Sticking with what works has been a personal investing theme of mine. Basically the idea is to look for stocks in strong sectors that have been moving higher. Select the ones that continue to look to be moving higher and let your winners ride.
This is a sort of “top down” style move, but I find that it works very well. The first step is to look at the Zacks Industry Rank and look towards the top. This week saw little movement at the very top with Metal Products – Fasteners staying at the very top and then seven other industries tied for second.
I moved down to #14 on the list as we have seen lots of articles about banks and semiconductors of late. The sector I am looking at is Computer- Storage Devices and there are 10 stocks in that group.
#1’s First
Now that I have my pool of candidates, I switch to the Zack Rank to help me select the best picks. The Zacks Rank let’s me know which stocks in the industry have seen positive earnings estimate revisions. For a fundamental investor such as myself, I know that earnings are a key driver for stock prices.
The industry has three stocks with a Zacks Rank #1 (Strong Buy) rating.
NetApp (NTAP)
Seagate Tech (STX)
Western Digital (WDC)
One #2
There is one stock with a Zacks Rank #2 (Buy) rating.
Pure Storage (PSTG)
Two Others To Watch
One of the stocks in this sector is Nimble Storage (NMBL) and it has a Zacks Rank #3 (Hold). Most of the stocks that Zacks ranks are #3’s but this one stands out a little to me. There is a 60 day window during which estimate revisions can impact the Zacks Rank and time is running out (or has run out) for 3 positive revisions to 2017 and 2 positive revisions to 2018.
Follow Brian Bolan on Twitter: @BBolan1
The other stock to watch that isn’t listed as part of this sector, but instead is part of the Internet – Software sector is Box Inc (BOX). The stock hold a Zacks Rank #2 (Buy) and has been close to or making new 52 week highs of late.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Sticking with what works has been a personal investing theme of mine. Basically the idea is to look for stocks in strong sectors that have been moving higher. Select the ones that continue to look to be moving higher and let your winners ride.
This is a sort of “top down” style move, but I find that it works very well. The first step is to look at the Zacks Industry Rank and look towards the top. This week saw little movement at the very top with Metal Products – Fasteners staying at the very top and then seven other industries tied for second.
I moved down to #14 on the list as we have seen lots of articles about banks and semiconductors of late. The sector I am looking at is Computer- Storage Devices and there are 10 stocks in that group.
#1’s First
Now that I have my pool of candidates, I switch to the Zack Rank to help me select the best picks. The Zacks Rank let’s me know which stocks in the industry have seen positive earnings estimate revisions. For a fundamental investor such as myself, I know that earnings are a key driver for stock prices.
The industry has three stocks with a Zacks Rank #1 (Strong Buy) rating.
NetApp (NTAP)
Seagate Tech (STX)
Western Digital (WDC)
One #2
There is one stock with a Zacks Rank #2 (Buy) rating.
Pure Storage (PSTG)
Two Others To Watch
One of the stocks in this sector is Nimble Storage (NMBL) and it has a Zacks Rank #3 (Hold). Most of the stocks that Zacks ranks are #3’s but this one stands out a little to me. There is a 60 day window during which estimate revisions can impact the Zacks Rank and time is running out (or has run out) for 3 positive revisions to 2017 and 2 positive revisions to 2018.
Follow Brian Bolan on Twitter: @BBolan1
The other stock to watch that isn’t listed as part of this sector, but instead is part of the Internet – Software sector is Box Inc (BOX). The stock hold a Zacks Rank #2 (Buy) and has been close to or making new 52 week highs of late.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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