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Zacks.com highlights: Sysco, Commercial Vehicle Group, Beazer Homes USA, Builders FirstSource and Centene

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For Immediate Release

Chicago, IL – Feb 13, 2018 - Stocks in this week’s article include: Sysco Corporation (SYY - Free Report) , Commercial Vehicle Group (CVGI - Free Report) , Beazer Homes USA (BZH - Free Report) , Builders FirstSource (BLDR - Free Report) and Centene Corporation (CNC - Free Report) .

Screen of the Week of Zacks Investment Research:

5 Broker-Friendly Stocks to Beat Market Blues

The ongoing earnings season has unveiled a rosy picture so far with many companies reporting better-than-expected earnings. According to the latest Earnings Preview, 78.6% of the 341 S&P 500 companies that have reported thus far have outperformed earnings estimates.

This is highly encouraging as an earnings beat generally leads to stock price appreciation. Investors like to add outperformers to their portfolios, which can fetch them handsome returns.

Markets Narrate a Different Story

Despite the impressive Q4 performance, the U.S. equity market has been witnessing a roller coaster ride. Both the Dow as well as the S&P 500 entered into the correction territory on Feb 9, down more than 10% from the all-time high reached in January.

The steep sell-off was due to stronger-than-expected job additions along with fastest wage growth in more than eight years. These factors, in turn, triggered fears of inflation and bolstered expectations that the Fed could take a more aggressive stance in hiking rates than previously expected.

The heightened volatility is reflected in the significant increase in the CBOE Volatility Index (VIX)

Proper Guidance - A Must in this Scenario

With market participants gripped by fears on the one hand and robust earnings numbers on the other, selecting potential winning stocks is a difficult task.

Furthermore, with a huge number of stocks available in the market at any point of time, spotting potential outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for ‘a needle in a haystack’.

Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from “experts in the field." The concerned experts are brokers.

Broker Advice to the Rescue

The “experts” in the field of investing are brokers who are equipped with detailed knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors. 

To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.

Earnings Estimate Revisions

Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.

For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.

Winning Strategy

The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions to earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy effective.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/292121/5-brokerfriendly-stocks-to-beat-market-blues

Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.

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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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

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.



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