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Zacks Earnings and Margins Strategy Highlights: Commercial Metals Company, Kforce, Inc., Ladish Co., Inc. and The Manitowoc Company, 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 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: Commercial Metals Company Commercial Metals Company NYSE: CMC is an United States based steel and metal manufacturer founded in 1915. It owns four steel minimills in Texas, Alabama, South Carolina and Arkansas, one copper minimill (Howell Metal Company) in Virginia, fabricators, and recyclers in the  (NYSE NYSE

See: New York Stock Exchange
:CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled.

1.
), Kforce, Inc. (Nasdaq:KFRC), Ladish Co., Inc. (Nasdaq:LDSH LDSH Lord Strathcona Horse (Royal Canadians)
LDSH Latter Day Saints Hospital (Salt Lake City, UT) 
) and The Manitowoc Company, Inc. (NYSE:MTW MTW Mission to the World (Presbyterian Church in America international mission)
MTW The Manitowoc Company, Inc (Stock Symbol)
MTW Medieval: Total War (computer game) 
). 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:

Commercial Metals Company (NYSE:CMC), a Zacks #1 Rank (Strong Buy) company, generated earnings growth of nearly 110% last year over the previous year. In late March, CMC announced second-quarter earnings of $1.29 per share, improving on the year-prior result of 91 cents and exceeding the consensus estimate by over 31%. Revenues increased 3% to $1.64 billion in the quarter from $1.6 billion a year earlier.

Kforce, Inc. (Nasdaq:KFRC), a provider of professional and technical specialty staffing services, has met or exceeded analysts' earnings expectations for seven consecutive quarters. The company topped the Street's estimate by 15.4% in early May when it posted first-quarter profits of 15 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.
. The company's EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format.  in the prior-year quarter amounted to eight cents. Earnings at Kforce, Inc. grew close to 62% last year compared to the year prior.

Ladish Co., Inc. (Nasdaq:LDSH) meets the requirements for this Profit Track with annual earnings that were up an impressive 250% year-over-year. LDSH recently posted first-quarter earnings of 54 cents per share, surpassing the previous year's 19 cents and surpassing the consensus estimate by 74%. The company said the strong performance in the first quarter stemmed from a rebound in the airline industry and the economy as a whole.

The Manitowoc Company, Inc. (NYSE:MTW), another Zacks #1 Rank (Strong Buy) company, has seen earnings growth of 62% year-over-year. The company has topped analysts' earnings estimates in five straight quarters by an average margin of 11.8%, most recently by 11.9%. MTW recently raised its full-year 2006 earnings per share guidance. The company now expects 2006 earnings per share between $2.15 and $2.25.

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: 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
Geographic Code:1USA
Date:May 11, 2006
Words:850
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