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Stock Guide Autumn 2016 In August 2016, MarketSmith introduced several new features to help investors

identify and profit from earnings releases with the weekly Earnings Upcoming

Report and the daily Earnings Price Gap Reports.

This Stock Guide is designed to highlight the efficiency of these reports, as well

as illustrate the importance of vigilance around earnings releases as Q4 begins

and companies begin reporting their Q3 results. Additionally, we provide a few

pointers on how to manage your portfolio within different earnings scenarios, like

when a leading stock gaps up or down on heavy volume.

The stock screens included in this Stock Guide feature leading stocks that are

gapping up and down in price. To help you stay on top of the earnings calendar,

we have included a screen that reports which Growth 250 stocks are reporting

earnings within the next 5 trading days.

As always, if you have any questions or comments about your investing

research, please call a MarketSmith product coach at (800) 424-9033 or email

[email protected].

Best Returns,

The MarketSmith Team

Market Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

MarketSmith Education Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Autumn 2016 Screens*

Growth 250 Upcoming Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Factset Research Sys Inc . . . . . . . . . . . . . . . . . . . . . . (FDS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Cintas Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (CTAS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Worthington Industries . . . . . . . . . . . . . . . . . . . . . . . . . (WOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Cantel Medical Corp . . . . . . . . . . . . . . . . . . . . . . . . . . (CMN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Earnings Gap Ups 80/80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Finisar Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . (FNSR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Momo Inc Ads Cl A . . . . . . . . . . . . . . . . . . . . . . . . . . . . (MOMO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Argan Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (AGX) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Burlington Stores Inc . . . . . . . . . . . . . . . . . . . . . . . . . . (BURL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Applied Materials Inc . . . . . . . . . . . . . . . . . . . . . . . . . . (AMAT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Science Applications Int . . . . . . . . . . . . . . . . . . . . . . . . (SAIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Earnings Gap Downs 80/80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Heico Corp Cl A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (HEIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Smith & Wesson Hldg Corp . . . . . . . . . . . . . . . . . . . . . (SWHC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Hewlett Packard Ent Co . . . . . . . . . . . . . . . . . . . . . . . . (HPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Stock Guide Legend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

*All screen results are computer-generated and were run on September 23, 2016.

Table of Contents

S & P 500 INDEXCLOSE 2164.69

2116.482104.27

2081.56

2111.052120.55

2193.81

1871.91

2019.39

1993.26

1812.291810.10

2025.91

1991.68

2119.12

50 DAY MOVING AVERAGE


2119.122119.122119.122119.122119.12

200 DAY

AVERAGEAVERAGE

2119.122119.12

200 DAY MOVING AVERAGEAVERAGE

2193.812193.81


2193.81


2193.812193.81

1991.681991.681991.681991.68

2120.55

1991.68

2120.552120.55

2025.912025.912025.91

2111.05


2111.05


2111.05


1810.101810.101810.101812.291812.291812.29

2081.562081.562081.562081.56

1993.26

2081.56

1993.26

2104.27

1993.26

2104.27

1993.26

2104.27

2019.392019.39

2116.48

2019.39

2116.48

2019.39

2116.482116.482116.48

1871.911871.911871.911871.911871.911871.91

50 DAY 50 DAY 50 DAY 50 DAY 50 DAY

2025.91

2111.052104.27

1820

1870

1920

1970

2020

2070

2120

2170

2220

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

190 M

450 M

900 M

1.8 B

239261229151173206228251126122915118420623925

SEPAUGJULJUNMAYAPRMARFEBJAN 2016DECNOVOCT

NASDAQ COMPOSITECLOSE 5305.75

5163.47 5176.77

5116.99

4969.32 4980.14

4487.06

4908.664871.59

4209.76

4678.38

4574.25

5097.80



5097.805097.805097.80

200 DAY

AVERAGE

5097.80




4574.254574.254574.254574.25

4980.14

4574.25

4980.144980.144980.14

4678.384678.384678.3850 DAY MOVING AVERAGE

4969.324969.32


4969.324969.32


4969.324969.32

4209.764209.764209.76

5116.995116.995116.995116.99

4871.59

5116.995116.99

4871.59

5176.77

4871.59

5176.77

4871.59

5176.77

4908.664908.66

5163.47

4908.66

5163.47

4908.66

5163.475163.475163.47

4487.064487.064487.064487.064487.064487.06

4574.254574.254574.254574.254574.25AVERAGEAVERAGEAVERAGE

4678.38

4871.59

5116.995116.995116.995116.995116.99

4150

4250

4350

4450

4550

4650

4750

4850

4950

5050

5150

5250

5350

5450

5550

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

600 M

1.2 B

1.9 B

3.3 B

239261229151173206228251126122915118420623925

SEPAUGJULJUNMAYAPRMARFEBJAN 2016DECNOVOCT

Market Charts

Autumn 2016marketsmith.com

44

Managing Earnings SeasonAs most investors know, earnings are the fundamental catalyst for stock price

appreciation. Institutions usually favor companies with strong current and future

earnings coupled with growing sales over companies losing money quarter over

quarter, year over year.

How the stock price reacts to an earnings report can be more important than the actual

earnings report itself. That’s why MarketSmith has created a suite of reports dedicated

to earnings activity. Our Earnings Upcoming Report keeps you aware of the relevant

companies reporting earnings in the next 5 business days. Then to keep you on top of a

stock’s reaction to their earnings release, the new Gap Up and Gap Down email alerts

you when there’s price gap movement more than 1% either way.

Earnings Upcoming Report

During earnings season, you need to focus on what the collective impact can be to your

overall portfolio. Since earnings reports are unpredictable, it is important to know how

concentrated you are in companies reporting earnings around the same time. The Mar-

ketSmith Earnings Upcoming Report provides you the information you need to manage

your investments effectively.

