Sometimes, getting into a good stock is the easy part. It's the
'staying in' that can sometimes prove to be most difficult.
Investors talk themselves out of good trades all the time.
The Zacks Rank, of course, helps you find and get into the top
performers. But also, with clear steps, it can show you how to stay
in the most profitable ones.
LSB Industries (
LSB Industries is a mid-cap blend (growth and value) stock in the
Diversified Operations Industry. They manufacture and sell chemical
products for a wide range of industries including the agricultural,
industrial and automotive industries.
Even though it's a 25 year old company, it's not one of those names
most investors are familiar with. But it's definitely a name Zacks
customers are now familiar with after embarking on a 36% gain in
less than 2 ½ months.
On July 20th, 2012, LXU, which had been in a trading range for
months, got the signal that alerted investors that it was finally
ready to breakout. That signal was the Zacks Rank #1 (Strong Buy),
which forecast that it would outperform the market over the next
At that time, it was trading at $32.03 with a 12 Month Forward
Earnings Estimate of $3.75. Two and a half months later, and a
series of upward earnings estimate revisions (see the green line in
the chart below), LXU had retained its Zacks Rank #1, and gained
for its investors a 36.97% return vs. the S&P 500's mere 5.73%.
When earnings estimates are going up, the stock should go up as
well. In short, the price should follow the earnings estimates.
Overcome self-doubt and trade with confidence by focusing on the
Zacks Rank and the most important factor influencing stock prices -
earnings estimate revisions. When estimates start heading down
that's your cue to get out. When estimates are going up that's when
it's time to sit back and enjoy the ride.
Click here to find more Zacks Rank #1 stocks.
Disclosure: Performance information for Zacks' portfolios and
strategies are available at:
LSB INDS INC (LXU): Free Stock Analysis Report
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