For Immediate Release
Chicago, IL – October 17, 2022 – Stocks in this week’s article are Par Pacific (
PARR Quick Quote PARR - Free Report) , AVEO Pharmaceuticals and Heritage Commerce Corp. ( HTBK Quick Quote HTBK - Free Report) . 3 Breakout Stocks to Keep an Eye On for Solid Returns
Active investors tend to pick breakout stocks since this strategy promises superlative returns. This method involves zeroing in on those stocks whose prices vary within a narrow band.
If the stock price falls below this channel, it could be the best time to sell it off. However, the best time to buy a stock as per this strategy is when it is about to break above this trading band. Such stocks offer the prospect of impressive gains.
To that end,
Par Pacific, AVEO Pharmaceuticals and Heritage Commerce Corp. have been selected as the breakout stocks for today. Zeroing in on Breakout Stocks
In order to select the right breakout stock, one has first to calculate its support and resistance level. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades within a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, meaning they would like to add them to their portfolio. The key to identifying breakout stocks is to zero in on those that are on the verge of a breakout or have just broken above the resistance level.
Has a Genuine Breakout Occurred?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.
For a bona fide breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance.
Here’re the top three stocks:
Par Pacific manages and maintains interests in energy and infrastructure businesses. Par Pacific currently carries a Zacks Rank #2. PARR has an expected earnings growth rate of 388.4% for the current year. AVEO Pharmaceuticals is a biopharmaceutical company engaged in discovering, developing and commercializing novel cancer therapeutics. AVEO Pharmaceuticals currently carries a Zacks Rank #3. AVEO has an expected earnings growth rate of 51.5% for the current year. Heritage Commerce is the holding company of Heritage Bank of Commerce, Heritage Bank East Bay, Heritage Bank South Valley and Bank of Los Altos. Heritage Commerce currently carries a Zacks Rank #3. HTBK has an expected earnings growth rate of 35.4% for the current year.
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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/1992007/3-breakout-stocks-to-keep-an-eye-on-for-solid-returns 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
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Contact: Jim Giaquinto
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