From a portfolio perspective, investors need to make a decision if they want to hold a

stock through earnings. If so, it’s crucial that you have a minimum profit cushion of 5%

to minimize any losses. For example, if the stock gaps down 10%, you take a 5% loss

on the overall position, generally acceptable from a risk/reward standpoint.

If the market reacts negatively, then the overall portfolio can experience a large

drawdown. If you decide you cannot handle the collective impact of a potential

drawdown, then you should scale back your positions accordingly. When you scale your

exposure back, the downside risk is that you’ll make less money than you could have if

the stock responds positively, which is better than losing big if the stock responds poorly.

MarketSmith Education Tips

Autumn 2016 marketsmith.com

5

Earnings Gap Up/Down Report

The Gap Up/Down Reports give you insight into the sentiment of the broader market

and how investors are judging their holdings. For example, if a company misses

expectations or reports disappointing earnings, and the stock still gaps up, then it may

be a more forgiving market environment. Conversely, if a company beats expectations,

and there’s a sell-off, the market may be punishing high beta stocks.

MarketSmith Education Tips


66 MarketSmith Education Tips

Leading Stock Gaps Up Report

Earnings gap up can provide an opportunity to enter a position you may have missed

in the past. Because a gap up generally indicates impressive strength along with

institutional accumulation, it’s a good idea to keep the stock on a watch list. It’s possible

the stock may prove to be a big winner going forward. On the flip side, if a price gap

up comes too late in a stock’s run it may actually be a sell signal. Like all aspects of

technical chart reading, after watching a variety of gaps over time you become more

attuned to which direction the stock will move.


7MarketSmith Education Tips

Leading Stock Gaps Down Report

An earnings gap down is a strong sign of weakness. When institutions signal their

shifting support in a stock such that it gaps down, especially on heavy volume, investors

should review their position based on their individual trading strategies.

No matter the size, a gap down in share price warns of an abundance of sellers and

indicates investors losing conviction in the stock. Perhaps the product or service is not

evolving or earnings reflect poor management decisions. A gap down is even more

concerning when it occurs after a long upside move then continues to break down

through support levels, such as 50-day moving average.

Visit marketsmith.com/learn/stockguide to load the criteria for this and other Stock Guide screens directly into your MarketSmith screener.

All screen results are computer-generated and were run on September 23, 2016. This screen can also be found in the community section of marketsmith.com.

8


Earnings releases can have a big positive or negative impact on your portfolio. This is

the time when investors receive feedback regarding a company’s current and future

growth prospects. The first step to mitigating earnings risk is knowing when the stocks

in your portfolio report. This screen focuses on Growth 250 stocks that have their

Earnings Due Date within the next 5 trading days.

Company Name (Symbol) Industry Group EPS Due Date Page

Factset Research Sys Inc (FDS) Comml Svcs-Market Rsrch 9/27/2016 7

Cintas Corp (CTAS) Comml Svcs-Outsourcing 9/27/2016 7

Worthington Industries (WOR) Metal Proc & Fabrication 9/28/2016 8

Cantel Medical Corp (CMN) Medical-Systems/Equip 9/28/2016 8

Autumn 2016 Screens:

Growth 250 Upcoming Earnings


9



FACTSET RESEARCH SYS INC(FDS) NYSE 40.7 SHRS / 39.4 FLT / AVG VOL263658 $178.57(OH -2%)COMML SVCS-MARKET RSRCH factset.comPROVIDES FINANCIAL DATA FROM STOCK MARKETS, NEWSWIRES AND DATA SUPPLIERS TO INVESTMENT PROFESSIONALS

7/16 EXPECTS Q4 FY16 ADJUSTED EARNINGS OF $1.68 TO $1.72 PER SHARE ON REVENUES OF $286 MIL TO $292 MIL.

SHORT INT 13.9 DAYS +32%OPTIONS ON AM/MSUP/DOWN 1.1EX-DIV 8/29YIELD 1.1%

GROWTH RATE +9%EARNINGS STAB 2EPS RANK 84PE 29 (1.5XS&P)5 YR PE 18 - 31

DEBT 7%NEW CEO 7/15TIMELINESS BACC/DIST DSMR RATING A

13.51 X BK VALUEINVENTORY TO.R&D N/ARET ON EQUITY 46%CASH FLOW $6.62

FUNDS 53%BANKS 1%MGMT 3%ALPHA N/ABETA 1.02

177.28173.77

159.40 158.48

183.17

166.23

135.95

143.08145.48

147.37149.39

174.22

74

QTR 3QTR 2

QTR 1

QTR 4

-O-O

DIVINC

-O-O-O-O120

130

140

150

160

170

180

190

PRICE SCALE

84COMPOSITE RATING10$ 3.09 $ 96 6111 3.87 112 7812 4.56 109 8513 5.04 119 8614 5.32 145 10115 5.74 177 13616 6.40EST +11% ↑17 7.12EST +11% ↑

EARNINGS (AUG) HI LODunBradstr DNB 83 62Forrester FORR 82 59IMS Health IMS 77 87Moodys MCO 72 64CostarGrp CSGP 65 97

GROUP REL STR 53 RS EPS

2392612291511732062282511261229151184206239SEPAUGJULJUNMAYAPRMARFEBJAN 16DECNOVOCT

EARNINGS $SALES MIL. $DIVIDEND-PE

1.51 VS 1.43 +6%261.8 VS 238.7 +10%$0.44 31X-- 25X

1.48 VS 1.35 +10%270.5 VS 242.7 +11%$0.44 31X-- 27X

1.59 VS 1.42 +12%281.8 VS 247.8 +14%$0.44 30X-- 23X

1.64 VS 1.46 +12%287.5 VS 254.5 +13%$0.50 27X-- 24X

EPS DUE*9/22 QUARTER ENDED AUG 31,15 QUARTER ENDED NOV 30,15 QUARTER ENDED FEB 29,16 QUARTER ENDED MAY 31,16

R S LINE VS SP500

VOLUME

110K

194K

400K

CINTAS CORP(CTAS) NASDAQ 106.9 SHRS / 85.5 FLT / AVG VOL734570 $114.16(OH -4%)COMML SVCS-OUTSOURCING cintas.comPROVIDES CORPORATE IDENTITY UNIFORM PROGRAMS WHICH ARE RENTED AND SOLD TO 1 MILLION CLIENTS WORLDWIDE.

