Markets

Zacks.com featured highlights: Marriott Vacations Worldwide, Mobile Mini, Belden, First Defiance Financial and First Midwest Bancorp

For Immediate Release

Chicago, IL - July 26, 2016 - Stocks in this week's article include: Marriott Vacations Worldwide Corp. ( VAC ), Mobile Mini Inc. ( MINI ), Belden Inc. ( BDC ), First Defiance Financial ( FDEF ) and First Midwest Bancorp Inc. ( FMBI ).

Screen of the Week of Zacks Investment Research:

5 Strong Buy Stocks with Solid Earnings Growth

Consider a company's revenues over a given period of time, subtract the cost of production and you have earnings. In simple terms, it is how much money a company generates. If the company doesn't make money then it won't survive over the long haul. This is the reason why securing earnings growth on a year-over-year basis is the highest priority among the top brass of any organization, be it a fledgling company or an established corporation.

This metric is also considered to be the most significant variable in influencing the share price. Better-than-expected earnings performances generally lead to a jump in the share price. In addition to actual earnings, expectations of earnings also play a significant role in influencing the share price.

How does Earnings Estimates Impact Share Prices?

Earnings estimates are a valuable tool for investors while deciding whether or not to buy a stock. This is because a stock price has been seen to decline despite earnings growth or for that matter a stock price has even surged following an earnings decline. This happens because of missing or beating estimates. So, what does earnings estimates embody?

It includes analysts' opinions of factors such as sales growth, product demand, competitive industry environment, profit margins, expenses and cost control. Earnings estimates also help an analyst to use cash flow analysis to determine the fair value of a firm.

As we are in the thick of the earnings season, this is the right time to look at stocks that have historical earnings growth and also whose quarterly and annual earnings estimates are on the rise.

The Winning Strategy

In order to shortlist stocks that have striking earnings growth and positive estimate revisions, we added the following parameters:

Zacks Rank less than or equal to 1 (Only Zacks' 'Strong Buys' 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.)

5-Year Historical EPS Growth (%) greater than X-Industry. (Stocks that possess strong EPS growth history.)

% Change EPS F(0)/F(-1) greater than or equal to 5 (Companies that witnessed year-over-year earnings growth rate of 5% or more in the last reported fiscal year.)

% Change Q1 Estimates over the last 4 weeks greater than zero (Stocks that have seen their current quarter earnings estimates revised higher in the last 4 weeks.)

% Change F1 Estimates over the last 1 week greater than zero (Stocks that have seen their annual earnings estimates revised higher in the last 1 week.)

% Change F1 Estimates over the last 4 weeks greater than zero (Stocks that have seen their annual earnings estimates revised higher in the last 4 weeks.)

The above criteria narrowed down the universe of around 7,735 stocks to only 7. Here are the top 5 stocks:

Marriott Vacations Worldwide Corp. ( VAC ) is a developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The company has expected earnings growth of 26.2% for the current year.

Mobile Mini Inc. ( MINI ) is a provider of portable storage solutions in the United States. The company has expected earnings growth of 10.2% for the current year.

Belden Inc. ( BDC ) designs, manufactures and markets signal transmission solutions worldwide. The company has expected earnings growth of 13.1% for the current year.

First Defiance Financial ( FDEF ) is a unitary thrift holding company that focuses on traditional banking and property and casualty, life and group health insurance products. The company has expected earnings growth of 12.1% for the current year.

First Midwest Bancorp Inc. ( FMBI ) operates as a bank holding company for First Midwest Bank that provides various banking products and services. The company has expected earnings growth of 8.4% for the current year.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

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

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

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

About Zacks

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 .

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/performance

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MARRIOT VAC WW (VAC): Free Stock Analysis Report

MOBILE MINI INC (MINI): Free Stock Analysis Report

FIRST DEFIANCE (FDEF): Free Stock Analysis Report

BELDEN INC (BDC): Free Stock Analysis Report

FIRST MIDWST BK (FMBI): 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.

In This Story

FMBI BDC MINI VAC FDEF

Other Topics

Stocks