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Zacks.com featured highlights include: Townsquare Media, Medifast, Delta Apparel, Genco Shipping & Trading and Star Bulk Carriers

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For Immediate Release

Chicago, IL – May 19, 2021 – Stocks in this week’s article are Townsquare Media, Inc. (TSQ - Free Report) , Medifast, Inc. (MED - Free Report) , Delta Apparel, Inc. (DLA - Free Report) , Genco Shipping & Trading Limited (GNK - Free Report) and Star Bulk Carriers Corp. (SBLK - Free Report) .

5 Stocks with Recent Price Strength Amid Inflation Concerns

Last week was a disappointing one for Wall Street primarily due to concerns related to the impending inflation. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — fell 1.1%, 1.4% and 2.3% respectively, marking their worst weekly performance since Feb 26.   

Inflation will reduce the net present value of stock investing. This is more likely for the technology stocks. Higher inflation may compel the Fed to increase the benchmark interest rate earlier-than-expected. This will be detrimental to growth stocks like technology as these companies are dependent on easy access to credit at a cheap rate to grow their businesses.

Moreover, with regards to economic data, retail sales in April were flat with March, but missed the consensus estimate of an increase of 1.1%. Industrial production rose 0.7% in April compared with the consensus estimate of 1.1% growth.

On May 7, the Department of Labor reported a highly disappointing jobs data. Nonfarm payroll increased a mere  266,000 in April compared with the consensus estimate of 1.035 million. The unemployment rate nudged up to 6.1% in April from 6% in March. The consensus estimate was 5.7%.

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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1570567/5-stocks-with-recent-price-strength-amid-inflation-concern

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.

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Strong Stocks that Should Be in the News

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