Zacks.com featured expert Kevin Matras highlights: Phillips Van Heusen Corp., Biovail Corp. and Kongzhong Corp.
Chicago, IL April 16, 2009- Kevin Matras outlines his Filtered Zacks Rank2 strategy and explains how it can help you pick the best of the Zacks #1 Rank stocks. Highlighted stocks in this weeks article include Phillips Van Heusen Corp. (NYSE: PVH - Snapshot Report), Biovail Corp. (NASDAQ: BVF - Snapshot Report) and Kongzhong Corp. (NYSE: KONG - Snapshot Report). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/? id=5528.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
The last time I talked about this strategy was back in October 2007, right before the bear market hit.
Prior to that time, this strategy, going all the way back to the year 2000 (2000 thru Sept. 2007 nearly 8 years at that time) had shown an average annual return of 72.7% a year.
2008, as you might have guessed, was a tough year. But that's part of trading.
There will always be challenges along the way. But knowing that youre using a proven, profitable strategy can give you the confidence to stick with it and realize that the odds of success are in your favor.
A proven, profitable strategy of course is different than a box of magic. Nothing will ever preclude you from having another losing trade. But using sound and tested stock-picking rules can help you beat the market over and over again.
2009
This year, thru the first week of June 2009, the Filtered Zacks Rank2 strategy, using a 1-week holding period, is up 55.1% vs. the S&P 500's 2.1%.
It holds 5 stocks in its portfolio at a time. And it's a pretty easy strategy to trade. But you will be rebalancing your portfolio weekly. So if youre an active trader, you'll love it.
But even if you're not an active trader, seeing the stocks that are being picked is exciting to watch.
Parameters
There are 3 items that go into this screen:
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Zacks Rank = 1
As you know, the Zacks Rank is one of the best ranking systems out there. Since 1988, (over the last 21+ years) the Zacks #1 Rank stocks have shown an average annual return of over 26.3% a year. This screen starts off by focusing in on these.
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% Change Current Quarter Estimates over 4 Weeks > 0
This item is important because, while the Zacks Rank already looks at the Current Year's Estimate Revisions and Next Year's Estimate Revisions, this added component looks at the more immediate future, which is the Current Quarter. And by saying greater than zero, we're excluding any company with a negative revision.
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% Change in the Average Broker Rating over 1 Week = Top # 5
This means I'm looking for the 5 stocks with the biggest or best change in their average broker rating. In other words, brokers have been upgrading the stocks. And while I don't really follow broker recs. per se', since I believe they're skewed to the upside, I do like to see the change in the rating. Are these guys getting more bullish or less bullish? This is good to know. So I want to make sure the average broker rating has gotten better, or at least not gotten worse, over the last week.
Here are 3 of the stocks that qualified for the Filtered Zacks Rank2 strategy on 6/15/09:
PVH - Snapshot Report Phillips Van Heusen Corp.
BVF - Snapshot Report Biovail Corp.
KONG - Snapshot Report Kongzhong Corp.
Get the rest of the stocks on this list and start trading the Filtered Zacks Rank2 (or any of our other strategies) in your own account. Remember, the key to successful screening is in discovering those screens that have produced profitable results in the past. And that is exactly what you get with the Research Wizard stock picking and backtesting program. Click here to learn more: http://at.zacks.com/?id=5529.
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=5530.
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 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=5531.
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Visit http://www.zacks. com/performance for information about the performance numbers displayed in this press release.
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
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