Stock Screeners a Consistent Way to Pick Winning Stocks

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Stock Screeners a Consistent Way to Pick Winning Stocks

A good stock screener can inspire you and help you pick better stocks on a consistent basis. And as traders and investors, that’s what we all want. Today’s screen focuses on some of my current wish list items:

 

  • Top 50% of Zacks Ranked Industries(The top half of Zacks Ranked Industries has outperformed the bottom half by a factor of more than 2 to 1.)
  • Zacks Rank equal to 1(Over the last 26 years, the Zacks #1 Rank (Strong Buy) stocks have shown an average annual return of 26% a year.)
  • Positive Projected Sales and EPS Growth(Simply put, I want my stocks to be growing on both the top and bottom lines.)
  • Positive Sales and EPS Surprises(As mentioned earlier, stocks that have surprised in the past have a tendency to surprise again in the future. This increases our chances of getting into stocks that will positively surprise for us.)
  • Expanding Margins(If margins are going up, that means management has a good grip on costs, which allows more of each sale to be counted as earnings.
  • Price to Sales Ratio less than or equal to 1(In my testing I have found that stocks with a Price to Sales (P/S) ratio of less than 1, significantly outperforms stocks with a P/S ratio higher than that. (Over 4 demonstrated the worst average returns.)

 

Here are 5 stocks that made it through the screen this week:

CNO CNO Financial Group

FIX Comfort Systems

KIRK Kirklands

ORI Old Republic Int’l

SEE Sealed Air

All of these stocks meet every single one of my current wish list items, which means you can focus your time on only the top selections.

A good screener can help you save time, discover new stocks, consistently find winners and inspire you to become a better trader.

Be sure to get the rest of the stocks on this list. And make sure you sign up for a free trial to our powerful, yet easy to use, screening and backtesting program for your own stock picking inspiration.

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: http://www.zacks.com/performance.

CNO FINL GRP (CNO): Free Stock Analysis Report

COMFORT SYSTEMS (FIX): Free Stock Analysis Report

KIRKLANDS INC (KIRK): Free Stock Analysis Report

OLD REP INTL (ORI): Free Stock Analysis Report

SEALED AIR CORP (SEE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/stock-screeners-consistent-way-pick-winning-stocks/.

©2014 InvestorPlace Media, LLC

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