Zacks' Discount Fundamental Strength strategy highlights GameStop, Computer Task Group, Citi Trends and US Home Systems

Business Wire, Sept 3, 2008

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: GameStop Corp. (NYSE: GME), Computer Task Group Inc. (NASDAQ: CTGX), Citi Trends (NASDAQ: CTRN) and US Home Systems Inc. (NASDAQ: USHS). 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:

GameStop Corp. (NYSE: GME) is the world's largest video game and entertainment software retailer. GME qualifies for this profit track with a current ratio of 1.60 and a price-to-sales ratio of .89, bettering this screen's parameters of greater than 1.5 and less than 1, respectively. In addition, the company has an average Return on Assets of 6.86% over the past 5 years and a PEG ratio of .84. The Zacks #1 Rank company reported outstanding second-quarter results with net earnings jumping to 34 cents per share, compared to 14 cents last year.

Computer Task Group Inc. (NASDAQ: CTGX) , a Zacks #2 Rank, earned its place on the Discounted Fundamental Strength profit track with a PEG ratio of .75 and a current ratio of 1.70. Moreover, CTGX enjoys a debt/equity ratio of .06 and a price/sales ratio of .38. CTGX delivered exceptional second-quarter results with earnings per share of 13 cents, marking a surprise of 18.18% over the consensus. CTGX provides information technology (IT) staffing, IT solutions, and application management outsourcing services in North America and Europe.

Citi Trends (NASDAQ: CTRN) reported year-over-year second quarter net earnings of 36 cents per share, compared to 24 cents. Analysts expected earnings of 30 cents. The Zacks #2 Rank company also enjoys a price/sales ratio of .62 and a debt/equity ratio of .07. Moreover, a PEG ratio of .89 and a 5-year average Return on Assets of 10.30% suggest that the company trades at a discount despite being fundamentally solid. CTRN is a value-priced retailer of urban fashion apparel and accessories for the entire family.

US Home Systems Inc. (NASDAQ: USHS) reported a 50% surprise for the second quarter, as earnings per share reached 9 cents. Over the past 5 years, the company has averaged a Return on Assets of 3.56%. However, this fundamentally-solid company still trades at a discount, as evidenced by its PEG ratio of .59. USHS manufactures, designs, sells and installs custom quality specialty home improvement products for The Home Depot in certain markets.

Discover all the 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=4630.

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