Many value investors look for stocks trading at Price/Earnings multiples below 15 and Price/Book multiples below 3. Combining these valuation measures with a Zacks Rank of #1 ( “ Strong Buy ” ) or #2 ( “ Buy ” ) helps to ensure that a stock is truly undervalued. The High Rank Value Profit Track strategy finds such bargains – bargains that generated returns of exceeding the S&P 500 in 2006. Four stocks meeting this strategy ‘ s exclusive criteria are: International Paper Co. (NYSE: IP), DHT Maritime, Inc. (NYSE: DHT), Paragon Shipping Inc. (NASDAQ: PRGN) and Mack-Cali Realty Corp. (NYSE: CLI). View the entire list of stocks for the High Rank Value Profit Track at http://at.zacks.com/?id=2136 .
Here are details about four companies currently identified by the High Rank Value Profit Track:
International Paper Co. (NYSE: IP) is a global paper and forest products company that enjoys a Zacks #2 Rank and a P/E of 12.02. On top of that, IP has a dividend yield of 3.73% and a P/B ratio of 1.21, which meet this screen ‘ s parameters of a dividend yield greater than 2% and a P/B ratio of less than 3. In the second quarter, the company reported earnings of 56 cents per share, which exceeded analysts ‘ expectations of 41 cents.
DHT Maritime, Inc. (NYSE: DHT) is a Zacks #1 Rank company with some very attractive valuations, including a P/E multiple of 7.67 and a price to book multiple of 1.77. DHT announced second-quarter earnings that increased to 29 cents per share from 25 cents last year. DHT operates a fleet of double-hull crude oil tankers on international routes.
Paragon Shipping Inc. (NASDAQ: PRGN) reported an earnings surprise of 19.51% in the second quarter, which amounted to 49 cents per share. The company enjoys a dividend yield of 14.94%, and paid a quarterly dividend of 50 cents on Aug 28. The Zacks #1 Rank company qualifies for this profit track with a P/E ratio of 7.37 and a P/B ratio of 1.03. PRGN is an Athens, Greece-based international shipping company specializing in the transportation of drybulk cargoes.
Mack-Cali Realty Corp. (NYSE: CLI) is a real estate investment trust that qualifies for the High Rank Value profit track with a P/E ratio of 9.57 and a P/B ratio of 1.46. CLI reported second quarter earnings of 93 cents per share, while analysts were expecting 87 cents. Moreover, this Zacks #2 Rank sports a dividend yield of 7.37% and will pay a quarterly cash dividend of 64 cents on Oct 10 to shareholders of record on Oct 1.
Discover all the current stocks currently on the High Rank Value Profit Track at: http://at.zacks.com/?id=2137 .
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=4568
All the Profit Track strategies were created and back tested 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=4566
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