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 Cummins Inc. (NYSE:CMI - News), Manpower Inc. (NYSE:MAN - News), Humana Inc. (NYSE:HUM - News), Phillips Van Heusen (NYSE:PVH - News). View the entire list of stocks for the Discounted Fundamental Strength Profit Track at http://at.zacks.com/?id=2142.ADVERTISEMENT <SCRIPT language='JavaScript1.1' src="http://ad.doubleclick.net/adj/N4538.Yahoo/B2304017.30;abr=!ie;sz=300x250;dcopt=rcl;click=http://us.ard.yahoo.com/SIG=14s7ng6mu/M=621585.11557827.12330208.2313487/D=fin/S=7811759:LREC/Y=YAHOO/EXP=1204581908/L=OpBNfkSOxCapn9dtRV52QwenSN8sqEfMWfMADTHm/B=qApbtdG_RvQ-/J=1204574708007610/A=4743125/R=1/*;ord=1204574708007610?"></SCRIPT><NOSCRIPT><A href="http://us.ard.yahoo.com/SIG=14s7ng6mu/M=621585.11557827.12330208.2313487/D=fin/S=7811759:LREC/Y=YAHOO/EXP=1204581908/L=OpBNfkSOxCapn9dtRV52QwenSN8sqEfMWfMADTHm/B=qApbtdG_RvQ-/J=1204574708007610/A=4743125/R=2/SIG=13bpau50v/*http://ad.doubleclick.net/jump/N4538.Yahoo/B2304017.30;abr=!ie4;abr=!ie5;sz=300x250;ord=1204574708007610?"><IMG src="http://ad.doubleclick.net/ad/N4538.Yahoo/B2304017.30;abr=!ie4;abr=!ie5;sz=300x250;ord=1204574708007610?" BORDER=0 WIDTH=300 HEIGHT=250 ALT="Click Here"></A></NOSCRIPT> | if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d['qApbtdG_RvQ-']='&U=13brqio6i%2fN%3dqApbtdG_RvQ-%2fC%3d621585.11557827.12330208.2313487%2fD%3dLREC%2fB%3d4743125';  |
Here are details about four companies currently identified by the Discounted Fundamental Strength Profit Track:Cummins Inc. (NYSE:CMI - News) expects sales to increase 12% for fiscal 2008. The Diesel engine manufacturer had a good 2007, with earnings increasing to $13.1 billion from $11.4 billion in 2006. CMI makes the grade for this profit track with a current ratio of 1.83 and a debt/equity ratio of .17, bettering this screen’s parameters of greater than 1.5 and less than 0.5, respectively. In addition, the company has an average Return on Assets of 5.93% over the past five years and a PEG ratio of .74. In early February, Cummins made a deal with Volvo, making one of its engines available in Volvo trucks.
Manpower Inc. (NYSE: MAN - News) sports a current ratio of 1.60 and a price to sales ratio of .23. The employment services leader ended fiscal 2007 with earnings amounting to $20.5 billion, a $3 billion increase from 2006. Over the past five years, the company has averaged a Return on Assets of approximately 4.46%. However, this fundamentally-solid company still trades at a discount, as evidenced by its PEG ratio of .66. In February, Manpower announced that it expects first quarter earnings per share between 78 cents and 82 cents.
Humana Inc. (NYSE: HUM - News) is a Zacks #2 Rank company that recently agreed to buy Medicare assets from UnitedHealth Group Inc. for $185 million. The health insurance provider earned its place on this profit track with a price/sales ratio of .48 and a debt/equity ratio of .42. In February, Humana Inc. raised its fiscal 2008 earnings per share guidance and currently expects EPS in a range of $5.35 to $5.55. Moreover, a PEG ratio of 0.78 and a five-year average Return on Assets of 5.03% suggest that the company trades at a discount despite being fundamentally solid.
Phillips Van Heusen (NYSE: PVH - News) announced earlier this year that it expects fourth quarter earnings per share to be at least 53 cents, which was higher than previously expected. PVH’s Return on Assets averaged 6.29% over the past five years, while it’s PEG ratio rests at .60. On top of that, PVH sports an extremely low debt/equity ratio of .36 and current ratio of 3.13, which is why Phillips Van Heusen is on the Discounted Fundamental Strength profit track. PVH is scheduled to announce its fourth quarter earnings after markets close on March 24.
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=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.
The performance calculations for the Profit Track strategies were produced through the backtesting feature of the Research Wizard using the DBCMHIST database and consist of the total return (price changes + dividends) of an equal weighted portfolio. Returns are calculated on a specified periodic basis (four weeks for all Profit Track strategies except for Growth and Income and High Rank Value, which use a 24-week holding period) and assume no transaction costs. Each strategy is rebalanced at the start of each new period. Returns can be stated as either annualized or compounded.
Stock trading/investing involves risk and you can lose some or all of your investment. Hypothetical or backtested results may not always be duplicated in the real world. Backtesting can at times produce an unintended look-ahead bias. Results can also at times be over or understated due to the exclusion of inactive companies. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading, not the least of which is the ability to withstand losses or to adhere to a particular trading strategy in spite of trading losses. These are material points which can also adversely affect actual trading results. The backtested results prepared for the Profit Track strategies were done using the DBCMHIST database and consisted of only active companies. The Research Wizard program has been aligned, to the extent possible, to eliminate look-ahead bias. Zacks however cannot make any guarantees in regard to this or any other possible limitation.
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.