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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Top Rated Stock Sectors 0 comments
    Mar 13, 2013 7:24 PM | about stocks: EWBC, CR, BA, WLJJSF

    Zacks Investment Research

    Profit From Zacks Investment Research Earnings Estimates Revisions Free Trial of Zacks a leading investment research firm focusing on equities earnings estimates and stock analysis for the individual investor, including stock picks, stock screening, portfolio stock tracker and stock screeners. "Earnings estimate revisions are the most powerful force impacting stock prices" Zack Investment Research Founder Leonard Zacks, Ph.D. Mathematics M.I.T.

    Top Rated Stock Sectors by - By 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.

    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.

    Put the Odds on Your Side

    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. The best Zacks Rank stocks, on average, nearly triple the market each year. A sector or Industry is simply a group of stocks in similar businesses, so looking at the average Zacks Rank for all of the stocks in that group will tell you if that group as a whole is enjoying good times, or bad.

    Remember, the Zacks Rank keys in on earnings estimate revisions and earnings surprises.

    Stocks that receive upward earnings estimate revisions have a tendency of receiving even more upward earnings estimate revisions. Not only does this lead to an increase in price, but this also, in turn, is great at predicting which companies have a better possibility of positively surprising.

    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.

    And given the difficulty of the market, this is something everyone can use right now.

    The Top 5 Zacks Ranked Sectors

    Currently, the top 5 Zacks Ranked sectors are:

    1. Finance -- Average Zacks Rank 2.81

    2. Conglomerates -- Average Zacks Rank 2.84

    3. Aerospace -- Average Zacks Rank 2.89

    4. Business services -- Average Zacks Rank 2.90

    5. Consumer staples -- Average Zacks Rank 2.92

    And here are 5 stocks, each from one of the top 5 Zacks Ranked sectors:

    (NASDAQ:EWBC) East West Bancorp, Inc. (Finance)

    (NYSE:CR) Crane Co. (Conglomerates)

    (NYSE:BA) The Boeing Co. (Aerospace)

    (TW) Towers Watson & Co. (Business Services)

    (NASDAQ:JJSF) J&J Snack Foods Corp. (Consumer Staples)

    All of these stocks are in the top 5 Sectors as defined by the average Zacks Rank, and they are all set to report earnings within the next few weeks.

    Start picking stocks in the best Sectors and Industries on your own today. It's easy to do and with the Research Wizard. Start putting the odds of success in your favor. You can do it.

    Click Here for a Zacks Investment Research Free Trial

    Stocks: EWBC, CR, BA, WLJJSF
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