For Immediate Release
Chicago, IL – January 23, 2017 - Stocks in this week’s article include MKS Instruments, Inc. (NASDAQ: MKSI - Free Report ), Bank of the Ozarks, Inc. (NASDAQ: OZRK - Free Report ), Vantiv, Inc. (NYSE: VNTV - Free Report ), Bank of America Corporation (NYSE: BAC - Free Report ) and Tesoro Logistics LP (NYSE: TLLP - Free Report ).
Screen of the Week of Zacks Investment Research:
Best 5 Stocks Boasting Earning Growth
Regardless of whether a company is a fledgling or established one, steady earnings growth is what entices all. This is simply because earnings are a measure of the money a company is making. Take a company’s revenues over a given period of time, subtract the cost of production and you will have its earnings!
This metric is also considered to be the most significant variable in influencing the share price. Better-than-expected earnings performances normally lead to a rally in the share price. However, in addition to actual earnings, expectations of earnings play a vital role in determining share price movement.
Earnings Estimates Determine Share Prices
We have often seen a decline in the stock price despite earnings growth and a rally in the price following an earnings decline. This happens because of the missing or beating of estimates.
Earnings estimates embody analysts’ opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost controls. Thus, earnings estimates serve as a valuable tool while taking investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.
Hence, it is important for investors to buy stocks that have historical earnings growth and are also seeing a rise in quarterly and annual earnings estimates.
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 2 (Only Zacks' 'Buys' and 'Strong Buys' 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.)
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.)
% 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 7,818 stocks to only 15. Here are the top five stocks:
MKS Instruments, Inc. (NASDAQ: MKSI - Free Report ) provides instruments, subsystems, and process control solutions that measure, control, power, monitor, and analyze critical parameters of manufacturing processes in the U.S. and internationally. The company’s estimated growth rate for this year is 21.1%. MKSI has a Zacks Rank #2 (Buy).
Bank of the Ozarks, Inc. (NASDAQ: OZRK - Free Report ) operates as a bank holding company for Bank of the Ozarks that provides various banking products and services. The company’s estimated growth rate for this year is 19%. Bank of the Ozarks has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .
Vantiv, Inc. (NYSE: VNTV - Free Report ) provides electronic payment processing services to merchants and financial institutions in the U.S. The company’s estimated growth rate for this year is 14.9%. Vantiv carries a Zacks Rank #2.
Bank of America Corporation (NYSE: BAC - Free Report ) provides banking and financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. The company’s estimated growth rate for this year is 15.2%. Bank of America has a Zacks Rank #2.
Tesoro Logistics LP (NYSE: TLLP - Free Report ) owns, operates, develops and acquires logistics assets related to crude oil and refined products in the U.S. The company’s estimated growth rate for this year is 50.6%. Tesoro Logistics sports a Zacks Rank #1.
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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.
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MKS Instruments, Inc. (MKSI): Free Stock Analysis Report
Bank of the Ozarks (OZRK): Free Stock Analysis Report
Vantiv, Inc. (VNTV): Free Stock Analysis Report
Bank of America Corporation (BAC): Free Stock Analysis Report
Tesoro Logistics LP (TLLP): Free Stock Analysis Report
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