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When the stock market surged to new all-time highs in November, it created a fantastic parade of opportunities with hundreds of stocks displaying their own strong momentum.
But with so many "price strength" ideas to chose from, how do you narrow them down into the good, the bad, and the must-have?
The answer is simple: match that price momentum with the number-one driver of stocks, earnings momentum.
Today I ran a Zacks Premium screen called Price & Earnings Estimate Momentum. This screen focuses on top Zacks Ranked momentum stocks in uptrends at or near their 52-week highs.
These momentum stocks are currently exhibiting both price momentum and earnings estimate revision momentum. And forces of entropy aside, you know what Newton said about a body in motion.
Only 14 names made the list. I'm going to share half of them with you.
First, let's go over the screen parameters...
Zacks Rank of #1 (Strong Buy) or #2 (Buy)
Zacks Momentum Style Score of A or B
Price as a % of 52-week High-Low Range >= 90
Last Close (price) >= 5
Avg. 20-Day Volume >= 100,000
7 Momentum Winners
Here they are with a brief description and recent catalysts...
AIT is one of North America's leading distributors of bearings, linear technologies, power transmission components, rubber products, specialty maintenance items and electrical/mechanical and fluid power products and systems to the MRO (maintenance and repair operations) and OEM (original equipment manufacturer) markets.
This $2.4 billion company reports earnings on January 26 and became a Zacks #2 Rank after analysts moved up their EPS estimates in the past week. After a 14.75% earnings beat last quarter that launched shares from $50 to $62, maybe they know something we don't.
CHKP is a leading provider of policy-based enterprise security and traffic management solutions. Through its patented Stateful Inspection technology, the company delivers Secure Enterprise Connectivity solutions that protect information assets and enhance the performance of enterprise networks.
CheckPoint delivered a 15.6% earnings beat on January 19 and shares surged 7.5% to highs not seen since the DotCom Bubble. The stock is a Zacks #2 Rank now but I expect as the analysts update their EPS models that it will rise into the top tier very soon.
The $42 billion rail freight giant was a big mover on Jan 19 as the stock vaulted over 23% on the day on 98.5 million shares, 10X the normal volume. The move came following reports that the former Canadian Pacific CEO Hunter Harrison is teaming up with activists to shake up the railroad company.
But the outlook had already brightened considerably before this news as the company witnessed eight positive estimate revisions in the past 30 days, pushing the stock to a Zacks #2 Rank. I would keep this one on your buy list for a pullback in the $38-40 zone.
LyondellBassell Industries is a $36.5 billion manufacturer of chemicals and derivatives for multiple industries including packaging, electronics, automotive components, home furnishings, construction materials and biofuels. It also operates as a refiner of heavy high-sulfur crude oil produce and is engaged in the marketing and selling of polyolefins, polypropylene and polyethylene resins.
The stock became a Zacks #2 Rank after 2017 EPS estimates rose from $9.51 to $9.71. The next quarterly earnings report is February 3 and Wells Fargo recently reiterated their Outperform rating with a valuation range of $98 to $102.
Skyworks Solutions is a $14.5 billion wireless semiconductor company focused on radio frequency (RF) and complete system solutions for mobile communications applications. Their name is virtually synonymous with the Internet of Things for which they will supply a large portion of the RF chips as the IoT grows to 50 billion connected devices by 2020.
SWKS just reported another strong quarter and outlook on January 19, igniting shares to a $10 or 12.75% gain on Friday Jan 20. As with Check Point, I expect this Zacks #2 Rank to see solid upward EPS revisions that push its Rank higher next week.
United Rentals is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. The $9.3 billion company offers for rent different types of equipment to customers that include construction and industrial companies, manufacturers, utilities, municipalities, and homeowners.
This Zacks #2 Rank reports Q4 earnings on January 25 and this will be a report to watch closely. The stock has been consolidating in a tight pattern between $105 and $110 as 2017 EPS estimates spiked from $8.64 to $8.89 in the past 60 days. The next upside leg could be imminent if the company outlook remains strong.
Validus Holdings
Validus Holdings, through its principal operating subsidiary Validus Reinsurance, Ltd., is a $4.5 billion global provider of short-tail lines of reinsurance including property catastrophe, property pro-rata and property per risk, marine and energy, and other specialty lines. Validus was formed in December following the significant natural catastrophes of 2005 with an experienced management team and an unencumbered capital base of approximately $1 billion.
This Zacks #2 Rank has been in a beautiful uptrend for the past year as it keeps delivering earnings momentum. In the past 60 days, 2017 EPS estimates have risen from $4.13 to $4.40, representing 14.5% annual growth. They report for Q4 on February 2.
