Zacks' Discount Fundamental Strength strategy highlights Applied Industrial Technologies, Barrett Business Services, America's Car-Mart and Quanex 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 Applied Industrial Technologies, Inc. (NYSE NYSE See: New York Stock Exchange : AIT), 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 ), America's Car-Mart, Inc. (Nasdaq: CRMT CRMT Computer Resources Management Team ) and Quanex Corp. (NYSE: NX). 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: Applied Industrial Technologies, Inc. (NYSE: AIT) meets the criteria of this Profit Track with a PEG ratio PEG Ratio See: Prospective earnings growth ratio PEG ratio See price-earnings/growth ratio (PEG ratio). of 0.62 and a price/sales multiple of 0.55. The company's current ratio is 3.07 and its debt/equity level is 0.19. In late April, the company posted fiscal third-quarter earnings of 65 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. , topping the consensus estimate by about 8% and surpassing the year-prior result. Barrett Business Services, Inc. (Nasdaq: BBSI) recently reaffirmed its earnings guidance, stating that it anticipates earnings per share for the second quarter to range from 33 to 35 cents per share. This forecast is inline with current analysts' projections of 34 cents per share. In late April, the company reported first-quarter earnings of 12 cents per share versus the prior year total of 10 cents. The result matched the consensus estimate. BBSI offers a current ratio of 1.98 and has very low levels of debt as evidenced by its debt/equity level of 0.01. America's Car-Mart, Inc. (Nasdaq: CRMT) announced fiscal third-quarter earnings of 37 cents per share in early March. The result improved on the previous year's 36 cents and outpaced the consensus estimate by nearly 3%. The company said it was pleased with its strong operating results, including revenue growth of over 20%, same store revenue growth of nearly 17%, and retail unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. growth of 13%. With a PEG ratio of 0.60, CRMT can be an appealing investment for value investors. Quanex Corp. (NYSE: NX) is a technological leader in the manufacture of value-added metal products made from carbon and alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. steel and aluminum. The company recently released fiscal second-quarter earnings of $1.07 per share, while analysts were expecting $1.06. Quanex Corp. has a current ratio of 1.80 and a debt/equity level of 0.18. 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 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! 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. 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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