8/16 TO ACQUIRE G&K SERVICES, PROVIDER OF BRANDED UNIFORM/FACILITY SVCS PROG, FOR $97.50/SHR IN CASH OR ABOUT $2.2 BIL

SHORT INT 5.3 DAYS -39%OPTIONS ON AM/MSUP/DOWN 1.9EX-DIV 11/4YIELD 0.9%


DEBT 57%NEW CEOTIMELINESS AACC/DIST DSMR RATING A

6.60 X BK VALUEINVENTORY TO. 20.6XR&D N/ARET ON EQUITY 24%CASH FLOW $5.97

FUNDS 34%BANKS 1%MGMT 7%ALPHA 0.07BETA 0.87

94.3593.15 93.64

91.38

109.11

119.94

83.48

88.30

80.00 80.22

88.5191.24

86

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O70

80

90

100

110

120

PRICE SCALE

97COMPOSITE RATING10$ 1.49 $ 29 2311 1.65 35 2612 2.27 45 3413 2.52 59 4014 2.75 80 5515 3.35 94 7516 4.0917 4.42EST +8% ↓

EARNINGS (MAY) HI LOCrawfordB CRDB 97 77G&K Svc GK 92 90Insperity NSP 90 94Wagewrks WAGE 85 93ChinaCustR CCRC 83 77




0.93 VS 0.78 +19%1198 VS 1102 +9%N/A 27X-- 23X

1.03 VS 0.86 +20%1219 VS 1123 +9%$1.05 27X-- 24X

1.05 VS 0.85 +24%1216 VS 1108 +10%N/A 27X-- 22X

1.08 VS 0.86 +26%1271 VS 1142 +11%N/A 25X-- 22X


R S LINE VS SP500 VOLUME

300K

700K

1.6M



10 Growth 250 Upcoming EarningsWORTHINGTON INDUSTRIES(WOR) NYSE 63.1 SHRS / 42.9 FLT / AVG VOL343388 $44.17(OH -3%)METAL PROC & FABRICATION worthingtonindustries.comPROCESSES DIVERSIFIED METALS FOCUSING ON VALUE-ADDED STEEL FOR AUTOMOTIVE, CONSTRUCTION, HARDWARE AND AEROSPACE MARKETS.

4/16 UNIT RECEIVED A CONTRACT FROM CRYOPORT TO DESIGN AND MANUFACTURE BIOSTORAGE AND LOGISTICS EQUIPMENT.

SHORT INT 8.9 DAYS +50%OPTIONS ON AM/MSUP/DOWN 1.1EX-DIV 9/13YIELD 1.8%


DEBT 73%NEW CEOTIMELINESS BACC/DIST BSMR RATING C



32.8031.35 31.45 30.73

38.61

41.07

45.6844.49

26.5025.50

34.2136.16

41.67

39.28

91

QTR 3QTR 2

QTR 1

QTR 4

-O-O

DIVINC

-O-O-O-O10

20

30

40

PRICE SCALE

83COMPOSITE RATING10$ 0.92∆ $ 18 1211 1.53∆ 23 1212 1.65∆ 26 1513 2.06∆ 48 2514 2.31∆ 45 2915 2.12 32 2116 2.66∆17 2.84EST +7% ↓

EARNINGS (MAY) HI LOInsteel IIIN 96 99Gibraltar ROCK 95 97DynMat BOOM 89 55Schnitzr SCHN 88 61Harsco HSC 88 45




0.54 VS 0.65 -17%758.2 VS 862.4 -12%$0.18 15X-- 11X

0.60 VS 0.55 +9%699.8 VS 871.0 -20%$0.19 16X-- 11X

0.46∆ VS 0.39 +18%647.1 VS 804.8 -20%$0.19 16X-- 12X

0.97 VS 0.52 +87%714.7 VS 846.0 -16%$0.19 18X-- 15X



98K

250K

600K

*CANTEL MEDICAL CORP(CMN) NYSE 41.7 SHRS / 35.0 FLT / AVG VOL161978 $81.13(OH 0%)MEDICAL-SYSTEMS/EQUIP cantelmedical.comDEVELOPS INFECTION PREVENTION AND CONTROL DEVICES USED FOR DIALYSIS, ENDOSCOPY AND WATER PURIFICATION AND FILTRATION.

8/16 ACQUIRED ACCUTRON INC., A MFR OF NITROUS OXIDE DELIVERY SYS/SINGLE-USE NASAL MASKS, FOR ABOUT $52.5 MIL IN CASH.

