Zacks' Discount Fundamental Strength strategy highlights AZZ incorporated, Bluegreen Corp., JAKKS Pacific, and Reliance Steel and Aluminum Co.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 four consecutive years, including a 31% gain in 2004. During the first-half of 2005, this strategy has continued to handedly beat the S&P 500. Four stocks that currently have both fundamental strength and discounted valuations, as of November 21, 2005, are AZZ incorporated (NYSE NYSE See: New York Stock Exchange :AZZ), Bluegreen Corp. (NYSE:BXG), JAKKS Pacific JAKKS Pacific, Inc. NASDAQ: JAKK is is a multi-brand company that designs and markets a broad range of toys and consumer products and is based in Malibu, California. Its product categories include action figures, art activity kits, stationery, writing instruments, performance , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :JAKK), and Reliance Steel and Aluminum Co. (NYSE:RS). 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: AZZ incorporated (NYSE:AZZ), a manufacturer of electrical products and a provider of galvanizing galvanizing, process of coating a metal, usually iron or steel, with a protective covering of zinc. Galvanized iron is prepared either by dipping iron, from which rust has been removed by the action of sulfuric acid, into molten zinc so that a thin layer of the zinc services, announced fiscal second-quarter earnings of 24 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-October. The result eclipsed last year's 16 cents. The company commented that quotation activity and incoming orders in its Electrical and Industrial Products Segment were at an improved level, both domestically and internationally. AZZ has low levels of debt as evidenced by its debt/equity level of .26 and a current ratio of 1.95. Bluegreen Corp. (NYSE:BXG), a leading provider of leisure products and lifestyle choices, reported third-quarter earnings of 60 cents per share earlier this month. The result outpaced the previous year's 54 cents and exceeded the consensus estimate by approximately 11%. Total sales increased to $166.8 million from $161.9 million year-over-year. The company sports a PEG ratio PEG Ratio See: Prospective earnings growth ratio PEG ratio See price-earnings/growth ratio (PEG ratio). of .71 and a price/sales multiple of .75. JAKKS Pacific, Inc. (NASDAQ:JAKK), a Zacks #1 Rank (Strong Buy), has a debt/equity level of .19 and a current ratio of 2.59. In mid-October, the company posted third-quarter earnings of $1.05 per share. The result surpassed the consensus estimate by about 19% and outperformed last year's earnings. JAKK's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight grew from last year's third-quarter total of $206.1 million to $233.5 million. Reliance Steel and Aluminum Co. (NYSE:RS), another Zacks #1 Rank (Strong Buy), meets the criteria of this profit track with its current ratio of 2.68 and a debt/equity level of .38. In mid-October, the company released third-quarter earnings of $1.49 per share versus $1.35 for the year prior. The result was also ahead of the consensus estimate by approximately 19%. The company said its products sold into the aerospace industry continued to show strength during the quarter. 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 2004, the Upgrades and Revisions strategy was the top performing Profit Track with a return of +55.7% followed by the Low Price Stocks screen with a +54.8% 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 To translate a program written in a high-level programming language into machine language. See compiler. , 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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