Finding companies with the criteria you want isn’t always easy. You could spend hours searching ticker after ticker, only to find companies which aren’t worthy of your hard earned cash. An easier way to navigate through this is by using high quality stock screeners. Screening helps investors narrow down companies to invest in based on their ability to meet every criteria selected. Any company who misses even one of the criteria requirements will be filtered out.
This lets one easily choose ideal metrics. Screens are effective because they sift out bad stocks and only keep the cream of the crop in. It isn’t always easy to create an effective screen. Our Zacks Premium Screens have helped with this, bringing profits to many investors over time. Our predefined criteria are chosen carefully to capture special kinds of companies.
Today, we’ve dug up two stocks using one of our premium screens known as “Recent Price Strength”. Some of the metrics of this screen requires a stock to have a price greater than $5, Zacks Rank #2 (Buy) or better, and a positive price change greater than 10% over the last 12 weeks. Let’s see the stocks which our Premium Screen has found for us today.
Nidec Corporation-(NJDCY - Snapshot Report)
Nidec Corp engages in the designing and manufacturing of small precision motors, mid-size motors, and machinery and power supplies. Its manufacturing services are primarily done in Asia, but the company also has sales subsidiaries in North America and Europe. Nidec is a Zacks Rank #1 (Strong Buy) and it has a market cap of $27.3 billion. It’s worth noting that the company has a relatively low PEG of 1.67.
Over the last 12 weeks, NJDCY stock has gained about 30%. A lot of this gain is attributable towards the gains achieved over its first fiscal quarter ended June 30. The Japanese motor manufacturer saw its operating profits grow 5.6% year-over-year. By fiscal 2020, the company hopes to have operating profit margins of 15%. Nidec has a trailing twelve month operating margin of 7.71%, which is way ahead of the industry’s average net margin of 1.55%. EPS is forecasted to grow by 34% this year. Nidec’s Strong Buy rank shows that the stock has a good chance of topping our EPS expectations. More momentum could be right around the corner since NJDCY is slated to report its next quarterly earnings results in mid-October.
Tencent Holdings Limited-(TCEHY - Snapshot Report)
Tencent Holdings is a Chinese enterprise that provides Internet, mobile and telecom services, and online advertising. Tencent’s leading Internet platforms in China are QQ Instant Messenger, QQ.com, QQ Games, Qzone, SoSo, PaiPai, and Tenpay. Its services provide communication, information, entertainment, e-commerce, and more. Tencent is a massive corporation which boasts a market cap of $264 billion. TCEHY is a Zacks Rank #2 (Buy) and it also gets a “B” for Growth in our Style Scores.
Tencent has been on a tear, picking up 23.5% in market cap over the last three months. 2016 has been good to TCEHY, with the stock has gaining about 42% year-to-date. The Internet giant has grown rapidly over the last few years, and investors are betting on more growth to come. This year, sales and EPS are forecasted to grow by 36% and 44% respectively. These projections represent even more growth than the company experienced last year (sales growth of 29% and diluted EPS growth before non-recurring items of 28%). Estimates have been revised upwards for the current year, and this has lead to our EPS consensus trending upwards over the last 60 days. Investors could be in for a pleasant surprise when Tencent Holdings releases its next quarterly earnings report in early November.
One magical screening ingredient which can’t be overlooked is a Zacks Rank #2 (Buy) or better. The rank helps to find companies which look like dependable earnings candidates. In addition to this great metric, the Zacks Premium Screenshelp you to add other criteria to find the most superior investment choices. While this article outlined potential candidates from one screen, the Zacks Premium service gives you access to the “Recent Price Strength” and 45 other premium screens designed to give you superior investment returns.
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