CHICAGO, Feb. 9, 2011 /PRNewswire/ -- Stocks in this week's article include: Raytheon Company (NYSE: RTN), Oshkosh Corp. (NYSE: OSK), Hexcel Corp. (NYSE: HXL), Suntech Power Holdings Co. Ltd. (NYSE: STP) and Southwest Gas Corp. (NYSE: SWX). Kevin Matras goes over the new Top Sectors and how to use them in your own trading.
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Screen of the Week written by Kevin Matras of Zacks Investment Research:
It's that time again. Every few months, I like running this screen to find the new Top Sectors. And since roughly half of a stock's price move can be directly attributed to the group that it's in, it's important to stay on top of this.
By definition, a strong Sector or strong Industry will have more of its companies moving higher than a weak Sector or weak Industry. What's interesting is that just getting into an average stock in a strong group will often outperform the best stocks in a troubled group.
This doesn't mean you can just pick anything and you'll make money. Far from it. But it illustrates how powerful the underlying group is to the success of your stock picking.
There are several ways you can define the best Sectors or Industries. Today, I'm combining my two favorite ways:
1) I'm ranking the sectors based on the average Zacks Rank.
2) I'm ranking the sectors based on the percentage of stocks trading within 10% of their 52 week highs.
And the top five Sectors based on this scoring method are:
For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/16983/
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SOURCE Zacks Investment Research, Inc.
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