Zacks PEG Ratio Strategy Highlights: Lufkin Industries, Pioneer Drilling Co., Patterson-UTI Energy, Inc., and Unit 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: Lufkin Industries (NASDAQ:LUFK), Pioneer Drilling Co. (AMEX:PDC), Patterson-UTI Energy, Inc. (NASDAQ:PTEN), and Unit Corporation (NYSE:UNT). 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:

Lufkin Industries (NASDAQ:LUFK), a Zacks #1 Rank (Strong Buy) name, has a PEG ratio of .47. 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, which lead to substantial growth in sales for the quarter and an even greater expansion in its backlog.

Pioneer Drilling Co. (AMEX:PDC), another Zacks #1 Rank (Strong Buy) company, released its report for the fiscal second quarter in early November. Earnings per share of 24 cents soared past last year's three cents and topped the consensus estimate of 21 cents. With a PEG ratio of .38, value investors may want to consider this oil & gas play.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN), also a Zacks #1 Rank (Strong Buy), posted third-quarter earnings of 63 cents per share in late October, surging past the previous year's 18 cents and exceeding the consensus estimate by nearly 15%. The company commented that the results for the recently completed quarter reflect continued strong performance by its contract drilling segment. PTEN has a PEG ratio of .47.

Unit Corporation (NYSE:UNT) rounds off this list of Zacks #1 Rank (Strong Buy) stocks. In late October, the company reported third-quarter earnings of $1.25 per share, outpacing last year's 54 cents and surpassing the consensus estimate by almost 16%. The company stated that its third quarter results reflect the impact of higher commodity prices and favorable industry conditions. UNT has a PEG ratio of .23, which suggests the stock is trading at a significant discount.

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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