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Zacks.com featured highlights include: Clean Harbors, Harley-Davidson, Newell Brands, Regions Financial and Tapestry

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For Immediate Release

Chicago, IL – November 16, 2020 – Stocks in this week’s article are Clean Harbors, Inc. (CLH - Free Report) , Harley-Davidson, Inc. (HOG - Free Report) , Newell Brands Inc. (NWL - Free Report) , Regions Financial Corp. (RF - Free Report) and Tapestry, Inc. (TPR - Free Report) .

5 Stocks Still Poised to Soar on Relative Price Strength

Financial markets worldwide have been surging since drugmakers Pfizer and BioNTech announced successful data from their COVID-19 vaccine study. The breakthrough, which brightens chances of the drug’s emergency approval before the year-end, send the Dow, the S&P and the Nasdaq to record heights.

The progress of a vaccine notwithstanding, the road to recovery remains long and uncertain amid concerns of soaring new coronavirus infections in many countries and the reimposition of lockdowns. The Fed’s cautious view of the American economy along with the confusion over the second stimulus package, post-election uncertainty and simmering U.S.-China tensions are also weighing on the markets.

Meanwhile, a few stocks have been holding up even as the coronavirus-induced mayhem knocked down businesses and industries. With the market expected to remain volatile over the near to medium term, one of the ways such potential plays could be identified is to look for signs of relative price strength.

The Relative Price Strength Approach

Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is important to check whether its price performance exceeds its peers or the industry average.

Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.

However, those outperforming their respective industries or benchmarks should be included in your portfolio, since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures that you have a winning option on your hands.

Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.

Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1101318/5-stocks-poised-to-soar-on-strong-relative-price-strength

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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