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 Applied Industrial Technologies, Inc. (NYSE: AIT), Bunge Ltd. (NYSE: BG), Olin Corp. (NYSE: OLN) and Schnitzer Steel Industries, Inc. (Nasdaq: SCHN). 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:
Applied Industrial Technologies, Inc. (NYSE: AIT) is currently trading a couple dollars below the 52-week high that was established earlier this month. AIT recently announced fiscal fourth-quarter earnings of 56 cents per share, outperforming last year’s 44 cents and eclipsing the consensus estimate by 19%. Net sales for the fourth quarter increased by 4.7% on a year-over-year basis. The company noted that fiscal 2007 was a record sales year, though the economic expansion was less robust than it was a year ago. AIT has a ROE of 19.77 and a price to sales ratio of 0.63.
Bunge Ltd. (NYSE: BG) satisfies the criteria of this Profit Track as evidenced by its ROE of 12.28 and its price to sales ratio is 0.32. In late July, the company reported second-quarter results, stating that strong second-quarter earnings were driven by a good performance in agribusiness and outstanding results in BG’s fertilizer operations. Bunge’s earnings per share were 44% ahead of the consensus estimate.
Olin Corp. (NYSE: OLN) released second-quarter earnings of 48 cents per share in late July. The result topped the year-prior 45 cents and exceeded the consensus estimate by approximately 31%. Sales in the second totaled $839.1 million, improving on the previous year’s $826.4 million. Olin Corp. offers a ROE of 19.90 and a price to sales ratio of 0.47.
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) posted fiscal third-quarter earnings of $1.47 per share, a third-quarter record. The result, which was reported in early July, surpassed the year-ago total of $1.11, excluding a charge, and beat the consensus estimate by 37%. The company noted that its Metals Recycling segment posted record quarterly revenues as it continued to benefit from robust export markets for recycled metals while maintaining a high level of throughput at its processing facilities. SCHN’s ROE is 19.00 and its price to sales ratio stands at 0.62.
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=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=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.
Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADR’s.
The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.
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.
Contacts:
Alex Kolb, 312-265-9149
pr@zacks.com
www.Zacks.com