CHICAGO - (Business Wire) Combining strong underlying fundamentals with low valuations can lower risk and increase portfolio returns. Zacks
’ Discounted Fundamental Strength Profit Track strategy has generated double-digit returns for six consecutive years, including a 34% gain in 2006. For the first month of 2007, this Profit Track returned 7.3%. Four stocks that currently have both fundamental strength and discounted valuations are:
Multi-Fineline Electronix Inc. (NASDAQ: MFLX),
Transatlantic Holdings Inc. (NYSE: TRH),
Murphy Oil Corp. (NYSE: MUR) and
PC Connection Inc. (NASDAQ: PCCC).
View the entire list of stocks for the Discounted Fundamental Strength Profit Track at
http://at.zacks.com/?id=2142.
Here are details about four companies currently identified by the Discounted Fundamental Strength Profit Track:
Multi-Fineline Electronix Inc. (NASDAQ: MFLX) reported a 45% increase in revenues for the second quarter, with profits of $164 million versus $113.4 million a year earlier. Net earnings amounted to $10.4 million, compared to $3.07 million. Over the past five years, the company has averaged a Return on Assets of 11.58%. However, this fundamentally-solid company still trades at a discount, as evidenced by its PEG ratio of .68. MFLX is one of the largest global producers of flexible printed circuits and flexible printed circuit assemblies.
Transatlantic Holdings Inc. (NYSE: TRH) reported year-over-year first quarter net profits of $115 million, or $1.88 per share, compared to $107.2 million, or $1.61 per share. The Zacks #2 Rank company also enjoys a price/sales ratio of .97 and a debt/equity ratio of .22. Moreover, a PEG ratio of .61 and a five-year average Return on Assets of 2.61% suggest that the company trades at a discount despite being fundamentally solid. TRH has also increased its common stock dividend to 19 cents, payable on Sep 18 to shareholders of record on Sep 4. TRH is a leading international reinsurance organization headquartered in New York, with operations worldwide.
Murphy Oil Corp. (NYSE: MUR) qualifies for this profit track with a current ratio of 1.55 and a price-to-sales ratio of .81, bettering this screen’s parameters of greater than 1.5 and less than 1, respectively. In addition, the company has an average Return on Assets of 8.89% over the past five years and a PEG ratio of .65. The Zacks #1 Rank company reported outstanding first quarter results, with year-over-year net earnings of $409 million, or $2.14 per share, compared to $110.6 million. Analysts expected earnings of $1.86 per share. MUR is a worldwide oil and gas exploration and production company.
PC Connection Inc. (NASDAQ: PCCC), a Zacks #1 Rank, earned its place on the Discounted Fundamental Strength profit track with a PEG ratio of .87 and a current ratio 2.41. Moreover, PCCC enjoys a debt/equity ratio of .02 and a price/sales ratio of .16. PCCC finished the first quarter with year-over-year net earnings of $4.77 million, compared to $3.38 million. The company also announced that it’s video, imaging and sound sales rose 29.5%, while software sales rose 16.3%. PCCC is a leading information technology solutions provider to businesses, governments, educational institutions, and consumers.
Discover all the stocks currently on the Discounted Fundamental Strength Profit Track at: http://at.zacks.com/?id=2143.
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=1838.
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=4630
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=4631
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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
Zacks.com
Alla Kushner
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