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Zacks.com featured highlights include SkyWest, Powell Industries, Minerals Technologies, The Vita Coco and Tenet Healthcare
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For Immediate Release
Chicago, IL – May 7, 2024 – Stocks in this week’s article are SkyWest, Inc. (SKYW - Free Report) , Powell Industries, Inc. (POWL - Free Report) , Minerals Technologies Inc. (MTX - Free Report) , The Vita Coco Company, Inc. (COCO - Free Report) and Tenet Healthcare Corp. (THC - Free Report) .
5 Strong Picks to Ride the Wave of Relative Price Strength
Historically, April has been a favorable month for Wall Street investors. However, this year, the month concluded on a disappointing note. Persistent inflation, a resilient job market and a significant drop in U.S. GDP growth eroded confidence in risky assets like stocks. Consequently, the S&P 500 Index plunged 4.2% in April, ending a five-month winning streak.
Yet, U.S. stock markets are likely to bounce back in May, following Federal Reserve Chairman Jerome Powell's clear statement rejecting interest rate hikes in the post-FOMC meeting. Investors also welcomed better-than-anticipated first-quarter 2024 earnings results.
Given the circumstances, it's wise for investors to focus on stocks with a strong relative price performance. This strategy allows them to capitalize on promising opportunities with the potential for high returns.
Relative Price Strength Strategy
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential 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 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 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 16 stocks that made it through the screen:
SkyWest, Inc.: The company operates as a regional airline in the United States. The Zacks Consensus Estimate for 2024 earnings of this firm indicates 784.4% growth. Headquartered in Saint George, UT, SKYW has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. SkyWest has a trailing four-quarter earnings surprise of roughly 128.1%, on average. SKYW shares have increased 175.3% in a year.
Powell Industries, Inc.: Powell Industries specializes in manufacturing different kinds of switchgear. Over the past 60 days, this Houston, TX-based firm saw the Zacks Consensus Estimate for fiscal 2024 move up 19.9%. POWL has a VGM Score of A.
The Zacks Consensus Estimate for fiscal 2024 earnings of Powell Industries indicates 119.4% growth. The company has a trailing four-quarter earnings surprise of roughly 66.9%, on average. POWL shares have gained 210.7% in a year.
Minerals Technologies Inc.: The company develops and produces a wide array of specialty mineral, mineral-based and synthetic mineral products used in various industries. The Zacks Consensus Estimate for 2024 earnings of Minerals Technologies indicates 20.7% growth. Headquartered in New York, MTX has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. Minerals Technologies has a trailing four-quarter earnings surprise of roughly 9.2%, on average. MTX shares have gained 25.3% in a year.
The Vita Coco Company, Inc.: Based in New York, the company operates in the beverage business, primarily active in the coconut water segment. COCO’s expected EPS growth rate for three to five years is currently 15.3%, which compares favorably with the industry's growth rate of 13%. The company has a VGM Score of B.
Notably, the Zacks Consensus Estimate for The Vita Coco Company’s 2024 earnings per share indicates 37.8% year-over-year growth. The firm has a market capitalization of $1.5 billion. COCO shares have gone up 14% in a year.
Tenet Healthcare Corp.: Based in Dallas, TX, the company owns and operates general hospitals and related healthcare facilities for urban and rural communities in numerous states. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved up 34.6%. THC has a VGM Score of A.
Tenet Healthcare beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 56.5%, on average. THC shares have gained 72.6% 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.
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 SkyWest, Powell Industries, Minerals Technologies, The Vita Coco and Tenet Healthcare
For Immediate Release
Chicago, IL – May 7, 2024 – Stocks in this week’s article are SkyWest, Inc. (SKYW - Free Report) , Powell Industries, Inc. (POWL - Free Report) , Minerals Technologies Inc. (MTX - Free Report) , The Vita Coco Company, Inc. (COCO - Free Report) and Tenet Healthcare Corp. (THC - Free Report) .
5 Strong Picks to Ride the Wave of Relative Price Strength
Historically, April has been a favorable month for Wall Street investors. However, this year, the month concluded on a disappointing note. Persistent inflation, a resilient job market and a significant drop in U.S. GDP growth eroded confidence in risky assets like stocks. Consequently, the S&P 500 Index plunged 4.2% in April, ending a five-month winning streak.
Yet, U.S. stock markets are likely to bounce back in May, following Federal Reserve Chairman Jerome Powell's clear statement rejecting interest rate hikes in the post-FOMC meeting. Investors also welcomed better-than-anticipated first-quarter 2024 earnings results.
Given the circumstances, it's wise for investors to focus on stocks with a strong relative price performance. This strategy allows them to capitalize on promising opportunities with the potential for high returns.
Relative Price Strength Strategy
Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is essential 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 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 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 16 stocks that made it through the screen:
SkyWest, Inc.: The company operates as a regional airline in the United States. The Zacks Consensus Estimate for 2024 earnings of this firm indicates 784.4% growth. Headquartered in Saint George, UT, SKYW has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. SkyWest has a trailing four-quarter earnings surprise of roughly 128.1%, on average. SKYW shares have increased 175.3% in a year.
Powell Industries, Inc.: Powell Industries specializes in manufacturing different kinds of switchgear. Over the past 60 days, this Houston, TX-based firm saw the Zacks Consensus Estimate for fiscal 2024 move up 19.9%. POWL has a VGM Score of A.
The Zacks Consensus Estimate for fiscal 2024 earnings of Powell Industries indicates 119.4% growth. The company has a trailing four-quarter earnings surprise of roughly 66.9%, on average. POWL shares have gained 210.7% in a year.
Minerals Technologies Inc.: The company develops and produces a wide array of specialty mineral, mineral-based and synthetic mineral products used in various industries. The Zacks Consensus Estimate for 2024 earnings of Minerals Technologies indicates 20.7% growth. Headquartered in New York, MTX has a VGM Score of A.
Over the past 60 days, the Zacks Consensus Estimate for 2024 has moved up 6.6%. Minerals Technologies has a trailing four-quarter earnings surprise of roughly 9.2%, on average. MTX shares have gained 25.3% in a year.
The Vita Coco Company, Inc.: Based in New York, the company operates in the beverage business, primarily active in the coconut water segment. COCO’s expected EPS growth rate for three to five years is currently 15.3%, which compares favorably with the industry's growth rate of 13%. The company has a VGM Score of B.
Notably, the Zacks Consensus Estimate for The Vita Coco Company’s 2024 earnings per share indicates 37.8% year-over-year growth. The firm has a market capitalization of $1.5 billion. COCO shares have gone up 14% in a year.
Tenet Healthcare Corp.: Based in Dallas, TX, the company owns and operates general hospitals and related healthcare facilities for urban and rural communities in numerous states. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved up 34.6%. THC has a VGM Score of A.
Tenet Healthcare beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 56.5%, on average. THC shares have gained 72.6% 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/2268488/5-strong-picks-to-ride-the-wave-of-relative-price-strength
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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.
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Company: Zacks.com
Phone: 312-265-9268
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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.