Zacks Earnings and Margins Strategy Highlights: Advisory Board Co., Ansoft Corp., Lamson & Sessions Co. and Nobility Homes.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 +425% since January 2001. During the first half of 2005, this screen continued its winning ways with a +13.8% return. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria: Advisory Board Co. (Nasdaq:ABCO ABCO Angelo Brothers Company ), Ansoft Corp. (Nasdaq:ANST ANST Association of Neuropsychology Students in Training ANST After Negative Skin Test ), Lamson & Sessions Co. (NYSE NYSE See: New York Stock Exchange :LMS (Learning Management System) An information system that administers instructor-led and e-learning courses and keeps track of student progress. Used internally by large enterprises for their employees, an LMS can be used to monitor the effectiveness of the ), and Nobility NOBILITY. An order of men in several countries to whom privileges are granted at the expense of the rest of the people. 2. The constitution of the United States provides that no state shall "grant any title of nobility; and no person can become a citizen of the Homes, Inc. (Nasdaq:NOBH). 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: Advisory Board Co. (Nasdaq:ABCO), which provides best practices research and analysis to the health care industry, has a net margin of .16 and produced annual earnings growth of about 15% above the previous year. In late October, ABCO reported fiscal second-quarter earnings that topped last year's second quarter and matched the consensus estimate. The company noted that its performance was driven by cutting-edge research agendas and continued program innovation, which led to strong renewal performance and continued growth across ABCO's program portfolio. Ansoft Corp. (Nasdaq:ANST), a Zacks #1 Rank (Strong Buy) company, generated impressive earnings growth of 284% last year over the previous year. Its net margin is .14. The company develops electronic design automation (EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. ) software used in technology products and industries. In mid-November, ANST announced fiscal second-quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings of 32 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. , more than doubling the previous year's 14 cents and exceeding the consensus estimate by approximately 45%. Lamson & Sessions Co. (NYSE:LMS), another Zacks #1 Rank (Strong Buy) company, recently issued a second upward revision of fourth-quarter earnings. The company now expects earnings per share to be between 88 cents and 91 cents compared to its previous guidance of 70 cents to 75 cents. Analysts are in agreement as evidenced by current estimates of 90 cents per share, which is almost 29% above one week ago levels. Fourth-quarter results will be available in mid-February. In late October, the company announced earnings per share of 35 cents for the third quarter. The result surpassed the consensus estimate nearly 3% and eclipsed the year ago performance. LMS experienced earnings growth of almost 93% for the most recently completed year versus the year prior. Nobility Homes, Inc. (Nasdaq:NOBH) delivered annual earnings growth of nearly 47% above the year prior and has a net margin of .11. In late December, the company released fiscal fourth-quarter earnings of 46 cents per share, almost 10% ahead of the consensus estimate and an improvement over last year's 36 cents. Sales for the fourth quarter increased 11% year-over-year. 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. 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=1993 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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