SHORT INT 3 DAYS -6%OPTIONS ON AM/PHUP/DOWN 1.7EX-DIV 7/13YIELD 0.1%


DEBT 19%NEW CEO 8/16TIMELINESS AACC/DIST ASMR RATING A

8.28 X BK VALUEINVENTORY TO. 8.6XR&D 2.5%RET ON EQUITY 16%CASH FLOW $1.71


68.58

72.6974.88

55.01

64.52 64.75

88

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O-O40

50

60

70

80

90

PRICE SCALE

99COMPOSITE RATING10$ 0.53 $ 10 511 0.54 12 812 0.75 20 1213 0.94 38 1914 1.19 45 2915 1.44 68 3916 1.43EST -1% ↓17 1.84EST +29% ↑

EARNINGS (JUL) HI LOMazorRbtcs MZOR 98 11Nevro Corp NVRO 97 52Cepheid CPHD 96 38GenMark GNMK 96 10Spectranet SPNC 96 9




0.39 VS 0.28 +39%151.3 VS 131.4 +15%$0.05 42X-- 35X

0.41 VS 0.34 +21%153.8 VS 136.8 +12%N/A 44X-- 30X

0.42 VS 0.36 +17%158.3 VS 135.4 +17%$0.06 46X-- 36X

0.44 VS 0.35 +26%173.7 VS 141.5 +23%N/A 46X-- 38X

EPS DUE*9/29 QUARTER ENDED JUL 31,15 QUARTER ENDED OCT 31,15 QUARTER ENDED JAN 31,16 QUARTER ENDED APR 30,16


48K

108K

250K



11


Gap ups are an incredibly powerful move to the upside that can indicate a stock has

further price appreciation potential. Typically, they occur as a result of a big earnings

surprise and institutions demand more stock regardless of the price. This screen locates

leading stocks with a Relative Strength (RS) and Earnings Per Share (EPS) Rating of

80 or higher that are gapping up on earnings to help you find potential big winners.

Company Name (Symbol) Industry Group RS Rating Page

Finisar Corporation (FNSR) Telecom-Fiber Optics 98 10

Momo Inc Ads Cl A (MOMO) Internet-Content 98 10

Argan Inc (AGX) Bldg-Heavy Construction 96 11

Burlington Stores Inc (BURL) Retail-Apparel/Shoes/Acc 95 11

Applied Materials Inc (AMAT) Elec-Semiconductor Equip 95 12

Science Applications Int (SAIC) Comml Svcs-Consulting 94 12


Earnings Gap Ups 80/80


12

FINISAR CORPORATION(FNSR) NASDAQ 110.2 SHRS / 108.0 FLT / AVG VOL1.77MIL $29.22(OH 0%)TELECOM-FIBER OPTICS finisar.comMANUFACTURES TRANSMITTERS, RECEIVERS, TRANSCEIVERS AND TRANSPONDERS TO CONNECT LAN AND WAN NETWORKS.

9/16 EXPECTS Q2 FY17 NON-GAAP EARNINGS OF $0.44 TO $0.50 PER DILUTED SHARE ON REVENUES OF $355 MIL TO 375 MIL.

SHORT INT 5.6 DAYS -7%OPTIONS ON AM/MSUP/DOWN 2.8EX-DIVYIELD


DEBT 20%NEW CEO 9/15TIMELINESS AACC/DIST ASMR RATING C



12.35

14.97

19.00 19.20

10.66 11.04 11.2611.94

15.21

18.00

98

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O-O-O-O-O-O-O-O-O-O5

10

15

20

25

30

PRICE SCALE

96COMPOSITE RATING(W)(C)10$ 0.56 $ 30 811 1.55 46 1212 0.87 23 1013 0.64 26 1214 1.53 28 1415 1.04 23 1016 1.0117 1.73EST +71% ↑

EARNINGS (APR) HI LOAcaciaComm ACIA 99 84Oclaro OCLR 99 78Lumentum LITE 98 99AppliedOpt AAOI 96 55Clearfield CLFD 80 84




0.25 VS 0.23 +9%321.1 VS 297.0 +8%N/A 17X-- 11X

0.25 VS 0.25 0%309.2 VS 306.3 +1%N/A 15X-- 11X

0.29 VS 0.25 +16%318.8 VS 320.0 0%N/A 19X-- 12X

0.38 VS 0.23 +65%341.3 VS 314.0 +9%N/A 19X-- 16X

EPS DUE 12/10 QUARTER ENDED OCT 31,15 QUARTER ENDED JAN 31,16 QUARTER ENDED APR 30,16 QUARTER ENDED JUL 31,16

R S LINE VS SP500

VOLUME

500K

1.5M

4.5M

MOMO INC ADS CL A(MOMO) NASDAQ 192.7 SHRS / 42.4 FLT / AVG VOL3.02MIL $23.55(OH -8%)INTERNET-CONTENT immomo.comCHINESE PROVIDER OF A MOBILE-BASED SOCIAL NETWORKING PLATFORM WITH 69.8 MIL MONTHLY ACTIVE USERS.

5/15 EXPECTS Q2 2015 REVENUES OF $31 MIL TO $33 MIL.

SHORT INT 1 DAYS -71%OPTIONS ONUP/DOWN 1.6EX-DIVYIELD

GROWTH RATEEARNINGS STABEPS RANK 80PE 181 (9.1XS&P)5 YR PE 121 - 553

DEBT 0%NEW CEOTIMELINESS AACC/DIST ASMR RATING A

9.21 X BK VALUEINVENTORY TO.R&D 17.4%RET ON EQUITY 7%CASH FLOW $0.2


14.42

16.59

14.72

16.74

25.62

12.50 12.16

6.72

10.57 10.65

8.88

98

QTR 3QTR 2

QTR 1

QTR 4

5

10

15

20

25

PRICE SCALE

99COMPOSITE RATING$13.50IPO 12/11/1410$1112 -0.01 $13 -0.0214 -0.06 17 1015 0.08 19 916 0.47EST+487% ↓17 0.86EST +83% ↑

EARNINGS (DEC) HI LOWeibo A WB 99 84Meetme MEET 98 77Sina SINA 97 72GrubHub GRUB 96 95Yelp YELP 96 39




