The market rose on Tuesday, with the Nasdaq up 1.3%, while the S&P 500 jumped 0.8% and the Dow Jones jumped 1.1%. There has been no major catalyst and the market has now crashed in recent sessions after Facebook/Meta and a few other names dragged the market down last week.
Many of the best-known mega-cap tech stocks have now reported, with the next big wave of earnings expected to come from retailers. Even though 10-year US Treasuries touched 1.97% on Tuesday and Wall Street worries about the potential for relatively large rate hikes starting in March, market sentiment appears to have improved from this that it was a few weeks ago.
Even in the face of all the legitimate worries, coupled with fears of a tough or at least tepid year on Wall Street after three years of huge gains, investors don’t necessarily want to sit on the sidelines. In fact, staying constantly exposed to the market, however difficult it may be during selling periods, is often the most prudent long-term strategy.
Against this backdrop, investors might be considering adding stocks in February, and Zacks’ “First Profit” screen is a solid place to start looking…
The idea is to look for companies that have recently reported their first quarterly profit. Specifically, the screen looks for companies that just posted their first earnings last quarter, after not posting any earnings for at least the previous four quarters.
Find companies that have recently declared their first earnings help investors find stocks that can turn out to be big winners. These companies can vary greatly. Some of the companies might be new, and this recent profit may be the only profit in its short history.
Meanwhile, other companies may have maintained an impressive and long track record of quarterly profitability, but for some reason haven’t seen a profit in quite some time. Therefore, the return to earnings could trigger a turn that management had promised or that Wall Street was clamoring for.
The concept is relatively simple: if the trend has been improving, chances are the trend will continue. This is true whether the business has been profitable or is just reaching that key inflection point.
And that’s what we’re looking for today…
• EPS for the last 4 quarters less than or equal to 0
(This means that in each of the previous 4 quarters (except the last reported quarter) the company reported earnings less than or equal to zero, i.e. no earnings.)
• EPS for the recently published quarter above 0
(This time the company reported earnings greater than zero, meaning it finally made a profit.)
• Current price greater than or equal to 5
(Stocks trading below $5 are more speculative.)
The screen is quite simple, but powerful. here is of them almost 50 stocks that have crossed the screen this week…
Vermilion Energy VETERINARY
Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of generating assets. Vermilion’s business is focused on the exploitation of conventional light oil and liquids-rich natural gas resource deposits in North America, as well as the exploration and development of conventional natural gas and oil opportunities in Europe and Australia.
Vermilion is a Zacks Rank #1 (Strong Buy) at the moment and is part of a highly ranked Oil & Gas – Exploration & Production – International industry. VET stock has soared 190% in the past year to destroy the S&P 500’s 15% rise and its industry’s 115%.
Hyatt Hotels H is a leading global hospitality company. Hyatt’s portfolio currently includes approximately 1,000 hotels and all-inclusive properties in nearly 70 countries on six continents. Hyatt, like many others in the travel and leisure industry, was crushed by covid early on.
Hyatt has begun to rebound significantly, with its FY21 revenue expected to rise 50%, then climb 76% in FY22 to $5.5 billion and surpass its sales total. pre-covid. And its bottom line is moving in the right direction. Hyatt is expected to release its fourth quarter financial results on Wednesday, February 16.
Get the rest of the stocks on this list and start searching for the newest companies that meet these criteria. It is easy to do. And it could help you find your next big winner. Start screening these companies today with a free trial of Search Assistant. You can do it.
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Disclosure: Information on the performance of Zacks portfolios and strategies is available at: https://www.zacks.com/performance/.
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