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 +19.1% in 2005. In the first five months of 2006, it continued to outperform the S&P 500, returning 18.5% versus the S&P 500 rise of 5.0%. Four stocks meeting this screen's exclusive criteria are Dollar Thrifty Automotive Group Inc. (NYSE: DTG), EMC Insurance Group Inc. (Nasdaq: EMCI), Granite Construction Inc. (NYSE: GVA) and ONEOK Inc. (NYSE: OKE). 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:
Dollar Thrifty Automotive Group Inc. (NYSE: DTG), which has a ROE of 10.40 and a price to sales ratio of 0.63, announced second-quarter financial results in late July. Earnings per share totaled 79 cents, improving last year's 43 cents and jumped ahead of the consensus estimate by 58%. The company increased its earnings guidance for the full year 2006 to a range of $2.25 to $2.55 per share from $2.15 to $ 2.45. Analysts have issued bullish forecasts since the release of the second report. Current estimates of $2.69 are above two months-ago levels of $2.58.
EMC Insurance Group Inc. (Nasdaq: EMCI) satisfies the criteria for this Profit Tracks with a ROE of 17.95 and a price to sales ratio of 0.86. In late July, the company reported second-quarter earnings of 76 cents per share, outpacing last year's 34 cents and matching analysts' expectations. Wall Street estimates have been on the rise for EMCI. Current projections for the full year 2006 stand at $3.14 per share, up from two months-ago levels of $2.64.
Granite Construction Inc. (NYSE: GVA) posted second-quarter earnings of 80 cents per share, topping Wall Street forecasts by approximately 48% and exceeding the year-prior total of 36 cents. Granite Construction has outpaced analysts' expectations each time during the past four consecutive quarters. GVA's ROE stands at 17.18 and its price to sales ratio is 0.79.
ONEOK Inc. (NYSE: OKE) meets the requirements of this Profit Tracks with a ROE of 15.98 and a price to sales ratio of 0.32. In early August, the company released its results for the second quarter. Not only did the earnings per share total increase year-over-year, it also outpaced analysts' estimates by 180%. OKE increased its earnings guidance to a range of $2.36 to $2.44 per share versus its previous forecast of $2.30 to $2.36. Wall Street is currently projecting 2006 earnings of $2.36 per share, an increase of 3% from the level of 60 days ago.
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. For the first five months of 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +22.2% followed by the Discounted Fundamental screen with a +18.6% 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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