Zacks.com Featured Expert Kevin Matras Highlights the Following Stocks: Capital One Financial, Hovnanian Enterprises and LandAmerica Financial Group.CHICAGO -- Zacks.com releases it's exclusive Screen of the Week report that highlights another successful stock picking strategy developed with their Research Wizard software. Kevin Matras shows you how to find great growth stocks at an excellent value. This strategy has shown an average annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. gross return of over 20% in 2002, 90% in 2003, and more than 38% so far in 2004. Some stocks in this week's screen are: Capital One Financial Corp. (NYSE NYSE See: New York Stock Exchange :COF), Hovnanian Enterprises Hovnanian Enterprises, Inc. NYSE: HOV incorporated in 1967, designs, constructs, markets and sells single-family detached houses, attached townhouses and condominiums, mid-rise and high-rise condominiums, urban infill and retirement housing in the United States. , Inc. (NYSE:HOV) and LandAmerica Financial Group LandAmerica Financial Group, Inc. (NYSE: LFG) is the third largest title insurance group in the US. It was incorporated in 1991 and is headquartered in Glen Allen, Virginia. , Inc. (NYSE:LFG LFG Landfill Gas LFG Lincoln Financial Group (insurance & financial planning company) LFG Looking For Group (Everquest) LFG Lexical-Functional Grammar (computational linguistics) ). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109 Screen of the Week Written by Kevin Matras of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. : "Finding Growth Stocks at Excellent Values" This week's screen has something for both Growth Investors and Value Investors alike. Growth Investors focus on companies with great earnings growth, but that alone isn't good enough for many stock pickers any more. They want good growth at reasonable prices (low P/E's). And while Value Investors focus on low P/E P/E See: Price/earnings ratio stocks, too many are low because they lack earnings power. So instead, try combining the best of both worlds and focus on the companies with the highest growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. with the lowest P/E ratios P/E ratio Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings. . The screen Kevin is running this week is as follows: Companies with 5 Year Historical Growth Rates to be in the top 20 percentile percentile, n the number in a frequency distribution below which a certain percentage of fees will fall. E.g., the ninetieth percentile is the number that divides the distribution of fees into the lower 90% and the upper 10%, or that fee level of all companies. Companies that also happened to have the lowest P/E's too - lower than 80% of all other companies. Those qualified stocks to be trading at or above $5, with average daily trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of 100,000 shares or more, and a Zacks Rank of 2 or less (only 'buys' and 'strong buys' allowed). This week, there are 23 companies that passed this screen. Here's 3 new ones that look poised to break out; COF Capital One Financial Corp. HOV Hovnanian Enterprises, Inc. LFG LandAmerica Financial Group, Inc. In 2002, this screen showed and average annualized gross return of 20.8% with an average win ratio (winning periods) of 71%. In 2003, it showed an average annualized gross return of 90.3% with a 79% win ratio. And so far this year (YTD See Year-to-date. YTD See year to date (YTD). , 2004 -- thru 11/19/04), it's showing an average annualized return of 38.7%, with a 73% win ratio. (The S&P 500's avg. annualized return thus far is approx. 7.9%.) This is an excellent Growth and Value screening strategy to find new stocks with a high probability of success. Check it out for yourself and get the rest of the stocks on this list. See where your stocks Rank out of all of the other stocks out there, and test your own strategies and see how they've done. Find out what works and what doesn't and plan for a great 2005. It can all be done with the Research Wizard stock picking and backtesting program. Sign up now for your two week free trial. http://at.zacks.com/?id=111 About Screen of the Week Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter at http://at.zacks.com/?id=113 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. 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. |
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