Business Services Industry
Zacks Earnings and Margins Strategy Highlights: Ducommun, Computer Task Group, Triumph Group, China Fire & Security Group
Business Wire, May 1, 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: Ducommun Inc. (NYSE: DCO), Computer Task Group Inc. (NASDAQ: CTGX), Triumph Group Inc. (NYSE: TGI), China Fire & Security Group, Inc. (NASDAQ: CFSG). 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:
Ducommun Inc. (NYSE: DCO) announced first quarter results on Apr 28 that beat analysts' expectations. First quarter net earnings amounted to $5.3 million, compared to $3.8 million. The increase in first quarter earnings was attributed to a 12% jump in sales for the military and commercial divisions. The Zacks #2 Rank company enjoys a net margin of 5%, indicating that it is a solid company with satisfactory earnings. Moreover, DCO sports a growth rate of 35.25% and an average broker rating of 1. DCO, through it's subsidiaries, manufactures components and assemblies for commercial aircraft, military aircraft, missile and space programs.
Computer Task Group Inc. (NASDAQ: CTGX) reported an 8.3% increase in first quarter revenues, which amounted to $86.7 million compared to $80 million. Net earnings for the first quarter increased by 29%. CTGX currently enjoys a net profit margin of 1% and a Zacks #2 Rank, which qualifies this IT company for the Earnings and Margins profit track. In addition, CTGX sports an average broker recommendation of 1 and a growth rate of 33.3%. After the impressive first quarter results, Computer Task Group raised its fiscal year 2008 revenue guidance to between $345 million and $355 million from $340 million to $350 million.
Triumph Group Inc. (NYSE: TGI) is a global leader in supplying and overhauling aerospace systems and components. This Zacks #2 Rank company makes the grade for this profit track with a growth rate of 42.79% and an average broker recommendation of 1. TGI recently announced that a quarterly dividend of four cents will be paid on Jun 15, to shareholders of record on May 30. TGI is scheduled to release fourth quarter and fiscal year 2008 results on May 1.
China Fire & Security Group, Inc. (NASDAQ: CFSG) reported fourth-quarter year-over-year adjusted net income that increased to $4 million from $2.4 million. Annual net income more than doubled, jumping to $16.8 million from $7 million. CFSG is currently enjoying an average broker rating of 1 and an outstanding growth rate of 100%, which places it on the Earnings and Margins profit track. The Zacks #2 Rank company announced that it expects net profit of $22.3 million and earnings per share of 78 cents for fiscal 2008. CFSG is a leading total solution provider of industrial fire protection systems in China.
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
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