(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: Health Fitness Corp. (AMEX: FIT), Genesco Inc. (NYSE: GCO), Spartan Motors Inc. (NASDAQ: SPAR) and Steiner Leisure Ltd. (NASDAQ: STNR). 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:
Health Fitness Corp. (AMEX: FIT) qualifies for this profit track with a current ratio of 2.41 and a price/sales ratio of .26, bettering this screen's parameters of greater than 1.5 and less than 1, respectively. In addition, the company has an average Return on Assets of 7.34% over the past 5 years and a PEG ratio of .48. The Zacks #2 Rank company reported solid third-quarter results with earnings of 9 cents per share that delivered a 125% surprise. FIT acquires, markets and manages physical therapy clinics.
Genesco Inc. (NYSE: GCO) reported fourth-quarter earnings of 43 cents per share, which met analysts' expectations. Over the past 5 years, the company has averaged a Return on Assets of 7.28%. However, this fundamentally-solid company still trades at a discount, as evidenced by its PEG ratio of .75. In addition, the company sports a Zacks #2 Rank and a per share price of $15.30. GCO is a leading retailer and wholesaler of branded footwear.
Spartan Motors Inc. (NASDAQ: SPAR) reported year-over-year third-quarter net earnings of 45 cents per share, compared to only 8 cents. Analysts expected earnings of 21 cents. The Zacks #2 Rank company also enjoys a price/sales ratio of .15 and a debt/equity ratio of .44. Moreover, a PEG ratio of .87 and a 5-year average Return on Assets of 8.87% suggest that the company trades at a discount despite being fundamentally solid. SPAR is a leading designer, engineer and manufacturer of custom heavy-duty chassis.
Steiner Leisure Ltd. (NASDAQ: STNR), a Zacks #2 Rank, earned its place on the Discounted Fundamental Strength profit track with a PEG ratio of .83 and a current ratio 1.55. Moreover, STNR enjoys a price/sales ratio of .73. The company delivered exceptional third-quarter results with an earnings per share surprise of 25.35%.
