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Zacks Brokerage Firm Buy List: Emerson Electric, Fannie Mae, Medtronic and Wells Fargo

Business Wire, May 14, 2003

Business Editors

CHICAGO--(BUSINESS WIRE)--May 14, 2003

Today Zacks.com releases the names of 4 more stocks that are on their coveted Brokerage Firm Buy List portfolio. This portfolio includes just those stocks that currently appear on the core recommended lists of at least three of the top 15 brokerage firms. These stocks are considered the best large cap stocks to own for the long term according the Wall Streets top players. Here are 4 stocks that are currently members of this prestigious list: Emerson Electric Co. (NYSE:EMR), Fannie Mae (NYSE:FNM), Medtronic, Inc. (NYSE:MDT) and Wells Fargo & Company (NYSE:WFC). View the entire list of stocks on the Brokerage Firm Buy List at http://www.buylist1bw.zacks.com

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Here is a synopsis of why these stocks are on the Brokerage Firm Buy List:

Emerson Electric Co. (NYSE:EMR) is a technology leader with more than 60 divisions operate some 320 manufacturing locations worldwide in the design, manufacture and sale of engineered products, services and solutions. EMR announced that second-quarter fiscal 2003 earnings were $236 million, or 56 cents per share, compared with $275 million, or 65 cents per share in the second quarter of 2002. Reported pre-tax, net earnings, and earnings per share were down -14% due to the difference in divestiture gains between the two periods. Excluding the impact of gains from divestitures, earnings per share for the second quarter of 2003 increased +12%. Even still, the company said restructuring efforts allowed them to achieve solid earnings growth in four of their five business segments, with total segment earnings increasing to $416 million from $392 million in the second quarter of 2002. Analysts were impressed with the progress EMR made towards these objectives during the quarter as such three out of fifteen top brokerage firms have EMR on their Focus Lists.

Fannie Mae (NYSE:FNM) is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. In an act of good faith, FNM responding to the special challenges facing America's armed forces has made it easier for military personnel to obtain special forbearance on paying their mortgages. The special forbearance is available to all active duty personnel who qualify for relief under SSCRA, if and when needed. Since 1968, Fannie Mae has provided $4.5 trillion of mortgage financing for more than 49 million families. Along the way FNM has managed to produce several strong quarters. Recently FNM reported first quarter figures, net income was at $1.9 billion, up +60.5% over the first quarter of 2002 and diluted earnings per share were $1.93, up +65%. Three of the top fifteen brokerage firms believe that fundamentals in this space are still sound and there is more upside to this stock. That is why they are recommending FNM as a Core Holding.

Medtronic, Incorporated (NYSE:MDT) is a medical device company that manufactures products instrumental in the treatment of heart failure, coronary and peripheral vascular disease, and other heart related disorders. The company has managed to meet Wall Streets EPS expectations the previous 5 quarters and expects to do the same in the upcoming quarter. During their inter-quarter call the company also said fourth-quarter revenues should grow by more than 15% compared with the quarter a year ago. The company will hold a Webcast to announce fourth quarter and full fiscal year 2003 numbers on May 19, 2003. Along with strong financials, MDT has made progress with several new products and these new breakthroughs have analysts excited about the future and believe that it is only a matter of time before the company is healthy and running on all cylinders. This is why 3 top brokerage firms list MDT as a Core Holding for long-term investors.

Wells Fargo & Company (NYSE:WFC) is a holding company whose subsidiaries are engaged in banking and a variety related businesses. Earlier this month, WFC got a favorable ruling from a federal court, which upheld Wells Fargo's contention that federal law pre-empts a California state law that prohibits the charging of interest on first mortgages more than one day before the mortgage is recorded. On a fundamental note, WFC ability to meet/beat the Street's EPS estimates has been very consistent over the past several quarters. If the markets continue their climb upward and interests rates hold firm, investors looking for steady long-term growth may want to buy WFC. Three top brokerage firms still see upside for this large bank and recommend WFC as a Core Holding.

To discover all the other profitable stock portfolios at Zacks.com then follow this link http://www.stockportfoliosbw.zacks.com

About Zacks Brokerage Firm Buy List

Zacks has developed many successful ways for individual investors to profit from the stock picking prowess of Wall Street professionals. The Brokerage Firm Buy List is yet another powerful tool that investors can wield in order to improve their investment results. This portfolio is comprised of the core stocks recommended by at least 3 of the Top 15 brokerage firms. These are the kind of large cap stocks that are best for long term investors. To learn more about the Brokerage Firm Buy List then visit http://www.buylist2bw.zacks.com

Business Services Industry

Zacks Brokerage Firm Buy List: Emerson Electric, Fannie Mae, Medtronic and Wells Fargo

Business Wire, May 14, 2003

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