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Zacks Earnings and Margins Strategy highlights: Advent Software, Allis-Chalmers Energy, Brush Engineered Materials and Quality Distribution.


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. For the first five months of 2006, this Profit Track has returned 8.5%. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria: Advent Software Advent Software (NASDAQ: ADVS) makes software designed to automate portfolio accounting for investment management firms, ranging from family offices and investment advisors to large institutional investors and hedge funds.  Inc. (Nasdaq: ADVS ADVS Automatisiertes Datenverarbeitungssystem
ADVS Assistant Director Veterinary Service
), Allis-Chalmers Energy Inc. (AMEX AMEX

See: American Stock Exchange
: ALY ALY Alley
ALY Alloy
ALY Alexandria, Egypt - Alexandria (Airport Code) 
), Brush Engineered Materials Brush Engineered Materials Inc. is a multinational company specializing in high performance engineered materials emphasizing the qualities of strength, reliability, miniaturization and weight savings, thermal dissipation, electrical conductivity and reflectivity.  Inc. (NYSE NYSE

See: New York Stock Exchange
: BW) and Quality Distribution Inc. (Nasdaq: QLTY QLTY Quality ). 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:

Advent Software Inc. (Nasdaq: ADVS) will release results for the third quarter on October 24, 2006. The company produced annual earnings growth last year that were 288% higher than the year-prior. In late July, ADVS reported second-quarter results, stating that the robust demand for its industry-leading solutions has allowed it to expand its customer base while investing for growth and managing its costs, positioning Advent for continued leadership in its market.

Allis-Chalmers Energy Inc. (AMEX: ALY) posted second-quarter earnings of 50 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.
 in late July. The result topped the consensus forecast by 92% and surpassed the previous year's 12 cents. The company noted that revenues and operating income Operating Income

The profit realized from a business' own operations.

Notes:
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.
 far exceeded management estimates in the second quarter. ALY experienced earnings per share growth of 629% during the most recent year versus the year-prior.

Brush Engineered Materials Inc. (NYSE: BW), a Zacks #1 Rank (Strong Buy) company, will report results for the third quarter on October 26, 2006. BW recently upped its third-quarter and full-year outlook as did Wall Street. The one covering analyst is currently forecasting 2006 earnings of $1.30 per share, which 16 cents higher than the one month-ago estimate. For the most recently completed year, the company's earnings per share were 10% higher than the year-prior.

Quality Distribution Inc. (Nasdaq: QLTY) satisfies the criteria for this Profit Track as evidenced by the company's year-over-year earnings per share growth of 760%, which is currently the highest year-over-year figure under the Profit Track. In early August, QLTY released second-quarter earnings of 28 cents per share, exceeding the consensus estimate by nearly 22% and outperforming the previous year's total.

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 the market in the years ahead. For the first five months of 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +22.2% followed by the Discounted Fundamental screen with a +18.6% 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 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
Date:Oct 20, 2006
Words:849
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