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5 Stocks With Recent Price Strength Amid October Rally
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Wall Street has returned to its north bound journey as the bulls are roaring in October after September’s market mayhem. The Dow and the S&P 500 have recorded several all-time and closing highs this month. The Nasdaq Composite is currently just 1.2% below its all-time high recorded on Sep 7.
Month to date, the Dow, the S&P 500 and the Nasdaq Composite, have rallied 5.6%, 6% and 5.4%, respectively. This performance is impressive as October is also known for its historically volatile trading pattern. In September, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plummeted 4.3%, 4.8% and 5.3%, respectively.
Impressive results of the third-quarter 2021 earnings season so far and a series of solid economic data released in October confirmed the unhindered recovery of the U.S. economy amid prolonged supply-chain disruptions, a labor shortage and higher inflationary pressure.
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. 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 it would have probably crashed. So, looking at stocks 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 16.
Here we present five out of those 16 stocks:
Marathon Digital Holdings Inc. (MARA - Free Report) is a digital asset technology company which mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
The company’s stock price has soared 55.5% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 13.6% over the last 60 days.
Jefferies Financial Group Inc. (JEF - Free Report) is engaged in investment banking and capital markets, asset management, and direct investing businesses in the Americas, Europe, the Middle East, Africa, and Asia. It operates through the Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments.
The stock price has climbed 14.5% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 27.1% over the last 30 days.
Clearfield Inc. (CLFD - Free Report) manufactures, markets and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises and original equipment manufacturers markets in the United States and internationally.
The stock price has surged 10.8% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4% over the last 30 days.
Capital Product Partners L.P. is an international shipping company and leader in the seaborne transportation of refined oil products and chemicals. Its fleet of product tankers is fully chartered under medium- to long-term time frames and bareboat charters.
The stock price has advanced 8.4% in the past four weeks. The company has an expected earnings growth rate of 36.3% for the current year. The Zacks Consensus Estimate for current-year earnings improved 5.3% over the last 60 days.
Unity Bancorp Inc. (UNTY - Free Report) is a one-bank holding company incorporated to serve as a holding company for First Community Bank. The company's primary business is ownership and supervision of the bank.
The stock price has gained 7.4% in the past four weeks. The company has an expected earnings growth rate of 53.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.3% over the last 30 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 to day. 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.
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5 Stocks With Recent Price Strength Amid October Rally
Wall Street has returned to its north bound journey as the bulls are roaring in October after September’s market mayhem. The Dow and the S&P 500 have recorded several all-time and closing highs this month. The Nasdaq Composite is currently just 1.2% below its all-time high recorded on Sep 7.
Month to date, the Dow, the S&P 500 and the Nasdaq Composite, have rallied 5.6%, 6% and 5.4%, respectively. This performance is impressive as October is also known for its historically volatile trading pattern. In September, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — plummeted 4.3%, 4.8% and 5.3%, respectively.
Impressive results of the third-quarter 2021 earnings season so far and a series of solid economic data released in October confirmed the unhindered recovery of the U.S. economy amid prolonged supply-chain disruptions, a labor shortage and higher inflationary pressure.
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. 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 it would have probably crashed. So, looking at stocks 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 16.
Here we present five out of those 16 stocks:
Marathon Digital Holdings Inc. (MARA - Free Report) is a digital asset technology company which mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
The company’s stock price has soared 55.5% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 13.6% over the last 60 days.
Jefferies Financial Group Inc. (JEF - Free Report) is engaged in investment banking and capital markets, asset management, and direct investing businesses in the Americas, Europe, the Middle East, Africa, and Asia. It operates through the Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments.
The stock price has climbed 14.5% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 27.1% over the last 30 days.
Clearfield Inc. (CLFD - Free Report) manufactures, markets and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises and original equipment manufacturers markets in the United States and internationally.
The stock price has surged 10.8% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4% over the last 30 days.
Capital Product Partners L.P. is an international shipping company and leader in the seaborne transportation of refined oil products and chemicals. Its fleet of product tankers is fully chartered under medium- to long-term time frames and bareboat charters.
The stock price has advanced 8.4% in the past four weeks. The company has an expected earnings growth rate of 36.3% for the current year. The Zacks Consensus Estimate for current-year earnings improved 5.3% over the last 60 days.
Unity Bancorp Inc. (UNTY - Free Report) is a one-bank holding company incorporated to serve as a holding company for First Community Bank. The company's primary business is ownership and supervision of the bank.
The stock price has gained 7.4% in the past four weeks. The company has an expected earnings growth rate of 53.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.3% over the last 30 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 to day. 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.