Zacks Education
Profit Tracks
 
ZACKS LINKS :
Zacks Homepage
Profit Tracks
  Discounted Fundamental Strength  
  Earnings and Margins  
  Growth and Income  
  High Rank Value  
  Low Price  
  PEG  
  Recent Price Strength  
  Return on Equity  
  Upgrades and Revisions  
     
     
     
     
     

Zacks features 9 stock picking strategies that have crushed the market since 2001. These "Profit Track" strategies are proven to work in good markets and bad, and are updated every day on Zacks.com. Below, you'll find a descriptions of these winning strategies, and the performance numbers for each.

Discounted Fundamental Strength
This Profit Track identifies stocks with strong underlying fundamentals and low valuations. These companies have solid balance sheets and a history of profitability yet are reasonably priced. Although conservative in approach, this strategy generated double-digit returns for five consecutive years and now boasts a 5.7% return through the early months of 2008.
Track Details | Highlights

Strategy Total
Return
2008
Return
2007
Return
Low Price Stocks 659.9% 6.0% -1.3%
Recent Price Strength 607.6% -33.9% 28.8%
Upgrades and Revisions 679.7% -3.4% 9.3%
Discounted Fundamental 660.9% 5.7% -0.3%
Growth and Income* 209.3% -8.5% -9.7%
Earnings and Margins 729.5% 7.3% 7.7%
High Rank Value* 227.4% -8.3% -6.0%
Return on Equity 558.3% 5.2% 8.5%
PEG Ratio 1145.4% 11.4% 21.2%
S&P 500 17.5% -7.0% 6.2%
4wk Returns through 06/13/08 and *24wk Returns through 05/16/2008

Earnings and Margins
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 +729.5%, including a 7.7% return for the first five months of 2006.
Track Details | Highlights

Growth and Income
This Profit Track looks for stocks paying dividend yields of greater than 8% along with other attractive fundamental attributes. Although this screen is based on a long-term and lower risk approach to investing, it has a history of outperforming the S&P 500.
Track Details | Highlights

High Rank Value
Many value investors look for stocks trading at Price/Earnings multiples below 15.0 and Price/Book multiples below 3.0. Unfortunately, not all value stocks are bargains. By requiring a high Zacks Rank in addition to a low valuation, this strategy finds the true bargains.
Track Details | Highlights

Low Price
Looking for stocks priced below $20? How about stocks with discount valuations and a positive trend in earnings estimates revisions? This strategy not only finds such stocks, but also generated a 6.0% return for the first five months of 2008.
Track Details | Highlights

PEG
If you like to use a company's P/E ratio to determine its value, you'll love using the PEG ratio. Find out which companies offer the greatest value regardless of growth rate to enjoy stellar returns.
Track Details | Highlights

Recent Price Strength
This screen looks for stocks trading in the upper range of their 52-week highs along with attractive Zacks Rank and Broker Ratings. This strategy proves that the "trend is your friend" with a +607.6% cumulative return.
Track Details | Highlights

Return on Equity (ROE)
One of the quickest ways to gauge whether a company is creating assets or gobbling up investor's cash is to look at their ROE. This fast moving Profit Track returned an impressive +5.2% for the first five months of 2008.
Track Details | Highlights

Upgrades and Revisions
This screen focuses on EPS Revisions, Broker Ratings and Rating Changes. According to Zacks Investment Research "earnings estimate revisions are the most powerful force impacting stock prices." Couple that with the proven benefits of ratings upgrades from brokerage firms and you have a strategy that delivered a +679.7% cumulative return.
Track Details | Highlights

Related Links:
Profit Tracks Homepage
Screening Homepage
Custom Screener

Every day, Zacks features a free sampling of stocks picked by these Profit Tracks strategies. Zacks Premium subscribers get the whole list for each of the nine strategies, with daily updates. Premium elements are signified by this symbol Premium Content  

Need Help? Contact Zacks Premium Customer Service at premium@zacks.com.
Or call 800-767-3771 ext. 9339. Outside the U.S., call 312-265-9339.