Chicago, IL – July 24, 2012 - Stocks in this week's article include Textainer Group Holdings Ltd. (NYSE: TGH), M.D.C. Holdings, Inc. (NYSE: MDC), Natus Medical Inc. (NASDAQ: BABY), Multimedia Games Holding Co., Inc. (NASDAQ: MGAM) and New York & Co., Inc. (NYSE: NWY). Kevin Matras goes over the 5 top Zacks Ranked Sectors for this earnings season.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
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.
And with it being earnings season, you want every advantage you can get to give your stocks the highest probability of positively surprising, and going up.
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.
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, which keys in on earnings estimate revisions and earnings surprises. 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.
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