AmerisourceBergen Corporation (ABC) has a lot to boast about, including 9 straight quarters with better-than-expected profit and an average surprise of more than 11% in the past 4. We recently upgraded the pharmaceutical services company to "Outperform" as it is well-positioned for growth due to its generics and specialty pharma business. But is the company generating and using its profits in a responsible manner that could help its future stock price? A ROE of 24.11% suggests that it is, while a price/sales ratio of 0.81 suggests a good value.Citi Trends, Inc. (CTRN) announced total sales growth of 27% in its fiscal first quarter, while same-store sales increased 9.6%. That helped the clothing company put together a positive earnings surprise of more than 28%; the third straight quarter with better-than-expected profit. The company even raised its full-year outlook. The past 30 days has seen earnings estimates for this fiscal year rise 12.3%, while expectations for next fiscal year are up 6.4%. CTRN qualifies for this profit track with a ROE of 13.54% and a price/sales ratio of .86.
Tyson Foods, Inc. (TSN) recently stated that the strong results it experienced in the first half of the fiscal year will continue for the second half and into fiscal 2011. Shortly before this announcement, the company reported a strong fiscal second quarter with earnings per share that reversed a year-ago loss while also topping the Zacks Consensus Estimate by more than 31%. All 12 estimates for this fiscal year, ending in September, were revised higher in the past 30 days, sending the consensus upward by 16.3% in that time. In addition to all this, Tyson Foods remains a good value and is generating healthy income, as evidenced by its price/sales ratio of .24 and its ROE of 12.26%.
Whirlpool Corporation (WHR) has been enjoying strength in all regions of late, but especially in emerging markets, such as Brazil. Take its first-quarter report from late April as an example; the appliances staple announced a positive earnings surprise of more than 90% and also sharply raised its full-year guidance. As a result, earnings estimates for this year and next are each up more than 20% from 2 months ago. In addition, a ROE of 14.14% and price/sales ratio of .44 show that the company is creating assets with a good value.
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