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- Combining strong underlying fundamentals with low valuations can lower risk and increase portfolio returns. Zacks' Discounted Fundamental Strength Profit Track strategy has generated double-digit returns for six consecutive years, including a 34% gain in 2006. For the first month of 2007, this Profit Track returned 7.3%. Four stocks that currently have both fundamental strength and discounted valuations are: GameStop

Corp. (NYSE: GME), Computer Task Group Inc. (NASDAQ: CTGX), Citi Trends (NASDAQ: CTRN) and US Home Systems Inc. (NASDAQ: USHS). View the entire list of stocks for the Discounted Fundamental Strength Profit Track at at.zacks.com/?id=2142.

Here are details about four companies currently identified by the Discounted Fundamental Strength Profit Track:

GameStop Corp. (NYSE: GME) is the world's largest video game and entertainment software retailer. GME qualifies for this profit track with a current ratio of 1.60 and a price-to-sales ratio of .89, bettering this screen's parameters of greater than 1.5 and less than 1, respectively. In addition, the company has an average Return on Assets of 6.86% over the past 5 years and a PEG ratio of .84. The Zacks #1 Rank company reported outstanding second-quarter results with net earnings jumping to 34 cents per share, compared to 14 cents last year.

Computer Task Group Inc. (NASDAQ: CTGX) , a Zacks #2 Rank, earned its place on the Discounted Fundamental Strength profit track with a PEG ratio of .75 and a current ratio of 1.70. Moreover, CTGX enjoys a debt/equity ratio of .06 and a price/sales ratio of .38. CTGX delivered exceptional second-quarter results with earnings per share of 13 cents, marking a surprise of 18.18% over the consensus. CTGX provides information technology (IT) staffing, IT solutions, and application management outsourcing services in North America and Europe.

Citi Trends (NASDAQ: CTRN) reported year-over-year second quarter net earnings of 36 cents per share, compared to 24 cents. Analysts expected earnings of 30 cents. The Zacks #2 Rank company also enjoys a price/sales ratio of .62 and a debt/equity ratio of .07. Moreover, a PEG ratio of .89 and a 5-year average Return on Assets of 10.30% suggest that the company trades at a discount despite being fundamentally solid. CTRN is a value-priced retailer of urban fashion apparel and accessories for the entire family.

US Home Systems Inc. (NASDAQ: USHS) reported a 50% surprise for the second quarter, as earnings per share reached 9 cents. Over the past 5 years, the company has averaged a Return on Assets of 3.56%. However, this fundamentally-solid company still trades at a discount, as evidenced by its PEG ratio of .59. USHS manufactures, designs, sells and installs custom quality specialty home improvement products for The Home Depot in certain markets.

Discover all the stocks currently on the Discounted Fundamental Strength Profit Track at: at.zacks.com/?id=2143.

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 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 at.zacks.com/?id=4630.

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 at.zacks.com/?id=4631.

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 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.

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