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 +623.7% since January 2001. For 2006, this Profit Track has returned 23.4%. For the first month of 2007, this Profit Track returned 4.0%. This screen is called the Earnings and Margins Profit Track strategy. Here are four stocks meeting this screen’s exclusive criteria: Taseko Mines Ltd. (AMEX: TGB), G-III Apparel Group, Ltd. (Nasdaq: GIII), Natural Gas Services Group Inc. (AMEX: NGS) and GulfMark Offshore, Inc. (NYSE: GLF). View the entire list of stocks for the Earnings and Margins Profit Track at http://at.zacks.com/?id=1858.
Here are four companies that meet the following Earnings and Margins Profit Track:
Taseko Mines Ltd. (AMEX: TGB) is an excellent pick for this profit track because the company recently reported a strong quarter and currently carries a net profit margin of 22%. On Dec 12, Taseko announced full fiscal-year revenue of $218.4 million, an increase of more than 34% from last year. Its operating profits almost double from last year, growing to $105.7 million from $54.9 million. Taseko engages in the exploration, development, and operation of mineral property interests in Canada and is a Zacks Rank #1 Stock operating in a Zacks Industry Rank #73, distinguished territory on both accounts.
G-III Apparel Group, Ltd. (Nasdaq: GIII) experienced an almost 34% rise in its most recently-completed year, compared to the previous year, while its net margin is at 3%. These factors have placed the retailer on the Earnings and Margins profit track, suggesting that it operates on solid ground with good earnings potential moving forward. G-III’s decision to affirm its fiscal year guidance disappointed the Street earlier this month, but the company still announced strong fiscal third-quarter results. Net sales moved forward 10.8% to $271.2 million, while earnings per share matched the consensus. G-III Apparel Group is a Zacks #2 Rank company.
Natural Gas Services Group Inc. (AMEX: NGS) provides horsepower compression equipment to the natural gas industry in the United States. NGS is a great pick for this profit track, with a net profit margin of 12% and exceptional third quarter results. On Nov 6 the company reported that in its third quarter revenue by 9% to $18.7 million, and that its operating income had jumped by 42% to $5.2 million. With the nice growth in income, NGS has been surprising and beating analyst estimates recently, having done so by an average of over four cents over the last two quarters.
GulfMark Offshore, Inc. (NYSE: GLF) and its subsidiaries provide offshore marine services to companies involved in offshore exploration and production of oil and natural gas. The company boasts an incredible net profit margin of 36%, representing the highest reading in this list. The company reported an awesome third quarter on Nov 1, where this impressive profit margin was on display. Revenue was $74.7 million, which produced a net income of $31.2 million, an outstanding ratio by any standard. For the first nine months of the year revenue jumped to $214.6 million from $181.9 million in the same period last year, a very solid growth trajectory. This Zacks Rank #2 Stock has a strong history of surprising and beating analyst estimates, having done so by an average of 19 cents, or 20.99%, over the last four quarters.
Discover all the current stocks currently on the Earnings and Margin Profit Track at: http://at.zacks.com/?id=1859
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=1993
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