Using the Zacks Rank for Long-Term Gains - Anatomy of Success
February 13 2014 - 1:10AM
Zacks
The Zacks Rank is ideal for getting you in on the most profitable
opportunities over a 1-3 month period, making the Zacks Rank an
excellent timing indicator.
But it's also great for getting into stocks that develop into
longer-term trades and core holdings.
One of the toughest parts of investing is staying in a stock
that's going up and not getting out prematurely. For whatever
reason, too many investors are quick to cut their profits short and
let their losses run. Of course, the opposite of that is what
should be done.
But by following the Zacks Rank and the trajectory of earnings
estimate revisions, not only will you know when to buy, but also
learn how to ride your best stocks for bigger gains. And when the
time comes, know when to sell.
FleetCor (FLT)
FleetCor is one of those stocks that looked set to outperform
over a 1-3 month timeframe, but then turned into a longer-term
holding, resulting in even more impressive gains.
The company operates as a provider of specialized payment
products in the Financial Services industry.
And it quickly became a favorite holding in many portfolios.
On August 17, 2012, FLT was singled out as a top stock when it
received a Zacks #1 Rank.
Even as many investors were still shunning financial stocks,
this one stood out from the others, ready to outperform.
Over the course of the next 14 months (10/4/13), they received
59 upward earnings estimate revisions in a row, produced 4 positive
EPS surprises, and rewarded investors with a 163.38% gain compared
to the market's 41.60%.
During that time, their 12 Month Forward Earnings Estimates
steadily climbed from $2.91 to $4.25, and was the clear catalyst
for FLT's stellar gains.
Chart: courtesy of Zacks Research Wizard
Once you're in a stock destined for greatness, it's important to
not get bucked off. To be sure, there were both positive news
stories and negative news stories throughout their run-up. And the
broader market had its up and downs. But their earnings estimates
kept pointing higher, keeping you on board the entire time.
Click here to find more Zacks Rank #1 Stocks.
Disclosure: Performance information for Zacks’ portfolios and
strategies are available at:
http://www.zacks.com/performance.
FLEETCOR TECH (FLT): Free Stock Analysis Report
To read this article on Zacks.com click here.
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