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Zacks.com featured highlights: Dycom Industries, QVC Group, Retrophin, Facebook and Gener8 Maritime

For Immediate Release

Chicago, IL – June 16, 2016 - Stocks in this week’s article include: Dycom Industries Inc. (DY), QVC Group (QVCA), Retrophin, Inc. (RTRX), Facebook, Inc. (FB) and Gener8 Maritime Inc. ( GNRT).

Screen of the Week of Zacks Investment Research:

5 Profitable Stocks for Enhancing Your Portfolio Returns

The profitability of a company primarily indicates its ability to generate surplus sales revenue to not only meet all its expenses but also create stable returns for its investors. However, it is not necessary that a profitable company will succeed in generating favorable returns. That’s because such a company might have certain fundamental weaknesses, which may hamper its stock price.

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But, several studies indicate that a company with high profitability generally produces attractive returns.

Here, we have used profitability ratios to arrive at a detailed understanding of a company’s profitability position. From a variety of profitability ratios we have selected net income ratio, as it is the simplest and most effective profitability metric.

Net Income Ratio

Net income ratio shows the bottom line of a company. It reflects the percentage of net income to total sales revenue. Using net income ratio one can measure a company’s effectiveness to pay all its operating and non-operating expenses from its sales revenue. A higher net income ratio normally implies a company’s ability to generate ample sales revenue and successfully manage all its business functions.

Screening Parameters

Net income ratio is not the only indicator of future winners. As such, we have added a few additional criteria to arrive at a winning strategy.

Zacks Rank equal to #1: Only Strong Buy stocks are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.

12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.

12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company’s solid profitability.

% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.

Here are 5 of the 12 stocks that qualified the screen:

Dycom Industries Inc. (DY) is a leading provider of specialty contracting services throughout the United States. This Zacks Rank #1 company reported earnings per share (EPS) of $1.08 last quarter, surpassing the Zacks Consensus Estimate of 75 cents. Dycom Industries also has an average four-quarter earnings surprise of 19.6%.

QVC Group (QVCA) markets and sells various consumer products primarily through live televised shopping programs, websites and other interactive media. This Zacks Rank #1 company reported EPS of 36 cents last quarter, surpassing the Zacks Consensus Estimate of 18 cents. QVC Group also has an average four-quarter earnings surprise of more than 40.3%.

Retrophin, Inc. (RTRX) is a pharmaceutical company that focuses on the development and commercialization of drugs in order to treat serious diseases. This Zacks Rank #1 company reported EPS of 14 cents last quarter, in contrast to the Zacks Consensus Estimate of a loss of 25 cents. Retrophin also has an average four-quarter earnings surprise of more than 100%.

Facebook, Inc. (FB) operates a social networking website worldwide, where users connect, share and communicate with each other. This Zacks Rank #1 company reported EPS of 57 cents last quarter, beating the Zacks Consensus Estimate of 44 cents. Facebook also has an average four-quarter earnings surprise of 11.8%.

Gener8 Maritime Inc. (GNRT) offers marine transportation services. It is involved in the transportation of crude oil and petroleum products. This Zacks Rank #1 company reported EPS of 76 cents last quarter, outpacing the Zacks Consensus Estimate of 69 cents. Gener8 Maritime also has an average four-quarter earnings surprise of 1.4%.

While backtesting over a two-year timeframe (June 06, 2014 to June 03, 2016), a portfolio following this strategy provided a total return of 20.3% compared with the S&P 500’s return of 6.8%. Thus, this strategy may prove profitable for those looking to beat the markets.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance .

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

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; 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! Click here for your free subscription to Profit from the Pros.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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DYCOM INDS (DY): Free Stock Analysis Report
 
LIBERTY M INT-A (QVCA): Free Stock Analysis Report
 
RETROPHIN INC (RTRX): Free Stock Analysis Report
 
FACEBOOK INC-A (FB): Free Stock Analysis Report
 
GENER8 MARITIME (GNRT): Free Stock Analysis Report
 
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