Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

Home / Markets / Industries / Health Care

Monday, June 09, 2008

Zacks Return On Equity Strategy highlights: BASF AG, NewMarket, Universal Health Services, Corn Products International

Email this Story | Respond to Editor | Print

Comtex

CHICAGO, Jun 09, 2008 (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 BASF AG (OTC: BASFY), NewMarket Corp. (NYSE: NEU), Universal Health Services Inc. (NYSE:UHS), Corn Products International Inc. (NYSE: CPO). 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:

BASF AG (OTC: BASFY) earned its place on this profit track with an impressive price/sales ratio of .90 and a ROE of 23.25%. In addition, the Zacks #1 Rank company enjoys an average broker recommendation of 1.63. BASFY's year-over-year first quarter sales increased by 20% to $2.4 billion. Net income applicable to common shares increased to $1.75 billion, compared to $1.35 billion. BASFY is the world's leading chemical company.

NewMarket Corp. (NYSE: NEU) develops, manufactures, blends, and delivers leading-edge additive technology for fuels and lubricants around the world. In the first quarter, NEU reported a year-over-year net profit of $19.8 million, or $1.27 per share, compared to $16.2 million. Analysts were expecting earnings of 97 cents per share. The Zacks #1 Rank company qualifies for this profit track with a price/sales ratio of .86 and a ROE of 22.1%. Moreover, NewMarket Corp. sports an average broker recommendation of 2.5.

Universal Health Services Inc. (NYSE: UHS), a healthcare management company, qualifies for this profit track with an average broker recommendation of 1.83 and a ROE of 11.76%. Additionally, the Zacks #1 Rank company has a low price/sales ratio of .67, which suggests that it is a good value. In the first quarter, UHS reported earnings of $61.6 million, compared to $39.9 million in the sequential quarter. The company also recently announced that it will pay a dividend of 8 cents on Jun 16 to shareholders of record on Jun 2.

Corn Products International Inc. (NYSE: CPO) is one of the world's largest corn refining and ingredient companies. In the first quarter, CPO reported a 29% increase in year-over-year results, with net income jumping to $64.3 million. Revenue increased by 22% to $930.9 million, which was above analysts' expectations. The Zacks #1 Rank company meets this screen's parameters with an average broker recommendation of 2.4 and a ROE of 13.14%. CPO also sports a price/sales ratio of 1.

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=4567.

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=4565

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.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

SOURCE: Zacks.com

Zacks.com
   Alla Kushner Phone: 312-265-9208 Email: pr@zacks.com Visit: www.Zacks.com

Copyright Business Wire 2008 **********************************************************************
   As of Thursday, 06-05-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated an
   UPTREND on 02-05-2008 for CPO @ $36.97. As of Thursday, 06-05-2008 23:59, the latest Comtex SmarTrend Alert, an automated
   pattern recognition system, indicated an UPTREND on 05-15-2008 for NEU @ $68.77. As of Thursday, 06-05-2008 23:59, the latest
   Comtex SmarTrend Alert, an automated pattern recognition system, indicated an UPTREND on 04-01-2008 for UHS @ $54.39. For
   more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark
   of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.