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Zacks Earnings and Margins Strategy highlights: American Reprographics Company, BE Aerospace, Inc., Corrections Corp. of America and Optimal 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 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 Reprographics Company American Reprographics Company (NYSE: ARP) is the largest reprographics company in the United States, providing business-to-business document management services to the architectural, engineering and construction industry, or AEC industry.  (NYSE NYSE

See: New York Stock Exchange
: ARP), BE Aerospace, Inc. (Nasdaq: BEAV BEAV Binary Editor and Viewer ), Corrections Corp. of America (NYSE: CXW) 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 Reprographics Company (NYSE: ARP) delivered annual profits last year that were 69% higher than the year-prior. The company's net margin is 0.12. In early May, ARP announced first-quarter earnings of 32 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 result eclipsed the consensus estimate by about 10% and exceeded the previous year's total. American Reprographics Duplicating printed materials using various kinds of printing presses and high-speed copiers.  noted that it believes its performance in the first quarter reflects its focus on top line growth and the overall strength of its operations.

BE Aerospace, Inc. (Nasdaq: BEAV) posted first-quarter earnings of 18 cents per share in late April, surpassing the consensus estimate by 12.5% and more than doubling last year's seven cents. The company also announced record first quarter revenues of $247.2 million versus last year's $196.5 million. BEAV's yearly earnings grew an impressive 615% compared to the previous year. Such earnings growth, combined with the company's net margin of 0.10, proves that BE Aerospace is profitable.

Corrections Corp. of America (NYSE: CXW) recently reaffirmed its earnings guidance for the second quarter and full year 2006. Second-quarter earnings are expected to be between 55 cents and 59 cents per share. The range for the full year forecast is $2.20 to $2.27 per share. The guidance is inline with current Wall Street expectations. CXW meets the requirements for this Profit Track with annual earnings that were up 52% year-over-year.

Optimal Group Inc. (Nasdaq: OPMR), a Zacks #1 Rank (Strong Buy) company, reported first-quarter adjusted earnings of 27 cents per share in early May. The earnings result compares to last year's first-quarter result of 14 cents and exceeds analysts' expectations of 24 cents. The company mentioned that it continued to experience strong growth and it anticipates that 2006 will be an impressive operational year with superior financial results and strong cash flow. Earnings per share for OPMR grew 500% last year versus the year-prior.

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 Instructional help in an application or system development environment that guides the user through a series of multiple choice questions to accomplish a task. For the most part, wizards are more effective than the help menus found in most applications, which often border on the atrocious.  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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Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 2006
Words:887
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