General, Schnitzer Steel, and USG Corporation
CHICAGO--(BUSINESS WIRE)--Nov. 30, 2005
Kevin Matras shows you how to find great growth stocks
at an excellent value. Stocks in this week's article are: Fremont
General Corp. (NYSE:FMT), Schnitzer Steel Industries, Inc.
(NASDAQ:SCHN) and USG Corp. (NYSE:USG). 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
This week's screen has something for both Growth Investors and
Value Investors alike. Growth Investors focus on companies with great
earnings growth, but that alone isn't good enough for many stock
pickers any more. They want good growth at reasonable prices (low
P/E's). And while Value Investors focus on low P/E stocks, too many
are low because they lack earnings power. So instead, try combining
the best of both worlds by focusing on the companies with the highest
growth rates with the lowest P/E ratios.
The screen Kevin is running this week is as follows:
Companies with 5 year Historical Growth Rates to be in the top 20
percentile of all companies. (Using a Uniform Rank of 1-99 (99 being
the best growth rates), Kevin screened for stocks ranked 80 or
Companies that also happened to have the lowest P/E's - lower than
80% of all other companies. (Using a Uniform Rank of 1-99 again (this
time 99 having the lowest P/E's), Kevin screened for stocks ranked 80
Kevin then required those qualified stocks to be trading at or
above $5, with average daily trading volumes of 100,000 shares or
more, and a Zacks Rank of #2 or less (only 'buys' and 'strong buys'
This week, there are 20 companies that passed this screen. Here
are three from the list that look great:
FMT Fremont General Corp.
SCHN Schnitzer Steel Industries, Inc.
USG USG Corp.
Incidentally, this screen backtested very well too. And while it
wasn't designed to be a trading strategy per se' (20 stocks is a lot
of stocks to trade every month), this screening strategy beat the
market in every year for the last five years (2001 thru 2004 and YTD
2005). (Kevin ran a series of tests over the last five year time span,
using a four-week rebalancing period. Each run was rebalanced over a
different set of four-week periods to eliminate coincidence and verify
In 2001, this screen showed an average annualized gross return of
42.6%. In 2002, it was 19.1%. In 2003, it was a whopping 93%. In 2004,
it came in at 40.4%. And so far in 2005 (YTD thru 11/11/05), its
average annualized gross returns are up 12.1%.
This screen is an excellent way to find good growth companies that
also have low valuations.
Check it out for yourself and get the rest of the stocks on this
list. See where your stocks Rank out of all of the other stocks out
there, and test your own strategies to see how they've done. Find out
what works and what doesn't. It can all be done with the Research
Wizard stock picking and backtesting program. Sign up now for your
two-week free trial and learn how. 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
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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.
Jim Giaquinto, 312-630-9880 x 268
-0- Nov/30/2005 11:00 GMT
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