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Zacks Earnings and Margins Strategy Highlights: American Financial Group, ICT Group, Kendle International and Optimal Group.


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. In 2005, this screen continued its winning ways with a +22.3% 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
), ICT (1) (Information and Communications Technology) An umbrella term for the information technology field. See IT.

(2) (International Computers and Tabulators) See ICL.

1. (testing) ICT - In Circuit Test.
 Group, Inc. (Nasdaq:ICTG ICTG Irish Christmas Tree Growers
ICTG Information and Communications Technology Group (SAIC) 
), Kendle International Inc. (Nasdaq:KNDL) and Optimal Group Inc. (Nasdaq:OPMR OPMR Optimal Robotics Corporation (stock symbol) ). 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), a Zacks #1 Rank (Strong Buy) company, generated earnings growth of 31% last year over the previous year. In mid-February, AFG announced fourth-quarter core net operating earnings Operating Earnings

Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue.

Notes:
Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before
 of $1.11 per share, exceeding the consensus estimate by almost 16% and outperforming the year-ago total. AFG commented that 2005 was a banner year for its insurance operations even though it is considered to be the costliest year ever for the insurance industry. The company will announce results for the first quarter on April 26, 2006.

ICT Group, Inc. (Nasdaq:ICTG) is a Zacks #1 Rank (Strong Buy) company that experienced earnings growth of 132% for the most recently completed year versus the year-ago total. ICTG posted fourth-quarter earnings of 29 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.
, excluding items, in late February. The result was ahead of the previous year's 15 cents and surpassed analysts' expectations by approximately 7%. The company stated that revenue growth in the quarter and the year was driven by strong gains in its healthcare and Government businesses.

Kendle International Inc. (Nasdaq:KNDL), a leading, global full-service clinical research organization and another Zacks #1 Rank (Strong Buy) company, meets the requirements for this Profit Track with annual earnings that were up a healthy 300% year-over-year. KNDL announced fourth-quarter earnings of 31 cents per share, excluding items, in mid-February. The result exceeded the consensus estimate by about 19% and outpaced the year-prior performance. The company noted that its continued focus on project delivery and operational excellence delivered strong results for its customers and shareholders in 2005.

Optimal Group Inc. (Nasdaq:OPMR) reported fourth quarter and 2005 year end results in early March. The company's quarterly earnings per share were ahead of the previous year's total. OPMR stated that the fourth quarter of 2005 closed out a successful year for its core payments businesses. Optimal Group, another Zacks #1 Rank (Strong Buy) name, grew an impressive 500% last year compared to the year prior, the highest rate of year-over-year growth currently listed under this Profit Track.

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 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=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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Date:Apr 5, 2006
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