Top Rated Zacks Rank Sectors - Screen of the Week
May 14 2013 - 7:49AM
Zacks
It's that time again. Every few months, I like running this screen
to see which Sectors are considered the best Sectors.
Since roughly half of a stock's price move can be directly
attributed to the group that it's in, it's important to stay on top
of which groups are the best ones.
And with the brunt of earnings season having just completed,
some new groups have found their way on this list.
In my testing, I have found that getting into an average stock
in a strong group will oftentimes outperform even the best stocks
in a troubled group.
Put the Odds on Your Side
Just because stocks in the best groups have a tendency to
outperform doesn't mean you can just pick anything and make money.
Far from it. But it illustrates how powerful the underlying group
is to the success of your stock picking.
There are several ways you can define the best Sectors or
Industries.
Today, I'm going to focus on just the Zacks Rank. The best Zacks
Rank stocks, on average, nearly triple the market each year. And a
sector or Industry is simply a group of stocks in similar
businesses. So looking at the average Zacks Rank for all of the
stocks in that group will tell you if that group as a whole is
enjoying good times or bad.
Stocks that receive upward earnings estimate revisions have a
tendency of receiving even more upward earnings estimate revisions.
And that leads to an increase in price.
So the better the average Zacks Rank is for the Sector, the
better the chances that your stocks have a top Zacks Rank, and move
higher.
And given the uneasiness of the market at these new highs, this
is something everyone can use right now.
The Top 5 Zacks Ranked Sectors
Currently, the top 5 Zacks Ranked sectors are:
1) Construction - Average Zacks Rank 2.74
2) Aerospace - Average Zacks Rank 2.81
3) Finance - Average Zacks Rank 2.82
4) Utilities - Average Zacks Rank 2.88
5) Auto/Tires/Trucks - Average Zacks Rank 2.91
And here are 5 stocks, each from one of the top 5 Zacks Ranked
sectors:
RYL Ryland Group Inc. - Construction
ATK Alliant Techsystems Inc. - Aerospace
STT State Street Corp. - Finance
IDA IdaCorp, Inc. - Utilities
SMP Standard Motor Products Inc. - Auto/Tires/Trucks
All of these stocks are in the top 5 Sectors as defined by the
average Zacks Rank, and they all look set to outperform.
Start picking stocks in the best Sectors and Industries on your
own today. It's easy to do with the Research Wizard. Start putting
the odds of success in your favor.
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.
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
IDACORP INC (IDA): Free Stock Analysis Report
RYLAND GRP INC (RYL): Free Stock Analysis Report
STANDARD MOTOR (SMP): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
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