I hope this "double the momentum" list gives you at least one, or three, ideas to keep on your radar.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>
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7 Price and Earnings Momentum Winners
When the stock market surged to new all-time highs in November, it created a fantastic parade of opportunities with hundreds of stocks displaying their own strong momentum.
But with so many "price strength" ideas to chose from, how do you narrow them down into the good, the bad, and the must-have?
The answer is simple: match that price momentum with the number-one driver of stocks, earnings momentum.
Today I ran a Zacks Premium screen called Price & Earnings Estimate Momentum. This screen focuses on top Zacks Ranked momentum stocks in uptrends at or near their 52-week highs.
These momentum stocks are currently exhibiting both price momentum and earnings estimate revision momentum. And forces of entropy aside, you know what Newton said about a body in motion.
Only 14 names made the list. I'm going to share half of them with you.
First, let's go over the screen parameters...
7 Momentum Winners
Here they are with a brief description and recent catalysts...
Applied Industrial Technologies (AIT - Free Report)
AIT is one of North America's leading distributors of bearings, linear technologies, power transmission components, rubber products, specialty maintenance items and electrical/mechanical and fluid power products and systems to the MRO (maintenance and repair operations) and OEM (original equipment manufacturer) markets.
This $2.4 billion company reports earnings on January 26 and became a Zacks #2 Rank after analysts moved up their EPS estimates in the past week. After a 14.75% earnings beat last quarter that launched shares from $50 to $62, maybe they know something we don't.
Check Point Software (CHKP - Free Report)
CHKP is a leading provider of policy-based enterprise security and traffic management solutions. Through its patented Stateful Inspection technology, the company delivers Secure Enterprise Connectivity solutions that protect information assets and enhance the performance of enterprise networks.
CheckPoint delivered a 15.6% earnings beat on January 19 and shares surged 7.5% to highs not seen since the DotCom Bubble. The stock is a Zacks #2 Rank now but I expect as the analysts update their EPS models that it will rise into the top tier very soon.
CSX Corp (CSX - Free Report)
The $42 billion rail freight giant was a big mover on Jan 19 as the stock vaulted over 23% on the day on 98.5 million shares, 10X the normal volume. The move came following reports that the former Canadian Pacific CEO Hunter Harrison is teaming up with activists to shake up the railroad company.
But the outlook had already brightened considerably before this news as the company witnessed eight positive estimate revisions in the past 30 days, pushing the stock to a Zacks #2 Rank. I would keep this one on your buy list for a pullback in the $38-40 zone.
LyondellBassell (LYB - Free Report)
LyondellBassell Industries is a $36.5 billion manufacturer of chemicals and derivatives for multiple industries including packaging, electronics, automotive components, home furnishings, construction materials and biofuels. It also operates as a refiner of heavy high-sulfur crude oil produce and is engaged in the marketing and selling of polyolefins, polypropylene and polyethylene resins.
The stock became a Zacks #2 Rank after 2017 EPS estimates rose from $9.51 to $9.71. The next quarterly earnings report is February 3 and Wells Fargo recently reiterated their Outperform rating with a valuation range of $98 to $102.
Skyworks Solutions (SWKS - Free Report)
Skyworks Solutions is a $14.5 billion wireless semiconductor company focused on radio frequency (RF) and complete system solutions for mobile communications applications. Their name is virtually synonymous with the Internet of Things for which they will supply a large portion of the RF chips as the IoT grows to 50 billion connected devices by 2020.
SWKS just reported another strong quarter and outlook on January 19, igniting shares to a $10 or 12.75% gain on Friday Jan 20. As with Check Point, I expect this Zacks #2 Rank to see solid upward EPS revisions that push its Rank higher next week.
United Rentals (URI - Free Report)
United Rentals is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. The $9.3 billion company offers for rent different types of equipment to customers that include construction and industrial companies, manufacturers, utilities, municipalities, and homeowners.
This Zacks #2 Rank reports Q4 earnings on January 25 and this will be a report to watch closely. The stock has been consolidating in a tight pattern between $105 and $110 as 2017 EPS estimates spiked from $8.64 to $8.89 in the past 60 days. The next upside leg could be imminent if the company outlook remains strong.
Validus Holdings
Validus Holdings, through its principal operating subsidiary Validus Reinsurance, Ltd., is a $4.5 billion global provider of short-tail lines of reinsurance including property catastrophe, property pro-rata and property per risk, marine and energy, and other specialty lines. Validus was formed in December following the significant natural catastrophes of 2005 with an experienced management team and an unencumbered capital base of approximately $1 billion.
This Zacks #2 Rank has been in a beautiful uptrend for the past year as it keeps delivering earnings momentum. In the past 60 days, 2017 EPS estimates have risen from $4.13 to $4.40, representing 14.5% annual growth. They report for Q4 on February 2.
I hope this "double the momentum" list gives you at least one, or three, ideas to keep on your radar.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>