Yesterday was a terrible day for stocks. The broad market came under pressure early and selling was simply relentless. In conditions like that, it can feel like there is nowhere to hide. Under the desk sure sounds like a good place on days like that. You may be surprised to hear that even during terrible market downturns like that, there are diamonds in the rough. One way to find these diamonds is to lean on the power of the Zacks Rank.
The Zacks Rank helps investors identify stocks with the strongest earnings trends. These trends take months to develop and don’t shift on a dime like price can. This makes the Zacks Rank a perfect initial litmus test when searching for stocks to buy.
The other important element to screen for is relative strength to the broad market. Stocks which have been outperforming their peers could indicate serious investor interest. On days where the broad market is selling off dramatically, these stocks could be the one bucking the trend. When things turn around, they are best positioned to benefit from the rising tide.
I’ve compiled a list of five Zacks Rank #1 (Strong Buy) stocks that are within a few percentage points of their 52-week highs despite the markets recent downward action.
Fastly (FSLY - Free Report)
Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. It is a programmable platform designed for Web and application delivery.
Acacia Communications (ACIA - Free Report)