CHICAGO, April 29, 2011 /PRNewswire/ -- Stocks in this
week's article include: AK Steel Holding Corp. (NYSE: AKS),
Health Management Associates, Inc. (NYSE: HMA), News
Corp. (NASDAQ: NWSA), Pitney Bowes Inc. (NYSE: PBI) and
Ralcorp Holdings, Inc. (NYSE: RAH). Kevin Matras explains why looking for stocks
with upgraded broker ratings can upgrade your portfolio to a whole
new level.
(Logo:
http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Screen of the Week written by Kevin
Matras of Zacks Investment Research:
I'm sure we've all had the pleasure of waking one morning and
seeing that a broker has upgraded one of our stocks. Unfortunately,
we've probably all had the experience of waking up and seeing one
of our stocks downgraded as well.
While nobody can perfectly predict an upgrade or guard against a
downgrade, it's important to know how the market reacts to these
things so you can stay in your upgraded winners (or buy if you're
on the fence) and consider getting out if a downgrade comes your
way.
One thing I've been doing lately is screening for stocks that
have recently seen a broker rating upgrade. Tests have proven that
stocks with broker rating upgrades outperform those that don't get
upgraded. Furthermore, they outperform even more against stocks
that get downgraded.
By how much?
I created three screens and ran some tests over the last 10
years. And I applied all the below criteria to stocks trading at
greater than or equal to $5 with an
average daily trading volume of greater than or equal to
100,000.
In screen 1: I backtested only those companies with broker
rating upgrades.
In screen 2: I tested companies with no rating change at all.
Whatever the rating was, good or bad, there was no change.
And in screen 3: I screened only those companies that received
broker rating downgrades.
For the rest of this Screen of the Week article, please visit
Zacks.com at: http://www.zacks.com/commentary/17627/
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/ZacksInvestmentResearch
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.