Looking for stocks priced below $20? How about companies with discount valuations and a track record of a positive trend in earnings estimates revisions? The Low Price Stocks Profit Track Strategy identifies such stocks. This screen generated a +56.5% return in 2006. Four stocks meeting this screen’s exclusive criteria are CenterPoint Energy, Inc. (NYSE: CNP), FTD Group, Inc. (NYSE: FTD), G-III Apparel Group, Ltd. (NASDAQ: GIII) and The Phoenix Companies, Inc. (NYSE: PNX). View the entire list of stocks for the Low Price Stocks Profit Track at http://at.zacks.com/?id=2140.
Here are details about four companies currently identified by the Low Price Stocks Profit Track:
CenterPoint Energy, Inc. (NYSE: CNP) is a domestic energy delivery company, which makes the grade for the Low Price profit track with a share price of about $16. (The profit track calls for a share price of less than $20). The company will report its third-quarter results on Nov 2. For its second quarter, earnings per share declined year over year but managed to come in line with the consensus at 20 cents. Revenues advanced to $2.03 billion from $1.84 billion. This Zacks #2 Rank company attributed its solid results in the face of several challenges to the value of its balanced portfolio of gas and electric businesses.
FTD Group, Inc. (NYSE: FTD) announced in August fiscal fourth quarter earnings per share of 36 cents, which advanced year over year from 30 cents and beat the consensus by more than 28%. Consolidated revenues of $169.8 million advanced 20% from $141.5 million in the fiscal fourth quarter of 2006. Looking forward, the floral-related products company said it is positioned to demonstrate continued growth, and its focus will remain on operating margins and net income growth. At the moment, FTD's share price is hovering around $15, which qualifies it as a Low Price profit track with good possibilities moving forward.
G-III Apparel Group, Ltd.'s (NASDAQ: GIII) share price remains below $20, which qualifies this outerwear and sportswear retailer for the Low Price profit track. In addition, this Zacks #2 Rank has watched its earnings estimates for this year rise 4.3% over the past two months. During its second-quarter report from September, G-III boosted its earnings per share outlook for the full fiscal year to between 98 cents and $1.03, compared to its previous guidance of 90 cents to 95 cents. In addition, its net sales guidance was enhanced to $510 million from $500 million. For the quarter, G-III narrowed its earnings per share loss from the previous year while net sales gained 21%.
The Phoenix Companies, Inc. (NYSE: PNX) has a current price of approximately $13, and its earnings estimates for this year are up about 5.5% over the past three months. These factors suggest that this financial services provider is a high-quality company with a low price. The Phoenix Companies will report its third-quarter results on Oct 31. For its second-quarter, earnings per share of 30 cents topped the consensus by 20%, and also easily surpassed the year-earlier result.
Discover all the current stocks currently on the Low Price Stocks Profit Track at: http://at.zacks.com/?id=2141.
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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The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 – Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
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