Zacks Earnings and Margins Strategy Highlights Aspen Insurance Holdings, DSP Group, Petro-Canada, and Thomas & Betts.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 May 26, 2005: Aspen Insurance Holdings (NYSE NYSE See: New York Stock Exchange :AHL AHL American Hockey League AHL Action Half-Life (Half-Life modification) AHL Acyl Homoserine Lactone AHL Aramark Harrison Lodging AHL Acylated Homoserine Lactone AHL Association for the History of Language AHL Architects Hawaii Ltd ), 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 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 :DSPG DSPG Defense Special Projects Group ), Petro-Canada (NYSE:PCZ PCZ PC Zone (UK magazine) PCZ Protected Communication Zone PCZ Physical Control Zones ), and Thomas & Betts (NYSE:TNB TNB Tenaga Nasional Berhad (electric power utility in Malaysia) TNB Tacoma Narrows Bridge TNB Thomas and Betts TNB Trinitrobenzene TNB Télévision Nationale du Burkina (Burkina Faso) ). 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: Aspen Insurance Holdings (NYSE: AHL) operates with an impressive net margin of 16%. This strong margin has helped the company top analysts' earnings estimates for five straight quarters. Last month, the company exceeded expectations by nine cents with earnings of $1.01 per share. Although the company only showed modest growth of 6% last year, estimates for this year have been revised upwards, making AHL a Zacks #2 Rank stock. DSP Group, Inc. (NASDAQ: DSPG) is a highly profitable wireless chipmaker. This company sports a very healthy net margin of 32%. In addition, the company grew profits last year. DSPG is a Zacks Rank #2 stock and has exceeded earnings estimates during each of the past five quarters. Petro-Canada (NYSE: PCZ) is a large-cap Canadian oil and gas company that exceeded first-quarter earnings estimates by 37 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. . This Zacks #1 Rank stock reported profits of $1.75 per share, putting it on pace to easily eclipse last year's 7.2% growth. PCZ is also very profitable with net margins of 13%. Thomas & Betts (NYSE: TNB) appears poised to build on last year's impressive 127% growth. The company's first-quarter profits of 40 cents were five cents above the consensus estimate and 48% ahead of last year's result. TNB is a Zacks Rank #2 stock because of its ability to top expectations and upward revisions in analysts' estimates. This electrical components and engineered steel structures producer operates with net margins of 6%. 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 six unique screens to offer investors great strategies to potentially outperform 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 six 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 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 to buy or sell any security. |
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