Zacks' Discount Fundamental Strength strategy highlights: Avnet, United America Indemnity, Ltd, Western Digital Corp. and ExpressJet Holdings.

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 Avnet, Inc. (NYSE: AVT), United America Indemnity, Ltd (Nasdaq: INDM), Western Digital Corp. (NYSE: WDC) and ExpressJet Holdings, Inc. (NYSE: XJT). 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:

Avnet, Inc. (NYSE: AVT) reported fiscal third-quarter earnings of 73 cents per share, excluding charges, in late April. The result outpaced the consensus estimate by 6% and exceeded the year-ago total. Avnet's quarterly earnings per share have been ahead of Wall Street expectations for the past five consecutive quarters. AVT's debt/equity level is 0.36 and its current ratio is 2.03.

United America Indemnity, Ltd (Nasdaq: INDM) satisfies the criteria of this Profit Track with a PEG ratio of 0.86 and a price to sales multiple of 0.97. The company reported first-quarter earnings of 60 cents per share in late April. The result topped the consensus estimate by a penny and surpassed the year-prior total. INDM delivered quarterly earnings per share that were ahead of Wall Street forecasts four times out of the past five straight quarters.

Western Digital Corp. (NYSE: WDC), which recently announced that it has entered into a definitive agreement to acquire Komag, released fiscal third-quarter earnings of 53 cents per share in late April. The result eclipsed the year-prior total of 45 cents and topped the consensus estimate by 13%. Revenue of $1.4 billion moved up from last year's third-quarter revenue of $1.1 billion. The company's debt to equity level is a low 0.01 and its current ratio stands at 1.82.

ExpressJet Holdings, Inc. (NYSE: XJT) has a current ratio of 2.87 and a price to sales multiple of 0.19. XJT offers a PEG ratio of 0.42 and a debt to equity level of 0.47. The company announced first-quarter earnings of 18 cents per share in early May, jumping ahead of the consensus estimate by 20%.

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 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. 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.

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Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR's.

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