Top Rated Zacks Rank Sectors - Screen of the Week
12 Marzo 2013 - 4:25AM
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.
I've done some testing over the past and found that, often
times, just getting into an average stock in a strong group will
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, this 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. 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.
Remember, the Zacks Rank keys in on earnings estimate revisions
and earnings surprises.
Stocks that receive upward earnings estimate revisions have a
tendency of receiving even more upward earnings estimate revisions.
Not only does this lead to an increase in price, but this also, in
turn, is great at predicting which companies have a better
possibility of positively surprising.
So the better the average Zacks Rank is for the Sector, the
better the chances that your stocks have a top Zacks Rank with a
greater potential for positively surprising.
And given the difficulty of the market, this is something
everyone can use right now.
The Top 5 Zacks Ranked Sectors
Currently, the top 5 Zacks Ranked sectors are:
1. Finance -- Average Zacks Rank 2.81
2. Conglomerates -- Average Zacks Rank 2.84
3. Aerospace -- Average Zacks Rank 2.89
4. Business services -- Average Zacks Rank 2.90
5. Consumer staples -- Average Zacks Rank 2.92
And here are 5 stocks, each from one of the top 5 Zacks Ranked
sectors:
EWBC East West Bancorp, Inc.
(Finance)
CR Crane Co.
(Conglomerates)
BA The Boeing Co.
(Aerospace)
TW Towers Watson & Co.
(Business Services)
JJSF J&J Snack Foods Corp.
(Consumer Staples)
All of these stocks are in the top 5 Sectors as defined by the
average Zacks Rank, and they are all set to report earnings within
the next few weeks.
Start picking stocks in the best Sectors and Industries on your
own today. It’s easy to do and with the Research Wizard. Start
putting the odds of success in your favor. You can do it.
Learn how 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.
BOEING CO (BA): Free Stock Analysis Report
CRANE CO (CR): Free Stock Analysis Report
EAST WEST BC (EWBC): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
TOWERS WATSON (TW): Free Stock Analysis Report
To read this article on Zacks.com click here.
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