Stocks highlighted in this article are: Cooper Industries, Ltd. (CBE), Cabot Oil & Gas Corp. (COG), Deere & Company (DE), Potlatch Corp. (PCH) and RBC Bearings, Inc. (ROLL).
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With the market in a downtrend, one of the best ways to make money has been on the short side.
One of my favorite things lately has been to find companies with earnings that are projected to be lower than last year AND earnings for next year that are projected to be lower than this year.
Seems simple enough, but you'd be surprised at how many companies are projected down this year but up the next. (Of course, expecting to be up and actually being up are two totally different things.)
But finding those companies whose 'recoveries' are in the more distant future make these companies (in my opinion) last on the list to buy once we hit bottom. They are also some of the best candidates to short until then (and even beyond).
One of the reasons I like this concept is because most analysts seem to take a pretty optimistic view in the future.
Maybe it's human nature.
I secretly call this the Chicago Cubs effect. (I guess it's no secret now.) What's the old adage after the Cubs blow it every year? "Wait 'til next year."
(I'm allowed to say this as I'm a Cubs fan. And Sox for that matter.)
But the future is always brighter, or so it seems.
But what if these analysts get even more sour on the companies' prospects? Not a good sign.
And if you still believe the views are a bit optimistic, then there's likely even more pain in store than what's forecast.
So in this week's screen, we're screening for:
* This Year's Projected EPS < Last Year's Actual EPS
(F1 < F0) (Estimate if not reported yet)
* Next Year's Projected EPS < This Year's Projected EPS
(F2 < F1) (There's the Cubs effect - "wait 'til next year" - not.)
* Zacks Rank >= 4
(Which means Sells and Strong Sells)
* % Change in F1 Est. over 12 weeks < 0
(This year's earnings estimates being revised down.)
* % Change in F2 Est. over 12 weeks < 0
(Next year's earnings estimates are being revised down also.)
* Current Price >= 10
* Volume (Avg. 20 Days Shares) >= 100,000
Here are a few stocks from this week's screen (2/24/09):
CBE Cooper Industries, Ltd.
COG Cabot Oil & Gas Corp.
DE Deere & Company
PCH Potlatch Corp.
ROLL RBC Bearings, Inc.
Get the rest of the stocks on this list and start looking for these kinds of companies on your own. But remember, the market won't go down forever. So start planning your buying strategy now to be ready for when the market finally does turn around. You can do it. Sign up for a free trial to the Research Wizard today and start putting your plan together right now.
Click here to find out more!
With the market in a downtrend, one of the best ways to make money has been on the short side.
One of my favorite things lately has been to find companies with earnings that are projected to be lower than last year AND earnings for next year that are projected to be lower than this year.
Seems simple enough, but you'd be surprised at how many companies are projected down this year but up the next. (Of course, expecting to be up and actually being up are two totally different things.)
But finding those companies whose 'recoveries' are in the more distant future make these companies (in my opinion) last on the list to buy once we hit bottom. They are also some of the best candidates to short until then (and even beyond).
One of the reasons I like this concept is because most analysts seem to take a pretty optimistic view in the future.
Maybe it's human nature.
I secretly call this the Chicago Cubs effect. (I guess it's no secret now.) What's the old adage after the Cubs blow it every year? "Wait 'til next year."
(I'm allowed to say this as I'm a Cubs fan. And Sox for that matter.)
But the future is always brighter, or so it seems.
But what if these analysts get even more sour on the companies' prospects? Not a good sign.
And if you still believe the views are a bit optimistic, then there's likely even more pain in store than what's forecast.
So in this week's screen, we're screening for:
* This Year's Projected EPS < Last Year's Actual EPS
(F1 < F0) (Estimate if not reported yet)
* Next Year's Projected EPS < This Year's Projected EPS
(F2 < F1) (There's the Cubs effect - "wait 'til next year" - not.)
* Zacks Rank >= 4
(Which means Sells and Strong Sells)
* % Change in F1 Est. over 12 weeks < 0
(This year's earnings estimates being revised down.)
* % Change in F2 Est. over 12 weeks < 0
(Next year's earnings estimates are being revised down also.)
* Current Price >= 10
* Volume (Avg. 20 Days Shares) >= 100,000
Here are a few stocks from this week's screen (2/24/09):
CBE Cooper Industries, Ltd.
COG Cabot Oil & Gas Corp.
DE Deere & Company
PCH Potlatch Corp.
ROLL RBC Bearings, Inc.
Get the rest of the stocks on this list and start looking for these kinds of companies on your own. But remember, the market won't go down forever. So start planning your buying strategy now to be ready for when the market finally does turn around. You can do it. Sign up for a free trial to the Research Wizard today and start putting your plan together right now.