CHICAGO--(BUSINESS WIRE)--Nov. 3, 2004--Zacks.com releases it's
exclusive Screen of the Week report that highlights another successful
stock picking strategy developed with their Research Wizard software.
Kevin Matras looks at trading the Zacks Rank for a winning stock
picking strategy. Some stocks in this week's screen are: Northwest
Bancorp, Inc. (NASDAQ:NWSB), SurModics, Inc. (NASDAQ:SRDX) and Unit
Corp. (NYSE:UNT). Find out how it did over 62% last year and how it's
beating the market again this year. Click here for the full story
exclusively on Zacks.com: http://at.zacks.com/?id=109
Screen of the Week written by Kevin Matras of Zacks Investment
Research:
'Tips on Trading the Zacks Rank: Filtering the Zacks Rank'
Kevin is sure most everyone reading this knows of the power of the
Zacks #1 Rating and its consistently fantastic returns in all markets.
(Average annual return of 33.08% since 1988.) But what he wants to
focus on today is how to try and recreate those returns in a practical
trading account.
Since focusing only on Zacks #1 Rated picks will typically give
you over 200 qualified stocks at any time, it's important to know what
other filters to apply to the Zacks Rank to generate a smaller (more
tradable) watchlist. Two filters in particular, when added to the
Zacks Rank of #1, not only narrows down the number of qualified stocks
to a practical portfolio size (approx. 10-12 stocks), it also
increases its performance as well.
The two filters he is talking about are Earnings Estimates
Revisions (% Change Q1 Est. over 4 Weeks greater than 0) and Brokerage
Rating Changes (% Broker Rating Change over 1 Week greater than 0).
These two items added to the Zacks #1 Rank, produce powerful results!
For instance; in 2002 (using a 4 week rebalancing period), the
Zacks #1 Rated stocks returned nearly 5%, with an average portfolio
size of approx. 200 stocks. A truly impressive return, especially when
compared to the S&P 500's -19%. But holding onto 200 or so stocks
isn't doable for most investors. But when adding the two
aforementioned filters, the portfolio size shrinks to a tradable 11
stocks (on average), and a phenomenal 22% return. In 2003, the Zacks
#1 list (approx. 200 stocks) did over 72% in comparison to the S&P
500's nearly 29%.
But the filtered Zacks Rank narrowed that list down to only 10
stocks (on average) with a return of over 86%. (An even larger return
with a realistic portfolio size.) And it's right on track again so far
this year too (2004). The annualized YTD returns for the Zacks #1
Ranked stocks are up 16.1% with an average portfolio size of 202
stocks, but the filtered Zacks #1's annualized YTD returns are up
37.6% with only 11 stocks to hold on average.
There are currently 16 stocks qualifying this filtered Zacks Rank
this week. Here's a few of them:
NWSB Northwest Bancorp, Inc.
SRDX SurModics, Inc.
UNT Unit Corp. Get the rest of the stocks on this list and start trading the
filtered Zacks Rank in your own account. Remember, the key to
successful screening is in discovering those screens that have
produced profitable results in the past. And that's exactly what you
get with the Research Wizard stock picking and backtesting program.
Click here to learn more. http://at.zacks.com/?id=110
And remember, the key to successful screening is in discovering
those screens that have produced profitable results in the past. And
that's exactly what you get with the powerful backtesting ability of
Research Wizard. Click here to find out more about our free trial to
this profitable stock selection tool: http://at.zacks.com/?id=111
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 http://at.zacks.com/?id=112
About Zacks
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research to both institutional and individual investors. The guiding
principle behind Zacks work is the belief that investment experts,
such as brokerage analysts and investment newsletter writers, have
superior knowledge about how to invest successfully. The goal is to
unlock these pros' profitable insights for individual investors
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Zacks Investment Research is under common control with affiliated
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may engage in transactions involving the foregoing securities for the
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Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.
CONTACT: Zacks.com
Jason Kissinger, 312-630-9880 x 260
myzacks@zacks.comwww.Zacks.com
SOURCE: Zacks.com