(Source: Business Wire)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: Tyco International Ltd. (NYSE: TYC), AK Steel Holding Corp. (NYSE: AKS), Medifast Inc. (NYSE: MED) and Diamond Foods, Inc. (NASDAQ: DMND). 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:

Tyco International Ltd. (NYSE: TYC), a Zacks #1 Rank, earned its place on the Discounted Fundamental Strength profit track with a PEG ratio of .83 and a current ratio of 1.58. Moreover, TYC enjoys a debt/equity ratio of .25 and a price/sales ratio of .83. TYC delivered exceptional third-quarter results with an earnings per share surprise of 31.34%. The company is also scheduled to pay a dividend of 20 cents on Nov 3 to shareholders of record on Sep 29. TYC provides thousands of products and services, ranging from electronic security to fire-fighting equipment, to residential and commercial customers.

AK Steel Holding Corp. (NYSE: AKS) reported second-quarter net earnings of $1.29 per share, compared to 98 cents last year. Analysts expected $1.14. The Zacks #1 Rank company also enjoys a price/sales ratio of .39 and a debt/equity ratio of .50. Moreover, a PEG ratio of .70 and a five-year average Return on Assets of 1.82% suggest that the company trades at a discount despite being fundamentally solid. AKS produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets.

Medifast Inc. (NYSE: MED) is engaged in the production, distribution, and sale of consumable health and diet products. MED qualifies for this profit track with a current ratio of 2.17 and a debt/equity ratio of .13, bettering this screen's parameters of greater than 1.5 and less than .5, respectively. In addition, the company has an average Return on Assets of 10.81% over the past 5 years and a PEG ratio of .75. The Zacks #2 Rank company reported solid second-quarter results with net earnings of 11 cents per share, compared to 7 cents last year.

Diamond Foods, Inc. (NASDAQ: DMND) is a branded food company that markets and distributes culinary, snack, in-shell and ingredient nuts. Over the past 5 years, the company has averaged a Return on Assets 8.05%.