Back to top

Press Releases

Zacks Equity Research

Zacks.com featured highlights: EV Energy Partners, FireEye, Nippon Telegraph and Telephone, Coeur Mining and Avinger

EVEP FEYE NTT CDE AVGR

Trades from $3

For Immediate Release

Chicago, IL – March 21, 2017 - Stocks in this week’s article include EV Energy Partners L.P. (NASDAQ: (EVEP - Free Report) – Free Report ), FireEye Inc. (NASDAQ: (FEYE - Free Report) – Free Report ), Nippon Telegraph and Telephone Corporation (NYSE: (NTT - Free Report) – Free Report ), Coeur Mining Inc. (NYSE: (CDE - Free Report) – Free Report ) and Avinger Inc. (NASDAQ: (AVGR - Free Report) – Free Report ).

Screen of the Week of Zacks Investment Research:

Go Beyond Bargain Hunting: 5 Stocks with Rising P/E

Bargain hunting or looking for stocks with a low price-to-earnings (P/E) ratio is among the widely-used investing strategies. Investors believe that the lower the P/E, the higher will be the value of the stock. The logic is simple – a stock’s current market price does not justify its higher earnings and therefore leaves room for upside.

But there is more to this whole P/E story as not only low P/E, stocks with a rising P/E can also fetch solid returns.

Rising P/E: An Useful Tool

Generally, the price of a stock rallies on a rise in earnings. As forecasts for expected earnings move higher, demand for the stock should drive its price. After all, a stock's P/E gives an indication of how much investors are ready to shell out for every dollar of earnings. Thus, if the P/E of a stock is rising steadily, it means that investors are pinning their hopes on the company’s inherent strength.

Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.

The Winning Strategy

In order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.

EPS growth estimate for the current year is greater than or equal to last year’s actual growth

Percentage change in last year EPS should be greater than or equal to zero

(These two criteria point to flat earnings or a growth trend over the years.)

Percentage change in price over four weeks greater than the percentage change in price over 12 weeks

Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks

(These two criteria show that price of the stock is increasing consistently over the said timeframes.)

Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500

Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500

(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)

Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%

(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)

In addition, we place a few other criteria that lead us to some likely outperformers.

Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.

Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.

Just these few criteria narrowed down the universe from over 7,700 stocks to just 20.

Here are five out of the 20 stocks:

EV Energy Partners L.P. (NASDAQ:(EVEP - Free Report) – Free Report ): It is an upstream Master Limited Partnership focused on acquiring and operating oil and gas properties within the continental U.S. Its Zacks Industry Rank is in the top 22%, at the time of writing. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here .

FireEye Inc. (NASDAQ:(FEYE - Free Report) – Free Report ): The company provides security platform against cyber attacks to enterprises and governments. Its Zacks Industry Rank is in the top 27%. The stock has a Zacks Rank #2.

Nippon Telegraph and Telephone Corporation (NYSE:(NTT - Free Report) – Free Report ): This Zacks Rank #1 company offers a variety of telecommunications services. Its Zacks Industry Rank is in the top 31%.

Coeur Mining Inc. (NYSE:(CDE - Free Report) – Free Report ): The company operates as a primary silver and gold producer. The stock carries a Zacks Rank #2. The Zacks Industry Rank is in the top 6%.

Avinger Inc. (NASDAQ:(AVGR - Free Report) – Free Report ): It is engaged in manufacturing and selling image-guided, catheter-based systems to treat peripheral arterial disease. It has a Zacks Rank #2 and the Zacks Industry Rank is in the top 27%.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

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.

Click here to sign up for a free trial to the Research Wizard today .

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 .

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

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

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

Get the full Report on EVEP - FREE

Get the full Report on FEYE - FREE

Get the full Report on NTT - FREE

Get the full Report on CDE - FREE

Get the full Report on AVGR - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://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: https://www.zacks.com/performance

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