Zacks.com Featured Expert Kevin Matras Highlights: Healthcare Services Group, NetEase.com and Torchmark Corporation

Business Wire,  Feb 7, 2007  

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CHICAGO -- With Earnings Season in full swing, Kevin Matras goes over a screening strategy that targets consistently increasing earnings. Stocks in this week's article are Healthcare Services Group, Inc. (NASDAQ: HCSG), NetEase.com Inc. (NASDAQ: NTES) and Torchmark Corp. (NYSE: TMK). 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:

With more than 2,000 companies reporting earnings in the coming weeks, here are two screens to help you take advantage of this busy season.

In both good markets and bad, strong earnings are one of the most important factors that influence stock prices. But instead of just looking at the most recent quarter's earnings, try looking for a pattern of increasing earnings.

Sideways earnings eIgrowth' (even if it's good) or decelerating earnings can potentially signal a period of consolidation (or slowdown), which in turn can flatten out prices or send them lower. But steadily increasing earnings, in which each period improves upon the last, typically means the company is doing something right. This can often be the difference between good stocks and great stocks.

The Parameters

In this screen, I'm looking for each of last seven quarters of earnings to be greater than the previous quarter's earnings. (And each one of these stocks reports within the next two weeks.)

The parameters are:

Quarterly EPS Q(0) greater than Quarterly EPS Q(-1)

Quarterly EPS Q(-1) greater than Quarterly EPS Q(-2)

Quarterly EPS Q(-2) greater than Quarterly EPS Q(-3)

Quarterly EPS Q(-3) greater than Quarterly EPS Q(-4)

Quarterly EPS Q(-4) greater than Quarterly EPS Q(-5)

Quarterly EPS Q(-5) greater than Quarterly EPS Q(-6)

Quarterly EPS Q(-6) greater than Quarterly EPS Q(-7)

This screen is a great stock picker because it demands a consistency of excellent performance from a company over an eIextended' period of time. This strategy will typically find stocks with fantastic earnings consistency and a history of beating earnings expectations.

Here are three stocks from this list (2/5/07):

HCSG Healthcare Services Group, Inc.

NTES NetEase.com Inc.

TMK Torchmark Corp.

Most screeners won't allow you to compare one period's earnings to another period, let alone the last seven quarters or more. But the Research Wizard will.

Sign up now for your two-week free trial to the Research Wizard and take your stock screening to another level. And when you're done, backtest it to see if it works! And don't forget to check out the winning trading strategies that come loaded with the program. Know when to buy and when sell. It's all there.

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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