Stocks with a Zacks Rank #1 (Strong Buy) are picked to
outperform the market over the next 1-3 months. But, many of these
short-term outperformers can turn into longer-term positions,
resulting in even more impressive gains.
In the example below, we show you how to identify the top stocks
ready to develop into the best uptrends. Hint: it's all about the
earnings estimate revisions.
Texas Capital Bancshares (TCBI)
Texas Capital Bancshares was one of those stocks that looked set to
outperform over a 1-3 month timeframe, but then continued to
outperform for many more months to come.
TCBI is a mid-cap blend (growth and value) stock in the Financial
Industry. As a regional bank headquartered in Texas, it's not one
of those stocks with a national presence or name recognition. In
fact, if you didn't live in Texas, you'd be hard pressed to have
ever heard of it.
But many of your favorite stocks were likely new to you at some
point. The trick is getting these onto your radar screen so you
become aware of them. And having the confidence that when they do,
they are worthy of taking a position.
On December 9, 2011, TCBI was singled out as a top stock when it
received a Zacks Rank #1. Even as many investors were still
shunning financial stocks, this one stood out from the others,
ready to outperform.
Between 12/9/11, when it was trading at $31.77, and 9/28/12, when
it closed at $49.71, TCBI rewarded investors with a 71.71% gain in
just 14 months compared to the market's 20.12%, for more than a 51%
During that time, their 12 Month Forward Earnings Estimates climbed
from $2.20 to $3.16, which was a 43.64% increase, and the clear
catalyst for TCBI's stellar gains.
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 TCBI's run-up. And the broader
market had its up and downs. But their earnings estimates kept
pointing higher, giving investors plenty of reason to push the
stock up, and keeping you on board the entire time.
You too can find your next big winner, and stay in it by following
their earnings estimate revisions and the Zacks Rank.
Click here to find more Zacks Rank #1 stocks.
Disclosure: Performance information for Zacks' portfolios and
strategies are available at:
TEXAS CAP BCSHS (TCBI): Free Stock Analysis
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