Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies

Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies

by Kevin Matras
Released April 2011
Publisher(s): Wiley
ISBN: 9780470903407

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Book description

Practical trading tools and techniques developed by Zacks Investment Research

While there are many stock trading systems on the market today, that use a variety of different approaches and indicators, the approach used by Zacks Investment Research is built around the number one driver of stock prices: company earnings.

Based on Zacks Research Wizard product, this book provides you with market beating stock selection techniques and advice on how to build your own stock selection system. This practical guide discloses several trading methods that have outperformed the market for a long period of time and shows you how to screen stocks and develop selection criteria to build various types of stock portfolios, such as aggressive growth; growth and income; momentum; and value.

  • Highlights several of Zacks trading methods that have outperformed the market for extended periods of time

  • Discusses how to create customized systems incorporating elements of the Zacks approach with other types of fundamental and technical data

  • Includes a 30-day free subscription to Zacks Research Wizard software

  • Written with the serious investor in mind, Finding #1 Stocks will put you in a better position to excel in today's dynamic markets.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Acknowledgments
  6. Introduction
  7. Chapter 1: The Importance of Screening and Backtesting
    1. Why Should I Use a Stock Screener?
    2. Backtesting!
  8. Chapter 2: Identifying What Kind of Trader You Are
    1. Question 1: What Kinds of Stocks Do You Want to Invest In?
    2. Question 2: What Characteristics Do You Want Your Stocks to Have?
    3. Question 3: What Do You Want Your Stocks to Do for You?
  9. Chapter 3: Defining the Basic Trading Styles
    1. Momentum Style
    2. Aggressive Growth Style
    3. Value Style
    4. Growth and Income Style
    5. “All Style” Style
    6. Technical Analysis
    7. Winning in Style
  10. Chapter 4: Trading the Zacks Rank
    1. The Zacks Rank versus the Market
    2. About Len Zacks
    3. Calculating the Zacks Rank
    4. What the Rankings Mean
    5. Four Factors of the Zacks Rank
  11. Chapter 5: Beyond the Zacks Rank
    1. Filtering the Zacks Rank
    2. How Many Stocks Are Right for You?
  12. Chapter 6: How to Trade the Strategies
    1. Once a Month
    2. Once a Week
    3. Combining Holding Periods
  13. Chapter 7: Winning Momentum Strategies
    1. Big Money
    2. Earnings Acceleration
    3. Increasing Earnings
    4. New Highs
    5. Using New Highs for Sector and Industry Analysis
    6. Summary
  14. Chapter 8: Winning Aggressive Growth Strategies
    1. Small-Cap Growth
    2. All-Cap Growth
    3. Sizing Up the Markets
    4. Zacks Rank 5 or 4 to 1
    5. First Profit
    6. Summary
  15. Chapter 9: Winning Value Strategies
    1. Value and Spark
    2. R-Squared Growth
    3. ROE for Your ROI
    4. Cash Is King
    5. Price to Cash Flow
    6. Statistical Analysis of P/CF, P/E, P/S, P/B, and PEG
    7. Combined Valuation Screen
    8. Summary
  16. Chapter 10: Winning Growth and Income Strategies
    1. Growth and Income Winners
    2. Growth and Income Method 1
    3. Modifying Your Strategies
    4. Dividend Attraction
    5. Summary
  17. Chapter 11: Winning “All Style“ Strategies (and Other Stuff That Works)
    1. Finding Growth and Value Stocks the Right Way
    2. Sales and Margins
    3. Relative Price Strength
    4. Broker Rating Upgrades
    5. New Analyst Coverage
    6. Top Stocks, Top Industries
    7. Combining Two Great Ways for Identifying the Best Sectors and Industries
    8. Earnings Yield
    9. Calculating Price Targets
    10. Summary
  18. Chapter 12: Applying Technical Analysis
    1. Increasing Price and Volume
    2. TA and FA Winners
    3. 3 Days Up, Price and Volume
    4. Moving Averages
    5. Summary
  19. Chapter 13: Identifying Chart Patterns
    1. Symmetrical Triangles
    2. Ascending Triangles
    3. Descending Triangles
    4. Flags and Pennants
    5. Rectangles
    6. Wedges
    7. Head and Shoulders
    8. Inverted Head and Shoulders
    9. Screening for Chart Patterns and Consolidation Areas
    10. The Pattern That Called the Market Top and Bottom in 2007 and 2009
    11. Summary
  20. Chapter 14: The Right Tools for the Job
    1. A Good Ranking System
    2. Screeners and Backtesters
    3. Research Wizard: A Complete Research Tool
  21. Chapter 15: Getting Started Screening and Backtesting
    1. Screening for Stocks
    2. Backtesting Your Screens
    3. Advanced Screening and Backtesting
    4. Summary
  22. Chapter 16: Short Selling Strategies for Bear Markets
    1. Toxic Stocks
    2. Decreasing Earnings Two Years Out
    3. Summary
  23. Chapter 17: Managing Risk and Cutting Losses
    1. Using Stop Losses
    2. Diversification and Portfolio Weighting
    3. Summary
  24. Chapter 18: Know Your Options
    1. The Option Is Yours
    2. Buying Calls and Puts
    3. Straddles and Strangles
    4. Spreads
    5. Covered Call Writing
    6. Uncovered Call Writing
    7. Put Option Writing
    8. Stock Screening for Options
    9. Summary
  25. Chapter 19: Investing in ETFs
    1. ETFs for Any Market and Any Direction
    2. Screening for the Right Sector and Industry ETFs
  26. Chapter 20: Putting It All Together
  27. Disclaimer
  28. Free Trials and Other Resources
  29. Index

Product information

  • Title: Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies
  • Author(s): Kevin Matras
  • Release date: April 2011
  • Publisher(s): Wiley
  • ISBN: 9780470903407