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Zacks Return On Equity Strategy Highlights: Alliance Imaging, Dollar Tree, Telefonica, Stanley

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: Alliance Imaging Inc. (NYSE: AIQ), Dollar Tree Inc. (NASDAQ: DLTR), Telefonica SA (NYSE: TEF) and Stanley, Inc. (NYSE: SXE). 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:

Alliance Imaging Inc. (NYSE: AIQ) reported net earnings of 12 cents per share for the fourth quarter, exceeding analysts’ expectations of 10 cents. The Zacks #1 Rank company qualifies for this profit track with a price/sales ratio of .99 and a ROE of 194.24%. Moreover, AIQ sports an average broker recommendation of 1.80. AIQ is a leading national provider of outsourced diagnostic imaging services.

Dollar Tree Inc. (NASDAQ: DLTR) earned its place on this profit track with an impressive price/sales ratio of .70 and a ROE of 20.60%. In addition, the Zacks #1 Rank company enjoys an average broker recommendation of 2.13. AIQ’s year-over-year third-quarter earnings increased to 47 cents per share from 38 cents, while analysts expected earnings of 44 cents. DLTR is an operator of discount variety stores offering merchandise at a fixed price point of $1.00 or less.

Telefonica SA (NYSE: TEF), the largest supplier of telecommunications services in the Spanish and Portuguese speaking world, has an average broker recommendation of 1.78 and a ROE of 36.02%. Additionally, the Zacks #1 Rank company has a low price/sales ratio of .85, which suggests that it is a good value. In the third quarter, TEF reported earnings of $1.95, compared to only $1.17 last year. Analysts expected $1.92.

Stanley, Inc. (NYSE: SXE) delivered third-quarter earnings of 41 cents per share, which exceeded analysts’ expectations of 36 cents. The Zacks #1 Rank company meets this screen’s parameters with an average broker recommendation of 1.71 and a ROE of 12.96%. SXE also sports a price/sales ratio of 1. SXE is a provider of information technology services and solutions to U.S. defense and federal civilian government agencies.

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=4567.

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=4565

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.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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Zacks.com
Alla Kushner
Phone: 312-265-9208
Email: pr@zacks.com
Visit: www.Zacks.com

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