For Immediate Release
Chicago, IL – June 24, 2022 – Stocks in this week’s article are PBF Energy Inc. (
PBF Quick Quote PBF - Free Report) , Quanex Building Products ( NX Quick Quote NX - Free Report) , Amalgamated Financial ( AMAL Quick Quote AMAL - Free Report) and Huron Consulting Group ( HURN Quick Quote HURN - Free Report) . 4 Stocks Trading at 52-Week Highs That Can Climb Further
Stocks hitting their 52-week high and delivering consistent performance in the past few quarters offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as
PBF Energy Inc., Quanex Building Products, Amalgamated Financial and Huron Consulting Group are expected to maintain the momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
In fact, overvaluation is natural for most of these stocks as investors' focus (or willingness to pay premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are four stocks that made it through the screen:
PBF Energy is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, the company provides end products that comprise heating oil, transportation fuels, lubricants and many related products. The company's daily processing capacity of 1,000,000 barrels of crude is higher than most of its peers. It has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 13.2.
The company currently sports a Zacks Rank of 1 and has a VGM Score of A. The Zacks Consensus Estimate for PBF Energy's 2022 earnings has been revised upward by 103.3% to $6.79 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 61.4%.
Quanex Building Products is an industry-leading manufacturer of components sold to Original Equipment Manufacturers in the building products industry. Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.
The company currently sports a Zacks Rank of 1 and has a VGM Score of A. The Zacks Consensus Estimate for Quanex Building Products' 2022 earnings has remained steady at $1.93 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 30.2%.
Huron Consulting Group is the parent company of Huron Consulting Services LLC, an independent provider of financial and operational consulting services. Huron's experienced and credentialed professionals employ their expertise in accounting, finance, economics and operations to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations and the law firms that represent these various organizations.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for Huron Consulting Group's 2022 earnings has been revised upward by 5.4% to $3.20 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 29.9%.
Amalgamated Financial is the bank holding company for Amalgamated Bank, which is a full-service commercial bank and a chartered trust company. It provides commercial banking and trust services nationally and offers products and services to both commercial and retail customers. Amalgamated Financial Corp., formerly known as Amalgamated Bank, is based in New York.
The company currently carries a Zacks Rank of 2 (Buy) and has a VGM Score of 2. The Zacks Consensus Estimate for Amalgamated Financial's 2022 earnings has been revised upward by 19.4% to $2.32 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 15.2%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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 trial to the Research Wizard 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 For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1942731/4-stocks-trading-near-52-week-high-that-can-climb-further 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.
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Contact: Jim Giaquinto
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