Zacks' Discount Fundamental Strength strategy highlights DR Horton Inc., Guitar Center, Insight Enterprises Inc. and P.A.M. Transportation Services.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 DR Horton, Inc. (NYSE NYSE See: New York Stock Exchange :DHI DHI see dairy herd improvement. ), Guitar Center, Inc. (Nasdaq:GTRC GTRC Grid Technology Research Center (Japan) GTRC Greensboro Truth and Reconciliation Commission (North Carolina) ), Insight Enterprises Inc. (Nasdaq:NSIT NSIT Networking Services and Information Technologies (University of Chicago) NSIT Nova Scotia Institute of Technology NSIT Not Safe In Taxis NSIT Netaji Subash Institute of Technology NSIT Network Systems and Information Technology ) and P.A.M. Transportation Services, Inc. (Nasdaq:PTSI PTSI Platinum Silicide PTSI Panhandle Telecommunication Systems, Inc. ). 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: DR Horton, Inc. (NYSE:DHI) reported fiscal first-quarter earnings of 98 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. in mid January. The result topped last year's 76 cents and exceeded the consensus estimate by about 3%. The company stated that its continued double-digit sales momentum and its first quarter record $6.2 billion backlog provide a solid foundation for achieving its 29th consecutive year of record revenues and earnings in fiscal year 2006. DHI is currently the only company listed under this Profit Track that has no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . It also offers the lowest PEG Ratio PEG Ratio See: Prospective earnings growth ratio PEG ratio See price-earnings/growth ratio (PEG ratio). , which is 0.38, compared to all the other names on this Profit Track. Guitar Center, Inc. (Nasdaq:GTRC) satisfies the criteria for this Profit Track with a current ratio of 2.18 and a debt/equity level of 0.25. The company recently released fourth-quarter earnings of $1.17 per share, excluding items. The result eclipsed the consensus estimate by nearly 2% and outpaced the previous year's earnings. The company mentioned that it generated solid sales growth across all of its divisions for the fourth quarter and the year. Insight Enterprises Inc. (Nasdaq:NSIT) is a global direct marketer of brand name computers, hardware and software. The company sports a PEG ratio of 0.90 and a price/sales multiple of 0.31, currently the lowest listed under this Profit Track. In late January, the company announced that fourth-quarter non-GAAP earnings grew year-over-year from 31 cents per share to 35 cents. The earnings result matched analysts' expectations. P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) is an irregular route, common and contract motor carrier authorized to transport general commodities. The company recently posted fourth-quarter earnings of 41 cents per share, improving on last year's 16 cents and jumping ahead of the consensus estimate by almost 52%. PTSI, a Zacks #1 Rank (Strong Buy) company, meets the criteria of this Profit Track with its current ratio of 1.83 and a debt/equity level of 0.14. 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 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter 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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