Using the Zacks Rank for Long-Term Gains - Anatomy of Success

The Zacks Rank is ideal for getting you in on the most profitable opportunities over a 1-3 month period, making the Zacks Rank an excellent timing indicator. 

But it's also great for getting into stocks that develop into longer-term trades and core holdings.

One of the toughest parts of investing is staying in a stock that's going up and not getting out prematurely. For whatever reason, too many investors are quick to cut their profits short and let their losses run. Of course, the opposite of that is what should be done.

But by following the Zacks Rank and the trajectory of earnings estimate revisions, not only will you know when to buy, but also learn how to ride your best stocks for bigger gains. And when the time comes, know when to sell.

FleetCor (FLT)

FleetCor is one of those stocks that looked set to outperform over a 1-3 month timeframe, but then turned into a longer-term holding, resulting in even more impressive gains.

The company operates as a provider of specialized payment products in the Financial Services industry.

And it quickly became a favorite holding in many portfolios.

On August 17, 2012, FLT was singled out as a top stock when it received a Zacks #1 Rank.

Even as many investors were still shunning financial stocks, this one stood out from the others, ready to outperform.

Over the course of the next 14 months (10/4/13), they received 59 upward earnings estimate revisions in a row, produced 4 positive EPS surprises, and rewarded investors with a 163.38% gain compared to the market's 41.60%.

During that time, their 12 Month Forward Earnings Estimates steadily climbed from $2.91 to $4.25, and was the clear catalyst for FLT's stellar gains.

Chart: courtesy of Zacks Research Wizard

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 their run-up. And the broader market had its up and downs. But their earnings estimates kept pointing higher, keeping you on board the entire time.

Click here to find more Zacks Rank #1 Stocks.

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

FLEETCOR TECH (FLT): Free Stock Analysis Report

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