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5 Stocks With Recent Price Strength on COVID-19 Vaccine Hopes
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Wall Street has regained momentum in November after facing severe volatility in the last two months. Notably, U.S. stock markets witnessed an astonishing rally from April to August, terminating the coronavirus-led short bear market.
However, the resurgence of coronavirus cases, uncertainty regarding a fresh fiscal stimulus and election-related volatilities resulted in the market turmoil in September and October.
However, encouraging news on the COVID-19 treatment front and hopes of a vaccine in the near future has significantly strengthened market participants' confidence in risky assets like equities. The possibility of a COVID-19 vaccine in the near future means that the economy can reopen and gradually operate at the pre-pandemic rate.
On Nov 9, Pfizer Inc. (PFE) and BioNTech SE (BNTX) announced that their jointly developed potential vaccine BNT162b2 was more than 90% effective in the late-stage study. On Nov 10, the FDA had granted emergency authorization to a COVID-19 antibody treatment made by Eli Lilly & Co. (LLY).
On Nov 16, Moderna Inc. (MRNA) reported that its preliminary phase III clinical trial data showed that its potential coronavirus vaccine is more than 94% effective in preventing COVID-19.
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.
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: 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 14.
Here we present five out of those 14 stocks:
Aviat Networks Inc. (AVNW - Free Report) designs, manufactures and sells a range of wireless networking products, solutions, and services in North America, Africa, the Middle East, Europe, Russia, Latin America, and the Asia Pacific.
The stock price has soared 32.8% in the past four weeks. The company has expected earnings growth of 95.4% for the current year (ending June 2021). The Zacks Consensus Estimate for the current year has improved 18% over the last 30 days.
Merchants Bancorp (MBIN - Free Report) operates as a diversified bank holding company in the United States. It operates through the Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments.
The stock price has jumped 28.7% 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 33% over the last 30 days. Green Brick Partners Inc. (GRBK - Free Report) operates as a homebuilding and land development company in the United States. It operates in three segments: Builder operations Central, Builder operations Southeast, and Land development.
The stock price has climbed 17.7% in the past four weeks. The company has expected earnings growth of 97.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 12.3% over the last 30 days.
The Providence Service Corp. provides healthcare services in the United States. It operates through Non-Emergency Medical Transportation Services (NET Services) and Matrix Investment segments.
The stock price has surged 17.1% 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 by 41.2% over the last 30 days.
NIC Inc. provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States.
The stock price has gained 16.1% in the past four weeks. The company has expected earnings growth of 36% for the current year. The Zacks Consensus Estimate for the current year has improved 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 on COVID-19 Vaccine Hopes
Wall Street has regained momentum in November after facing severe volatility in the last two months. Notably, U.S. stock markets witnessed an astonishing rally from April to August, terminating the coronavirus-led short bear market.
However, the resurgence of coronavirus cases, uncertainty regarding a fresh fiscal stimulus and election-related volatilities resulted in the market turmoil in September and October.
However, encouraging news on the COVID-19 treatment front and hopes of a vaccine in the near future has significantly strengthened market participants' confidence in risky assets like equities. The possibility of a COVID-19 vaccine in the near future means that the economy can reopen and gradually operate at the pre-pandemic rate.
On Nov 9, Pfizer Inc. (PFE) and BioNTech SE (BNTX) announced that their jointly developed potential vaccine BNT162b2 was more than 90% effective in the late-stage study. On Nov 10, the FDA had granted emergency authorization to a COVID-19 antibody treatment made by Eli Lilly & Co. (LLY).
On Nov 16, Moderna Inc. (MRNA) reported that its preliminary phase III clinical trial data showed that its potential coronavirus vaccine is more than 94% effective in preventing COVID-19.
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.
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: 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 14.
Here we present five out of those 14 stocks:
Aviat Networks Inc. (AVNW - Free Report) designs, manufactures and sells a range of wireless networking products, solutions, and services in North America, Africa, the Middle East, Europe, Russia, Latin America, and the Asia Pacific.
The stock price has soared 32.8% in the past four weeks. The company has expected earnings growth of 95.4% for the current year (ending June 2021). The Zacks Consensus Estimate for the current year has improved 18% over the last 30 days.
Merchants Bancorp (MBIN - Free Report) operates as a diversified bank holding company in the United States. It operates through the Multi-family Mortgage Banking, Mortgage Warehousing, and Banking segments.
The stock price has jumped 28.7% 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 33% over the last 30 days.
Green Brick Partners Inc. (GRBK - Free Report) operates as a homebuilding and land development company in the United States. It operates in three segments: Builder operations Central, Builder operations Southeast, and Land development.
The stock price has climbed 17.7% in the past four weeks. The company has expected earnings growth of 97.4% for the current year. The Zacks Consensus Estimate for the current year has improved by 12.3% over the last 30 days.
The Providence Service Corp. provides healthcare services in the United States. It operates through Non-Emergency Medical Transportation Services (NET Services) and Matrix Investment segments.
The stock price has surged 17.1% 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 by 41.2% over the last 30 days.
NIC Inc. provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States.
The stock price has gained 16.1% in the past four weeks. The company has expected earnings growth of 36% for the current year. The Zacks Consensus Estimate for the current year has improved 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.