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Zacks.com featured highlights include Halliburton, Flex, United States Cellular, Applied Industrial Technologies and Monarch Casino & Resort
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For Immediate Release
Chicago, IL – November 2, 2022 – Stocks in this week’s article are Halliburton Co. (HAL - Free Report) , Flex Ltd. (FLEX - Free Report) , United States Cellular Corp. (USM - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) .
5 Great Relative Price Strength Stocks for Your Portfolio
After it ended the first three quarters of the year down around 25%, the S&P 500 notched a fabulous October, with the index gaining more than 5% for its best trading month since July.
Indeed, the market has yet to come out of the woods as concerns like the complete devastation of the global supply-chain system, record-high inflation and a possible recession are still weighing on investor sentiment. However, several positive signs have started to emerge. In particular, good readings on the U.S. GDP, Personal Income and Outlays report and personal consumption expenditure price index were touted as welcome news.
Having said that, the market remains hamstrung by inflation fears and the headwinds of higher interest rates. Following three back-to-back-to-back 75 basis-point rate hikes so far this year, the likelihood of another 75 basis-point increase this week is extremely high. Worse, experts apprehend continued upward pressure on most prices in the near-to-medium term.
As such, extremely volatile trading in U.S. markets since the beginning of 2022 is expected to persist. Risks stemming from recession fears, geopolitical tensions and dwindling liquidity may also lead to a rough road for equities.
In the current jittery market environment, investors who might want to stay exposed to the equity setup should 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
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential for determining whether a stock's price performance is better than its peers or the industry average.
If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
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 29 stocks that made it through the screen:
Halliburton Co.: Halliburton is one of the largest oilfield service providers in the world. The 2022 Zacks Consensus Estimate for the Houston, TX-based firm indicates 91.7% year-over-year earnings per share growth. HAL has a VGM Score of B.
Halliburton beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 5.5%, on average. HAL shares have gained 43.5% in a year.
Flex Ltd.: Based in Singapore, the company (formerly known as Flextronics International Ltd) provides end-to-end services i.e. designing, engineering, manufacturing, as well as supply chain services and solutions to original equipment manufacturers. FLEX's expected EPS growth rate for three to five years is currently 13.7%, which compares favorably with the industry's growth rate of 10.7%. Flex has a VGM Score of B.
Notably, Flex beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 18.5%, on average. FLEX shares have gone up 11.3% in a year.
United States Cellular Corp.: It is the fourth largest full-service wireless carrier in the United States. U.S. Cellular has a VGM Score of B. Over the past 90 days, Chicago, IL-based USM saw the Zacks Consensus Estimate for 2022 move up 3%.
U.S. Cellular beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 27.6%. Valued at around $2.7 billion, USM has lost 1.6% in a year.
Applied Industrial Technologies: Applied Industrial Technologies is primarily a distributor of engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous supplies. The fiscal 2023 Zacks Consensus Estimate for this Cleveland, OH-based firm indicates 9.3% year-over-year earnings per share growth. AIT has a VGM Score of A.
Applied Industrial Technologies beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.8%, on average. AIT shares have gained 28.7% in a year.
Monarch Casino & Resort, Inc.: It is the owner and operator of two regional casinos. Monarch Casino & Resort has a VGM Score of B. Over the past 30 days, Reno, NV-based MCRI saw the Zacks Consensus Estimate for 2022 move up 6.8%.
Monarch Casino & Resort beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 9.1%. Valued at around $1.5 billion, MCRI has gained 12.1% 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.
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Zacks.com featured highlights include Halliburton, Flex, United States Cellular, Applied Industrial Technologies and Monarch Casino & Resort
For Immediate Release
Chicago, IL – November 2, 2022 – Stocks in this week’s article are Halliburton Co. (HAL - Free Report) , Flex Ltd. (FLEX - Free Report) , United States Cellular Corp. (USM - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) .
5 Great Relative Price Strength Stocks for Your Portfolio
After it ended the first three quarters of the year down around 25%, the S&P 500 notched a fabulous October, with the index gaining more than 5% for its best trading month since July.
Indeed, the market has yet to come out of the woods as concerns like the complete devastation of the global supply-chain system, record-high inflation and a possible recession are still weighing on investor sentiment. However, several positive signs have started to emerge. In particular, good readings on the U.S. GDP, Personal Income and Outlays report and personal consumption expenditure price index were touted as welcome news.
Having said that, the market remains hamstrung by inflation fears and the headwinds of higher interest rates. Following three back-to-back-to-back 75 basis-point rate hikes so far this year, the likelihood of another 75 basis-point increase this week is extremely high. Worse, experts apprehend continued upward pressure on most prices in the near-to-medium term.
As such, extremely volatile trading in U.S. markets since the beginning of 2022 is expected to persist. Risks stemming from recession fears, geopolitical tensions and dwindling liquidity may also lead to a rough road for equities.
In the current jittery market environment, investors who might want to stay exposed to the equity setup should 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
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential for determining whether a stock's price performance is better than its peers or the industry average.
If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
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 29 stocks that made it through the screen:
Halliburton Co.: Halliburton is one of the largest oilfield service providers in the world. The 2022 Zacks Consensus Estimate for the Houston, TX-based firm indicates 91.7% year-over-year earnings per share growth. HAL has a VGM Score of B.
Halliburton beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of 5.5%, on average. HAL shares have gained 43.5% in a year.
Flex Ltd.: Based in Singapore, the company (formerly known as Flextronics International Ltd) provides end-to-end services i.e. designing, engineering, manufacturing, as well as supply chain services and solutions to original equipment manufacturers. FLEX's expected EPS growth rate for three to five years is currently 13.7%, which compares favorably with the industry's growth rate of 10.7%. Flex has a VGM Score of B.
Notably, Flex beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 18.5%, on average. FLEX shares have gone up 11.3% in a year.
United States Cellular Corp.: It is the fourth largest full-service wireless carrier in the United States. U.S. Cellular has a VGM Score of B. Over the past 90 days, Chicago, IL-based USM saw the Zacks Consensus Estimate for 2022 move up 3%.
U.S. Cellular beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 27.6%. Valued at around $2.7 billion, USM has lost 1.6% in a year.
Applied Industrial Technologies: Applied Industrial Technologies is primarily a distributor of engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous supplies. The fiscal 2023 Zacks Consensus Estimate for this Cleveland, OH-based firm indicates 9.3% year-over-year earnings per share growth. AIT has a VGM Score of A.
Applied Industrial Technologies beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.8%, on average. AIT shares have gained 28.7% in a year.
Monarch Casino & Resort, Inc.: It is the owner and operator of two regional casinos. Monarch Casino & Resort has a VGM Score of B. Over the past 30 days, Reno, NV-based MCRI saw the Zacks Consensus Estimate for 2022 move up 6.8%.
Monarch Casino & Resort beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 9.1%. Valued at around $1.5 billion, MCRI has gained 12.1% 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/2011589/5-great-relative-price-strength-stocks-for-your-portfolio
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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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.