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September 08, 2010 05:00 PM Eastern Time 

Zacks.com featured expert Kevin Matras highlights: China Telecom Corporation Ltd., G-III Apparel Group, Ltd., Zhongpin Inc., Northern Oil and Gas, Inc. and Steven Madden, Ltd.

CHICAGO--(BUSINESS WIRE)--Stocks in this week’s article include: China Telecom Corporation Ltd. (NYSE: CHA), G-III Apparel Group, Ltd. (NASDAQ: GIII), Zhongpin Inc. (NASDAQ: HOGS), Northern Oil and Gas, Inc. (AMEX: NOG) and Steven Madden, Ltd. (NASDAQ: SHOO). Kevin Matras explains why stocks with new analyst coverage are stocks you want to own.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

Today I want to talk about companies that receive new analyst coverage. One of the things that generate analyst coverage is investor interest. New coverage makes a company more visible, which in turn means potentially more demand (read higher prices).

This is often the case because analysts almost always initiate coverage with a positive recommendation. (Why write a research report on a company not widely followed only to say that it stinks?)

For companies with little to no analyst coverage, that one new recommendation can sometimes give portfolio managers the validation to build a position. (And the more money they can invest, the more they can potentially influence prices.)

The best way to use this information is to look for companies with analyst coverage that has increased over the last four weeks. Take a look at the number of analyst recommendations now in comparison to the number of analyst recommendations four weeks ago. An increase in coverage is bullish whereas a decrease is bearish.

It's typically more bullish if the increase went from none to one or if the coverage was minimal to begin with. (Going from 25 to 26 isn't going to have the same impact because that 26th analyst isn't discovering anything 'new'.) But increased coverage is better than decreased coverage –- assuming the coverage is positive of course.

Here's a screen to try:

For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/15596/

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: http://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 http://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=113

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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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