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Learn How to Find Top-Ranked Momentum Stocks to Buy in November
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The rapid market comeback over the last week showcases once again how extremely difficult market timing is and highlights why most long-term investors are often well-served to stay exposed to the stock market through thick and thin.
The S&P 500 and the Nasdaq are trading above their 200-day and 50-day moving averages. Meanwhile, U.S. Treasury yields have tumbled off their recent highs as Wall Street bets that the Fed is done with its rate-hiking campaign.
The screen we explore today helps investors find Zacks Rank #1 (Strong Buy) stocks that also boast strong upward price momentum that might be worth buying in November and beyond.
Screen Basics
The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.
The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocks to those with upward price momentum that are also trading within 20% of their 52-week highs. The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well.
The screen then makes your life a little easier and narrows it down to just seven stock picks.
The screen basics are listed below…
· Zacks Rank = #1 (Strong Buy)
· Current Price/52-week High >= 0.8
· PEG Ratio: P/E F(1)/EPS Growth <= 1
· Price/Sales <= 3
· Percentage Change Price -12 Weeks = Top # 7
This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1.It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Stride is one of the top tech-focused online education companies in the U.S. The company’s various services aim to serve K–12 students and parents, as well as adult learners, school districts, businesses, the military, and beyond. Stride boasts that it offers everything from “high-quality online and blended learning solutions to hands-on curriculum and career-oriented programs,” including in areas such as healthcare and technology.
Image Source: Zacks Investment Research
Stride is far from just a pandemic lockdown success story. In fact, Stride went public over 15 years ago, growing from around $400 million in revenue in 2010 to $1.8 billion last year. The company has delivered millions of courses to students across the U.S. and over 100 countries. Of course, the Covid-19 pandemic massively boosted Stride’s revenue and earnings, as more families and people realized that online education is an invaluable supplement and even a primary education tool.
Stride's revenue climbed 9% in its fiscal 2023 and 10% in FY22, after it soared 48% during FY21 (boosted by Covid). Most recently, LRN crushed our Q1 FY24 earnings estimate on October 24 and provided upbeat guidance, as it benefits from strength in its career learnings segment, especially from its Middle/High School cohort. Zacks estimates call for LRN’s revenue to climb another 9% this year and 6% higher next year, while its adjusted earnings are projected to soar by 34% and 12%, respectively.
Image Source: Zacks Investment Research
Stride shares have climbed 160% in the last three years to crush the S&P 500’s 23%. This run includes a huge post-earnings release spike last month that helped it finally break above its 2020 highs. Despite its strong performance that has it trading at records, it trades at a 27% discount to its own five-year median at 13.5X forward 12-month earnings. LRN’s valuation levels also offer a discount vs. the S&P 500 and its Zacks Econ Sector.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
Image: Bigstock
Learn How to Find Top-Ranked Momentum Stocks to Buy in November
The rapid market comeback over the last week showcases once again how extremely difficult market timing is and highlights why most long-term investors are often well-served to stay exposed to the stock market through thick and thin.
The S&P 500 and the Nasdaq are trading above their 200-day and 50-day moving averages. Meanwhile, U.S. Treasury yields have tumbled off their recent highs as Wall Street bets that the Fed is done with its rate-hiking campaign.
The screen we explore today helps investors find Zacks Rank #1 (Strong Buy) stocks that also boast strong upward price momentum that might be worth buying in November and beyond.
Screen Basics
The screen we are looking into today comes loaded with the Research Wizard. The screen helps investors dig through all of the Zacks Rank #1 (Strong Buy) stocks, of which there are over 200 at any given time, to find some of the top momentum names.
The screen narrows down the list of Zacks Rank #1 (Strong Buy) stocks to those with upward price momentum that are also trading within 20% of their 52-week highs. The screen then uses the PEG ratio and the Price to Sales ratio to help make sure investors are getting value as well.
The screen then makes your life a little easier and narrows it down to just seven stock picks.
The screen basics are listed below…
· Zacks Rank = #1 (Strong Buy)
· Current Price/52-week High >= 0.8
· PEG Ratio: P/E F(1)/EPS Growth <= 1
· Price/Sales <= 3
· Percentage Change Price -12 Weeks = Top # 7
This strategy comes loaded with the Research Wizard and it is called bt_sow_momentum_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Stride, Inc. ((LRN - Free Report) )
Stride is one of the top tech-focused online education companies in the U.S. The company’s various services aim to serve K–12 students and parents, as well as adult learners, school districts, businesses, the military, and beyond. Stride boasts that it offers everything from “high-quality online and blended learning solutions to hands-on curriculum and career-oriented programs,” including in areas such as healthcare and technology.
Image Source: Zacks Investment Research
Stride is far from just a pandemic lockdown success story. In fact, Stride went public over 15 years ago, growing from around $400 million in revenue in 2010 to $1.8 billion last year. The company has delivered millions of courses to students across the U.S. and over 100 countries. Of course, the Covid-19 pandemic massively boosted Stride’s revenue and earnings, as more families and people realized that online education is an invaluable supplement and even a primary education tool.
Stride's revenue climbed 9% in its fiscal 2023 and 10% in FY22, after it soared 48% during FY21 (boosted by Covid). Most recently, LRN crushed our Q1 FY24 earnings estimate on October 24 and provided upbeat guidance, as it benefits from strength in its career learnings segment, especially from its Middle/High School cohort. Zacks estimates call for LRN’s revenue to climb another 9% this year and 6% higher next year, while its adjusted earnings are projected to soar by 34% and 12%, respectively.
Image Source: Zacks Investment Research
Stride shares have climbed 160% in the last three years to crush the S&P 500’s 23%. This run includes a huge post-earnings release spike last month that helped it finally break above its 2020 highs. Despite its strong performance that has it trading at records, it trades at a 27% discount to its own five-year median at 13.5X forward 12-month earnings. LRN’s valuation levels also offer a discount vs. the S&P 500 and its Zacks Econ Sector.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance/.