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Zacks Return On Equity Strategy Highlights: Columbus McKinnon Corp., Guess? Inc., Kindred Healthcare, and Maverick Tube Corp

Business Wire, June 22, 2005

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 returned 70.4% in 2003 and 30.3% for 2004; almost three times the S&P 500's return. Four stocks currently meeting this screens exclusive criteria as of June 21, 2005 are Columbus McKinnon Corp. (NASDAQ:CMCO), Guess? Inc. (NYSE:GES), Kindred Healthcare, Inc. (NYSE:KND), and Maverick Tube Corp. (NYSE:MVK). View the entire list of stocks for the ROE Profit Track at http://at.zacks.com/?id=1853

Here are four companies that meet the following ROE Profit Track:

Columbus McKinnon Corp. (NASDAQ:CMCO) recently reported that fiscal fourth-quarter earnings per share topped the consensus estimate by 100%. The result also marked a solid improvement over the year-ago performance. Columbus McKinnon said it benefited from the improved economic environment in fiscal 2005 and was able to capitalize on higher sales with its reduced cost structure. CMCO boasts a ROE of 18.37% and a price to sales ratio of .36

Guess? Inc. (NYSE:GES) has a ROE of 17.10% and a price to sales ratio of .97. The company recently announced that retail sales for the fiscal month of May increased 10.8% over last year's total, while comparable store sales improved by 1.9%. In early May, GES posted first-quarter earnings of 18 cents per share, eclipsing last year's two cents and surging past the consensus estimate by about 500%.

Kindred Healthcare, Inc. (NYSE:KND) posted first-quarter earnings in late April. The result not only outpaced its year ago total but also jumped ahead of the consensus estimate by about 34%. The company commented that it is off to a great start in 2005 with all four of its operating divisions achieving higher revenues and operating income compared to a year ago. With a ROE of 13.03, the company is creating assets and has an appealing valuation as evidenced by its price to sales ratio of .41.

Maverick Tube Corp. (NYSE:MVK) is a manufacturer of steel tubular products used in the completion of new oil and gas wells. With a ROE of 34.86 and a price to sales ratio of .91, this stock is a good value that is creating assets. In late April, MVK reported first quarter earnings of 72 cents per share, matching the year-ago result. Net sales were a record $446.5 million, up from net sales of $311.3 million for the first quarter 2004

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 one 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 6 unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2004 the Upgrades and Revisions strategy was the top performing Profit Track with a return of 55.7%. The PEG Ratio screen produced 38.9% return in 2004. To see all 6 strategies along with philosophy, past performance and current stocks, then 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. Learn more about the Research Wizard and Free Trial offer. http://at.zacks.com/?id=111

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter 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.

(a) The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard and Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

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.

COPYRIGHT 2005 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
 

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