Zacks' Discount Fundamental Strength Strategy Highlights: Barrett Business Services, United America Indemnity, Ltd, Tesoro Corp. and Western Digital Corp.CHICAGO -- Combining strong underlying fundamentals with low valuations can lower risk and increase portfolio returns. Zacks' Discounted Fundamental Strength Profit Track strategy has generated double-digit returns for six consecutive years, including a 34% gain in 2006. For the first month of 2007, this Profit Track returned 7.3%. Four stocks that currently have both fundamental strength and discounted valuations are Barrett Business Services, Inc. (Nasdaq: BBSI BBSI Bioengineering and Bioinformatics Summer Institute (NIH-NSF) BBSI Black Belt Schools International BBSI Beauty and Barber Supply Institute, Inc ), United America Indemnity, Ltd (Nasdaq: INDM INDM Instant Nonfat Dry Milk ), Tesoro Corp. (NYSE NYSE See: New York Stock Exchange : TSO (Time Sharing Option) Software that provides interactive communications for IBM's MVS operating system. It allows a user or programmer to launch an application from a terminal and interactively work with it. The TSO counterpart in VM is called CMS. ) and Western Digital Corp. (NYSE: WDC WDC Washington DC, USA WDC Western Digital Corporation WDC World Data Center WDC Warwick District Council (UK) WDC World Diamond Council WDC Workforce Development Center WDC Wisconsin Democracy Campaign ). View the entire list of stocks for the Discounted Fundamental Strength Profit Track at http://at.zacks.com/?id=2142. Here are details about four companies currently identified by the Discounted Fundamental Strength Profit Track: Barrett Business Services, Inc. (Nasdaq: BBSI) offers a PEG ratio PEG Ratio See: Prospective earnings growth ratio PEG ratio See price-earnings/growth ratio (PEG ratio). of 0.84. The company has no debt and its current ratio stands at 2.30. In early February, Barrett Business Services announced fourth-quarter earnings of 45 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The result matched the consensus estimate and surpassed the previous year's 37 cents. The company mentioned that it is pleased with another strong quarter and surpassing the $1 billion milestone in gross revenues for 2006. United America Indemnity, Ltd (Nasdaq: INDM) reported fourth-quarter earnings of 79 cents per share in early February. The result exceeded analysts' estimates by 39% and topped the year-ago total. INDM delivered quarterly earnings per share that were ahead of Wall Street forecasts four times out of the past five quarters. The company satisfies the criteria of this Profit Track with a PEG ratio of 0.81 and a price/sales multiple of 0.91. Tesoro Corp. (NYSE: TSO) has a current ratio of 1.68 and a debt/equity level of 0.41. In late January, the company posted record fourth-quarter earnings of $2.28 per share. The result beat the consensus estimate by 32% and outperformed the year-prior result. The company stated that its knowledge and experience in optimizing its system continues to develop and its decisions around crude oil purchasing and clean product management are significantly improving earnings. Western Digital Corp. (NYSE: WDC) released fiscal second-quarter earnings of 57 cents per share, eclipsing the year-ago total of 47 cents per share and outpacing the consensus estimate by 10%. The company said second-quarter results are linked directly to the significant investments in technology and global infrastructure that WDC has made over the last several years, both in traditional computing computing - computer markets and in the newer consumer electronics markets for hard drives. The company' debt/equity level is 0.01 and its current ratio stands at 1.77. Discover all the current stocks currently on the Discounted Fundamental Strength Profit Track at: http://at.zacks.com/?id=2143. About Profit Tracks What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838 All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. . If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report "Top 10 Stock Screening Strategies" at http://at.zacks.com/?id=2156 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=1841 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 and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index . The S&P 500 includes the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , 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. 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