Zacks.com Featured Expert Kevin Matras Highlights: The Andersons, Eclipsys, Flowers Foods, Macquarie Infrastructure and NTELOS Holdings

CHICAGO--(BUSINESS WIRE)--Kevin Matras shows how to find bottomed-out stocks before they turn higher. Stocks in this weeks article are The Andersons, Inc. (NASDAQ: ANDE), Eclipsys Corporation (NASDAQ: ECLP), Flowers Foods, Inc. (NYSE: FLO), Macquarie Infrastructure Company (NYSE: MIC) and NTELOS Holdings Corp. (NASDAQ: NTLS). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109

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

In this week's screen, I'm searching for companies that I usually don't search for; bottomed out stocks that have recently hit or are trading near their 52-week lows.

If the broader markets hit bottom back on Oct 10 with the Dow at 7,882.51, then most solid companies should see their stock prices go higher. But in this screen, I'm particularly interested in those stocks that have recently hit a potential bottom. Not just any bottom, but a recent 52-week low.

I'm looking for these kinds of stocks because some spectacular stocks have completely bucked the falling market's downtrend. And while many of these stocks will continue to do so, some will now fall or become out of favor as new Sectors and Industries take on leadership roles. But as the market recovers and these stocks begin to get noticed, there should have some excellent upside potential.

Parameters

  • Zacks Rank less than or equal to 2

The Zacks Rank is one of the best Ranking systems out there, with the Zacks #1 Ranks showing an average annual return of over 30%, and the Zacks #2 Ranks nearly 20%. The Zacks #4 Ranks and Zacks #5 Ranks, which are Sells and Strong Sells, have underperformed the market with returns of less than half as much and worse so we're keeping those off of our list.

  • % Change in F(1) Earnings Estimates over the last 4 weeks greater than or equal to 0
  • % Change in F(2) Earnings Estimates over the last 4 weeks greater than or equal to 0

We want to make sure that the analysts covering them are raising their estimates and getting more bullish on the stocks. And looking at the full-year estimate revisions helps to show how analysts feel about the companies beyond just 1 or 2 quarters.

  • Year over Year Projected EPS Growth greater than 20

These companies need a growth story. Without any growth, it's hard to make a case for a sustained rally. So a brighter future for these companies is a must.

  • Current Price/52 Week High-Low Range less than or equal to .2

Stocks trading at their 52-Week low will have a ratio value of 0. Stocks with a ratio value of .2 means it's 20% above the low. This screen looks for companies less than 20% off the low. In other words, it can be on the low, just a bit off the low or even up to 20% above it. But we're excluding companies more than 20% above the low as we want to make sure that we are not getting into stocks that might be overextended on the upside.

  • I'm also applying the above parameters to stocks over $5 with over 100,000 shares traded.

Results

This week (10/28/08), the screen produced 67 companies. Here are 5 of them:

ANDE   Andersons, Inc.
ECLP Eclipsys Corp.
FLO Flowers Foods, Inc.
MIC Macquarie Infrastructure Co.
NTLS NTELOS Holdings Corp.

This screen can easily be created on the free Custom Screener on Zacks.com. Try creating it yourself.

You can also supercharge your screen by using the Research Wizard stock-picking and backtesting program. And of course, with the Research Wizard, you can backtest it to see how it works. Then, you can refine it and tweak it until you get it just right.

You'll find that a lot of these stocks have put in double-bottoms, or rounded bottoms, or spike bottoms, or even inverted head-and-shoulder bottoms. And for anybody who looks at charts, it's a great way to put fundamentally-improving companies with bottoming chart formations onto your radar screen.

Get the rest of the stocks on this list and start your search for more bottomed-out stocks with the likelihood of turning higher. It's easy to do.

Get started with the Free Screener of Zacks.com: http://at.zacks.com/?id=4865

Or sign up now for your free trial to the Research Wizard and start finding bottomed-out stocks before they get away: 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

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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.

Contacts

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