Business Services Industry

Zacks Earnings and Margins Strategy Highlights: Trico Marine Services, DXP Enterprises, First United and Natural Gas Services Group

Business Wire, March 11, 2008

CHICAGO -- Earnings are the single most important metric for a company. Combine that with a healthy Net Profit Margin and you find a screen that has generated a cumulative return of 623.7% since January 2001. For 2006, this Profit Track has returned 23.4%. For the first month of 2007, this Profit Track returned 4.0%. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen's exclusive criteria: Trico Marine Services Inc. (NASDAQ: TRMA), DXP Enterprises Inc. (NASDAQ: DXPE), First United Corporation (NASDAQ: FUNC), Natural Gas Services Group Inc. (AMEX: NGS). View the entire list of stocks for the Earnings and Margins Profit Track at http://at.zacks.com/?id=1858

Here are four companies that meet the following Earnings and Margins Profit Track:

Trico Marine Services Inc. (NASDAQ: TRMA) provides marine support vessels to the offshore oil and gas industry. The Zacks #1 Rank company enjoys a net margin of 25%, indicating that it is a solid company with satisfactory earnings. On Feb 18, TRMA reported strong results, including a fourth-quarter net profit of $30.7 million and an annual profit of $62.9 million. The quarter's net profit increase was mostly due to changes in the Norwegian Tonnage Tax rules, which took place in December 2007.

DXP Enterprises Inc. (NASDAQ: DXPE) currently sports a net profit margin of 4% and a Zacks #2 Rank, which qualify this maintenance, repair, and operating products distributor for the Earnings and Margins profit track. DXPE recently reported a strong year, with a 63% increase in fourth quarter earnings. Full year revenue amounted to $445.5 million, compared to $279.8 million. In addition, DXP Enterprises Inc. enjoys a growth rate of 30.29%.

First United Corporation (NASDAQ: FUNC) is a holding company for First United Bank, which provides banking and investment services in Maryland and West Virginia. FUNC meets this screen's criteria with a Zacks #2 Rank and a net profit margin of 12%. First United Corp. had a 10.24% growth rate for the recently-completed year and the current year EPS estimates are equal to $2.35. FUNC reported fourth-quarter earnings of $29.7 million and annual earnings of $108.7 million, compared to last year's $24.9 million and $94.3 million, respectively.

Natural Gas Services Group Inc. (AMEX: NGS) provides rental and service of high quality rotary screw and reciprocating compressors. NGS earned its place on the Earnings and Margins profit track with net profit margin of 17% and a Zacks #1 Rank. The company reported that fourth quarter and annual net profits increased by 56% and 62%, respectively; fourth quarter net profits amounted to $3.6 million and the overall net profit for the year was $12.3 million. Furthermore, the EPS growth rate for Natural Gas Services Group was 53.03% over the past year.

Discover all the current stocks currently on the Earnings and Margin Profit Track at: http://at.zacks.com/?id=1859

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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