Stocks eventually closed lower Monday, giving up earlier gains to start the week. The drop followed a big week for the stock market that included a historic one-day surge following the release of October’s consumer price index data that pointed to signs of cooling inflation.

The market bounced back through late afternoon trading on Tuesday, as Wall Street prepares for the last truly busy week of the third quarter earnings season. Walmart, Home Depot, Target, and other retailers all report this week, alongside Nvidia and a few other big tech names.

Investors want to see signs of easing inflation and reduced inventory levels from the likes of Target, while they need Nvidia to point to a brighter near-term future for tech spending. Overall, the S&P 500 earnings picture is holding up better than some expected and doesn’t signal any massive recession in 2023.

Traders, meanwhile, have upped their bets that the Fed will be able to take its foot off the gas and see inflation finally peaking. Elsewhere, bitcoin is holding up relatively well all things consider at around $16.8K after its initial drop from $20K last week amid the FTX collapse.

All told, Wall Street is more optimistic about the market, having priced in a ton of the negatives from higher interest rates to lower earnings already. The S&P 500 now up roughly 12% since the start of the fourth quarter, and the third year of a presidential cycle is historically the strongest for stocks out of the four-year term.

That said, much uncertainty remains and the market is still down big from its highs, as are many technology stocks.

With this in mind, let’s explore a Zacks screen that helps investors find ‘Strong Buy’ stocks trading near their highs right now.

Don't Be Afraid of New Highs

Some investors might prefer not to buy stocks at new highs. But if somebody asked you what the best stocks in your portfolio are, it’s likely you would name the stocks moving up the most.

The most basic idea is that the winners in your portfolio are the ones going up. If a stock is underperforming the market or going down, you'll quickly identify it as one of your worst holdings. Therefore, it makes sense that some of these stocks will be reaching new highs along the way.

Many investors are hesitant to buy stocks making new 52-week highs. But there really isn’t any reason to be. Some may worry that they have already missed the mark at that point, or that now it has more room to fall. Still, a stock making a new 52-week high is a ‘good thing,’ just as one falling to a new 52-week low is a ‘bad thing.’

On top of that, would the person who doesn’t want to buy stocks making new highs be upset if a stock they owned broke out to a new 52-week high? Statistics have also shown that stocks making new highs have a tendency of making even higher highs. And aren’t these the stocks we all dream about?

Now obviously, the fundamentals need to be there, and you should try to keep an eye on valuations. But if you were in a stock making new highs and cheering it on, it seems odd to be afraid of one doing the same just because you haven't bought it yet.

Think about this: A stock just made a new-52 week high, which is great news. Guess what? Last year it made a new 52-week high as well. And the year before that. And the year before that. Can you imagine all the money you'd be leaving on the table if you were afraid of being in stocks every time they made a new high?

Parameters

• Current Price/52-Week High greater than or equal to .80

• Percent Change in Price over 12 Weeks greater than 0

• Percent Change in Price over 4 Weeks greater than 0

• Zacks Rank equal to 1

• Price/Sales Ratio less than or equal to Industry Median

• P/E (using F1 Estimates) less than or equal to Industry Median

• Projected One Year EPS Growth F(1)/F(0) greater than or equal to Industry Median

• Current Avg. 20-Day Volume greater than Previous Week's Avg. 20-Day Volume

• All of the above parameters are applied to stocks with a Price greater than or equal to $5 and an Average 20-Day Volume of greater than or equal to 100,000 shares.

• Percent Change in Price over 12 Weeks + Percent Change in Price over 4 Weeks equal to Top # 5

Here are two of the five stocks that made it through today’s screen…

HF Sinclair (DINO Quick QuoteDINO - Free Report)

HF Sinclair produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, and beyond. The firm sells fuels to around 1,300 independent Sinclair-branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the U.S.

HF Sinclair also operates a growing renewables business, with three production facilities that are expected to produce approximately 380 million gallons of renewables annually. DINO has, of course, benefitted greatly from booming oil and gas prices, with sales up 65% last year. Zacks estimates call for its revenue to soar another 99% this year to $36.66 billion to help lift its adjusted earnings by 908% from $1.52 a share to $15.32 a share.

DINO topped our quarterly estimates on November 7. Most importantly, HF Sinclair executives boosted their outlook for FY23 in a big way, as part of a massive upward earnings revisions trend for the oil and energy industry standout amid soaring prices and ongoing supply issues. DINO shares have climbed 105% in 2022, including a 30% jump in the trailing three months to crush the wider Zacks Oil and Energy sector. Despite the run, DINO trades at a discount to its sector and well below its decade-long median at 5.3X forward earnings.

Covenant Logistics Group (CVLG Quick QuoteCVLG - Free Report)

Covenant Logistics Group offers a portfolio of transportation and logistics services. CVLG’s services include asset-based expedited, dedicated and irregular route truckload capacity, alongside asset-light warehousing, transportation management, and freight brokerage capability. Covenant Logistics topped our third quarter earnings and revenue estimates in late October and raised its guidance for both FY22 and FY23 once again.

CVLG’s consensus FY22 estimate is up 10% since its report, with 2023’s figure 19% higher. Covenant Logistics is part of an industry that currently ranks in the top 35% of all Zacks industries and it pays a dividend. CVLG shares have climbed 85% in the last six months and 130% over the past two years.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

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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/.