Daniels Midland, Big Five Sporting Goods and Xyratex CHICAGO--(BUSINESS WIRE)--April 05, 2007 Kevin Matras goes over an exciting screening strategy called 'Best Buys'. Stocks in this week's article are Archer Daniels Midland Co. (NYSE: ADM), Big Five Sporting Goods Corp. (NASDAQ: BGFV) and Xyratex Ltd. (NASDAQ: XRTX). 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: Here's a new screen that was created with the Research Wizard. By popular demand, I'm excited to share it again in this article. It's a very robust strategy in and of itself and works exceedingly well with many of our other strategies that come loaded with the Research Wizard program. Parameters -- Zacks Rank less than or equal to 2 Or The % of Brokers Ranking the Stocks a Strong Buy/Buy greater than or equal to 50% (I'm looking for stocks that have a Strong Buy or Buy Rating from Zacks or that have 50% or more of the Brokers Ranking it a Strong Buy or Buy) -- Price to Sales less than or equal to .75 (A Price to Sales Ratio of 1 means you're paying $1 for every $1 of sales the company makes. A P/S Ratio of .75 means you're paying only 75 cents for every $1 of sales the company makes - which is a great value.) -- ROE greater than or equal to 15 (This is net income divided by common equity and is a measure of how good a company is being run. In other words, a company with an ROE means that 15 cents of assets are being created for every one dollar of shareholders equity.) -- Current Price greater than or equal to 5 -- Average 20-Day Volume greater than or equal to 100,000 (I want to make sure it's well traded.) -- % Rating Change over the last 4 Weeks equal to Top # 5 (This narrows the screen down to the 5 stocks (always only 5 stocks) with the biggest, (i.e. best) increase in the Average Broker Rating.) Results I ran a series of separate tests over the last six-year time span using a four-week holding period. Each run was started on a different date to eliminate coincidence and to verify robustness. In 2001, this screen showed an average compounded gross return of 51.4%. In 2002, it showed a 36% return. 2003 saw a whopping 91.2% return while 2004 showed a 35.9% return. Furthermore, 2005 was 44.4% and in 2006 the average compounded gross returns were 58.4%. I've also been experimenting with a slightly higher percentage of Strong Buys/Buys and have found that 60% does very well too. But anything higher than that starts diminishing returns instead of increasing them. Give this strategy a try in your own trading and see how it can help you pick better stocks. This strategy always only picks five stocks per run. Here are three of them for this week (Tuesday, 4/3/07): ADM Archer Daniels Midland Co. BGFV Big Five Sporting Goods Corp. XRTX Xyratex Ltd. (This strategy is now available in the Research Wizard in the SoW strategies folder.) Sign up now for your two-week free trial to the Research Wizard and get the rest of the stocks on this list. Start trading this strategy today. And don't forget to check out the other winning trading strategies that come loaded with the program. Know when to buy and when sell. It's all there. 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! 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Zacks.com featured expert Kevin Matras highlights: Archer
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