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Anatomy of Success

 

The best way to increase your odds of getting into a winning stock is to focus on those with a Zacks Rank #1 (Strong Buy). Those are the ones with the best upward earnings estimate revisions.

Simply put, stocks with rising earnings estimates have significantly outperformed the market, while those with falling estimates have dramatically underperformed the market.

That's why our Zacks #1 Rank stocks have outperformed the market in 23 of the last 26 years! And you can too.

ManPowerGroup (MAN - Analyst Report)

ManPowerGroup is a leading employment services company in the US and abroad. Even though they are well known in their industry, it's not one of those names most investors are familiar with.

But it's definitely a name Zacks customers are familiar with now.

On June 28th, 2013, the stock, which had been in a trading range for months, got the signal that alerted investors that it was finally ready to breakout. That signal was the Zacks #1 Rank Strong Buy, which forecast that it would outperform the market over the next 1-3 months.

At that time, it was trading at $54.80 with an earnings estimate of $3.67. Three months later, and a series of upward estimate revisions, MAN was up 37.9%. But it wasn't done yet.

MAN was still a Zacks #1 Rank and their estimates were still on the rise. As of 11/8/13, MAN closed at $80.00 for a total gain of 46.0% within 5 months vs. the S&P's 10.2%. During that time, they received 17 upward earnings estimate revisions, and two positive EPS surprises. And their estimates are now at $4.62.


Chart: Courtesy of Zacks Research Wizard

Is MAN done?

It doesn't appear so. At the time of this writing, MAN still retains its coveted Zacks #1 Rank, which suggests even more outperformance is in its future.

Racking up gains like these doesn't have to be stressful. And they don't have to take forever either. The trick is to focus on stocks with upward estimate revisions. Because when estimates go up, the stock should go up as well. And the Zacks #1 Rank makes it easy to find those with the best estimate revisions.

Click here to find more Zacks Rank #1 Stocks.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: http://www.zacks.com/performance.

 

 

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