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5 Stocks With Recent Price Strength Amid Geopolitical Conflict
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The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy approached the Ukrainian capital Kyiv. The Russian authority has stepped up its shelling of Kharkiv, Ukraine’s second-largest city. The United States also deployed more troops in Europe.
Over the weekend, the United States and its allies agreed to exclude selected Russian banks from the SWIFT interbank messaging system. This measure will effectively detach Russian banks from the global financial network.
The first negotiation meeting between Russia and Ukraine ended without any fruitful result. On Feb 24, President Joe Biden said that his administration is considering more punitive actions against Russia to isolate that country from the global financial markets.
Crude oil prices also maintained their northbound journey as Russia is a major exporter of crude oil and natural gas globally, especially in Europe. On Mar 2, the U.S. benchmark — the WTI crude — for April contract, rose 7%, to settle at $110.60 a barrel, marking the highest for a front-month contract since May 2011.
The Russian ruble has depreciated more than 22% compared with the U.S. dollar. The Russian central bank has raised the benchmark interest rate to 20% from 9.5% and closed stock exchanges for a week. Several Russian stocks traded on the London Stock Exchange plunged 25% to 75%.
Despite economic and political conflicts several stocks have gained in the past four weeks. Notable among them are — Lantheus Holdings Inc. (LNTH - Free Report) , TimkenSteel Corp. , Allegheny Technologies Inc. (ATI - Free Report) , Peabody Energy Corp. (BTU - Free Report) and Alcoa Corp. (AA - Free Report) .
Here’s How We Arrived at the Picks
We have primarily targeted 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, other relevant parameters are needed 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 or 2: 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 narrowed down the search from over 7,700 stocks to just 33.
Let’s discuss our five picks out of the 33 stocks:
Lantheus Holdings is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases. LNTH serves to hospitals, clinics, group practices, integrated delivery networks, group purchasing organizations, radiopharmacies and wholesalers.
The stock price of Lantheus Holdings has soared 100.4% in the past four weeks. LNTH has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 136.9% over the past seven days.
TimkenSteel is engaged in manufacturing alloy steel, along with carbon and micro-alloy steel. TMST provides air-melted alloy steel bars, tubes, and precision components, as well as value-added services, including thermal treatment and machining in the United States and internationally. TimkenSteel operates in the SBQ Steel Bar, Seamless Mechanical Steel Tubes, and Billets, and Value-added Precision Products and Services segments.
The stock price of TMST has appreciated 29.1% in the past four weeks. TimkenSteel has an expected earnings growth rate of 2.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past seven days.
Allegheny Technologies is a diversified specialty materials producer. ATI is likely to benefit from strength in the high-performance Materials & Components segment and demand growth in the Forgings business. Higher selling prices and increased market demand are also driving results in the Advanced Alloys & Solutions unit.
Allegheny Technologies is also focused on improving the cost structure. The company has efficiently managed capital expenditure, by adjusting its capital spending to meet the new demand levels. ATI is in the process of finishing several self-funded capital projects. ATI’s exit from low-margin standard stainless sheet products is also expected to drive margins in the AA&S segment.
The stock price of Allegheny Technologies has advanced 20.3% in the past four weeks. ATI has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 45.6% over the past 30 days.
Peabody Energy is engaged in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. BTU operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments.
The stock price of Peabody Energy has jumped 69.9% in the past four weeks. BTU has an expected earnings growth rate of 82.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 62.8% over the past 30 days.
Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. AA operates through three segments: Bauxite, Alumina, and Aluminum.
Alcoa is engaged in bauxite mining operations and processes bauxite into alumina and sells it to customers who process it into industrial chemical products. AA offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets and flat-rolled aluminum sheets to customers that produce beverage and food cans.
The stock price of Alcoa has climbed 39.4% in the past four weeks. AA has an expected earnings growth rate of 17.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.3% over the past 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.
