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Zacks Return On Equity Strategy Highlights: Alliant Techsystems, Imperial Sugar Co., Silgan Holdings and SMART Modular Technologies.


CHICAGO -- One of the quickest ways to gauge whether a company is creating assets or gobbling up investor's cash is to look at their Return On Equity (ROE). The fast moving ROE Profit Track screening strategy from Zacks.com has generated an impressive return of +21.4% in 2005. In the first nine months of 2006, it continued to outperform the S&P 500, returning 26.7% versus the S&P 500 rise of 12.6%. Four stocks meeting this screen's exclusive criteria are Alliant Techsystems Alliant Techsystems NYSE: ATK is a major US aerospace and defense contractor with sales of approximately USD $3.6 billion (fiscal year 2007) [1] and strong positions in propulsion, composite structures, munitions, precision capabilities, and civil and sporting , Inc. (NYSE NYSE

See: New York Stock Exchange
: ATK ATK - Andrew Toolkit ), Imperial Sugar Co. (Nasdaq: IPSU IPSU Indigenous Professional Support Unit (Australia) ), Silgan Holdings, Inc. (Nasdaq: SLGN SLGN State and Local Government on the Net
SLGN Student Loan Marketing Association Global Notes
) and SMART Modular Technologies (WWH WWH Wind Wave Height
WWH Westwood High (School)
WWH Windows Web Hosting
), Inc. (Nasdaq: SMOD SMOD Super Mod (gaming, Half Life 2 modification)
SMOD Serial Port Mode (Intel 8051 Microcontroller)
SMOD Staff Member On Duty
SMOD Secondary Means of De-Energization
). View the entire list of stocks for the ROE Profit Track at http://at.zacks.com/?id=1853

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

Alliant Techsystems, Inc. (NYSE: ATK) posted fiscal third-quarter results in early February. Earnings per share increased on a year-over-year basis and topped the consensus estimate by 6%. The company also raised its guidance for fiscal 2007 and analysts followed suit. The current full-year 2007 consensus estimate moved up to $5.20 per share. One month ago, Wall Street was forecasting $5.07. The company is creating assets as evidenced by its ROE of 29.75. The company's price to sales ratio is 0.85.

Imperial Sugar Co. (Nasdaq: IPSU) recently reported fiscal first-quarter earnings of $1.37 per share, outpacing the consensus estimate by 54% and surpassing the year-prior total. The company noted that it was able to continue to show positive year-over-year earnings growth despite the softening of refined spot sugar prices. IPSU's ROE stands at 31.09 and its price to sales ratio is 0.43.

Silgan Holdings, Inc. (Nasdaq: SLGN) has a ROE of 33.62 and a price to sales ratio of 0.72. The company recently released its report for the fourth quarter. Earnings per share exceeded the consensus estimate by 40% and surpassed the previous year's fourth quarter result. The company mentioned that stronger than anticipated results from its recently acquired international closures operations contributed to an overall positive performance from its closures business for the year.

SMART Modular Technologies (WWH), Inc. (Nasdaq: SMOD) meets the criteria for this Profit Track with a ROE of 20.56 and a price to sales ratio of 0.91. The company delivered first-quarter GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
 income of 23 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.
, eclipsing the consensus estimate by 10%. The company noted that it produced results that exceeded the high end of its revised guidance as it continues its track record of profitable growth.

Discover all the current stocks currently on the ROE Profit Track at: http://at.zacks.com/?id=1854

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 nine 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=2156

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: 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.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 15, 2007
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