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5 Stocks With Recent Price Strength Despite Market Volatility
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The global economy is set to remain coronavirus-stricken this year. Although, in April-May, stock markets of most of the countries recovered much of the ground that they lost in February-March, the global economy has a long road to go to reach to the pre-pandemic stage. The U.S. economy is not an exception.
Wall Street is reeling under volatility since mid-June, following the second wave of coronavirus in more than 20 U.S. states. New cases of COVID-19 jumped as all 50 states started reopening after nearly two months of lockdowns. The resurgence of the deadly virus has raised several questions about the much-hyped V-shaped recovery of the U.S. economy.
Despite the resurgence of the deadly coronavorus in many states, it is unlikely that a second round of lockdown will be imposed. Better-than-expected economic data, despite the fact that the aggregate economy is still way below its pre-lockdown level of activities, have shown fundamental stability.
At this stage, wouldn’t it be a safer strategy to look for stocks that are winners and have the potential to gain further?
Sounds Good? Here’s How to Execute It:
One should primarily target stocks that have recently been on a bull run. Actually, stocks seeing price strength recently have a high chance of carrying the momentum forward.
If a stock is continuously witnessing an uptrend, there must be a solid reason or else it would have probably crashed. So, looking at stocks that are capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, you need to set other relevant parameters to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:
Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1 or 2: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria have narrowed down the search from over 7,700 stocks to just 47.
Here we present five out of those 47 stocks:
Nautilus Inc. is a fitness solutions company, which designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer and commercial use in the United States, Canada and internationally. It operates in two segments, Direct and Retail.
The stock price has jumped 52.2% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved more than 100% over the last 7 days.
Ameresco Inc. (AMRC - Free Report) provides comprehensive energy services for businesses and other organizations in North America and Europe. It operates through the U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments.
The stock has soared 33.2% in the past four weeks. The company has expected earnings growth of 10.8% for the current year. The Zacks Consensus Estimate for the current year has improved 2.2% over the last 60 days.
Canadian Solar Inc. (CSIQ - Free Report) designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. It operates through two segments, Module and System Solutions and Energy.
The stock price has climbed 29.8% in the past four weeks. The company has expected earnings growth of 22.8% for the current year. The Zacks Consensus Estimate for the current year has improved more than 30% over the last 60 days.
Emergent BioSolutions Inc. (EBS - Free Report) is focused on the provision of specialty products for civilian and military populations that address accidental, intentional, and naturally occurring public health threats. Its products address PHTs, including chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travelers' diseases; and opioids.
The stock price has rallied 28.5% in the past four weeks. The company has expected earnings growth of 38.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 26.7% over the last 60 days.
Pacira BioSciences Inc. (PCRX - Free Report) is a specialty pharmaceutical company focused on the development, commercialization and manufacture of proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers..
The stock price has surged 28% in the past four weeks. The company has expected earnings growth of 10.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.1% over the last 7 days.
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.
Image: Bigstock
5 Stocks With Recent Price Strength Despite Market Volatility
The global economy is set to remain coronavirus-stricken this year. Although, in April-May, stock markets of most of the countries recovered much of the ground that they lost in February-March, the global economy has a long road to go to reach to the pre-pandemic stage. The U.S. economy is not an exception.
Wall Street is reeling under volatility since mid-June, following the second wave of coronavirus in more than 20 U.S. states. New cases of COVID-19 jumped as all 50 states started reopening after nearly two months of lockdowns. The resurgence of the deadly virus has raised several questions about the much-hyped V-shaped recovery of the U.S. economy.
Despite the resurgence of the deadly coronavorus in many states, it is unlikely that a second round of lockdown will be imposed. Better-than-expected economic data, despite the fact that the aggregate economy is still way below its pre-lockdown level of activities, have shown fundamental stability.
At this stage, wouldn’t it be a safer strategy to look for stocks that are winners and have the potential to gain further?
Sounds Good? Here’s How to Execute It:
One should primarily target stocks that have recently been on a bull run. Actually, stocks seeing price strength recently have a high chance of carrying the momentum forward.
If a stock is continuously witnessing an uptrend, there must be a solid reason or else it would have probably crashed. So, looking at stocks that are capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, you need to set other relevant parameters to create a successful investment strategy.
Here’s how you should create the screen to shortlist the current as well as the potential winners.
Screening Parameters:
Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.
Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1 or 2: This indicates that brokers are also highly hopeful about the stock’s future performance.
Current Price greater than 5: The stocks must all be trading at a minimum of $5.
Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.
Just these few criteria have narrowed down the search from over 7,700 stocks to just 47.
Here we present five out of those 47 stocks:
Nautilus Inc. is a fitness solutions company, which designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer and commercial use in the United States, Canada and internationally. It operates in two segments, Direct and Retail.
The stock price has jumped 52.2% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved more than 100% over the last 7 days.
Ameresco Inc. (AMRC - Free Report) provides comprehensive energy services for businesses and other organizations in North America and Europe. It operates through the U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments.
The stock has soared 33.2% in the past four weeks. The company has expected earnings growth of 10.8% for the current year. The Zacks Consensus Estimate for the current year has improved 2.2% over the last 60 days.
Canadian Solar Inc. (CSIQ - Free Report) designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. It operates through two segments, Module and System Solutions and Energy.
The stock price has climbed 29.8% in the past four weeks. The company has expected earnings growth of 22.8% for the current year. The Zacks Consensus Estimate for the current year has improved more than 30% over the last 60 days.
Emergent BioSolutions Inc. (EBS - Free Report) is focused on the provision of specialty products for civilian and military populations that address accidental, intentional, and naturally occurring public health threats. Its products address PHTs, including chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travelers' diseases; and opioids.
The stock price has rallied 28.5% in the past four weeks. The company has expected earnings growth of 38.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 26.7% over the last 60 days.
Pacira BioSciences Inc. (PCRX - Free Report) is a specialty pharmaceutical company focused on the development, commercialization and manufacture of proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers..
The stock price has surged 28% in the past four weeks. The company has expected earnings growth of 10.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.1% over the last 7 days.
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.
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.