Thursday, May 27, 2010

PEG Ratio: CLIFFS NATURAL (CLF)

Cliffs Natural Resources Inc. ( CLF ) is one of four companies that make the grade for the PEG Ratio profit track. This stock picking strategy looks for companies with PEG ratios of less than 1 that have attractive fundamental attributes. Learn about this company and others.

Cliffs Natural Resources Inc. ( CLF ) is a Zacks #1 Rank company, that earned its place on the PEG Ratio profit track with a average broker recommendation of 1.53 and a PEG ratio .52. On Apr 20, CLF reported year-over-year first quarter earnings of 69 cents per share, which exceeded the analysts? expectations of 47 cents. CLF is an international mining company, a producer of iron ore pellets, and a supplier of metallurgical coal to the global steelmaking industry.

Hanesbrands Inc. ( HBI ) is a leading marketer of innerwear, outerwear and hosiery apparel that reported a 60.87% surprise and year-over-year first quarter net earnings that amounted to 37 cents per share, while the analysts expected earnings of 23 cents. The company placed on the PEG ratio profit track with a 12-month trailing PE of 13.30 and an average broker recommendation of 1.33. In addition, HBI has a Zacks #1 Rank and a PEG ratio of .31.

Lincoln Educational Services Corporation ( LINC ) enjoys a Zacks #1 Rank and a PEG ratio of .52, making this undervalued stock a great pick for the PEG ratio profit track. In the first quarter, LINC reported earnings of 55 cents per share, delivering a 37.50% surprise, compared to 22 cents in the previous year. In addition to that, the company sports an average broker recommendation of 1.86. LINC is a leading and diversified for-profit provider of a career-oriented post-secondary education

Teradyne Inc. ( TER ) has an average broker recommendation of 1.92 and a PEG ratio of .48. In the first quarter, TER delivered a 43.48% surprise and reported net earnings of 33 cents per share, compared to a loss of 38 cents per share last year. On top of that, the company is currently enjoying a Zacks #1 Rank and a per share price of $11.01. TER is a manufacturer of automatic test equipment and related software for the electronics and communications industries.

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