Image: Bigstock
5 Stocks With Recent Price Strength Amid Geopolitical Conflict
The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy approached the Ukrainian capital Kyiv. The Russian authority has stepped up its shelling of Kharkiv, Ukraine’s second-largest city. The United States also deployed more troops in Europe.
Over the weekend, the United States and its allies agreed to exclude selected Russian banks from the SWIFT interbank messaging system. This measure will effectively detach Russian banks from the global financial network.
The first negotiation meeting between Russia and Ukraine ended without any fruitful result. On Feb 24, President Joe Biden said that his administration is considering more punitive actions against Russia to isolate that country from the global financial markets.
Crude oil prices also maintained their northbound journey as Russia is a major exporter of crude oil and natural gas globally, especially in Europe. On Mar 2, the U.S. benchmark — the WTI crude — for April contract, rose 7%, to settle at $110.60 a barrel, marking the highest for a front-month contract since May 2011.
The Russian ruble has depreciated more than 22% compared with the U.S. dollar. The Russian central bank has raised the benchmark interest rate to 20% from 9.5% and closed stock exchanges for a week. Several Russian stocks traded on the London Stock Exchange plunged 25% to 75%.
Despite economic and political conflicts several stocks have gained in the past four weeks. Notable among them are — Lantheus Holdings Inc. (LNTH - Free Report) , TimkenSteel Corp. , Allegheny Technologies Inc. (ATI - Free Report) , Peabody Energy Corp. (BTU - Free Report) and Alcoa Corp. (AA - Free Report) .
Here’s How We Arrived at the Picks
We have primarily targeted 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, other relevant parameters are needed 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 or 2: 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 narrowed down the search from over 7,700 stocks to just 33.
Let’s discuss our five picks out of the 33 stocks:
Lantheus Holdings is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases. LNTH serves to hospitals, clinics, group practices, integrated delivery networks, group purchasing organizations, radiopharmacies and wholesalers.
The stock price of Lantheus Holdings has soared 100.4% in the past four weeks. LNTH has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 136.9% over the past seven days.
TimkenSteel is engaged in manufacturing alloy steel, along with carbon and micro-alloy steel. TMST provides air-melted alloy steel bars, tubes, and precision components, as well as value-added services, including thermal treatment and machining in the United States and internationally. TimkenSteel operates in the SBQ Steel Bar, Seamless Mechanical Steel Tubes, and Billets, and Value-added Precision Products and Services segments.
The stock price of TMST has appreciated 29.1% in the past four weeks. TimkenSteel has an expected earnings growth rate of 2.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past seven days.
Allegheny Technologies is a diversified specialty materials producer. ATI is likely to benefit from strength in the high-performance Materials & Components segment and demand growth in the Forgings business. Higher selling prices and increased market demand are also driving results in the Advanced Alloys & Solutions unit.
Allegheny Technologies is also focused on improving the cost structure. The company has efficiently managed capital expenditure, by adjusting its capital spending to meet the new demand levels. ATI is in the process of finishing several self-funded capital projects. ATI’s exit from low-margin standard stainless sheet products is also expected to drive margins in the AA&S segment.
The stock price of Allegheny Technologies has advanced 20.3% in the past four weeks. ATI has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 45.6% over the past 30 days.
Peabody Energy is engaged in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. BTU operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments.
The stock price of Peabody Energy has jumped 69.9% in the past four weeks. BTU has an expected earnings growth rate of 82.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 62.8% over the past 30 days.
Alcoa produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. AA operates through three segments: Bauxite, Alumina, and Aluminum.
Alcoa is engaged in bauxite mining operations and processes bauxite into alumina and sells it to customers who process it into industrial chemical products. AA offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets and flat-rolled aluminum sheets to customers that produce beverage and food cans.
The stock price of Alcoa has climbed 39.4% in the past four weeks. AA has an expected earnings growth rate of 17.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.3% over the past 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.