Zacks PEG Ratio Strategy Highlights: Atwood Oceanics, Lufkin Industries, RealNetworks, and Sunterra Corporation.

CHICAGO -- If you like to use a company's P/E ratio to determine its value, then you'll love using the PEG Ratio Profit Track. The PEG Ratio can calculate if a stock is undervalued relative to its expected future growth. Using this indicator in a Profit Track can produce stellar profits, such as a +38.9% return in 2004 and continued strong returns in 2005. Four stocks meeting this screen's exclusive criteria are: Atwood Oceanics, Inc. (NYSE:ATW), Lufkin Industries (NASDAQ:LUFK), RealNetworks, Inc. (NASDAQ:RNWK), and Sunterra Corporation (NASDAQ:SNRR). View the entire list of stocks for the PEG Ratio Profit Track at http://at.zacks.com/?id=1837

Here are details about four companies currently identified by the PEG Ratio Profit Track:

Atwood Oceanics, Inc. (NYSE:ATW) is a Zacks #1 Rank (Strong Buy) company that has a PEG ratio of .26, which suggests the stock is trading at a significant discount. In late July, the Houston-based international drilling contractor posted fiscal third-quarter earnings of 38 cents per share. The result was ahead of the consensus estimate by nearly 9%. Fourth-quarter financial results will be available in early December.

Lufkin Industries (NASDAQ:LUFK), another Zacks #1 Rank (Strong Buy) name, has a PEG ratio of .44. In mid-October, the company reported third-quarter earnings of 76 cents per share, more than doubling last year's 35 cents and surpassing the consensus estimate by almost 6%. LUFK mentioned that it produced strong bookings, driving substantial growth in sales for the quarter and an even greater expansion in its backlog.

RealNetworks, Inc. (NASDAQ:RNWK) recently released its report for the third quarter, announcing a profit, which reversed the previous year's loss and matched the consensus estimate. The company noted that it continues to make great progress with strong year over year revenue growth, increased profitability and a base of more than 2.2 million paid subscribers, including 1.3 million paid music subscribers. With a PEG ratio of .19, value investors may want to tune into RNWK.

Sunterra Corporation (NASDAQ:SNRR), which has a PEG ratio of .55, will report fiscal fourth-quarter earnings in mid-December. In early August, the company posted third-quarter earnings of 24 cents per share, excluding charges. The result was ahead of analysts' expectations by about 14%. SNRR mentioned that it has continued to deliver record operating profits.

Discover all the current stocks currently on the PEG Ratio Profit Track at: http://at.zacks.com/?id=1868

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. In 2004, the Upgrades and Revisions strategy was the top performing Profit Track with a return of +55.7% followed by the Low Price Stocks screen with a +54.8% return. To see all nine strategies along with philosophy, past performance, and current stocks, go to http://at.zacks.com/?id=1838

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