0.01 VS -0.03#+133%37.5 VS 12.3 +204%N/A N/A

0.03 VS -0.01#+400%39.5 VS 18.6 +113%N/A 553X-- 421X

0.03 VS 0.02 +50%50.9 VS 26.3 +93%N/A 536X-- 158X

0.06 VS 0.01 +500%99.0 VS 30.7 +222%N/A 239X-- 121X

EPS DUE 11/20 QUARTER ENDED SEP 30,15 QUARTER ENDED DEC 31,15 QUARTER ENDED MAR 31,16 QUARTER ENDED JUN 30,16

R S LINE VS SP500

VOLUME

300K

1.1M

4M



13

*ARGAN INC(AGX) NYSE 15.0 SHRS / 12.6 FLT / AVG VOL166482 $56.87(OH -1%)BLDG-HEAVY CONSTRUCTION arganinc.comPROVIDES ENGINEERING, CONSTRUCTION AND TELECOMMUNICATIONS INFRASTRUCTURE SERVICES.

12/15 ACQUIRED TRC ACQUISITION LLC AND ITS THE ROBERTS COMPANY, FOR $500,000.

SHORT INT 2.5 DAYS -9%OPTIONS ONUP/DOWN 3.1EX-DIV 10/14YIELD 1.2%



3.93 X BK VALUEINVENTORY TO.R&D N/ARET ON EQUITY 18%CASH FLOW $2.54


40.10

35.40

44.04

47.13

29.7628.03

30.6232.70

45.51

96

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O+O+O20

30

40

50

60

PRICE SCALE

99COMPOSITE RATING(W)10$ 0.60∆ $ 16 711 0.73 17 812 0.56 19 1213 1.67 27 1314 2.78 40 2615 2.05 42 2916 2.4217 3.62EST +50% ↓

EARNINGS (JAN) HI LOWilldanGrp WLDN 98 82MasTec MTZ 94 46GraniteCon GVA 80 36QuantaSvcs PWR 76 34TutorPerin TPC 74 87




0.72 VS 0.84 -14%114.0 VS 127.6 -11%$0.70 18X-- 13X

0.43 VS 0.40 +7%116.4 VS 102.3 +14%N/A 16X-- 12X

0.81 VS 0.50 +62%130.4 VS 85.5 +52%N/A 15X-- 12X

1.29∆ VS 0.75 +72%162.5 VS 97.4 +67%N/A 17X-- 12X



48K

108K

250K

*BURLINGTON STORES INC(BURL) NYSE 71.3 SHRS / 69.2 FLT / AVG VOL1.22MIL $83.05(OH -4%)RETAIL-APPAREL/SHOES/ACC burlingtoncoatfactory.comOPERATES 567 OFF-PRICE RETAIL STORES IN 45 STATES AND PUERTO RICO OFFERING HIGH QUALITY BRANDED APPAREL.

1/16 NARROWED Q4 FY16 ADJUSTED EARNINGS GUIDANCE TO $1.44 TO $1.46 PER DIL SHARES ON REVENUE GROWTH OF ABOUT 3.7%.

SHORT INT 3 DAYS -49%OPTIONS ONUP/DOWN 1.9EX-DIVYIELD


DEBTNEW CEOTIMELINESS AACC/DIST ASMR RATING

-60.03 X BK VALUEINVENTORY TO. 6.5XR&D N/ARET ON EQUITY N/ACASH FLOW $4.52


52.3250.31

58.57 58.94

87.23

39.4040.89

51.19

60.62

95

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O-O-O-O-O-O-O-O-O-O30

40

50

60

70

80

90

PRICE SCALE

92COMPOSITE RATING$17.00IPO 10/02/1310$11 0.42 $12 -0.0913 0.62 32 2114 0.95 49 2315 1.83 61 3916 2.3117 2.98EST +29% ↑

EARNINGS (JAN) HI LODuluth B DLTH 95 26UrbnOutfit URBN 90 78ChildrsPla PLCE 80 87RosStores ROST 80 86AmerEagle AEO 77 75




0.25 VS 0.16 +56%1238 VS 1166 +6%N/A 28X-- 20X

1.47 VS 1.43 +3%1548 VS 1496 +3%N/A 24X-- 18X

0.57 VS 0.41 +39%1288 VS 1190 +8%N/A 25X-- 21X

0.39 VS 0.19 +105%1260 VS 1151 +9%N/A 31X-- 22X


R S LINE VS SP500

VOLUME

600K

1.3M

3M



14

APPLIED MATERIALS INC(AMAT) NASDAQ 1,080.9 SHRS / 1,070.1 FLT / AVG VOL12.65MIL $29.66(OH -4%)ELEC-SEMICONDUCTOR EQUIP appliedmaterials.comMANUFACTURES DEPOSITION, INSPECTION AND ETCHING AND CLEANING EQUIPMENT USED IN IC AND FLAT PANEL DISPLAY FABRICATION.

8/16 EXPECTS Q4 FY16 NON-GAAP EARNINGS OF $0.61 TO $0.69 PER DILUTED SHARE ON REVENUES GROWTH OF $15% TO 19%.

