBBY has managed to grow earnings in a very tough retail environment. Investors looking to spruce up their portfolio should shop BBBY.

Performance Food Group (NASDAQ:PFGC) markets and distributes more than 61,000 national and private label food and food-related products to approximately 46,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. Last month, Performance Food announced sales for the first quarter of 2003 that amounted to $1.3 billion, up +27% from $996.9 million in the year-earlier period. Net earnings for the quarter increased +53% to $16.4 million compared with $10.8 million a year ago. Net earnings per share for the quarter increased +46% to 35 cents per share diluted on +16% more shares outstanding, compared with net earnings of 24 cents per share diluted in the year-earlier quarter. The company announced that first quarter results represented the 33rd consecutive period in which net sales and net earnings have increased compared with the prior-year period. Broadline sales continued to grow, increasing +43% in this year's first quarter versus the like quarter a year ago, aided by the acquisitions of Quality Foods, Middendorf Meats and TPC completed during 2002.

PFGC will provide the sustenance that hungry investors are looking for.

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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 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the (a)S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; 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 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). This is a healthy change from traditional Wall Street Brokerage firms who rarely give stocks Sell ratings even as the share price and earnings forecast tumble. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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