Aside from deciding what stock to buy;
to buy it could be the question of all questions when it comes to
The Zacks Rank, which keys in on earnings estimate revisions, can
be a market timer's best friend as it'll show you when a stock is
most likely to move.
As the saying goes, "earnings estimate revisions are the most
powerful force impacting stock prices". And the Zacks Rank is one
of the best ways to find those stocks with the best upward earnings
estimate revisions ready to take off.
USANA Health Sciences (
After trending down into the close of 2012, USANA Health Sciences
was not likely on many people's radar for stocks to buy.
But that all changed on February 8th when they were upgraded to a
Zacks Rank #2 (Buy) after the stock received a hefty upward
earnings estimate revision.
Investors piled in on this signal, sending USNA up 7.54% in one
week's time. Three and a half months later, which included 15
upward earnings estimate revisions and 1 positive EPS surprise, the
stock was up 64.82% vs. the S&P's 8.68% during that same time.
As you can see, the stock followed higher the steady increase of
rising earnings estimates. That first upward revision clearly set
in motion a continuous series of additional upward revisions (which
is often the case), as the analysts covering the stock upgraded
their outlook on it over and over again.
Finding stocks coming out of a bottom can be a phenomenally
rewarding experience. But too many stocks can languish in this
stock picker's "no man's land" for far too long. Or worse, head
even lower on its way to making a newer and lower bottom.
But it doesn't have to be that way. Whether a stock is at its
recent lows (or at its highs, or somewhere in between), the
catalyst of upward earnings estimate revisions sends a strong
signal to the market that the stock is ready to respond.
But when you see this signal (Zacks Rank #1 (Strong Buy) or Zacks
Rank #2 (Buy)), don't delay. Stocks like these are quick to move
(as illustrated above), and will reward investors savvy enough to
read the signs and take action.
Click here to see more Zacks Rank #1 and #2 stocks
Disclosure: Performance information for Zacks portfolios and
strategies are available at:
USANA HLTH SCI (USNA): Free Stock Analysis
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