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Zacks Earnings and Margins Strategy Highlights: AAON Inc., Lufkin Industries, McDermott International and TransGlobe Energy Corp.


CHICAGO -- Earnings are the single most important metric for a company. Combine that with a healthy Net Profit Margin and you find a screen that has generated a cumulative return of +464% since January 2001. For the first five months of 2006, this Profit Track has returned 8.5%. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria: AAON AAON American Association of Office Nurses  Inc. (Nasdaq: AAON), Lufkin Industries Lufkin Industries NASDAQ: LUFK is a manufacturing company based in Lufkin, Texas and one of the largest employers in the city. Founded in 1902, it produces machinery such as oilfield pumping units, electrical equipment and trailers for trucks. , Inc. (Nasdaq: LUFK), McDermott International Inc. (NYSE NYSE

See: New York Stock Exchange
: MDR MDR,
n See multidrug resistance.

MDR,
n the abbreviation for minimum daily requirement, specifically the Minimum Daily Requirements for Specific Nutrients compiled by the United States Food and Drug Administration.
) and TransGlobe Energy Corp. (AMEX AMEX

See: American Stock Exchange
: TGA See TARGA.

TGA - Targa Graphics Adaptor
). View the entire list of stocks for the Earnings and Margins Profit Track at http://at.zacks.com/?id=1858

Here are four companies that meet the following Earnings and Margin Profit Track:

AAON Inc. (Nasdaq: AAON) delivered 55% growth during the most recent year, versus to the year-prior. AAON has a net margin of 0.06. In early November, the company reported record earnings and sales. Third-quarter earnings per share totaled 43 cents, which was ahead of last year's 22 cents and above the consensus estimate by almost 23%. The company stated that the increase in earnings resulted primarily from both higher volume and price increases, which provided an improvement in gross margins in the third quarter.

Lufkin Industries, Inc. (Nasdaq: LUFK) satisfies the criteria for this Profit Track as evidenced by its year-over-year earnings per share growth of 193% and its net margin of 0.09. The company announced third-quarter earnings of $1.15 per share in mid-October. The result eclipsed the year-prior total of 76 cents and topped the consensus estimate by a penny. Sales for the third quarter were up 28.4%, compared to the previous year's result.

McDermott International Inc. (NYSE: MDR), a Zacks #1 Rank (Strong Buy) company, posted third-quarter earnings of 89 cents in early November. The result outperformed the previous year's 53 cents and surpassed analysts' expectations by approximately 48%. The company stated that whether it's coal-fired power, oil & gas infrastructure or nuclear activities, the energy markets that McDermott serves continue to be robust. MDR is a profitable company as evidenced by its net margin of 0.11. The company generated earnings per share growth of 252% during the most recently completed year, compared to the year-prior.

TransGlobe Energy Corp. (AMEX: TGA) boasts year-over-year earnings per share growth of 230%. The company also enjoys healthy profits as evidenced by its net margin of 0.34. In late October, the company released its financial and operating results for the three month period ended September 30, 2006. TransGlobe Energy's earnings per share totaled 12 cents, exceeding the consensus estimate by 20%.

Discover all the current stocks currently on the Earnings and Margin Profit Track at: http://at.zacks.com/?id=1859

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. For the first five months of 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +22.2% followed by the Discounted Fundamental screen with a +18.6% 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 Instructional help in an application or system development environment that guides the user through a series of multiple choice questions to accomplish a task. For the most part, wizards are more effective than the help menus found in most applications, which often border on the atrocious.  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=1993

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 (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : 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.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Dec 8, 2006
Words:891
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