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Zacks Equity Research featured highlights: Kronos Worldwide, Olympic Steel, Yelp, Parsley Energy and Alpha & Omega Semiconductor


Trades from $3

For Immediate Release

Chicago, IL – October 19, 2016 - Stocks in this week’s article include: Kronos Worldwide (NYSE:(KRO - Snapshot Report) –Free Report),Olympic Steel (NASDAQ:(ZEUS - Snapshot Report) –Free Report),Yelp (NYSE:(YELP - Snapshot Report) –Free Report),Parsley Energy (NYSE:(PE - Snapshot Report) –Free Report) and Alpha & Omega Semiconductor (NASDAQ:(AOSL - Snapshot Report) – Free Report).

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 in full swing, 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.

And that’s what we’re screening for today:

EPS for the previous 4 Quarters less than or equal to 0
(This means in each of the previous 4 quarters (except the most recently reported quarter) the company has reported earnings of less than or equal to zero, i.e., no profit.)

EPS for the recently reported quarter greater than 0
(This time, the company reported earnings greater than zero, meaning they finally showed a profit.)

Current Price greater than or equal to 5
(I prefer to only look at companies over $5. But if you drop this item from the screen, it'll currently produce three times as many stocks coming thru the screen.)

The screen is pretty simple yet pretty powerful. Here are 5 stocks that made it thru:

(NYSE:(KRO - Snapshot Report) – Free Report) Kronos Worldwide
(NASDAQ:(ZEUS - Snapshot Report) – Free Report) Olympic Steel
(NYSE:(YELP - Snapshot Report) – Free Report) Yelp
(NYSE:(PE - Snapshot Report) – Free Report) Parsley Energy
(NASDAQ:(AOSL - Snapshot Report) – Free Report) Alpha & Omega Semiconductor

Get the rest of the stocks on this list and start looking for the newest companies that fit this criteria. It's easy to do. And it could help you find your next 'best' stock. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here for your 2 week free trial to the Research Wizard.

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.

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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.

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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 for information about the performance numbers displayed in this press release.