For Immediate Release
Chicago, IL – September 14, 2020 – Stocks in this week’s article are Hibbett Sports Inc. (HIBB - Free Report) , BMC Stock Holdings Inc. (BMCH - Free Report) , Mr. Cooper Group Inc. (COOP - Free Report) , Barrick Gold Corp. (GOLD - Free Report) and Nautilus Inc. (NLS - Free Report) .
5 Stocks with Recent Price Strength Despite Market Turmoil
After witnessing an astonishing rally for more than five months in a row, Wall Street suffered a major blow on Sep 3. Markets rebounded on Sep 9, after facing a terrible pull down in the last three trading days. These were the worst-performing days in a row since April. However, all the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plunged again on Sep 10 after a choppy trading session.
This clearly shows that volatility has set in Wall Street at least for the short-term. Historically, September is known as the worst-performing month in Wall Street. Investors started panicking that the coronavirus-defying rally would terminate this month.
The volatility may persist for a few more days as a section of economists and financial experts have already warned that larger corrections are in the offing. However, a closer look at the past five days' trading pattern clearly reveals that it was profit booking and not any major economic, financial or political factor that led to the meltdown.
The technology sector pulled down the overall market after being the predominant driver of the impressive showing over the last five months. It was technology that had helped Wall Street in exiting a coronavirus-induced short bear market and form a new bull market. However, in the due course of market's V-shaped recovery from its recent trough on Mar 23, technology stocks got overvalued.
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 freshly 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1056855/5-stocks-with-recent-price-strength-despite-market-turmoil
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