For Immediate Release

Chicago, IL – September 24, 2010 – Today, Zacks Investment Ideas feature highlights Features: RR Donnelly & Sons (RRD), Alliance Resource Partners LP (ARLP) and Textainer Group Holdings (TGH ).

Own These 3 Dream Stocks What is your dream stock? For many it is a company with a hot growth trajectory trading with low valuations. This would equate to a low PEG ratio (taking the P/E and dividing it by the growth). A low PEG ratio is a powerful weapon in picking a stock. But let’s step it up a notch.

Just having a low PEG would make a stock a great pick, but a “dream” stock, in my book, would also pay out a juicy dividend yield. By that, I mean more than what the 10-year treasury is offering (not too hard these days, I know.) There are stocks that exist with the dream combination of a PEG ratio under 1.0 and a dividend yield over 3%.

Throw in a Zacks Rank of a #1 (strong buy) or a #2 (buy) and these 3 companies are dream stocks.

Own These 3 Dream Stocks

RR Donnelly & Sons (RRD) is more than just a printing company. It now provides premedia, logistics and business processing outsourcing services around the globe.

While the earnings growth rate isn’t that great for 2010, just 4.4%, analysts see better things in 2011 as the growth rate is expected to rise to 13.6%, or $1.90 per share.

This Zacks #2 Rank (buy) stock is trading at just 9.9x forward estimates, well under its peers at 16.5. It has a PEG ratio of 0.8 while its peers are at 1.5. The company has a return on equity (ROE) of 17.1%.

And That Dividend?

It’s a really juicy dividend, with a 6.1% yield. The stock has sold off from its April high, giving investors a more attractive entry point.

Alliance Resource Partners LP (ARLP) is a coal producer in the United States. It is a Zacks #1 Rank (strong buy) stock.

Earnings growth is expected to surge 90% in 2010 and then cool off in 2011 to just 1%. But the company sports a PEG of 0.9, well under its peers of 1.7.

And That Dividend?

The dividend yield is also nothing to scoff at at 5.5%, well above its industry average which is zero.

Shares have rebounded off of the 2009 lows to new 5-year highs. But even with the stock price surge, it is trading with a forward P/E of just 8.7.

Textainer Group Holdings (TGH ) leases intermodal containers worldwide to shipping lines. Revenue has been surging due to a container shortage which is expected to last, at a minimum through 2010, and possibly into 2011.

Double digit earnings growth is expected in both 2010 and 2011 as analysts see EPS climbing 43% in 2010 and 11.5% in 2011. Textainer is a Zacks #1 Rank (strong buy) stock.

And That Dividend?

The dividend isn’t quite a juicy as the other two stocks but at 3.7%, it’s better than what you’d get parking your money in other places, like the bank. Shares have really rebounded in the last 2 years but the stock still trades with a PEG ratio of 0.9, under its peers at 1.1. It has a forward P/E of only 11.2.

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ALLIANCE RES (ARLP): Free Stock Analysis Report
 
DONNELLEY (RR) (RRD): Free Stock Analysis Report
 
TEXTAINER GROUP (TGH): Free Stock Analysis Report
 
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