Zacks' Discount Fundamental Strength Strategy Highlights: Arrow Electronics, Avnet, Culp and Western Digital Corp

Business Wire, August 7, 2007

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 six consecutive years, including a 34% gain in 2006. For the first month of 2007, this Profit Track returned 7.3%. Four stocks that currently have both fundamental strength and discounted valuations are Arrow Electronics, Inc. (NYSE: ARW), Avnet, Inc. (NYSE: AVT), Culp, Inc. (NYSE: CFI) and Western Digital Corp. (NYSE: WDC). 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:

Arrow Electronics, Inc. (NYSE: ARW) has a debt to equity level of 0.36 and its current ratio stands at 1.90. The company reported second-quarter results in late July. Adjusted earnings per share of 81 cents matched the consensus estimate and outperformed the previous year's 77 cents. ARW stated that it achieved record sales, generated an impressive level of cash flow and managed its asset base to a record low level of working capital to sales.

Avnet, Inc. (NYSE: AVT) will release financial results for the fiscal fourth quarter on August 8, 2007. The company reported fiscal third-quarter earnings of 73 cents per share, excluding charges, in late April. The result outpaced the consensus estimate by 6% and exceeded the year-ago total. Avnet's quarterly earnings per share have been ahead of Wall Street expectations for the past five consecutive quarters. AVT's debt to equity level is 0.36 and its current ratio is 2.03.

Culp, Inc. (NYSE: CFI) reported fiscal fourth-quarter earnings of 14 cents per share in mid-June, eclipsing the consensus estimate by 40%. The company mentioned that its fourth-quarter performance marked a solid finish to a year of important strategic and operational changes. Culp satisfies the criteria of this Profit Track with a PEG ratio of 0.77 and a price to sales multiple of 0.60.

Western Digital Corp. (NYSE: WDC) recently released fiscal fourth-quarter results, noting that it leveraged significant investments over the last five years into a strong technology portfolio and compelling products. WDC added that it is well-positioned to address the diverse and growing use of hard drives in commercial and consumer markets for years to come. The company's debt to equity level is a low 0.01 and its current ratio stands at 1.80.

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 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

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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.