CHICAGO, April 11, 2013 Today, Zacks Investment Ideas feature highlights Features: Texas Capital Bancshares (Nasdaq: TCBI).
Anatomy of Success: Long-Term
Stocks with a Zacks Rank #1 (Strong Buy) are picked to outperform the market over the next 1-3 months. But, many of these short-term outperformers can turn into longer-term positions, resulting in even more impressive gains.
In the example below, we show you how to identify the top stocks ready to develop into the best uptrends. Hint: it's all about the earnings estimate revisions.
Texas Capital Bancshares (Nasdaq: TCBI)
Texas Capital Bancshares was one of those stocks that looked set to outperform over a 1-3 month timeframe, but then continued to outperform for many more months to come.
TCBI is a mid-cap blend (growth and value) stock in the Financial Industry. As a regional bank headquartered in Texas, it's not one of those stocks with a national presence or name recognition. In fact, if you didn't live in Texas, you'd be hard pressed to have ever heard of it.
But many of your favorite stocks were likely new to you at some point. The trick is getting these onto your radar screen so you become aware of them. And having the confidence that when they do, they are worthy of taking a position.
On December 9, 2011, TCBI was singled out as a top stock when it received a Zacks Rank #1. Even as many investors were still shunning financial stocks, this one stood out from the others, ready to outperform.
Between 12/9/11, when it was trading at $31.77, and 9/28/12, when it closed at $49.71, TCBI rewarded investors with a 71.71% gain in just 14 months compared to the market's 20.12%, for more than a 51% excess return!
During that time, their 12 Month Forward Earnings Estimates climbed from $2.20 to $3.16, which was a 43.64% increase, and the clear catalyst for TCBI's stellar gains.
Once you're in a stock destined for greatness it's important to not get bucked off. To be sure, there were both positive news stories and negative news stories throughout TCBI's run-up. And the broader market had its up and downs. But their earnings estimates kept pointing higher, giving investors plenty of reason to push the stock up, and keeping you on board the entire time.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.
Then when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, 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. Get your free subscription to Profit from the Pros at: http://at.zacks.com/?id=7298
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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.
SOURCE Zacks Investment Research, Inc.