Business Services Industry
Zacks' Discount Fundamental Strength strategy highlights: Computer Task Group, Kforce, Lifetime Brands and Tesoro Corp
Business Wire, June 14, 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 Computer Task Group, Inc. (Nasdaq: CTGX), Kforce, Inc. (Nasdaq: KFRC), Lifetime Brands, Inc. (Nasdaq: LCUT) and Tesoro Corp. (NYSE: TSO). 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:
Computer Task Group, Inc. (Nasdaq: CTGX) released first-quarter earnings of seven cents per share in late April. The result was ahead of last year's five cents and a penny above analysts' expectations. The company noted that earnings were at the high end of their guidance and revenues at the mid point. CTGX's debt/equity level is 0.04 and its current ratio stands at 1.63.
Kforce, Inc. (Nasdaq: KFRC) reported first-quarter earnings of 21 cents per share, improving on the previous year's 15 cents and exceeding the consensus estimate 11%. The company stated that it was very pleased to again have a record revenue quarter and that all of its business segments contributed to the growth. KFRC's debt/equity level is 0.28 and its current ratio is 1.83.
Lifetime Brands, Inc. (Nasdaq: LCUT) posted a first-quarter loss of ten cents per share, which was above estimates of an eleven-cent loss. Despite the loss, the company reported revenues of $103.8 million, up 39.5% from last year. The loss was attributed to the acquisition of Syratech, a home-decor company, whose sales are heavily weighted toward the end of the year. LCUT meets the criteria for this Profit Track with a PEG ratio of 0.80 and a price to sales multiple of 0.57.
Tesoro Corp. (NYSE: TSO) has a current ratio of 1.75 and a price to sales multiple of 0.44. In early May, the company reported first-quarter earnings that more than doubled the year-prior result. Tesoro commented that strong demand and low inventories in the Pacific Northwest and Mid-Continent regions allowed it to maximize its product output in what is typically a period of lower utilization.
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
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros 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.
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.
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