For Immediate Release
Chicago, IL – June 21, 2021 – Stocks in this week’s article are Grindrod Shipping Holdings Ltd. (
GRIN Quick Quote GRIN - Free Report) , Tilly's Inc. ( TLYS Quick Quote TLYS - Free Report) , Select Bancorp Inc. ( SLCT Quick Quote SLCT - Free Report) , Global Ship Lease Inc. ( GSL Quick Quote GSL - Free Report) and Genco Shipping & Trading Ltd. ( GNK Quick Quote GNK - Free Report) . 5 Stocks with Recent Price Strength Amid Inflation Concerns
Over the past one and a half months, market participants are speculating about impending inflation in the U.S. economy. The spike in core consumer price index (CPI) data for April and May and April's core PCE price index - Fed's favorite inflation gauge - have made investors jittery about investing in equities.
On Jun 16, in its latest FOMC meeting, Fed acknowledged that the U.S. economy is suffering from inflationary pressure and a rate hike may come before than expected.
However, three major positives are there in Fed Chairman Jerome Powell's post FOMC statement. First, there is no immediate tapering expected for the ongoing $120 billion per month quantitative easing program. Second, a rate hike, if it happens, may not take place before late 2023. Third, Fed officials' informal discussions about a possible deviation from the existing easy-money policy are solely due to an impressive recovery of the U.S. economy, beyond the central bank's own expectations.
Meanwhile, the net worth of American households reached a fresh all-time high in the first quarter of 2021 supported by a faster-than-expected recovery of the U.S. economy from the pandemic-led devastations. On Jun 10, Fed reported that household net worth surged $6.7 trillion or 3.8% in first-quarter 2021 from fourth-quarter 2020 to reach $136.9 trillion.
The pandemic-led devastations of the U.S. economy were not as severe as estimated 16 months ago. U.S. household net worth climbed 6.8%, 3.2%, 5.6% and 3.8%, respectively, in the second, third and fourth quarters of 2020 and first-quarter 2021, sequentially, after sliding 5.6% in first-quarter 2020. An unprecedented fiscal and monetary support helped in reviving household net worth.
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. About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
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