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Zacks.com featured highlights: Limoneira, Premier, PRA Health Sciences, Ariad Pharmaceuticals and HollySys Automation Technologies

LMNR PINC PRAH ARIA HOLI

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For Immediate Release

Chicago, IL – October 07, 2016 - Stocks in this week’s article include: Limoneira Company (NASDAQ:(LMNR - Free Report) –Free Report),Premier, Inc. (NASDAQ:(PINC - Free Report) –Free Report),PRA Health Sciences, Inc. (NASDAQ:(PRAH - Free Report) –Free Report),Ariad Pharmaceuticals Inc. (NASDAQ:(ARIA - Free Report) –Free Report) and HollySys Automation Technologies, Ltd. (NASDAQ:(HOLI - Free Report) – Free Report).

Screen of the Week of Zacks Investment Research:

5 Profitable Stocks for Fabulous Returns

Profitability analysis is one of the best ways to evaluate the prospect of a company’s stock. It helps to figure out whether the company has surplus sales revenue even after meeting all its costs and expenses. Plus, it ensures whether the company can generate stable returns for investors. This makes a profitable company a preferred choice over a loss-making one.

However, if a profitable company has weak fundamentals, it may not be able to give a satisfying stock performance. Several studies have indicated that a company with high profitability normally offers healthy returns to its investors.

Profitability ratios are used here to measure a company’s profitability position. Although there are various profitability ratios, we have chosen net income ratio for putting together a screen. Net income ratio is the simplest and most effective profitability metric.

Net Income Ratio

Net income ratio reveals the bottom line of a company. It reflects the percentage of net income to total sales. Using net income ratio, one can measure a company’s effectiveness to clear all its operating and non-operating expenses from sales revenue alone. A higher net income ratio normally implies a company’s ability to generate ample revenue and successfully manage all its business functions.

Screening Parameters

Net income ratio is not the only indicator of future winners. As such, we have added a few additional criteria to arrive at a winning strategy.

Zacks Rank equal to #1: The Zacks Rank has proven itself as one of the best rating systems out there. Since this screening allows only Zacks Rank #1 (Strong Buy) stocks, this is a great way to start things off. You can see the complete list of today’s Zacks #1 Rank stocks here .

12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that witnessed higher sales and net income growth in the last 12 months showcase a better financial performance.

12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company’s solid profitability.

% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.

Here are five of the six stocks that qualified the screening:

Limoneira Company (NASDAQ:(LMNR - Free Report) – Free Report) is an agribusiness and real estate development company. Its expected earnings growth for the current year is 149.1%.

Premier, Inc. (NASDAQ:(PINC - Free Report) – Free Report) operates as a healthcare alliance in the U.S. The company’s expected earnings growth for the current year is 91.6%.

PRA Health Sciences, Inc. (NASDAQ:(PRAH - Free Report) – Free Report) operates as a global contract research organization providing outsourced clinical development services to the biotechnology and pharmaceutical industries. The company’s expected earnings growth for the current year is 23.5%.

Ariad Pharmaceuticals Inc. (NASDAQ:(ARIA - Free Report) – Free Report) is engaged in the discovery and development of drugs to cure cancer not only in the U.S. but also globally. The company’s expected earnings growth for the current year is 92.9%.

HollySys Automation Technologies, Ltd. (NASDAQ:(HOLI - Free Report) – Free Report) is one of the leading automation systems’ providers in the People's Republic of China. The company’s expected earnings growth for the current year is 11%.

While backtesting over a two-year timeframe (September 26, 2014 to September 23, 2016), a portfolio following this strategy provided a total return of 24.8% compared with the S&P 500’s return of 7.5%. Thus, this strategy may prove profitable for those looking to beat the markets.

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The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance .

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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 https://at.zacks.com/?id=112

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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.