Zacks Earnings and Margins Strategy Highlights: American Financial Group, AAR Corp., Omega Healthcare and Thomas Nelson.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: American Financial Group, Inc. (NYSE NYSE See: New York Stock Exchange :AFG AFG Afghanistan (international vehicle registration) AFG American Financial Group AFG Assistance to Firefighters Grant AFG Arbeitsförderungsgesetz (German: Labor Advancement Law) AFG Accreditation for Growth ), AAR Aar, river: see Aare. Corp. (NYSE:AIR), Omega Healthcare, Inc. (NYSE:OHI OHI Other Health Insurance OHI Other Health Impaired OHI Oral Hygiene Index OHI oral hygiene instruction OHI Organizational Health Inventory (USA) OHI Oil Heat Institute OHI Ocala Heart Institute OHI Obsolete Hardware Interface ) and Thomas Nelson Thomas Nelson may refer to:
TNM tumor, nodes and metastases; a system of cancer staging (see TNM staging). ). 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: American Financial Group, Inc. (NYSE:AFG) announced in mid-December an increase in its 2006 earnings guidance to between $3.80 and $4.15 per share from $3.70 and $4.00 per share. In late October, AFG delivered third-quarter earnings per share that were ahead of analysts' expectations by 26% and topped the prior year's result. The company will report financial results for the fourth quarter next week. AFG has a net margin of .10 and produced annual earnings growth of nearly 30% above the previous year. AAR Corp. (NYSE:AIR) generated impressive earnings growth of 400% last year over the previous year, which is currently the highest increase in annual earnings growth on this Profit Track. This Zacks #1 Rank (Strong Buy) company is a worldwide leader in supplying aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. products and services to the global aerospace/aviation industry. In late December, AIR posted fiscal second-quarter earnings of 22 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. , exceeding the consensus estimate by almost 5%. Omega Healthcare, Inc. (NYSE:OHI) recently issued its fourth-quarter report, noting that earnings surpassed last year's result for the fourth quarter. The company is a self-administered real estate investment trust, which invests in income-producing health care facilities. OHI experienced earnings growth of 268% for the most recently-completed year versus the prior year. This puts the company in second place for the highest increase in annual earnings growth on the current Profit Track. Omega Healthcare offers a net margin of .35. Thomas Nelson, Inc. (NYSE:TNM), a publishing company, delivered annual earnings growth of 20% above the prior year. Thomas Nelson will release fiscal third-quarter results later this week. In early November, TNM announced fiscal second-quarter earnings that outpaced the consensus estimate by almost 10% and improved on the previous year's performance. 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. (1) 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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