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Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 6, 2003

The Finance sector holds plenty of opportunities for investors, but you need to know where to look. The All Stars are here to separate the black from the red by offering several recommendations that are poised for profit in the months to come. Here are the top recommendations in the Finance sector: American Home Mortgage Holdings, Inc. (NASDAQ:AHMH), Fannie Mae (NYSE:FNM), Freddie Mac (NYSE:FRE), Washington Mutual Inc. (NYSE:WM) and Federated Investors, Inc. (NYSE:FII). Discover the full story at Zacks.com http://allstartoppicks.zacks.com

What Do The All Stars Recommend:

American Home Mortgage Holdings, Inc. (NASDAQ:AHMH) is an independent retail mortgage banking company primarily engaged in the business of originating and selling residential mortgage loans. The company reported record levels for earnings and loan production in its third quarter. AHMH put together earnings per share on a fully diluted basis of 76 cents, which significantly improved upon last year's total of 47 cents and was 11 cents better than Wall Street expectations. Revenue skyrocketed by +130% to $73.7 million from $32 million last year.

Federal National Mortgage Association (NYSE:FNM), commonly known as Fannie Mae, operates pursuant to a federal charter and is one of the nation's largest sources of financing for home mortgages. Fannie Mae is working to shrink the nation's homeownership gaps through an American Dream Commitment to increase homeownership rates and serve targeted American families by the end of the decade. FNM reported third quarter operating earnings per diluted common share of $1.62, marking an almost +22% rise from $1.33 last year while beating Wall Street by a nickel.

Freddie Mac (Federal Home Loan Mortgage Corporation) (NYSE:FRE) is a stockholder-owned corporation that supports homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. The company reported third quarter diluted operating earnings per common share of $1.34, eclipsing Wall Street's prediction by 8 cents and surpassing last year's performance by +24%. FRE's total mortgage portfolio grew at a 5% annualized rate from $1.244 trillion at June 30, 2002 to $1.261 trillion at September 30, 2002.

Washington Mutual Inc. (NYSE:WM) is engaged in consumer banking, mortgage banking, commercial banking, financial services, and consumer finance. The third quarter saw earnings rise by +7% to $976 million, or $1.01 per diluted share, compared to $832 million, or 94 cents, last year. During the quarter, WM posted solid growth in its consumer banking business and record loan volume of $75.48 billion.

Federated Investors, Inc. (NYSE:FII) is a provider of investment management and related financial services. Thanks primarily to the performance of its money market and fixed-income products, FII posted earnings of 43 cents per share in its third quarter. That result matched analysts' expectations and was 19% better than last year's result of 36 cents. FII saw its bond fund sales jump by 91% to $4.3 billion from last year's third quarter, as its managed assets increased by +11%.

To get our full analysis and top picks for this sector, then click: http://allstartoppicks1.zacks.com/

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