SHORT INT 1 DAYS -34%OPTIONS ON AM/MSUP/DOWN 1.3EX-DIV 11/22YIELD 1.4%


DEBT 44%NEW CEOTIMELINESS AACC/DIST BSMR RATING A



19.34 19.41

21.67

24.65

17.82

15.85 15.44

19.46

22.17

28.53

95

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O-O-O10

15

20

25

30

PRICE SCALE

98COMPOSITE RATING10$ 0.88 $ 14 1011 1.30 16 912 0.75 13 913 0.59 18 1114 1.07 25 1615 1.19 25 1416 1.75EST +47% ↑17 2.23EST +27% ↓

EARNINGS (OCT) HI LOAdvEngy AEIS 94 74Nanomtrcs NANO 92 68MKSInstr MKSI 90 45Formfactor FORM 89 40Entegris ENTG 87 63




0.29 VS 0.27 +7%2368 VS 2264 +5%$0.10 16X-- 12X

0.26 VS 0.27 -4%2257 VS 2359 -4%$0.10 16X-- 13X

0.34 VS 0.29 +17%2450 VS 2442 0%$0.10 19X-- 13X

0.50 VS 0.33 +52%2821 VS 2490 +13%$0.10 22X-- 16X


R S LINE VS SP500

VOLUME

4M

9M

25M

*SCIENCE APPLICATIONS INT(SAIC) NYSE 44.2 SHRS / 42.9 FLT / AVG VOL233338 $69.72(OH -3%)COMML SVCS-CONSULTING saic.comPROVIDES TECHNICAL SERVICES AND ENTERPRISE INFORMATION TECHNOLOGY SERVICES TO THE U.S. GOVERNMENT

6/16 NAMED MARIA M. BISHOP INTERIM CFO, EFFECTIVE JULY 1, 2016, REPLACING JOHN R. HARTLEY WHO WILL RESIGN.

SHORT INT 6 DAYS -11%OPTIONS ONUP/DOWN 2.3EX-DIV 10/12YIELD 1.8%


DEBT 267%NEW CEOTIMELINESS AACC/DIST ASMR RATING B



52.6954.43 53.86

61.93

72.50

39.76

51.26

54.66

94

QTR 3QTR 2

QTR 1

QTR 4

-O-O30

40

50

60

70

PRICE SCALE

92COMPOSITE RATING10$ 1.19 $11 1.4512 -0.0413 3.66∆ 39 3014 2.27∆ 52 3215 2.91 55 3916 2.8617 3.30EST +15% ↑

EARNINGS (JAN) HI LONV5 Globl NVEE 91 96Navigant NCI 89 88ICIIntl ICFI 86 83CRAIntl CRAI 86 40Leidos Hld LDOS 84 40




0.73 VS 0.77 -5%1136 VS 1004 +13%$0.31 18X-- 13X

0.74 VS 0.75 -1%1071 VS 952.0 +12%$0.31 18X-- 14X

0.80 VS 0.73 +10%1215 VS 1009 +20%$0.31 19X-- 14X

0.85 VS 0.66 +29%1095 VS 1099 0%$0.31 21X-- 18X


R S LINE VS SP500

VOLUME

102K

250K

600K




15


Gap downs are the polar opposite of gap ups. This big move to the downside typically

represents a negative shift in attitude towards the company among institutional

investors. Gap downs on heavy volume can indicate the later stages of a stock’s move

as high expectations for the company’s performance have been damaged. This screen

locates leading stocks with a Relative Strength (RS) and Earnings Per Share (EPS)

Rating of 80 or higher that are gapping down on heavy volume to help you avoid them

going forward.

Company Name (Symbol) Industry Group Comp Rating Page

Heico Corp Cl A (HEIA) Aerospace/Defense 98 14

Smith & Wesson Hldg Corp (SWHC) Security/Sfty 95 14

Hewlett Packard Ent Co (HPE) Computer-Tech Services 92 15


Earnings Gap Downs 80/80


16

HEICO CORP CL A(HEIA) NYSE 40.1 SHRS / 35.7 FLT / AVG VOL114758 $60.17(OH -1%)AEROSPACE/DEFENSE heico.comMANUFACTURES JET ENGINE/AIRCRAFT COMPONENT REPLACEMENT PARTS AND ELECTRONIC AND ELECTRO-OPTICAL SYSTEMS

12/15 UNIT TO ACQUIRE ROBERTSON FUEL SYSTEMS FROM AMERICAN SECURITIES LLC, FOR $255 MIL IN CASH.

SHORT INT 1 DAYS -15%OPTIONS ONUP/DOWN 1.8EX-DIV 6/30YIELD 0.3%





46.07

50.08

56.20

60.91

42.81

40.10

49.96

56.34

86

QTR 3QTR 2

QTR 1

QTR 4

+O-O35

40

45

50

55

60

PRICE SCALE

98COMPOSITE RATING10$ 0.83 $ 20 1211 1.09 25 1612 1.26 26 2113 1.49 43 2414 1.68 49 3715 1.97 54 4216 ↓17

EARNINGS (OCT) HI LOKratosDef KTOS 96 18DigitlGlob DGI 95 78Engility EGL 92 16Servotroni SVT 91 72AAR AIR 89 74




0.56 VS 0.46 +22%328.7 VS 292.2 +12%N/A 26X-- 23X

0.46 VS 0.41 +12%306.2 VS 268.2 +14%$0.08 25X-- 22X

0.57 VS 0.49 +16%350.7 VS 291.4 +20%N/A 25X-- 20X

0.62 VS 0.51 +22%356.1 VS 300.4 +19%$0.08 28X-- 24X



46K

154K

550K

*SMITH & WESSON HLDG CORP(SWHC) NASDAQ 56.2 SHRS / 55.1 FLT / AVG VOL1.90MIL $27.56(OH -11%)SECURITY/SFTY smith-wesson.comMANUFACTURES FIREARMS INCLUDING REVOLVERS, PISTOLS, RIFLES AND FIREARM RELATED PRODUCTS AND ACCESSORIES.

9/16 RAISED FY17 NON-GAAP EARNINGS GUIDANCE TO $2.38 TO $2.48 PER DILUTED SHARE ON REVENUES OF 900 MIL TO $920 MIL.

