CHICAGO, Feb. 23, 2011 /PRNewswire/ -- Stocks in this
week's article include: Aetna Inc. (NYSE: AET), The
Andersons, Inc. (NASDAQ: ANDE), Arch Chemicals, Inc.
(NYSE: ARJ), LDK Solar Co., Ltd. (NYSE: LDK) and
Metalico, Inc. (AMEX: MEA). Kevin
Matras talks about stocks making new highs and why you
shouldn't be afraid to buy them.
(Logo:
http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Screen of the Week written by Kevin
Matras of Zacks Investment Research:
Today I'm going over a simple screen with a powerful concept:
Buying stocks making new highs.
I know some are reluctant to buy stocks making new 52-week
highs. If you're one of them, have you ever asked yourself why?
If a stock is making a new 52-week high, that's a good thing.
I'm pretty sure that a person who dislikes buying stocks making new
52-weeks highs wouldn't be too upset if a stock he already owned
broke out to new 52-week highs. And why should he? Statistics have
shown that stocks making new highs have a tendency of making even
higher highs.
These are the stocks we all dream about being in. Get in and it
keeps going up.
Of course the fundamentals need to be there. And you should keep
a watchful eye on valuations. But if you were in a stock making new
highs and cheering it on, it seems silly to be afraid of one doing
the same just because you haven't bought it.
One question I like asking myself just to put things into
perspective is: if I was in it, would I be excited and would I
still want to be in it? If the answer is yes, then I'll look for
the best opportunity to get in. If the answer is no, I'd want to
take profits and then move on.
This topic actually reminds me of a question someone asked me a
while ago about a stock I was talking about that was at a new
52-week high. In fact, it was at a new 5-year high.
He said, "aren't you worried about buying stocks at a 52-week
high?" I said of course not. So it just made a new-52 week high.
That's great news! Guess what -- last year it made a new 52-week
high as well. And the year before that. And the year before
that.
Can you imagine all the money you'd be leaving on the table if
you were afraid of being in stocks every time they made a new
high?
The screen I'm running today looks for…
For the rest of this Screen of the Week article, please visit
Zacks.com at: http://www.zacks.com/commentary/17097/
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: 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 GUARANTEED to be worth your
time! Register for your free subscription to Profit from the Pros
http://at.zacks.com/?id=113
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
SOURCE Zacks Investment Research, Inc.