We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stocks to Invest In Based on Top-Down Analysis, Zacks Heat Maps
Read MoreHide Full Article
Utilizing the Zacks Sector and Industry Rank Heat Map is a great investing tool for investors, and today, I’m going to recommend a few stocks based on these maps by implementing top-down analysis.
To quickly recap, top-down analysis is a popular method of investing that begins with a macro view of the economy and then narrows down to equity investments. The Zacks Heat Map is a tool that helps make this process much easier than it sounds.
As of April 8, 2017, the Zacks Heat Map shows that the top three sectors in Zacks Sector Rank are Industrial Products with 216 stocks, Basic Materials with 250 stocks, and Auto, Tires & Trucks with 79 stocks. This is my macro view of the economy. Since I now know which sectors I am bullish on, I can dig into each industry rank within those sectors.
To continue narrowing down my equity investment opportunities, I will look into Industrial Products’ industries. It looks like the Manufacturing – General Industrial Industry with 37 stocks is among the best ranked industries within the Industrial Products Sector.
When looking deeper into the industry, it’s seen under the “Rank of Stocks” on the industry page that the top rated stocks in the industry are Altra Industrial Motion Corp. with a Zacks Rank #2 (Buy), Graco Inc. (GGG - Free Report) with a Zacks Rank #2 (Buy), and Nordson Corporation (NDSN - Free Report) with a Zacks Rank #2 (Buy).
In summary, I used Zacks Sector Rank Heat Map to find my macro view of the economy. I answered the following question: What parts of the economy are ranked the highest according to Zacks Sector Rank? From there, I found that Industrial Products, Basic Materials, and Auto, Tires & Trucks were ranked among the best.
When I got my picture of the macro economy, I dug deeper to find opportunities within the industries of the sectors I am bullish on. To do this, I utilized Zacks Industry Rank Heat Map and figured that the Manufacturing – General Industry within the Industrial Products Sector was ranked among the highest.
From that second step, I finally narrowed down to a handful of equity investments from the industry page’s “Rank of Stocks” section.
Top-down analysis is an impactful and organized way to approach Wall Street. Zacks Heat Maps and the Sector and Industry Ranks make top-down analysis simple. These features are available through Zacks Premium. Begin your free trial here!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3-month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stocks to Invest In Based on Top-Down Analysis, Zacks Heat Maps
Utilizing the Zacks Sector and Industry Rank Heat Map is a great investing tool for investors, and today, I’m going to recommend a few stocks based on these maps by implementing top-down analysis.
To quickly recap, top-down analysis is a popular method of investing that begins with a macro view of the economy and then narrows down to equity investments. The Zacks Heat Map is a tool that helps make this process much easier than it sounds.
As of April 8, 2017, the Zacks Heat Map shows that the top three sectors in Zacks Sector Rank are Industrial Products with 216 stocks, Basic Materials with 250 stocks, and Auto, Tires & Trucks with 79 stocks. This is my macro view of the economy. Since I now know which sectors I am bullish on, I can dig into each industry rank within those sectors.
To continue narrowing down my equity investment opportunities, I will look into Industrial Products’ industries. It looks like the Manufacturing – General Industrial Industry with 37 stocks is among the best ranked industries within the Industrial Products Sector.
When looking deeper into the industry, it’s seen under the “Rank of Stocks” on the industry page that the top rated stocks in the industry are Altra Industrial Motion Corp. with a Zacks Rank #2 (Buy), Graco Inc. (GGG - Free Report) with a Zacks Rank #2 (Buy), and Nordson Corporation (NDSN - Free Report) with a Zacks Rank #2 (Buy).
In summary, I used Zacks Sector Rank Heat Map to find my macro view of the economy. I answered the following question: What parts of the economy are ranked the highest according to Zacks Sector Rank? From there, I found that Industrial Products, Basic Materials, and Auto, Tires & Trucks were ranked among the best.
When I got my picture of the macro economy, I dug deeper to find opportunities within the industries of the sectors I am bullish on. To do this, I utilized Zacks Industry Rank Heat Map and figured that the Manufacturing – General Industry within the Industrial Products Sector was ranked among the highest.
From that second step, I finally narrowed down to a handful of equity investments from the industry page’s “Rank of Stocks” section.
Top-down analysis is an impactful and organized way to approach Wall Street. Zacks Heat Maps and the Sector and Industry Ranks make top-down analysis simple. These features are available through Zacks Premium. Begin your free trial here!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3-month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>