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.
Zacks.com featured expert Kevin Matras highlights: Houston Wire & Cable, Adesto, Textainer, Trupanion and Upland Software
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 25, 2018 - Stocks in this week’s article include: Houston Wire & Cable , Adesto Technologies , Textainer Group Holdings , Trupanion (TRUP - Free Report) and Upland Software (UPLD - Free Report) . Kevin Matras screens for companies showing their 'first' profit, and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
A Company's First Profit Can Mean Big Profits for Investors
With earnings season upon us, now is a great time to take a look at my 'First Profit' stock screen. The concept for this one is to identify companies that have recently shown their first quarterly profit within the last year.
More specifically, to find companies that have not shown a profit for at least the previous 4 quarters, but have just recently produced their first profit this last quarter.
I run this screen after every earnings season. And here we are again.
Some of these companies will be relatively new, and this recent profit may be the only profit in the company's history so far.
Other companies may have a long history of profitability, but for whatever reason haven't seen a profit in a while -- but has finally returned to profitability.
I like this concept because, if the trend has been one of improvement, there's a good chance the trend will continue. This is true whether you've been profitable or are just getting profitable.
But some people (like myself for example) dislike buying companies that cannot show a profit. And there are many others who won't even consider a stock unless it’s making money.
Losing less than the previous quarter is indeed an improvement. And in that respect, by definition, it is growth, i.e., they're growing less unprofitable. And it’s even better if the losses are less and less in each sequential quarter.
But there's something entirely different about growth AND being profitable. And those are the stocks that will likely see the best new demand from new investors; people who are now, all of a sudden, willing to take notice of, and pay attention to, the stock.
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured expert Kevin Matras highlights: Houston Wire & Cable, Adesto, Textainer, Trupanion and Upland Software
For Immediate Release
Chicago, IL – January 25, 2018 - Stocks in this week’s article include: Houston Wire & Cable , Adesto Technologies , Textainer Group Holdings , Trupanion (TRUP - Free Report) and Upland Software (UPLD - Free Report) . Kevin Matras screens for companies showing their 'first' profit, and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
A Company's First Profit Can Mean Big Profits for Investors
With earnings season upon us, now is a great time to take a look at my 'First Profit' stock screen. The concept for this one is to identify companies that have recently shown their first quarterly profit within the last year.
More specifically, to find companies that have not shown a profit for at least the previous 4 quarters, but have just recently produced their first profit this last quarter.
I run this screen after every earnings season. And here we are again.
Some of these companies will be relatively new, and this recent profit may be the only profit in the company's history so far.
Other companies may have a long history of profitability, but for whatever reason haven't seen a profit in a while -- but has finally returned to profitability.
I like this concept because, if the trend has been one of improvement, there's a good chance the trend will continue. This is true whether you've been profitable or are just getting profitable.
But some people (like myself for example) dislike buying companies that cannot show a profit. And there are many others who won't even consider a stock unless it’s making money.
Losing less than the previous quarter is indeed an improvement. And in that respect, by definition, it is growth, i.e., they're growing less unprofitable. And it’s even better if the losses are less and less in each sequential quarter.
But there's something entirely different about growth AND being profitable. And those are the stocks that will likely see the best new demand from new investors; people who are now, all of a sudden, willing to take notice of, and pay attention to, the stock.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/commentary/146589/a-company39s-first-profit-can-mean-big-profits-to-investors
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.