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Zacks Earnings and Margins Strategy Highlights: Baldor Electric Co., Bluegreen Corp., Conns, Inc., and DSP Group, Inc.


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 generated an incredible +103% return in 2003 and +11.1% in 2004. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria as of June 13, 2005: Baldor Electric Co. (NYSE NYSE

See: New York Stock Exchange
:BEZ), Bluegreen Corp. (NYSE:BXG), Conns, 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
:CONN), and DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive  Group, Inc. (NASDAQ:DSPG DSPG Defense Special Projects Group ). 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:

Baldor Electric Co. (NYSE:BEZ) operates in one industry segment which includes the design, manufacture, and sale of electric motors and drives and related products. In mid April, the company reported unaudited results for its first quarter. Earnings were 27 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.
 compared to last year's 22 cents. BEZ also announced record sales for the first quarter of $170.6 million, an increase of 12% year-over-year. In addition to having a successful quarter, the earnings for company's most recently completed year grew almost 42% above the year prior.

Bluegreen Corp. (NYSE:BXG) has a net margin of 6% and finished its most recent year almost 32% ahead of the previous year in terms of earnings per share. In late April, the company posted first-quarter earnings of 21 cents per share, surpassing last year's 17 cents and exceeding the consensus estimate by about 31%. Total sales increased 20.7% to $104.0 million from $86.2 million in the same period last year, reflecting higher sales at both the Resorts and Communities business segments.

Conns, Inc. (NASDAQ:CONN), a Zacks #1 Rank (Strong Buy) stock, recently released record earnings results for its fiscal first quarter. Earnings per share were 41 cents, which topped last year's 33 cents and beat the consensus estimate by almost 14%. Total revenues increased 17.3% year-over-year. The company said its continuing focus on improving execution in merchandising, store operations, logistics, training and credit resulted in satisfying results during the quarter. CONN also satisfies this profit track with earnings growth of approximately 15% last year when compared to the year prior.

DSP Group, Inc. (NASDAQ:DSPG) is a profitable company that sports a net margin of 32%. In mid-April, the company posted first-quarter earnings of 17 cents per share, jumping ahead of the consensus estimate by about 13%. Revenues totaled $40.2 million versus $38.7 million for the first quarter of the previous year. In addition to completing a favorable fa·vor·a·ble  
adj.
1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

3.
 quarter, DSPG completed its recent full year with earnings that were approximately 4% ahead of the prior 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 one 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 6 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%. The PEG Ratio PEG Ratio

See: Prospective earnings growth ratio


PEG ratio

See price-earnings/growth ratio (PEG ratio).
 screen produced +38.9% return in 2004. To see all 6 strategies along with philosophy, past performance and current stocks, then 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.
. Learn more about the Research Wizard and Free Trial offer. http://at.zacks.com/?id=111

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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Publication:Business Wire
Date:Jun 14, 2005
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