Zacks Issues Buy Recommendations on the Following 4 Stocks: Advance Auto Parts, American Home Mortgage Holdings, Storage Technology and TXU Corporation.

Business Editors

CHICAGO--(BUSINESS WIRE)--July 8, 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: Advance Auto Parts, Inc. (NYSE:AAP) and American Home Mortgage Holdings, Inc. (NYSE:AHMH). Further they announced #2 Rankings (Buy) on two other widely held stocks: Storage Technology Corporation (NYSE:STK) and TXU Corporation (NYSE:TXU). 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:

Advance Auto Parts, Inc. (NYSE:AAP) is a specialty retailer of automotive parts, accessories and maintenance items to do-it-yourself customers. Advance Auto Parts continues to roll down the highway with a strong first quarter performance that saw comparable earnings per diluted share of 98 cents, which beat the Street by over +30%. The result also marked a more than +78% improvement over the year-ago result, while sales advanced by +2.9% to $1.03 billion. Advance Auto Parts was able to put together these numbers even through those fierce storms in May, and increased its comparable earnings guidance for the second quarter to a range of $1.01 to $1.05, compared to 77 cents for the year-ago quarter. In addition AAP raised its comparable earnings guidance for the 2003 year to a range of $3.85 to $3.95. As a result, earnings estimates, for this year and next, sit more than 40 cents above levels from two months ago. With an excellent record of surpassing quarterly expectations, Advance Auto Parts appears to be heading in the right direction and taking investors along for the ride.

American Home Mortgage Holdings, Inc. (NYSE:AHMH) together with its subsidiaries, American Home Mortgage Corp. and Marina Mortgage Company, Inc., is an independent retail mortgage banking company primarily engaged in the business of originating and selling residential mortgage loans. In late April, the company announced that first quarter 2003 earnings rose a whopping +143% to $16.3 million from just $6.7 million in the first quarter of 2002. Earnings per share were 97 cents per basic share and 96 cents per diluted share. In addition, the Board of Directors voted to increase the regular quarterly dividends to 13 cents per share from its current level of 10 cents per share and declared a dividend payable on July 17, 2003 to shareholders of record on July 3, 2003. In the past 12 months the Company has increased its dividend an almost unheard of +333%. The company said that they accomplished another period of record earnings and EPS, both of which were significantly higher than during any previous quarter in the company's history. Analysts believe the environment continues to be highly supportive as extraordinary refinancing activity remains at near record levels. In addition, during the quarter, AHMH acquired 75 mortgage origination branches from Principal Residential Mortgage increasing their total retail branch network by +57%. Over the last month earnings have been rising and it looks like the company might ride the low interest wave a while longer.

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:

Storage Technology Corporation (NYSE:STK) designs, manufactures, markets and maintains information storage products, storage services and storage management software. In April the company announced first quarter 2003 net income of $16.5 million, or 15 cents per diluted share. These amounts compare to net income of $6.0 million, or 6 cents per diluted share for the first quarter of 2002. In addition, revenue for the first quarter of 2003 was $480.0 million compared to $455.9 million for the first quarter of 2002. Given the difficult external environment, STK was very pleased to show revenue growth and its eleventh consecutive quarter of sequential earnings improvement. The discipline they have imbued their business model with should enable future growth in revenue and earnings throughout the year. Accolades also came from Business Week with their Info Tech 100 list. Storage Tech's placement on the Info Tech 100 for the second year running is an outside testament to the company's stability during challenging times. Things are beginning to pick up for the space and STK looks to be in a great position to leverage their previous initiatives.

TXU Corporation (NYSE:TXU) is a holding company that, through its subsidiaries, engages in the generation, purchase and distribution of electricity; the processing, transmission and distribution of natural gas; and power development and telecommunications. In May the company announced that earnings from continuing operations before cumulative effect of changes in accounting principles for the first quarter ended March 31, 2003 were $101 million, or 30 cents per diluted share of common stock. This exceeded its planned earnings of approximately 20 cents per diluted share. TXU also announced that it and its subsidiaries had repaid all cash borrowings from their North America credit facilities and that they had replaced an expiring $1 billion 364 day unsecured credit facility and a $150 million secured credit facility with a $450 million unsecured credit facility, further reducing reliance on bank borrowings. Investors looking to get a boost in returns should explore TXU.

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 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.

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://www.zacksrank2bw.zacks.com/

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 1981 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://www.freeprofit1bw.zacks.com

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.