Zacks Return On Equity Strategy Highlights: Accenture LTD, Bunge LTD., Coca-Cola...
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Zacks Return On Equity Strategy Highlights: Accenture LTD, Bunge LTD., Coca-Cola FEMSA and Western Digital Corp. CHICAGO--(Business Wire)--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 +21.4% in 2005. In 2006, it continued to outperform the S&P 500, returning 27.0% versus the S&P 500 rise of 16.7%. Four stocks meeting this screen's exclusive criteria are Accenture (NYSE: ACN), Bunge Ltd. (NYSE: BG), Coca-Cola FEMSA (NYSE: KOF) and Western Digital Corp. (NYSE: WDC). 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: Accenture LTD (NYSE: ACN) is a management consulting, technology services, and outsourcing company with a blistering ROE reading of 67.65, dwarfing the industry average of 15.21%. This Zacks Rank #1 Stock has logged a fairly respectable performance thus far in 2008, trading within a few points of its high-water mark just above $36. The analyst community has been very bullish on the company lately, with eight of ten covering analysts increasing their next-year forecasts within the last 30 days. This has pushed the next-year consensus estimate higher by 14 cents, to its current reading of $2.63 per share. Accenture is set to report again on Mar 25. Bunge Ltd. (NYSE: BG) engages in the agriculture and food business. The company's stock price had a banner 2007, logging close to a 100% gain. This growth in share price has certainly been fueled by the company's knack to grow its earnings. On Oct 25, Bunge reported an amazing quarter, with net income more than doubling and climbing to $351 million. There is no doubt that Bunge will be using this windfall of profits to invest in itself and grow organically, with an ROE of 14.2. The company also boasts a very impressive price/book multiple of 2.19. Coca-Cola FEMSA (NYSE: KOF) is the Latin American bottler of Coca-Cola products. This company boasts some very impressive credentials, including an ROE of 15.04, making it a great pick for this ROE profit track. The company's revenue stream has been on a very nice upward trend, as evidenced by its last reported quarter. Revenue was up 6% from the same period last year. Net income increased 11.5%. These numbers produced earnings of 93 cents, well ahead of analyst expectations of 66 cents. This Zacks Rank #1 Stock is operating in a Zacks Industry Rank #25 out of 217, very distinguished territory on both accounts. Western Digital Corp. (NYSE: WDC) designs, develops, manufactures, and sells hard drives worldwide. Western Digital is a Zacks Rank #1 Stock that boasts an impressive ROE reading of 28.71, easily trumping the industry average of 12.88%. The company has no debt on its books and a price/book multiple of 2.91, adding to an already impressive list of credentials. Western Digital has an awesome history of surprising and beating analyst estimates, having done so by an average of four cents, or 9.32%. 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. 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=2156. About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=1841. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial. The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. Zacks.com Michael Vodicka Phone: 312-265-9226 Email: pr@zacks.com Visit: www.Zacks.com Copyright Business Wire 2008
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