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CHICAGO -- 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. This screen generated a 28.3% return in 2004 and has outperformed the S&P 500 for 4-1/2 consecutive years. Four stocks meeting this strategy's exclusive criteria, as of November 7, 2005, include American Home Mortgage Corp. (NYSE:AHM), Cascade Financial Corp. (NASDAQ:CASB), Highwoods Properties, Inc. (NYSE:HIW), and Marathon Oil Corp. (NYSE:MRO). 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:
American Home Mortgage Corp. (NYSE:AHM) reported third-quarter earnings of $1.09 per share in late October. The result eclipsed the year prior earnings per share of $1.02 and outpaced the consensus estimate by almost 5%. The company has a very low price-to-earnings (P/E) multiple of 5.63 and price-to-book (P/B) multiple of 0.99.
Cascade Financial Corp. (NASDAQ:CASB) has a price-to-earnings (P/E) multiple of 13.82 and price-to-book (P/B) multiple of 1.64. In mid-October, the company reported third-quarter earnings of 34 cents per share. The result topped last year's 32 cents and met the consensus estimate. The company stated that its credit quality continued to be excellent.
Highwoods Properties, Inc. (NYSE:HIW), a REIT, reported third-quarter operational results in October. HIW stated that occupancy increased to 85.6%, and that the balance sheet strengthened by paying down debt. ENN's price-to-earnings (P/E) multiple is 12.42, while its price-to-book (P/B) multiple is 1.48.
Marathon Oil Corp. (NYSE:MRO) has an appealing valuation as evidenced by its price-to-earnings (P/E) multiple of 9.33 and price-to-book (P/B) multiple of 2.13. In October, the company posted third-quarter earnings of $2.16 per share, well ahead of last year's earnings of 85 cents per share.
Discover all the current stocks currently on the High Rank Value Profit Track at: http://at.zacks.com/?id=2137.
Source: HighBeam Research, Zacks' High Rank Value Strategy Highlights: American Home Mortgage,...