Zacks Return On Equity Strategy highlights: Amtrust Financial Services Inc., Mylan, Inc., Monro Muffler Brake Inc. and Cubic Corp.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 2006, it continued to outperform the S&P 500, returning 27.0% versus the S&P 500 rise of 16.7%. Four stocks meeting this screen's exclusive criteria are: Amtrust Financial Services, Inc. (NASDAQ: AFSI), Mylan, Inc. (NASDAQ: MYL), Monro Muffler Brake, Inc. (NASDAQ: MNRO) and Cubic Corp. (NYSE: CUB). 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:
Amtrust Financial Services Inc (NASDAQ: AFSI) increased year-over-year fourth-quarter revenues by 22%, while net earnings advanced to 54 cents per share. Analysts expected earnings of 47 cents. Amtrust Financial Services Inc. placed on the ROE profit track with a price/sales ratio of .85 and a ROE of 31.43%. Moreover, the Zacks #1 Rank company sports an average broker rating of 1.67. AFSI is a multinational property and casualty insurer specializing in coverage for small businesses.
Mylan, Inc. (NASDAQ: MYL) reported year-over-year fourth-quarter net earnings of 26 cents per share, compared to just 11 cents last year. The result marked an 85.71% surprise. MYL earned its place on this profit track with an average broker recommendation of 1.58 and a ROE of 13.56%. Additionally, the Zacks #1 Rank company has a low price/sales ratio of .76, which suggests that it is a good value. MYL is one of the world's leading quality generic and specialty pharmaceutical companies.
Monro Muffler Brake Inc. (NASDAQ: MNRO) earned its place on this profit track with an impressive price/sales ratio of .96 and a ROE of 12.73%. In addition, the Zacks #1 Rank company enjoys an average broker recommendation of 2. MNRO's third-quarter net earnings amounted to 28 cents per share, which met analysts' expectations. Last year, the company reported earnings of 27 cents. MNRO is a chain of company-operated and dealer-operated stores providing automotive undercar repair services in the United States.
Cubic Corp. (NYSE: CUB) is the parent company of two major business segments: defense and transportation. In the first quarter, CUB reported a 25% increase in year-over-year results, with net earnings jumping to 53 cents per share. Analysts expected earnings of 43 cents. This Zacks #1 Rank company meets this screen's parameters with an average broker recommendation of 2.40 and a ROE of 11.14%. CUB also sports a price/sales ratio of .89.
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. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=4567.
All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. 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=4565
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