Zacks Issues Buy Recommendations on the Following 6 Stocks: Brown & Brown, Fidelity National, WellPoint, AutoZone, Rite Aid and Stryker Corp.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 16, 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: Brown & Brown, Inc. (NYSE:BRO), Fidelity National Financial Inc. (NYSE:FNF) and WellPoint Health Networks Inc. (NYSE:WLP). Further they announced #2 Rankings (Buy) on two other widely held stocks: AutoZone, Inc. (NYSE:AZO), Rite Aid Corporation (NYSE:RAD) and Stryker Corporation (NYSE:SYK). 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:

Brown & Brown, Inc. (NYSE:BRO) is a diversified insurance brokerage and agency that markets and sells primarily property and casualty insurance products and services to its clients. BRO had a great first quarter with net income per share at 44 cents, which was +41.9% better than last year's 31 cents and above what a consensus of analysts were expecting. In addition, total revenue improved by +30.4% to $144.7 million. BRO said every facet of its proven operating model generated positive results. Within the past 2 months analysts have increased earnings estimates for this year and next by 9 cents and 12 cents respectively. As the market begins to recover, companies like BRO look to be in an even better situation after such a rough period. Investors looking to get back into the market should look at a company with rising estimates like BRO.

Fidelity National Financial Inc. (NYSE:FNF), through its branches, subsidiaries and independent agents, performs title searches and examinations, prepares certificates or abstracts of title and issues title insurance policies pertaining to titles of real property. In April FNF reported revenue for the first quarter of 2003 at $1.4 billion, compared with $1.1 billion for the first quarter of 2002. Total title premiums were $968 million for the first quarter of 2003 versus $729 million for the prior year period. 1st quarter 2003 net earnings was $144 million or $1.44 per diluted share. This compares very favorably against net earnings of $101 million or $1.03 for the same quarter in 2002. If that wasn't enough good news for investors, FNF board of directors declared a 25% dividend in the form of a 5 for 4 stock split. With new deals brewing and a hot real estate market, FNF is still a premium choice for investors.

WellPoint Health Networks Inc. (NYSE:WLP) is one of the nation's largest publicly traded managed health care companies. The company offers a broad spectrum of quality network-based managed care plans. The company announced last month that net income for the quarter ending on March 31, 2003 was $193.1 million or $1.29 per diluted share compared to net income for the first quarter of 2002, which was $141.1 million or 97 cents per diluted share. The company attributed its outstanding performance for the quarter to strong enrollment growth, their ability to control administrative costs and share repurchases. As a result, WLP decided to raise their earnings guidance for 2003 from $5.10 to $5.50 per diluted share. During the recent rough economic period many companies were slipping but not WLP. In fact, WLP ranked number 103 on FORTUNE magazine's 2003 FORTUNE 500 list of America's largest corporations. This jump was 59 places higher than last year's ranking of 162. WLP may be just the shield investors are looking for to protect their capital.

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:

AutoZone, Inc. (NYSE:AZO) is the nation's leading specialty retailer of automotive parts and accessories, primarily focusing on do-it-yourself customers. In its second fiscal quarter, AZO watched sales advance by +3.6% rise to $1.121 billion. Diluted earnings came in at 79 cents per share, which was a +36% from the year-ago total of 58 cents while still surpassing Wall Street's expectation. The company said that it's continued focus on controlling costs has been driving shareholder value. Over the past several quarters AZO has managed to meet or exceed Wall Street's earnings estimates, which is a good indicator for future success. Since a company's direction oftentimes stays on course until something knocks it off, AZO may be on the fast track to success bringing investors with it.

Rite Aid Corporation (NYSE:RAD) is a retail drugstore chain in the United States serving customers in numerous states across the country and in the District of Columbia. For the four weeks ended April 26, 2003, same store sales rose +5.9% over the prior-year period. In April RAD announced fiscal fourth quarter and full fiscal year 2003 numbers. Revenues for the 13-week fourth quarter were $4.1 billion versus revenues of $4.0 billion in the prior year fourth quarter. Same store sales increased +4.7% during the fourth quarter as compared to the year-ago like period, consisting of a +6.8% pharmacy same store sales increase and a +1.5% increase in front-end same store sales. Net income for the fourth quarter increased to $7.0 million, including an extraordinary gain of $12.0 million resulting from the early extinguishment of debt, but resulted in a loss of 2 cents per diluted share because of the negative impact of preferred stock dividends of $15.3 million or 3 cents per share. This compares to a net loss of $257.9 million or a loss of 51 cents per diluted share in the fourth quarter last year that included the negative impact of preferred stock dividends of $7.3 million. With better sales and less shrinkage, RAD just may be the place to shop for profits.

Stryker Corporation (NYSE:SYK) develops, manufactures, and markets specialty surgical and medical products. The company reported first quarter 2003 diluted net earnings of 51 cents per share, which was enough to surpass Wall Street's expectations while also beating the year-ago result by +28%. Net sales advanced by +20% to $846.9 million from $702.9 million last year. Domestic sales for SYK improved by +17% to $546.2 million, thanks to strong shipments of Orthopaedic Implants and MedSurg Equipment, as well as higher revenue from Physical Therapy Services. International sales rose by +27%. Over the past month, estimates for SYK have improved by about 4 cents and 5 cents for this year and next respectively. With solid acceptance of its products, and a good record of surpassing quarterly expectations of late, SYK could be a helpful implant for your portfolio.

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 (1)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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