Zacks Earnings and Margins Strategy highlights: DXP Enterprises, EXFO Electro Optical Engineering, Fuel-Tech and Layne Christensen Co.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 +628% since January 2001. For the first nine months of 2006, this Profit Track has returned 24.3%. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria: DXP DXP Design Explorer DXP Directory Exchange Protocol DXP Digital Extended Processor DXP Dynamic Xml Page Enterprises, Inc. (Nasdaq: DXPE), EXFO Electro E`lec´tro n. 1. An electrotype. Optical Engineering Inc. (Nasdaq: EXFO), Fuel-Tech, Inc. (Nasdaq: FTEK) and Layne Christensen Co. (Nasdaq: LAYN). 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: DXP Enterprises, Inc. (Nasdaq: DXPE) is a Zacks #1 Rank (Strong Buy) company. The company posted third-quarter earnings of 52 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 early November, soaring past last year's 18 cents and matching analysts' expectations. The company said its industrial customer base continues to indicate a strong outlook in the upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger and downstream energy sectors of oil, gas and coal. DXPE delivered annual earnings growth last year that were 88% higher than the year-prior. EXFO Electro Optical Engineering Inc. (Nasdaq: EXFO) boasts year-over-year earnings per share growth of 425% for the full fiscal year. The company recently released its fiscal first-quarter report. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net earnings per share totaled five cents, versus the previous year's total of one cent. The result was 25% above Wall Street expectations. The company said it continues to execute its profitable growth strategy with solid year-over-year progression in terms of sales Terms of sale Conditions under which a firm proposes to sell its goods or services for cash or credit. , gross margin and net earnings. Fuel-Tech, Inc. (Nasdaq: FTEK) reported third-quarter earnings of nine cents per share in early November. The result eclipsed the consensus estimate by almost 29% and improved on the year-prior total of five cents. The company mentioned that it again achieved record revenues, doing so for a fifth consecutive reporting period. FTEK experienced earnings growth of 288% during the most recent year, versus the year-prior. The company sports a net margin of 0.14. Layne Christensen Co. (Nasdaq: LAYN) offers earnings growth of 36% for the most recently completed year, compared to the year-prior. The company announced financial results for the fiscal third quarter in early December. Earnings per share totaled 50 cents, which topped the previous year's total of 31 cents per share and eclipsed the consensus estimate by almost 43%. 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. For the first five months of 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +42.7% followed by the Discounted Fundamental screen with a +29.7% 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 (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. |
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