We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Own These 5 Stocks to Gain from Their Relative Price Strength
Following a two-month long bull run, volatility has returned to the market. Wall Street closed lower for the third consecutive session on Tuesday as investors looked ahead to this week’s monetary-policy symposium, which was set to be held in Jackson Hole. Fed Chairman Jerome Powell is expected to provide an important indication regarding the central bank’s stance on the economy. While no decision on interest rate hike will be taken in the meeting, it is likely to revolve around high inflation and slowing growth.
As of now, trading is expected to be choppy, considering the central bank’s goal of squashing inflation and keeping expectations about future price gains in check. Risks stemming from recession fears, geopolitical tensions and dwindling liquidity will also lead to a rough road for equities.
In the current jittery market environment, for investors who might want to stay exposed to the equity setup, it is time to focus on good investment opportunities. One of the ways such potential plays could be identified is to look for signs of relative price strength.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry or peers, or an appropriate benchmark.If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
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 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings 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.
Here are five of the 30 stocks that made it through the screen:
Tecnoglass: The Colombia-based firm produces, sells and installs architectural glass and related aluminum products for residential construction markets. Founded in 1984, Tecnoglass has a VGM Score of B.
For 2022, TGLS has a projected earnings growth rate of 47.7%. Valued at around $1.2 billion, Tecnoglass shares have gained 8.6% in a year.
Clean Harbors: It is a well-known environmental service company focusing on waste disposal and recycling. Clean Harbors has a VGM Score of B. Over the past 30 days, Norwell, MA-based CLH saw the Zacks Consensus Estimate for 2022 move up 52.7%.
Clean Harbors beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.5%. Valued at around $6.2 billion, CLH has gained 15.8% in a year.
Target Hospitality: The Woodlands, TX-based firm is a leading provider of specialty Rental remote accommodation assets in the United States. Founded in 1978, Target Hospitality has a VGM Score of B.
For 2022, TH has a projected earnings growth rate of 2,840%. Target Hospitality beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 135.3%, on average. TH shares have gained 330.4% in a year.
Super Micro Computer: Super Micro Computer offers state-of-the-art server and storage systems covering Artificial Intelligence, Cloud Servers, IoT and 5G Telco infrastructure. The fiscal 2023 Zacks Consensus Estimate for this San Jose, CA-based firm indicates 32.7% year-over-year earnings per share growth. SMCI has a VGM Score of B.
Super Micro Computer beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 20.3%, on average. SMCI shares have gained 88.3% in a year.
Murphy USA: Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States. The 2022 Zacks Consensus Estimate for the El Dorado, AR-based firm indicates 43.4% year-over-year earnings per share growth. MUSA has a VGM Score of B.
Murphy USA beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 49%, on average. MUSA shares have gained around 92.8% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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 >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights Tecnoglass, Clean Harbors, Target Hospitality, Super Micro Computers and Murphy
For Immediate Release
Chicago, IL – August 25, 2022 – Stocks in this week’s article are Tecnoglass (TGLS - Free Report) , Clean Harbors (CLH - Free Report) , Target Hospitality (TH - Free Report) , Super Micro Computers (SMCI - Free Report) and Murphy USA (MUSA - Free Report) .
Own These 5 Stocks to Gain from Their Relative Price Strength
Following a two-month long bull run, volatility has returned to the market. Wall Street closed lower for the third consecutive session on Tuesday as investors looked ahead to this week’s monetary-policy symposium, which was set to be held in Jackson Hole. Fed Chairman Jerome Powell is expected to provide an important indication regarding the central bank’s stance on the economy. While no decision on interest rate hike will be taken in the meeting, it is likely to revolve around high inflation and slowing growth.
As of now, trading is expected to be choppy, considering the central bank’s goal of squashing inflation and keeping expectations about future price gains in check. Risks stemming from recession fears, geopolitical tensions and dwindling liquidity will also lead to a rough road for equities.
In the current jittery market environment, for investors who might want to stay exposed to the equity setup, it is time to focus on good investment opportunities. One of the ways such potential plays could be identified is to look for signs of relative price strength.
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry or peers, or an appropriate benchmark.If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
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 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings 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.
Here are five of the 30 stocks that made it through the screen:
Tecnoglass: The Colombia-based firm produces, sells and installs architectural glass and related aluminum products for residential construction markets. Founded in 1984, Tecnoglass has a VGM Score of B.
For 2022, TGLS has a projected earnings growth rate of 47.7%. Valued at around $1.2 billion, Tecnoglass shares have gained 8.6% in a year.
Clean Harbors: It is a well-known environmental service company focusing on waste disposal and recycling. Clean Harbors has a VGM Score of B. Over the past 30 days, Norwell, MA-based CLH saw the Zacks Consensus Estimate for 2022 move up 52.7%.
Clean Harbors beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.5%. Valued at around $6.2 billion, CLH has gained 15.8% in a year.
Target Hospitality: The Woodlands, TX-based firm is a leading provider of specialty Rental remote accommodation assets in the United States. Founded in 1978, Target Hospitality has a VGM Score of B.
For 2022, TH has a projected earnings growth rate of 2,840%. Target Hospitality beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 135.3%, on average. TH shares have gained 330.4% in a year.
Super Micro Computer: Super Micro Computer offers state-of-the-art server and storage systems covering Artificial Intelligence, Cloud Servers, IoT and 5G Telco infrastructure. The fiscal 2023 Zacks Consensus Estimate for this San Jose, CA-based firm indicates 32.7% year-over-year earnings per share growth. SMCI has a VGM Score of B.
Super Micro Computer beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 20.3%, on average. SMCI shares have gained 88.3% in a year.
Murphy USA: Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States. The 2022 Zacks Consensus Estimate for the El Dorado, AR-based firm indicates 43.4% year-over-year earnings per share growth. MUSA has a VGM Score of B.
Murphy USA beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 49%, on average. MUSA shares have gained around 92.8% in a year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1971732/own-these-5-stocks-to-gain-from-their-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 >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.