Friday - January 18, 2008
The markets plunged yesterday following a speech by Fed Chairman Ben Bernanke and a sharp contraction in the regional Philadelphia Fed survey. The latter is closely watched because it is generally considered to provide a "real-time" assessment of economic conditions (as opposed to lagging data).
I understand that many of you are nervous about your investments. It is okay to be concerned about the direction of the markets, but you should never let your emotions interfere with your trading decisions.
To help you continue to make smart (and unemotional) decisions, I wrote the Investment Ideas column today with a focus on how to find good stocks that are currently "on sale".
Next week, we will have fewer financial-related firms reporting, shifting the headlines towards companies that could potentially have good numbers. I am hopeful that this, combined with the forthcoming Fed meeting, will give us the rebound that we all have been waiting for.
Wishing you prosperity,
1. ZACKS RANK BUY STOCKS
Zacks #1 Rank stocks average a 32% annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the four main schools of investing: Aggressive Growth, Momentum, Growth & Income and Value.
Chicago Bridge & Iron Company (CBI)has been winning contracts and fueling robust earnings growth. The company has posted an average surprise of 13.6% over the past four quarters. Read the full analysis on CBI now!
United Stationers, Inc. (USTR) had a fairly challenging year. However, one of two covering analysts recently increased next- year estimates, providing its stock price with a solid boost. Read the full analysis on USTR now!
2. BEST OF EQUITY RESEARCH
The Zacks Equity Research team of 50 analysts generates a mountain of timely research every day that is geared towards long term stock investing. Here we turn the spotlight on some of their hottest insights.
Stocks featured recently include Trimble Navigation (TRMB), Kenexa (KNXA), Steel Dynamics (STLD) and SAP AG (SAP). To see the latest analyst posts, click here.
China Mobile (CHL) - Big Growth Prospects. For the full Zacks research report, click here.
Electronic Data Systems (EDS) - Industry Headwinds. For the full Zacks research report, click here.
3. STRATEGIES & IDEAS
Here you will find fresh articles loaded with profitable investment strategies and ideas to help you beat the market. Today we highlight...
This strategy identifies stocks with strong underlying fundamentals and low valuations. Four stocks that pass this screen's test include AVT, CMI, IM and MMS. More...
Most of the strategies highlighted in the articles above were created using the Zacks Research Wizard screening and backtesting software. Learn more about this powerful tool and get your free copy of our special report "Top 10 Stock Screening Strategies". More...
4. ZACKS EXTRA
Growth & Income Investing
Growth & Income Investing Home: Go there now.
Other Investing Education Resources
Mitch Zacks, Portfolio Manager at Zacks Investment Management, says the stock market is headed higher and the Fed will cut rates again by month's end. Listen to his audio here.
Deere & Company (DE)
The company has moderate room for upgrades, and another earnings surprise may provide the needed spark. Read the complete commentary.
Options homepage: Go there now.
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Regards and Happy Investing,
Charles Rotblut, CFA
p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor.
The performance of the Zacks Rank portfolios shown above for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from Jan 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRS and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. 2007 returns are for the period of Jan 1 - Jun 30, 2007. These performance numbers have been audited from 1995 through 2003 by Autschuler Melovan, a division of American Express Financial.
The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.
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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