SHORT INT 5.1 DAYS -21%OPTIONS ON AM/MSUP/DOWN 0.8EX-DIVYIELD


DEBT 54%NEW CEOTIMELINESS AACC/DIST CSMR RATING A



18.97

26.54

30.44

23.50

31.19

16.3317.05

19.18

21.39 21.11

26.47

81

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O-O-O-O10

15

20

25

30

35

PRICE SCALE

95COMPOSITE RATING(W)(C)10$ 0.35 $ 4 311 0.22 4 212 0.43 11 413 1.71 13 714 1.52∆ 17 915 1.02 24 916 1.8317 2.48EST +36% ↑

EARNINGS (APR) HI LOAlarm.com ALRM 93 96TASER TASR 91 40Ituran ITRN 90 78Landauer LDR 88 72Brinks BCO 88 46




0.25 VS 0.09 +178%143.2 VS 108.5 +32%N/A 18X-- 15X

0.59 VS 0.20 +195%210.8 VS 130.6 +61%N/A 22X-- 16X

0.66 VS 0.45 +47%221.1 VS 181.0 +22%N/A 21X-- 13X

0.62 VS 0.32 +94%207.0 VS 147.8 +40%N/A 17X-- 12X



300K

1.1M

4M



17

*HEWLETT PACKARD ENT CO(HPE) NYSE 1,665.5 SHRS / 1,648.9 FLT / AVG VOL10.08MIL $22.98(OH -2%)COMPUTER-TECH SERVICES hpe.comPROVIDES INFORMATION TECHNOLOGY, ENTERPRISE SERVICES SOLUTIONS, AND CLOUD-ENABLED AND MOBILE-READY TECHNOLOGY SOLUTIONS

9/16 EXPECTS FY16 NON-GAAP EARNINGS OF $1.90 TO $1.95 PER DILUTED SHARE.

SHORT INT 5.3 DAYS +4%OPTIONS ONUP/DOWN 1.8EX-DIV 10/7YIELD 1.0%


DEBT 45%NEW CEO 11/15TIMELINESS AACC/DIST BSMR RATING C



15.8815.48

13.97

18.55

22.20

11.6312.02

15.38

16.97

20.63

92

QTR 3QTR 2

QTR 1

QTR 4

-O-O-O-O-O-O+O

-ODIVDCR

10

15

20

25

PRICE SCALE

92COMPOSITE RATING10$ 2.07 $11 2.1912 -7.8613 1.0914 0.88∆15 1.89 15 1316 1.92EST +2% ↑17 2.05EST +7% ↑

EARNINGS (OCT) HI LOFormula FORTY 91 52Mantech MANT 88 61Acxiom ACXM 87 69ComputerSc CSC 86 42NIC EGOV 84 93




0.54 VS 0.27∆ +100%13448 VS 14073 -4%N/A N/A

0.41 VS 0.46 -11%12724 VS 13053 -3%$0.06 10X-- 6X

0.42 VS 0.43 -2%12711 VS 12549 +1%$0.06 10X-- 6X

0.49 VS 0.46 +7%12210 VS 13057 -6%$0.06 12X-- 8X


R S LINE VS SP500

VOLUME

3M

8M

18M


As earnings season begins, it will be important to keep track of the upcoming earn-

ings announcements and the big winners and losers of earnings season. These

screens included in this issue are designed to help you gain insight into the health

of the current market. As earnings season progresses, the results of these stock

screens will expand so monitor them on a daily basis. Go to the MarketSmith Stock

Guide page to find links to each of the screens in this issue.


18

1. 5-Year Earnings Growth Rate Over 20% Per Year

2. Company Name

3. Industry Group Classification

4. Datablock Containing the Following Information:

a. Short Interest Value and Percent Change

b. Options Availability and Exchange

c. 50-Day Ratio of Daily Up Volume to Daily Down Volume

d. Ex-Dividend Date

e. Current Yield

5. Ticker or Trading Symbol

6. Top 5 Stocks in Group

7. Primary Exchange

8. Industry Group Relative Strength Rating

9. Common Shares Outstanding (in Millions)

10. Web Address

11. Active stock (NASDAQ only)

12. Floating Supply (in Millions)


a. 5-Year Earnings Growth Rate

b. Best RS Line & Rating Factor

c. Earnings Per Share Rank (EPS Rank)

d. Current Price/Earnings (P/E) Ratio

e. High and Low Price/Earnings (P/E) Ratios


a. Debt Percentage

b. New CEO in Last 2 Years

c. Timeliness Rating

d. Accumulation/Distribution Rating

e. SMR Rating

15. Average Daily Volume Over Last 50 Trading Days


a. Stock Price Relative to Book Value

b. Inventory Turnover

c. Research and Development % of Total Sales

d. Return on Equity Percentage

e. Cash Flow Per Share From Operations

17. Convertible Issues

18. Warrants Outstanding

19. Closing Price

20. % Off High

21. Datablock Containing the Following Information

a. Mutual Fund Sponsorship

b. Bank Sponsorship

c. Management Ownership

d. Alpha

e. Beta

22. Composite Rating

23. Arithmetic Price Scale

24. Key High and Low Price Points

25. 50-Day Moving Average Price Line

26. 200-Day Moving Average Price Line

27. Relative Strength Rating

28. Relative Strength Compared to S&P 500

29. Article in Major Publication

30. *Indicates 2nd Highest Weekly Volume in Last 12 Months

31. *Indicates Highest Weekly Volume in Last Year or Volume 100% or More Above ADV

