Zacks PEG Ratio Strategy highlights: KB Home, Accredited Home Lenders, Sigmatel Inc

Business Wire, May 6, 2005

CHICAGO -- If you like to use a company's PE ratio to determine its value, then you'll love using the PEG Ratio Profit Track. Find out which companies offer the greatest value regardless of growth rate to enjoy stellar returns. Value investing may be boring to some, but a 38.9% return in 2004, compared to the S&P's 11.4%, may create many converts to this Profit Track strategy. Three stocks meeting this screen's exclusive criteria as of May 5, 2005 are: KB Home (NYSE:KBH), Accredited Home Lenders (NASDAQ:LEND), and Sigmatel Inc. (NASDAQ:SGTL). View the entire list of stocks for the PEG Ratio Profit Track at http://at.zacks.com/?id=1837

Here are three companies that meet the following PEG Ratio Profit Track:

KB Home (NYSE: KBH) KB Home is a builder of single-family homes with domestic operations in several western states and international operations in France. Domestically, the company builds innovatively designed homes which cater primarily to first-time homebuyers, generally in medium-sized developments close to major metropolitan areas. Internationally, the company also builds commercial projects and high density residential properties such as condominium complexes. KB management commented that margins are likely to continue to rise in 2005, as margins on orders in backlog are well above current levels. In addition, the company sees the opportunity for additional margin expansion over coming years, even if the California housing market moderates. This solid homebuilder is trading at an attractive 9.28x trailing earnings and sports a PEG ratio of .47. Rising margins and a low PEG ratio are a good combination and should bode well for KBH.

Accredited Home Lenders (NASDAQ: LEND) Accredited Home Lenders Holding Co. (Accredited) engages in the business of originating, financing, securitizing, selling and servicing non-prime mortgage loans secured by residential real estate in the United States. In the most recently ended quarter, Accredited generated about 43% of its net income from its balance sheet, up from 35% in all of 2004. The stock is very cheap at 6.35x trailing earnings and a PEG ratio of .40. These valuations should provide upside for the stock.

Sigmatel Inc. (NASDAQ: SGTL) SigmaTel, Inc. (SigmaTel) is a fabless semiconductor company that designs, develops and markets, analog-intensive, mixed-signal integrated circuits (ICs) for a variety of products in the consumer electronics and computing markets, including portable compressed audio players, such as media player3 (MP3) players. SGTL reported a big upside for its March quarter with revenue growing 26% on a sequential quarterly basis to $99.3 million and EPS at $0.67 versus consensus of $84.9 million and $0.46. The stock is attractive with a PEG ratio of .54, which is low for a for a high-growth technology stock..

Discover all the current stocks currently on the PEG Ratio Profit Track at: http://at.zacks.com/?id=1868

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

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