Zacks.com featured expert Kevin Matras highlights: Kroger, Technical Olympic USA and Tesoro Corporation.CHICAGO -- Kevin Matras goes over a new screening strategy called "Best Buys". Stocks in this week's article are Kroger Company (NYSE NYSE See: New York Stock Exchange : KR), Technical Olympic USA (NYSE: TOA TOA Trials of Atlantis (game) TOA Time Of Arrival TOA Top of the Atmosphere TOA Transfer Of Authority TOA Table of Authorities (legal documents) TOA Terms Of Agreement TOA Transfer of Assets ) and Tesoro Corporation (NYSE: TSO (Time Sharing Option) Software that provides interactive communications for IBM's MVS operating system. It allows a user or programmer to launch an application from a terminal and interactively work with it. The TSO counterpart in VM is called CMS. ). 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. : I'm excited to share a new screen with you this week. It's a very robust strategy in and of itself, and works exceedingly ex·ceed·ing·ly adv. To an advanced or unusual degree; extremely. exceedingly Adverb very; extremely Adv. 1. well with many of our other strategies that come loaded with the Research Wizard program. Parameters Zacks Rank less than or equal to 2 Or The % of Brokers Ranking the Stocks a Strong Buy/Buy greater than or equal to 50% (I'm looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. stocks that have a Strong Buy or Buy Rating from Zacks or is ranked Strong Buy or Buy with 50% or more of brokers.) Price to Sales less than or equal to .75 (A Price to Sales Ratio of 1 means you're paying $1 for every $1 of sales the company makes. A P/S Ratio P/S ratio See price-sales ratio (P/S ratio). of .75 means you're paying only 75 cents for every $1 of sales the company makes - which is a great value.) ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. greater than or equal to 15 (This is net income divided by common equity and is a measure of how good a company is being run. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , a company with an ROE means that 15 cents of assets are being created for every one dollar of shareholders equity.) Current Price greater than or equal to 5 Average 20-Day Volume greater than or equal to 100,000 (I want to make sure it's well traded.) % Rating Change over the last 4 Weeks equal to Top # 5 (This narrows the screen down to the five stocks (always only five stocks) with the biggest, (i.e. best) increase in the Average Broker Rating.) Results I ran a series of separate tests over the last six-year time span using a four-week holding period and starting each run on a different start date to eliminate coincidence and to verify robustness. In 2001, this screen showed an average compounded gross return of 51.4%. In 2002, it showed a 36% return. 2003 had a whopping 91.2% return while 2004 showed a 35.9% return. In 2005, the return was 44.4%. And in 2006, the average compounded gross returns were 58.4%. I've also been experimenting with a slightly higher percentage of Strong Buys/Buys and have found that 60% does very well too. But much higher than that starts diminishing returns diminishing returns the characteristic of any production system in which increases in variable inputs result in increasing reduction of total output. An indicator of when to stop making additional inputs to the system, when the input exceeds the additional output. instead of increasing them. Give this strategy a try in your own trading and see how it can help you pick better stocks. This strategy always picks only five stocks per run. Here are three of them for this week (Tuesday 2/20/07): KR Kroger Co. TOA Technical Olympic USA TSO Tesoro Corp. Sign up now for your two-week free trial to the Research Wizard and get the rest of the stocks on this list. Start trading this strategy today. And don't forget to check out the other winning trading strategies In finance, a trading strategy (see also trading system) is a predefined set of rules to apply. Usually, this refers to a means used to replicate an option in order to give it an arbitrage free value in the sense that the cost of buying some financial assets to give the same that come loaded with the program. Know when to buy and when sell. It's all there. http://at.zacks.com/?id=111 Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. 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 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 Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. 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 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 (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : 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 solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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