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 Calumet Specialty Products Partners LP (Nasdaq: CLMT), Cenveo, Inc. (NYSE: CVO), Comfort Systems USA, Inc. (NYSE: FIX) and Insight Enterprises, Inc. (Nasdaq: NSIT). 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:
Calumet Specialty Products Partners LP (Nasdaq: CLMT) reported second-quarter results in early August, stating that it improved its overall performance compared to the second quarter of 2006 primarily through increased gross profit in its Fuel Products segment. The quarterly report also cited an increased second-quarter distribution of 63 cents per unit that was paid on August 14, 2007. CLMT offers a ROE of 39.07 and a price to sales ratio of 0.51.
Cenveo, Inc. (NYSE: CVO) sports a ROE of 74.52 and a price to sales ratio of 0.69. In late August, Cenveo announced that it completed its purchase of Commercial Envelope Manufacturing Co., Inc. ("Commercial Envelope"). In discussing the acquisition, CVO noted that it is excited to begin the process of forming the leading envelope manufacturer in the United States. In early August, the company posted second-quarter non-GAAP income from continuing operations of 25 cents, eclipsing the previous year’s 16 cents and matching the consensus estimate.
Comfort Systems USA, Inc. (NYSE: FIX) released results for the second quarter in early August. Earnings per share of 25 cents outperformed the year-ago 19 cents and beat the consensus estimate by 14%. The company also declared a quarterly dividend of $0.035 per share in early August, which was paid on September 20, 2007. Comfort Systems’ ROE stands at 11.79 and its price to sales ratio is 0.54.
Insight Enterprises, Inc. (Nasdaq: NSIT), which is trading near an all time high, satisfies the criteria of this Profit Track as evidenced by its ROE of 10.72 and its price to sales ratio is 0.28. In early August, the company announced second-quarter earnings of 54 cents per share. The result surpassed the consensus estimate by 8% and improved on last year’s total.
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.
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