We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks With Recent Price Strength Amid a Volatile Market
Read MoreHide Full Article
The second half of August has seen volatility reappearing, following a stern message from Fed Chairman Jerome Powell at the annual Jackson Hole Symposium. U.S. stock markets saw an impressive bull run from mid-June to mid-August after the highly disappointing five months from mid-January to mid-June.
Powell reiterated that the central bank would pursue aggressive interest rate hikes and tighter momentary control policies until inflation comes down to at least near its 2% target level. Market participants are expecting more softness in consumer spending and a decline in business spending due to margin squeeze that would result in a recession in the U.S. economy. Fed Chairman has also warned of some toughness going forward.
We are just two trading session away from entering September, which is historically the worst-performing month on Wall Street. Therefore, U.S. stock markets may remain volatile in the near term.
Despite headwinds, a handful of stocks have shown price strength. These stocks are likely to gain in the near term buoyed by a favorable Zacks Rank. Five of them are — ATI Inc. (ATI - Free Report) , Super Micro Computer Inc. (SMCI - Free Report) , CONSOL Energy Inc. (CEIX - Free Report) , Alliance Resource Partners, L.P. (ARLP - Free Report) and Digi International Inc. (DGII - 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: 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 13.
Let’s discuss five out of these 13 stocks:
ATI 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.
ATI 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.
The stock price of ATI has jumped 28.1% 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 improved 22.3% over the last 30 days.
Super Micro Computer designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. SMCI’s solutions include a range of rack mount and blade server systems, as well as components. Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading server-boards, chassis and server systems.
The stock price of SMCI has climbed 25.4% in the past four weeks. Super Micro Computer has an expected earnings growth rate of 32.7% for the current year (ending June 2023). The Zacks Consensus Estimate for current-year earnings has improved 30.4% over the last 30 days.
CONSOL Energy produces and exports bituminous coal in the United States. CEIX operates through the PAMC, CONSOL Marine Terminal, and Other segments. CONSOL Energy engages in the mining, preparation, and marketing of bituminous coal to power generators, industrial end-users, and metallurgical end-users, provision of coal export terminal services, and development of the Itmann Mine and the Greenfield reserves.
The stock price of CONSOL Energy has rallied 24.4% in the past four weeks. CEIX has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 71.8% over the last 30 days.
Alliance Resource is a diversified producer and marketer of coal to major U.S. utilities and industrial users. ARLP currently operate mining complexes in Illinois, Indiana, Kentucky and Maryland. Some of its mining complexes are underground and one has both surface and underground mines.
Alliance Resource produces a diverse range of steam coals with varying sulfur and heat contents, which enable them to satisfy the broad range of specifications demanded by their customers. The stock price of ARLP has appreciated 14.7% in the past four weeks.
Alliance Resource has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 29.1% over the last 30 days.
Digi International is a leading global provider of business and mission-critical Internet of Things products and services. DGII help their customers to create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance.
The stock price of DGII has advanced 12.9% in the past four weeks. Digi International has an expected earnings growth rate of more than 100% for the current year (ending September 2022). The Zacks Consensus Estimate for current-year earnings has improved 2.6% 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 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.
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 a Volatile Market
The second half of August has seen volatility reappearing, following a stern message from Fed Chairman Jerome Powell at the annual Jackson Hole Symposium. U.S. stock markets saw an impressive bull run from mid-June to mid-August after the highly disappointing five months from mid-January to mid-June.
Powell reiterated that the central bank would pursue aggressive interest rate hikes and tighter momentary control policies until inflation comes down to at least near its 2% target level. Market participants are expecting more softness in consumer spending and a decline in business spending due to margin squeeze that would result in a recession in the U.S. economy. Fed Chairman has also warned of some toughness going forward.
We are just two trading session away from entering September, which is historically the worst-performing month on Wall Street. Therefore, U.S. stock markets may remain volatile in the near term.
Despite headwinds, a handful of stocks have shown price strength. These stocks are likely to gain in the near term buoyed by a favorable Zacks Rank. Five of them are — ATI Inc. (ATI - Free Report) , Super Micro Computer Inc. (SMCI - Free Report) , CONSOL Energy Inc. (CEIX - Free Report) , Alliance Resource Partners, L.P. (ARLP - Free Report) and Digi International Inc. (DGII - 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: 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 13.
Let’s discuss five out of these 13 stocks:
ATI 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.
ATI 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.
The stock price of ATI has jumped 28.1% 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 improved 22.3% over the last 30 days.
Super Micro Computer designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. SMCI’s solutions include a range of rack mount and blade server systems, as well as components. Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading server-boards, chassis and server systems.
The stock price of SMCI has climbed 25.4% in the past four weeks. Super Micro Computer has an expected earnings growth rate of 32.7% for the current year (ending June 2023). The Zacks Consensus Estimate for current-year earnings has improved 30.4% over the last 30 days.
CONSOL Energy produces and exports bituminous coal in the United States. CEIX operates through the PAMC, CONSOL Marine Terminal, and Other segments. CONSOL Energy engages in the mining, preparation, and marketing of bituminous coal to power generators, industrial end-users, and metallurgical end-users, provision of coal export terminal services, and development of the Itmann Mine and the Greenfield reserves.
The stock price of CONSOL Energy has rallied 24.4% in the past four weeks. CEIX has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 71.8% over the last 30 days.
Alliance Resource is a diversified producer and marketer of coal to major U.S. utilities and industrial users. ARLP currently operate mining complexes in Illinois, Indiana, Kentucky and Maryland. Some of its mining complexes are underground and one has both surface and underground mines.
Alliance Resource produces a diverse range of steam coals with varying sulfur and heat contents, which enable them to satisfy the broad range of specifications demanded by their customers.
The stock price of ARLP has appreciated 14.7% in the past four weeks.
Alliance Resource has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 29.1% over the last 30 days.
Digi International is a leading global provider of business and mission-critical Internet of Things products and services. DGII help their customers to create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance.
The stock price of DGII has advanced 12.9% in the past four weeks. Digi International has an expected earnings growth rate of more than 100% for the current year (ending September 2022). The Zacks Consensus Estimate for current-year earnings has improved 2.6% 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 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.
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.