Business Services Industry
Zacks Return On Equity Strategy Highlights: Bunge, Kaiser Aluminum, Brinks, WGL Holdings
Business Wire, Feb 26, 2008
CHICAGO -- One of the quickest ways to gauge whether a company is creating assets or gobbling up investor's cash is to look at their Return On Equity (ROE). The fast moving ROE Profit Track screening strategy from Zacks.com has generated an impressive return of 21.4% in 2005. In 2006, it continued to outperform the S&P 500, returning 27.0% versus the S&P 500 rise of 16.7%. Four stocks meeting this screen's exclusive criteria are Bunge Ltd. (NYSE: BG), Kaiser Aluminum Corporation (NASDAQ: KALU), Brinks Co. (NYSE: BCO) and WGL Holdings Inc. (NYSE: WGL). View the entire list of stocks for the ROE Profit Track at http://at.zacks.com/?id=1853
Here are details about four companies currently identified by the ROE Profit Track:
Bunge Ltd. (NYSE: BG) sports a ROE of 15.26%, which meets this screen's requirement of greater than or equal to 10%. It also signifies that the agriculture and food giant is generating assets. This Zacks #1 Rank company had a great year, with revenue increasing to approximately $44.8 million from $26.3 million one year ago. BG also has a price/sales ratio of .30 and an average broker recommendation of 2.14. In addition, Bunge Ltd.'s fiscal 2007 year performance included a positive earnings per share surprise. The company currently expects its fiscal 2008 net income between $830 million and $870 million, or $6.01 to $6.30 per share.
Kaiser Aluminum Corporation (NASDAQ: KALU) placed on this profit track with a ROE of 20.50% and an average broker rating of 1. There was a boost in the company's fourth quarter earnings, as demand for aerospace and defense products increased. KALU's fourth quarter net profits amounted to $24 million compared to $12 million the previous year. Additionally, the Zacks #1 Rank has a low price/sales ratio of 1, which suggests that KALU is a good value. KALU is a leading producer of fabricated aluminum products for aerospace, automotive, and custom industrial applications.
Brinks Co. (NYSE: BCO) has a ROE of 16.92% and a price/sales ratio of 0.96. These two factors, in addition to the Zacks #1 Rank, make this security industry company a top performer on the ROE profit track. On Jan 21, Brinks Co. reported an increase in its fourth quarter profits. BCO attributed the $137.7 million increase to growth in the Latin American and European operations. BCO holds a Zacks #1 Rank and a price/sales ratio of 0.96.
WGL Holdings Inc. (NYSE: WGL) is a public utility holding company that placed on this profit track with a ROE of 10.53% and a Zacks #1 Rank. Although WGL's earnings dropped $13.5 million in the fourth quarter, due to lower demand for natural gas, the overall profit for fiscal year 2007 was $107.9 million, up 22% from 2006. WGL wrapped up the first quarter for the fiscal year 2008 with an increase in earnings and, as a result, decided to raise its earnings estimates to a range of $2.30 to $2.40 per share. WGL Holdings Inc. sports a price/sales ratio of .60 and an average broker rating of 2.20.
Discover all the current stocks currently on the ROE Profit Track at: http://at.zacks.com/?id=1854
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.
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