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 Research: 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 better.) 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 or better.) 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' allowed). 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 robustness.) 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 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter at http://at.zacks.com/?id=113 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. 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: Zacks.com Jim Giaquinto, 312-630-9880 x 268 email@example.com www.Zacks.com -0- Nov/30/2005 11:00 GMT
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Zacks.com Featured Expert Kevin Matras Highlights: Fremont
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