32. Volume Scale

33. Earnings % Change

34. Qtrly EPS Compared to EPS Same Qtr Last Year (<> denotes pretax, non-recurring items included)

35. Insider Buying/Selling

36. Qtrly Sales Compared to Sales Same Qtr Last Year

37. 50-Day Average Daily Volume

38. High and Low P/E Ratio for the Quarter

39. Dividend Change

40. Security Announcement

41. Cash Dividend for the Quarter

42. *Indicates Earnings Expected to Report Within 4 Weeks

43. *Indicates Earnings Were Reported in Last 2 Weeks

44. Volume Peaks (in Hundreds)

45. Stock Dividend or Split

46. Daily High, Low, and Closing Prices

47. Line Indicates Beginning of Calendar Quarter

48. Indicator for Canadian Dollars


a. Fiscal Year End

b. Annual Operating Earnings (<> denotes pretax, non-recurring items included)

c. Calendar Year High/Low Prices

d. Earnings Per Share Estimates

e. EPS Estimates % Change

f. Estimate Revision

50. Business Summary


17 31AUG

14 28SEP

11 25OCT 9 23

NOV 6 20

DEC 4 18

QTR 1

JAN 10 1 15 29

FEB12 26

MAR12 26

QTR 2

APR 9 23

MAY 7 21

JUN 4 18

QTR 3

JUL 2

XYZ CORP (XYZ) NASDAQ*BLDG-A/C & HEATING PRDS aaon.com

17.1 SHRS / 12.2 FLT / AVG VOL 85,500 $24.13(OH ) -4%

MANUFACTURES HEATING, VENTILATION AND AIR CONDITION EQUIP- MENT FOR THE INDUSTRIAL/CONSTRUCTION/COMMERCIAL MARKETS.

5/10 TO REPURCHASE 5% OF COMMON STOCK OUTSTANDING.

SHORT INT 24.3 DAYS -3%OPTIONS ONUP/DOWN 1.0

CBOE

EX-DIV 6/ 8YIELD 1.5%

GROWTH RATE +31%EARNINGS STAB 13EPS RANK 63PE 16 ( 1.0XS&P)5 YR PE 9- 31

DEBT 0%NEW CEOTIMELINESS B

7/10

ACC/DIST DSMR RATING B

3.50 X BK VALUEINVENTORY TO. 7.5XR&D 13.6%RET ON EQUITY 26%CASH FLOW $2


COMPOSITE RATINGIPO 7/7/07 $ 5.00 (C) (W) 82

EPS DUE 8/10

PRICESCALE

GROUP REL STR 82 RS EPSSmithAO AOS 81 95Watsco WSO 76 82Lennox LII 75 85

EARNINGS HI LO(DEC)$ $04 0.39 14 9

05 0.60 13 906 0.90 19 1107 1.22 23 1608 1.60 23 1209 1.62 22 1410 1.38 EST -15%11 1.62 EST +17%

«

QUARTER ENDED JUN 30, 09 0.43 VS 0.43 0% 68.6 VS 74.8 -8%$ 0.18 13X -- 9X

QUARTER ENDED SEP 30, 09 0.45 VS 0.47 -4% 58.5 VS 79.3 -26% N/A 13X -- 11X

QUARTER ENDED DEC 31, 09 0.36 VS 0.35 +3% 54.2 VS 60.2 -10%$ 0.18 12X -- 11X

QUARTER ENDED MAR 31, 10 0.30 VS 0.39 -23% 49.3 VS 64.0 -23% N/A 14X -- 12X

16

18

20

22

24

400 600 1000

VOLUME(00)

22.32

18.00

20.63

18.49 18.64

22.00

20.72

25.11

21.50

22.41

17704 5376

84

R S LINEVS SP500

CANADIANQTR 4

FORBES06/04/10DIV

INCPSO

2/1

* *

* *

ACTIVE

1 2 3 5 6 8 119 10 13 1514 16 17 18 19 20

21

4 7 12

23

24

25

26

27

28293031

32

33

35 3439 363840 3741

44

42

43

46

47

48

49

50

22

45

Stock Guide Chart Legend


19Notes


20 Notes

Copyright © 2016 Investor’s Business Daily, Inc., Investor’s Business Daily, IBD, CAN SLIM, and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc. MarketSmith and corresponding logos are registered trademarks owned by William O’Neil + Co. Incorporated.

The material contained herein is not to be reproduced, redistributed, published, stored in a retrieval system, or transmitted in any form or by any means, electronic mechanical, photocopying, recording, or otherwise, without prior written permission of Investor’s Business Daily, Inc. and MarketSmith Incorporated.

Data provided under license agreement by William O’Neil + Co. Incorporated. All material presented here has been obtained or derived from sources believed to be accurate, but Investor’s Business Daily, Inc., MarketSmith Inc., and William O’Neil + Company, Inc. do not guarantee its accuracy and it may possibly be incomplete and/or condensed. The contents are based on the study and interpretation of available data as it relates to our historical models of the best performing stocks. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any chart appearing in this material is for educational purposes and is not, and should not be construed as a recommendation or rating to buy or sell any security. It is possible that at this date or some subsequent date the offi cers, directors and/or shareholders of William O’Neil + Company, Inc., MarketSmith Inc. and Investor’s Business Daily, Inc. and their affi liates own securities or buy or sell securities listed in the following pages or those not mentioned.

Standard & Poor’s US Index Data

Copyright © 2016, Standard & Poor’s Financial Services LLC (“S&P”). Reproduction of S&P US Index Data in any form is prohibited except with the prior written permission of S&P. Because of the possibility of human or mechanical error by S&P’s sources, S&P or others, S&P does not guarantee the accuracy, adequacy, completeness, timeliness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. S&P GIVES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P or its affi liates be liable for any indirect, special or consequential damages in connection with subscriber’s or others’ use of S&P US Index Data. (2012)

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