Chicago, IL – September 21, 2010 – Stocks in this week’s article include A. O. Smith Corp. (NYSE: AOS), The Cato Corp. (NYSE: CATO), Horace Mann Educators Corp. (NYSE: HMN), PPG Industries, Inc. (NYSE: PPG) and Rockwood Holdings, Inc. (NYSE: ROC). Kevin Matras talks about stocks making new highs and why you shouldn’t be afraid to buy them.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Today I’m going over a simple screen with a powerful concept: Buying stocks making new highs.
I know some are reluctant to buy stocks making new 52-week highs. If you’re one of them, have you ever asked yourself why? If a stock is making a new 52-week high, that’s a good thing. Just like a stock making a new 52-week low is bad thing.
I’m pretty sure that a person who dislikes buying stocks making new 52-weeks highs wouldn’t be too upset if the stocks he already owned broke out to new 52-week highs. And why should he? Statistics have shown that stocks making new highs have a tendency of making even higher highs.
Of course the fundamentals need to be there. And you should keep a watchful eye on valuations. But if you were in a stock making new highs and cheering it on, it seems silly to be afraid of one doing the same just because you haven’t bought it.
One question I like asking myself just to put things into perspective is: If I was in it, would I be excited and would I still want to be in it? If the answer is yes, then I’ll look for the best opportunity to get in. If the answer is no and I’d want to take profits, then I’ll move on.
The screen I’m running today looks for…
For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/15726/
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=5529
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=5530
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=5531
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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: file:///C:/Documents%20and%20Settings/jlohmeier/Local%20Settings/Temporary%20Internet%20Files/OLK37/pr@zacks.com
Visit: file:///C:/Documents%20and%20Settings/jlohmeier/Local%20Settings/Temporary%20Internet%20Files/OLK37/www.Zacks.com
SMITH (AO) CORP (AOS): Free Stock Analysis Report
CATO CORP A (CATO): Free Stock Analysis Report
HORACE MANN EDS (HMN): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis Report
ROCKWOOD HLDGS (ROC): Free Stock Analysis Report
Zacks Investment Research
