Zacks' Low Price Stocks strategy highlights: ArvinMeritor, Inc., Ingram Micro Inc., Movie Gallery, Inc. and Res-Care, Inc

Business Wire, July 17, 2006

CHICAGO -- Looking for stocks priced below $20? How about companies with discount valuations and a track record of a positive trend in earnings estimates revisions? The Low Price Stocks Profit Track Strategy identifies such stocks. This screen generated a 51.9% return in 2005. Four stocks meeting this screen's exclusive criteria are ArvinMeritor, Inc. (NYSE:ARM), Ingram Micro Inc. (NYSE:IM), Movie Gallery, Inc. (Nasdaq:MOVI) and Res-Care, Inc. (Nasdaq:RSCR). View the entire list of stocks for the Low Price Stocks Profit Track at http://at.zacks.com/?id=2140.

Here are details about four companies currently identified by the Low Price Stocks Profit Track:

ArvinMeritor, Inc. (NYSE:ARM) offers a price-to-sales ratio of 0.13. The company has earned $1.67 per share during the past 12 months. ARM scheduled the release of financial results for the fiscal third quarter on July 31, 2006. In late April, ArvinMeritor reported fiscal second-quarter income from continuing operations, before special items, of 40 cents per share, which matched the consensus estimate. The company also provided a third-quarter and fiscal year outlook. For the third quarter, ARM expects earnings per share of 60 cents to 70 cents, before special items. Fiscal 2006 earnings, before special items, are expected to be between $1.60 and $1.70, up from the previous guidance of $1.50 to $1.70. Both quarterly and fiscal 2006 projections are inline with Wall Street estimates.

Ingram Micro Inc. (NYSE:IM) will release second-quarter results on July 25, 2006. In early June, the company reaffirmed second-quarter earnings expectations of 29 cents to 33 cents per share. Analysts are currently forecasting 32 cents per share for the second quarter. Ingram Micro, the world's largest technology distributor, earned $1.56 per share during the past 12 months and it sports a price-to-sales ratio of 0.86.

Movie Gallery, Inc. (Nasdaq:MOVI), a Zacks #1 Rank (Strong Buy) company, experienced earnings of $1.71 per share over the past 12 months and has a price-to-sales ratio of 0.07, which is currently the lowest ratio listed under this Profit Track. In early May, the company posted first-quarter results, which included earnings per share that more than doubled the year-ago total and surged past analysts' expectations.

Res-Care, Inc. (Nasdaq:RSCR) satisfies the criteria for this Profit Track with a price-to-sales ratio of 0.46 and earnings per share profitability of $1.02 over the past 12 months. In early May, the company announced first-quarter earnings of 29 cents per share. The result exceeded the consensus estimate by 16% and outperformed the year-ago total. Revenues increased 25% year-over-year.

Discover all the current stocks currently on the Low Price Stocks Profit Track at: http://at.zacks.com/?id=2141.

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 2005, the Low Price Stocks strategy was the top performing Profit Track with a return of 51.9% followed by the Recent Price Strength screen with a 35.5% 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

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