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Value

World Fuel Services Corporation (INT - Snapshot Report) recently reported record quarterly earnings as organic growth continued. This Zacks #2 Rank (buy) has attractive valuations, with a forward P/E of 13.7.

World Fuel Services sells marine, aviation and land fuel products to clients at more than 6,000 locations in 200 countries. Customers include airports, seaports, tanker truck loading terminals and other storage locations.

A Record Second Quarter

On Aug 2, World Fuel Services reported its second quarter results and easily beat the Zacks Consensus Estimate by 35%. Earnings per share were 78 cents compared to the consensus of 58 cents.

It continued an impressive earnings surprise streak that was extended to 13 straight quarters, going all the way back to 2008.

The aviation segment saw gross profit rise 55% to $82 million year over year. The marine segment's gross profit rose 17% to $50.7 million while the land segment saw an increase of 182% year over year to $32.4 million.

New Credit Facility

World Fuel Services also obtained a new $250 million 5-year term loan as well as amended and restated its existing $800 million credit facility while extending the maturity date to 2016.

It now has $1.05 billion of committed financing.

Zacks Consensus Estimates Rise

Analysts like what they heard as the 2011 Zacks Consensus Estimate rose 5 cents to $2.53 per share.

While that is earnings growth of just 4.7% over 2010, analysts expect larger growth in 2012 with earnings expected to jump 13%.

Valuations Still Attractive

Shares have been choppy in 2011.

But they still trade at attractive valuations.

In addition to a P/E under 15, which I use as a cut-off for value stocks, World Fuel Services also has a price-to-book of 2. A P/B under 3.0 usually indicates "value."

It also has a really low price-to-sales ratio of 0.1. Anything under 1.0 indicates a company is undervalued.

Additionally, the company has a solid 1-year return on equity (ROE) of 15.6%.

World Fuel Services has figured out how to run a profitable business in these market conditions. Shares remain attractively valued, as they are squarely in the "value stock" category.

This Week's Value Zacks Rank Buy Stocks

The Timken Company (TKR) reported a record second quarter as demand remained strong. This Zacks #1 Rank (strong buy) also raised full year guidance as it expects record sales and earnings in 2011. With the recent stock sell off, shares are now dirt cheap at just 7.6x forward estimates. Read the full article.

What recession? Insight Enterprises, Inc. (NSIT) recently raised full year guidance as favorable market conditions continued. This Zacks #1 Rank (strong buy) trades at just 8.6x forward estimates. Read the full article.

Boston Scientific Corporation (BSX) is seen as a turnaround story with a single digit stock price and a forward P/E of 13. But this Zacks #1 Rank (strong buy) recently surprised on the Zacks Consensus Estimate for the 7th quarter in a row and raised full year guidance. Read the full article.

There are no signs (yet) of a recession from the transports. Old Dominion Freight Line, Inc. (ODFL) reported a record second quarter as revenue soared in the double digits. This Zacks #1 Rank (strong buy) is a value stock with a forward P/E of 13.6. Read the full article.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her at twitter.com/traceyryniec.

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