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Zacks.com featured highlights: Calavo Growers, Cytokinetics, Sucampo Pharmaceuticals, State National and CryoLife

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For Immediate Release

Chicago, IL - December 29, 2016 - Stocks in this week's article include Calavo Growers, Inc. (NASDAQ: CVGW - Free Report ), Cytokinetics, Incorporated (NASDAQ: CYTK - Free Report ), Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP - Free Report ), State National Companies, Inc. (NASDAQ: SNC - Free Report ) and CryoLife Inc. (NYSE: CRY - Free Report ).

Screen of the Week of Zacks Investment Research:

5 Profitable Stocks to Buy for Great Returns

Profitability analysis is generally used to assess a company's pricing strategies. Here, we have used profitability analysis to assess a company's ability to generate strong returns after meeting all its business expenses.

Although a company with stable profitability and weak fundamentals may fail to provide satisfactory results, studies show that a profitable company might turn out to be an effective investment option for return-seeking investors.

The best way to measure a company's profitability is by using ratio analysis. Profitability ratios are basically of three types, gross income ratio, operating income ratio and net income ratio. From these, we have chosen the most transparent and widely used one - the net income ratio.

Net Income Ratio

Net income ratio gives us the exact profit level of a company. It reflects the percentage of net income to total sales revenue. Using net income ratio, one can determine a company's capability to clear all its operating and non-operating expenses from its sales revenue. A higher net income ratio usually implies a company's ability to generate ample sales revenue and successfully manage all its business functions.

Screening Parameters

Net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.

Zacks Rank equal to #1: Only Zacks Rank #1 (Strong Buy) stocks are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off. You can see the complete list of today's Zacks #1 Rank stocks here.

12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.

12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company's solid profitability.

% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.

Here are five of the seven stocks that qualified the screening:

Calavo Growers, Inc. (NASDAQ: CVGW - Free Report ) engages in the procurement and marketing of avocados and other perishable foods along with the preparation and distribution of processed avocado products. It has an average four-quarter earnings surprise of 11.8%.

Cytokinetics, Incorporated (NASDAQ: CYTK - Free Report ) is a late-stage biopharmaceutical company focused on discovering, developing and commercializing first-in-class muscle activators as potential treatments for debilitating diseases. It has an average four-quarter earnings surprise of more than 100%.

Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP - Free Report ) is an emerging pharmaceutical company focused on the discovery, development and commercialization of proprietary drugs based on prostones. It has an average four-quarter earnings surprise of 35.6%.

State National Companies, Inc. (NASDAQ: SNC - Free Report ) is a specialty provider of property and casualty insurance. It has an average four-quarter earnings surprise of 21.3%.

CryoLife Inc. (NYSE: CRY - Free Report ) aims to manufacture and distribute medical devices globally. It has an average four-quarter earnings surprise of over 300%.

While backtesting over a two-year timeframe (Dec 19, 2014 to Dec 16, 2016), a portfolio following this strategy provided a total return of 30.2% compared with the S&P 500's return of 7.4%. Thus, this strategy may prove profitable for those looking to beat the market.

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The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.

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Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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CALAVO GROWERS (CVGW): Free Stock Analysis Report

CYTOKINETCS INC (CYTK): Free Stock Analysis Report

SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report

STATE NATL COS (SNC): Free Stock Analysis Report

CRYOLIFE INC (CRY): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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