Zacks' Discount Fundamental Strength strategy highlights Avnet, Inc., Celadon Group, Quanex Corp. and P.A.M. Transportation Services

Business Wire, March 23, 2006

CHICAGO -- 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 five consecutive years, including a 23.5% gain in 2005. This strategy has continued to handedly beat the S&P 500. Four stocks that currently have both fundamental strength and discounted valuations are Avnet, Inc. (NYSE:AVT), Celadon Group, Inc. (Nasdaq:CLDN), Quanex Corp. (NYSE:NX) and P.A.M. Transportation Services, Inc. (Nasdaq:PTSI). View the entire list of stocks for the Discounted Fundamental Strength Profit Track at http://at.zacks.com/?id=2142.

Here are details about four companies currently identified by the Discounted Fundamental Strength Profit Track:

Avnet, Inc. (NYSE:AVT) is one of the world's largest industrial distributors of electronic components and computer products and a Zacks #1 Rank (Strong Buy) company. AVT reported fiscal second-quarter earnings of 50 cents per share, excluding charges, in late January. The result surpassed the consensus estimate by nearly 22% and topped the previous year's performance. Avnet, Inc. offers a debt/equity level of 0.39 and a PEG Ratio of 0.90.

Celadon Group, Inc. (Nasdaq:CLDN) released fiscal second-quarter financial results in mid-January. The company stated that it produced record revenue, net income, and earnings per diluted share on strong operating results across nearly all measures. CLDN has low levels of debt as evidenced by its debt/equity level of 0.06. The company's shares offer a PEG ratio of 0.61 and price/sales multiple of 0.75.

Quanex Corp. (NYSE:NX) is an industry-leading manufacturer of value-added engineered materials and components for the vehicular products and building products markets. In late February, the company announced fiscal first-quarter earnings that outperformed analysts' expectations. NX noted that overall housing and remodeling activity was seasonally strong during the quarter, in part, due to mild weather conditions across the Midwest and Northeast. NX sports current ratio of 1.66 and a debt/equity level of 0.20.

P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) is an irregular route, common and contract motor carrier authorized to transport general commodities and another Zacks #1 Rank (Strong Buy) name. In early February, PTSI reported fourth-quarter earnings of 41 cents per share, improving on last year's 16 cents and jumping ahead of the consensus estimate by almost 52%. PTSI, meets the criteria of this Profit Track with its current ratio of 2.29 and a debt/equity level of 0.24.

Discover all the current 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 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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