Zacks.com featured expert Kevin Matras highlights: Axsys Technologies, Inc., The Buckle, Inc., Dolby Laboratories, Inc., Universal Display Corp. and Perfect World Co., Ltd.

Kevin Matras screens for companies with Sales Growth that is greater than their Earnings Growth. Stocks in this week’s article include Axsys Technologies, Inc. (NASDAQ: AXYS), The Buckle, Inc. (NYSE: BKE), Dolby Laboratories, Inc. (NYSE: DLB), Universal Display Corp. (NASDAQ: PANL) and Perfect World Co., Ltd. (NASDAQ: PWRD). 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 earnings season winding down, it's never too early to start planning for next quarter's earnings.

While quarterly earnings on a year-over-year basis are down sharply, roughly two-thirds of the companies that have so far reported beat expectations. Simply put, if you didn't screw up the quarter or paint too negative a picture going forward, then you were rewarded.

However, stocks got punished if they couldn't live up to the market's earnings expectations - especially on a sequential basis after the previous quarter's ugly numbers.

But coming in with 'not that bad' numbers won’t cut it forever. Since many companies hit their targets and then some due to cost cutting and other means, they're now going to have to see sales ride to the rescue, because sales is still the most important driver. Not at the expense of margins of course. But sales is the lifeblood of a company and that needs to rise.

Eventually, if your sales growth isn't rising, neither will your earnings. So in this week's screen, I'm looking for companies where sales growth increased more than earnings growth.

The parameters are:

* Quarterly Sales Growth greater than 0
(Positive sales growth, qtr. over qtr.)

* Quarterly EPS Growth greater than 0
(Positive EPS growth, qtr. over qtr.)

* Quarterly Sales Growth (Q0/Q-1) greater than Quarterly EPS Growth (Q0/Q-1)
(Looking for stocks whose sales growth increased more than their earnings growth. This shows top line growth with less chance for gimmicks at earnings time.)

* Last Quarter's Sales Surprise greater than or equal to 0
(Topping expectations is always good ...)

* Last Quarter's EPS Surprise greater than or equal to 0
(... and of course for the bottom line as well.)

* Zacks Rank less than or equal to 3
(No Sells or Strong Sells allowed.)

* Price greater than or equal to 5

* Volume (Avg. 20-day) greater than or equal to 100,000

Note: for those building this screen on your own in the Research Wizard, the 'Sales Growth greater than EPS Growth' item is done in the Calculation Expression feature. Try creating it on your own or copy and paste this into the program: i578 > i519.

(i578 is the Quarterly Sales Growth item and i519 is the Quarterly EPS Growth item.)

There were literally only 27 companies that met these strict criteria. Here are 5 of them:

AXYS Axsys Technologies, Inc.

BKE The Buckle, Inc.

DLB Dolby Laboratories, Inc.

PANL Universal Display Corp.

PWRD Perfect World Co., Ltd.

Get the rest of the stocks on this list and start searching for the best stocks on your own. Sign up for your 2-week FREE trial to the Research Wizard and start picking better stocks today. You can do it: 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.

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