More Winning Strategies from Research Wizard
In the past, I’ve provided a sneak peak into some Zacks’ market-beating strategies by featuring a few stock-picking screens that are built into the Zacks Research Wizard for quick access to a number of strong performers.
The stocks are Amedisys, Inc. (AMED - Snapshot Report), Shanda Interactive Entertainment Limited (SNDA - Snapshot Report), Carrols Restaurant Group, Inc. (TAST - Snapshot Report) and Gentiva Health Services, Inc. (GTIV - Analyst Report)
One of Zacks Top 10 Stock Screening Strategies
The Upgrades and Revisions 2 strategy focuses primarily on stocks with upward Earnings Estimate Revisions and Rating Upgrades. This screen generates approximately 8-10 stocks a month, has an excellent win ratio (74%) and has shown consistently impressive returns year after year.
A Healthcare Stock
One company that currently fulfills the requirements of the Upgrades and Revisions 2 screen is Amedisys, Inc. (AMED - Snapshot Report), a home health nursing company.
The company recently issued its outlook for 2009. The earnings per share guidance ranges between $4.10 and $4.30 per share right now.
Analysts, who have been bullish on both 2008 and 2009, are forecasting 2009 earnings of $4.15 per share, versus last month’s estimates of $3.84. For 2008, Wall Street projections of $3.23 edged up from last month’s $3.22. The annual expectations translate into earnings growth of 39% for 2008 and 28% for 2009.
Amedisys has a terrific record out outpacing the consensus estimate, exceeding it in each of the past 4 consecutive quarters by an average of 8.5%.
The Zacks #1 Rank (“Strong Buy”) company is scheduled to announce fourth-quarter and full-year result on February 17.
Another Zacks Top 10 Stock Screening Strategy
Investors looking for a reliable way to trade some of the best of the Zacks #1 (Strong Buy) stocks, should try the Filtering Zacks Rank strategy, which will enable an individual to trade fewer stocks for bigger returns. Since there are typically over 200 stocks on the Zacks #1 Rank list (“Strong Buy”) at any time, this strategy applies two filters. One filter looks for positive current quarter estimate revisions over the last four weeks. The other filter screens for positive average broker rating changes over the last week.
The Chinese Gaming Company
Shanda Interactive Entertainment Limited (SNDA - Snapshot Report) is a Chinese interactive entertainment media company. Its offerings include online role playing games (Massively Multiplayer Online Role-Playing Games, or “MMORPGs”), casual games, chess and board games, network PC games, cartoons, literature and music. Users can remotely interact with one another over Shanda’s community platform.
Analysts are projecting Shanda’s 2009 earnings per share to grow to $2.89 per share, 16.5% above the 2008 earnings per share estimate. For 2008, the consensus estimate of $2.48 represents year-over-year earnings growth of 14%. Forecasts for both years were bumped up by penny in the past week.
During the past 4 straight quarters, SNDA delivered earnings per share that were 18% ahead of analysts’ estimates.
Shanda, another Zacks Rank #1 (“Strong Buy”), is scheduled to release results for the fourth quarter and full year on February 23.
In its third quarter, Shanda turned in earnings per share that were 24% ahead of the consensus estimate. The company’s earnings per share of 68 cents for the ADS shares also came in above the year-prior 55 cents. Revenue surged 43% to $137.3 million on a year-over-year basis.
Both of these stock screens are explained in greater detail in the Top 10 Stock Screening Strategies That Make Money report. The report contains proven profitable trading strategies and unique ways to screen for winning stocks. The strategies were created with and backtested in the Zacks Research Wizard stock screening and backtesting program.
Individuals can use the Zacks Research Wizard to run the aforementioned built in screens or to test any of the other proven, profitable strategies that come with the program. One can also learn how to create and test his or her own winning trading strategies that signal when to buy and when to sell.
Two more winning strategies from the Zacks Research Wizard include Value Method1 and Momentum Method1.
The Value Method1 screen consists of parameters that look for outperformers with rising earnings estimates and attractive valuations.
A Tasty Pick
Carrols Restaurant Group, Inc. (TAST - Snapshot Report) operates three restaurant brands in the quick-casual and quick-service restaurant segments. The owns and operates two Hispanic Brand restaurants, Pollo Tropical and Taco Cabana. It is also the largest Burger King franchisee, based on number of restaurants, and has operated Burger King restaurants since 1976.
Carrols recently boosted its full-year profit view. The company now sees earnings between 58 cents and 60 cents per share for fiscal 2008, up from its prior forecast range of 50 cents and 53 cents.
Analysts upped their 2008 estimates to 60 cents from last month’s forecasts of 51 cents. For the following year, analysts are calling for earnings of 65 cents per share, which is up from last month’s 51 cents.
The company is slated to report on the fourth quarter and full year on March 6.
This value pick offers a P/E of 5.85X, compared to a higher industry average P/E of 11.31.
The criteria for Momentum Method1 includes parameters such as a Zacks Rank #1 (“Strong Buy”) and solid share price momentum.
Another Healthcare Pick
Gentiva Health Services, Inc. (GTIV - Analyst Report), which provides comprehensive home health services, posted third-quarter results and hiked its 2008 earnings guidance in late October.
Net revenues jumped 12% on a year-over-year basis to $347.6 million. Earnings per share were 24% ahead of the consensus estimate.
The company increased its earnings guidance to a range of $1.47 and $1.51 per share from $1.36 and $1.43 per share. Analysts have 2008 earnings pegged at $1.49 per share. Projections have held steady at that level over the past 3 months.
For 2009, Gentiva’s outlook ranges between $1.62 and $1.72 per share. Analysts are estimating earnings of $1.67, which have held steady over the past 3 months.
The Zacks Rank #1 (“Strong Buy”) healthcare player is set to report fourth-quarter and full-year results on February 18.