Zacks Earnings and Margins Strategy highlights: Carlisle Companies, Cholestech Corp., Dynamex and EXFO Electro Optical Engineering.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: Carlisle Companies Inc. (NYSE NYSE See: New York Stock Exchange : CSL (Computerese as a Second Language) Said of people who love to speak high-tech words even though they often use them erroneously. See TLA. 1. CSL - Computer Structure Language. A computer hardware description language, written in BCPL. ), Cholestech Corp. (Nasdaq: CTEC CTEC Course and Teacher Evaluation Council (Northwestern University, Office of the Register) CTEC Certified Technical Education Center CTEC Certified Technical Education Center (Microsoft) ), Dynamex Inc. (Nasdaq: DDMX) and EXFO Electro Optical Engineering Inc. (Nasdaq: EXFO). 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: Carlisle Companies Inc. (NYSE: CSL) recently reported third-quarter earnings of $1.39 per share, outpacing the consensus estimate by a penny and improving on the year-ago result. The company stated that it continues to see strength in many of its end markets for the remainder of 2006 and into 2007. CSL raised its guidance for income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the full year 2006 to the range of $5.35 to $5.50 per share from the previous range of $5.25 to $5.45. Analysts followed suit, brining In cooking, brining is a process similar to marination in which meat is soaked in a salt solution (the brine) before cooking. Brining makes cooked meat moister by hydrating the cells of its muscle tissue before cooking, via the process of osmosis, and by allowing the cells current forecasts up to $5.45 per share from last month's $5.43. Carlisle Companies produced annual earnings growth last year that were 12% higher than the year-prior. Cholestech Corp. (Nasdaq: CTEC) recently posted fiscal second-quarter earnings 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. , topping the previous year's 11 cents and eclipsing the consensus estimate almost 37%. The company said this past quarter and the first half of fiscal 2007, Cholestech has demonstrated significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. in addition to double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" revenue growth. This fact is reflected in the company's improved operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and continued strong cash flow. CTEC experienced earnings per share growth of 66% during the most recent year, versus the year-prior. Dynamex Inc. (Nasdaq: DDMX) delivered 17% growth during the most recent year, compared to the year-prior. In late September, the company announced fiscal fourth-quarter earnings of 31 cents per share. The result outperformed the previous year's 23 cents. The company mentioned that fourth quarter results were solid across the board and it expects the positive trends in its business to continue into fiscal 2007. EXFO Electro Optical Engineering Inc. (Nasdaq: EXFO) boasts year-over-year earnings per share growth of 425%. The company recently released its fiscal fourth-quarter report, noting that it experienced strong sales and earnings growth for the fiscal year. Fourth-quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings amounted to four cents per share, surpassing last year's once cent and matching Wall Street estimates. 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. 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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. |
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