Zacks' Discount Fundamental Strength strategy highlights American Woodmark Corp., Celadon Group, Kforce Inc. 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 five consecutive years, including a 23.5% gain in 2005. This strategy has continued to handedly beat the S&P 500. Four stocks that currently have both fundamental strength and discounted valuations are American Woodmark American Woodmark is a fully integrated, stock and semi-custom, just-in-time cabinet manufacturer, headquartered in Winchester, Virginia. The company operates 15 manufacturing facilities, in Arizona, Georgia, Indiana, Kentucky, Maryland, Minnesota, Oklahoma, Tennessee, Virginia, Corp. (Nasdaq: AMWD), Celadon celadon Chinese, Korean, Siamese, and Japanese stoneware decorated with glazes the colour range of which includes greens of various shades, olive, blue, and gray. The colours are the result of a wash of slip (liquefied clay) containing a high proportion of iron that is Group, Inc. (Nasdaq: CLDN CLDN Calling Line Directory Number CLDN Claudin (gene family) ), Kforce Inc. (Nasdaq: KFRC) and Western Digital Corp. (NYSE NYSE See: New York Stock Exchange : 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: American Woodmark Corp. (Nasdaq: AMWD) reported fiscal first-quarter earnings of 82 cents in late August. The result outperformed the year-ago total of 45 cents and exceeded the consensus estimate by about 22%. The company meets the criteria of this Profit Track with its current ratio of 2.33, a debt/equity level of 0.11, a PEG ratio PEG Ratio See: Prospective earnings growth ratio PEG ratio See price-earnings/growth ratio (PEG ratio). of 0.82 and price/sales multiple of 0.66. Celadon Group, Inc. (Nasdaq: CLDN), a Zacks #1 Rank (Strong Buy) company, released fiscal first-quarter financial results in mid-October. Earnings per share totaled 30 cents, improving on last year's 20 cents and topping the consensus estimate by approximately 7%. The company noted that higher freight rates Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight and continued focus on cost controls allowed it to improve its operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: by 300 basis points to 89.2% in the September 2006 quarter from 92.2% in the September 2005 quarter. CLDN has low levels of debt as evidenced by its debt/equity level of 0.07. CLDN's current ratio stands at 1.60. Kforce Inc. (Nasdaq: KFRC) satisfies the criteria of this Profit Track with a current ratio of 2.05 and a debt/equity level of 0.21. The company recently posted third-quarter earnings of 21 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. , beating the previous year's 17 cents. Revenues were an all time high of $238.7 million compared to $207.3 million for the year-prior quarter. The company mentioned that it continued to make excellent progress in adding highly skilled associates to its field service teams. Western Digital Corp. (NYSE: WDC) recently announced fiscal first-quarter earnings of 46 cents per share, surpassing last year's 31 cents and eclipsing analysts' expectations by roughly 12%. The company managed to stay ahead of Wall Street estimates over the past five consecutive quarters. Western Digital offers a debt/equity level of 0.02 and a PEG Ratio of 0.87. 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 2005, the Low Price Stocks strategy was the top performing Profit Track with a return of +51.9% followed by the Recent Price Strength screen with a +35.5% 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! 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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. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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