Zacks.com featured expert Kevin Matras highlights: Alaska Air Group, Dollar Tree, Granite Construction, SXC Health Solutions and Wausau Paper
CHICAGO, Dec 18, 2008 (BUSINESS WIRE) -- Kevin Matras explains how to define winning stocks, and then shows how
to find them. Stocks in this week's article are Alaska Air Group, Inc.
(NYSE: ALK), Dollar Tree, Inc. (NASDAQ: DLTR), Granite
Construction Corporation (NYSE: GVA), SXC Health Solutions
Corporation (NASDAQ: SXCI) and Wausau Paper Corporation (NYSE:
WPP). 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:
Today's screen is a simple one, but the idea behind it is pretty
powerful. The strategy is finding stocks that are making new 52-week
highs, or at least trading within 10% of their 52-week highs.
Why is this so important?
In anybody's portfolio, you're bound to have some great stocks and some
not-so-great stocks. Think about it, though, if someone were to ask you
about your best holdings, you're likely to name the stocks in an uptrend
or making new highs.
Your worst holdings? The ones going lower. You'll rarely single out a
stock because it has a low P/E ratio or a great Return on Equity. Sure,
those things do matter. However, if the stock making new lows has a
cheap P/E and industry beating ROE, you'll quickly identify it as one of
your worst holdings - and you would be right to do so.
The winners in your portfolio are the ones going up. Period.
But for some reason, many investors are fearful of buying these kinds of
stocks. If you're one of them - you need to start thinking differently.
What's the difference between being in a stock making a new 52-week high
and getting into one making a new 52-week high? At that particular
moment in time - nothing.
Sure, if you're already in it and it's making a new 52-week high, then
you might feel 'safer' because you've already built up a cushion of
profit. But that's no guarantee it won't go down. Plus, any stock's
gains can be wiped out in a single trading day.
But if you are in a stock making a new high, you're likely rooting for
it to go higher, and are excited to see what happens the next day. So
why not get excited about getting into a stock making a new high?
Because you missed it? Because you want it to go down first?
Remember, stocks going up are the winners. Stocks going down are the
losers. And the ones going up are doing so for a reason. Just because
you didn't know about it earlier doesn't make it any less attractive. So
try looking for winners (i.e. stocks going up) the next time you're
looking for stocks to buy.
Get started with the Free Screener of Zacks.com: http://at.zacks.com/?id=4865
You can build a screen yourself that looks for these types of stocks. Or
you can select one of our predefined screens that already does this.
Afterward, you can tweak and modify them however you wish. Then add as
many other items as you wish.
With the Research Wizard, you can add even more ideas to your screen,
including the Zacks Rank and many more.
The screen I'm running this week is:
* Current Price/52 Week high greater than or equal to .90 (That
means stocks trading within 10% of their 52 Week High.)
* Price greater than or equal to $5
* Average 20 Day Volume greater than or equal to 100,000
* Zacks Rank less than or equal to 3 (Only Strong Buys, Buys or
even Holds can get thru.)
Here are 5 stocks from this week's screen (for Tuesday, 12/16/08): (If
you had these in your portfolio, you'd definitely consider them as your
some of your best stocks.)
ALK Alaska Air Group, Inc.
DLTR Dollar Tree, Inc.
GVA Granite Construction Corp.
SXCI SXC Health Solutions Corp.
WPP Wausau Paper Corp.
Get the rest of the stocks on this list and start screening for winning
stocks (stocks going higher) on your own.
Now is the time to start planning for 2009. You can do it. Sign up now
for your free trial to the Research Wizard and resolve to start make
better trading decisions today: http://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 http://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was
formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he
could find patterns in stock market data that would lead to superior
investment results. Amongst his many accomplishments was the formation
of his proprietary stock picking system; the Zacks Rank, which 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
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Profit from the Pros http://at.zacks.com/?id=113
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.
Visit http://www.zacks.com/performance
for information about the performance numbers displayed in this press
release.
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.
SOURCE: Zacks.com
Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
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