CHICAGO, March 28, 2013 /PRNewswire/ -- Stocks in this week's article include: Ashford Hospitality Trust Inc. (NYSE: AHT), Douglas Emmett Inc. (NYSE: DEI), ManpowerGroup Inc. (NYSE: MAN), Northrop Grumman Corp. (NYSE: NOC) and Crosstex Energy LP (NASDAQ: XTEX). Kevin Matras shows how to find the top stocks in the top sectors with the biggest potential catch-up price moves.
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Screen of the Week written by Kevin Matras of Zacks Investment Research:
First, it focuses on the top Zacks Ranked Sectors and Industries. Then it focuses on the Zacks Rank #1s, #2s and #3s, which are Strong Buys, Buys and Holds, respectively. But then it selects the outperforming stocks with the smallest percentage price change over the last 4 weeks.
Why would I do something like that?
You've probably heard the old adage that roughly half of a stock's price movement can be attributed to the group that it's in. And that's true. In fact, oftentimes, even a mediocre stock in a top group will outperform a top stock in a poor group for this very reason.
Now, take a look at any top group. You'll see plenty of fantastic stocks with some impressive price gains in there. But not every stock in every group moves in lockstep at the exact same time. Some will move more than others at any given time.
So by focusing on the stocks with the smallest percentage price change with fundamentals that are just as good as those making the biggest price change, you might find yourself getting into the stocks ready to make the biggest potential catch-up moves.
Here's how to set up that screen…
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