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Zacks.com featured highlights include: Ampco-Pittsburgh, Kaleyra, Booz Allen Hamilton, Grocery Outlet and The Cardinal Health

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For Immediate Release

Chicago, IL – April 7, 2020 – Stocks in this week’s article are Ampco-Pittsburgh Corp. (AP - Free Report) , Kaleyra, Inc. , Booz Allen Hamilton Holding Corp. (BAH - Free Report) , Grocery Outlet Holding Corp. (GO - Free Report) and The Cardinal Health (CAH - Free Report) .

Focus on Relative Price Strength to Soften Coronavirus Blows

Fears are growing over the impact of the fast spreading novel coronavirus (COVID-19) on business as the raging pandemic crushes economies and destroys equities. In the meantime, oil prices are experiencing growing pains with the contagion-induced lockdown crippling demand amid a no-holds-barred price war between Saudi Arabia and Russia. In a nutshell, there is no escaping the resulting chaos in the markets.

While the volatility and uncertainty will continue until the coronavirus recedes, it would be prudent not to panic and focus on the big picture. Agreed, some heartburn is inevitable but having an investing plan and sticking with it might turn this current selloff into an opportunity to buy solid names at depressed prices. One of the ways potential stock ideas could be identified is to look for signs of relative price strength.

The Relative Price Strength Approach

Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s important to measure the performance of such a stock relative to its industry or peers, or the appropriate benchmark.

If you see that a stock is underperforming on fundamental factors, then 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 to provide 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 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/856883/focus-on-relative-price-strength-to-soften-the-coronavirus-blows

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.

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Strong Stocks that Should Be in the News

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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

 

 

 

                                                                                     

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