Zacks.com Featured Expert Kevin Matras Highlights the Following Stocks: Kinder Morgan Management, Medis Technologies, AT&T, and Bank of America.

CHICAGO -- Kevin Matras looks at how to find winning stocks in the winningest Sectors. Get 3 top picks from the top 3 Sectors. Stocks in this week's screen are: Kinder Morgan Management (NYSE:KMR), Medis Technologies Ltd. (NASDAQ:MDTL), AT&T Corp. (NYSE:T), and Bank of America Corp. (NYSE:BAC). 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:

Great Stocks often have Great Peers: Finding Stocks in the Winningest Sectors

Kevin Matras has mentioned it here before, but it's worth saying again; nearly half of a stock's price movement is tied to the performance of its respective group (Sector and Industry). That being said, most great stocks from great groups often have some great peers as well.

If you find yourself in a killer trade (or wished you were in one), take a look at the characteristics of THAT STOCK and then hunt within its group to find OTHER STOCKS that share the same characteristics. Does a certain outstanding stock exhibit great sales growth? Kevin is sure there are at least a few within its group that are also showing similar numbers. What about increasing margins? If the stock is doing well, it's likely that the industry itself is experiencing meaningful increases in margins too.

This type of screening is often called 'modeling'. Figure out the components of what makes something successful and concentrate on that.

Here's something to start you off.

The top three Sectors based on the percentage of stocks at (or within 10% of) their 52 week highs are as follows:

Oils-Energy     69%
Conglomerates   65%
Utilities       63%

(Finance came in 4th at 59%)

This differs from November '04's top 3, which were:

Conglomerates   64%   (now 65% but in 2nd place)
Finance         63%   (now 59% and down two spots in 4th place)
Utilities       60%   (still in 3rd place, but now with 63%)

(And Oils-Energy which came in 4th last time is now #1 at 69%)

Here's a few stocks within those groups that look ready to breakout
(for Mon. 2/28/05);

KMR    Kinder Morgan Management - Oils-Energy
MDTL   Medis Technologies Ltd.  -  Conglomerates
T      AT&T Corp. - Utilities

(BAC   Bank of America Corp.  -  Finance)

Now try screening for stocks in these Sectors that are in the best Industries. Search for the best performers and then compare the valuations such as P/E, Cash Flow, Sales or Net Margins. Or how about its Price/Book Value or Debt/Equity Leverage. Maybe you'll see a pattern of upward EPS revisions or an increase in broker ratings or even perhaps new coverage.

Start using this winning strategy in your own portfolio. Sign up now for your free trial to the Research Wizard and start making better decisions today. http://at.zacks.com/?id=111

About Screen of the Week

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