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Zacks.com featured highlights include Marathon Petroleum, Absolute Software, Sonoco and Clean Harbors
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For Immediate Release
Chicago, IL – September 14, 2022 – Stocks in this week’s article are Marathon Petroleum (MPC - Free Report) , Absolute Software , Sonoco (SON - Free Report) and Clean Harbors (CLH - Free Report) .
4 Stocks Trading Near 52-Week Highs That Can Scale Higher
Investors generally consider a 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Marathon Petroleum, Absolute Software, Sonoco and Clean Harbors are expected to maintain the momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects, and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our four picks of the 20 stocks that made it through the screen:
Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. Marathon’s $21 billion sale of its Speedway retail business provided the company with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement, per which Marathon will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream. The company’s exposure to the more stable cash flows from the logistics segment diversifies the earnings stream and offers a buffer against the volatile refining business. Consequently, Marathon is primed for significant capital appreciation and is viewed as a preferred downstream operator to own now.
The company currently sports a Zacks Rank of 1 and has a VGM Score of A. The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings has been revised upward by 0.1% to $21.11 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 56.68%.
Sonoco is a leading provider of consumer packaging, industrial products, protective packaging and packaging supply chain services. Strong recovery in price and cost across most of its businesses, robust end-market demand, the Ball Metalpack acquisition, productivity initiatives and improved volume/mix are likely to drive the company's results in the near term.
Sonoco's Consumer Packaging segment will continue to gain traction from the flexible packaging business and plastic food packaging. Its Industrial Paper Packaging segment will gain from strong demand for global tubes, cores and cones.
The company currently sports a Zacks Rank of 1 and has a VGM Score of C. The Zacks Consensus Estimate for Sonoco’s 2022 earnings has remained steady at $6.33 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 4.06%.
Absolute Software is engaged in the business of providing firmware-persistent endpoint security and management solutions. The company provides solutions for the computer security monitoring and endpoint management industry.
Absolute Software is benefiting from the rising demand for cyber-security solutions owing to a slew of data breaches and a rise in demand for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. Synergies from last year’s NetMotion acquisition have enhanced its product portfolio, helping it gain new customers.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for Absolute Software’s 2022 earnings has moved up by 487.5% to 47 cents per share in the past 30 days. The company missed the Zacks Consensus Estimate thrice in the trailing four quarters while surpassing the same on one occasion, the average negative surprise being 174.95%.
Clean Harbors is a leading provider of environmental, energy and industrial services in North America, wherein it operates the largest number of hazardous waste incinerators, landfills and treatment, and storage and disposal facilities. The company continues to make capital investments to enhance its quality and comply with government and local regulations. Acquisitions help the company expand its business across multiple lines of services. Consistent share repurchases boost investor confidence and positively impact the company's earnings per share.
The company currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for Clean Harbors’ 2022 earnings has remained steady at $6.78 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 37.51%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Marathon Petroleum, Absolute Software, Sonoco and Clean Harbors
For Immediate Release
Chicago, IL – September 14, 2022 – Stocks in this week’s article are Marathon Petroleum (MPC - Free Report) , Absolute Software , Sonoco (SON - Free Report) and Clean Harbors (CLH - Free Report) .
4 Stocks Trading Near 52-Week Highs That Can Scale Higher
Investors generally consider a 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Marathon Petroleum, Absolute Software, Sonoco and Clean Harbors are expected to maintain the momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects, and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our four picks of the 20 stocks that made it through the screen:
Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. Marathon’s $21 billion sale of its Speedway retail business provided the company with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement, per which Marathon will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream. The company’s exposure to the more stable cash flows from the logistics segment diversifies the earnings stream and offers a buffer against the volatile refining business. Consequently, Marathon is primed for significant capital appreciation and is viewed as a preferred downstream operator to own now.
The company currently sports a Zacks Rank of 1 and has a VGM Score of A. The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings has been revised upward by 0.1% to $21.11 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 56.68%.
Sonoco is a leading provider of consumer packaging, industrial products, protective packaging and packaging supply chain services. Strong recovery in price and cost across most of its businesses, robust end-market demand, the Ball Metalpack acquisition, productivity initiatives and improved volume/mix are likely to drive the company's results in the near term.
Sonoco's Consumer Packaging segment will continue to gain traction from the flexible packaging business and plastic food packaging. Its Industrial Paper Packaging segment will gain from strong demand for global tubes, cores and cones.
The company currently sports a Zacks Rank of 1 and has a VGM Score of C. The Zacks Consensus Estimate for Sonoco’s 2022 earnings has remained steady at $6.33 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 4.06%.
Absolute Software is engaged in the business of providing firmware-persistent endpoint security and management solutions. The company provides solutions for the computer security monitoring and endpoint management industry.
Absolute Software is benefiting from the rising demand for cyber-security solutions owing to a slew of data breaches and a rise in demand for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. Synergies from last year’s NetMotion acquisition have enhanced its product portfolio, helping it gain new customers.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for Absolute Software’s 2022 earnings has moved up by 487.5% to 47 cents per share in the past 30 days. The company missed the Zacks Consensus Estimate thrice in the trailing four quarters while surpassing the same on one occasion, the average negative surprise being 174.95%.
Clean Harbors is a leading provider of environmental, energy and industrial services in North America, wherein it operates the largest number of hazardous waste incinerators, landfills and treatment, and storage and disposal facilities. The company continues to make capital investments to enhance its quality and comply with government and local regulations. Acquisitions help the company expand its business across multiple lines of services. Consistent share repurchases boost investor confidence and positively impact the company's earnings per share.
The company currently sports a Zacks Rank of 1 and has a VGM Score of B. The Zacks Consensus Estimate for Clean Harbors’ 2022 earnings has remained steady at $6.78 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 37.51%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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/1979734/4-stocks-trading-near-52-week-high-that-can-scale-higher
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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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/performance for information about the performance numbers displayed in this press release.