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Zacks.com featured highlights include Tecnoglass, Scorpio Tankers, DCP Midstream Partners, Titan Machinery and Olympic Steel
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For Immediate Release
Chicago, IL – December 20, 2022 – Stocks in this week’s article are Tecnoglass (TGLS - Free Report) , Scorpio Tankers (STNG - Free Report) , DCP Midstream Partners , Titan Machinery (TITN - Free Report) and Olympic Steel (ZEUS - Free Report) .
Ride Relative Price Strength with These 5 Quality Plays
The year 2022 has been full of choppy back-and-forth action in the stock market, with inflation and recession concerns at the fore. Even now, the picture is quite mixed.
While Fed's scaled-back rate hike of 50 basis points, following four back-to-back increases of 75 basis points each, provided a much-needed respite to the economy, worries over a tight labor market and the lowering of next year's GDP to 0.5% from the previous estimate of 1.2%, played spoilsport.
In the current jittery market environment, investors who might want to stay exposed to the equity setup should focus on good investment opportunities. One of the ways such potential plays could be identified is to look for signs of relative price strength.
Relative Price Strength Strategy
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential for determining whether a stock's price performance is better than its peers or the industry average.
If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Here are the five stocks that made it through the screen:
Tecnoglass: The firm produces, sells and installs architectural glass and related aluminum products for residential construction markets. The 2022 Zacks Consensus Estimate for Colombia-based Tecnoglass indicates 82.2% year-over-year earnings per share growth. TGLS has a VGM Score of B.
Tecnoglass beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 26.9%, on average. TGLS stock has gained 31% in a year.
Scorpio Tankers: Based in Monaco, the company is a leading owner and operator in the tanker industry with a focus on the product carriers segment. Scorpio Tankers' expected EPS growth rate for three to five years is currently 42.5%, which compares favorably with the industry's growth rate of 19.2%. STNG has a VGM Score of B.
Notably, Scorpio Tankers beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 19.4%, on average. STNG shares have gone up 354.2% in a year.
DCP Midstream Partners: This leading energy infrastructure firm has a diversified portfolio of gathering, logistics, marketing, and processing assets. DCP Midstream has a VGM Score of A. Over the past 60 days, Denver, CO-based DCP saw the Zacks Consensus Estimate for 2022 move up 23.1%.
DCP Midstream beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 25.5%. Valued at around $8.1 billion, DCP has gained 58.9% in a year.
Titan Machinery: The company is an agricultural and construction equipment retailer in the United States and Europe. The fiscal 2023 Zacks Consensus Estimate for this West Fargo, ND-based firm indicates 61.7% year-over-year earnings per share growth. TITN has a VGM Score of B.
Titan Machinery beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 59.9%, on average. TITN shares have gained 25.3% in a year.
Olympic Steel: It is engaged in metal processing and distribution across the USA.. Olympic Steel has a VGM Score of A. Over the past 60 days, Cleveland, OH-based ZEUS saw the Zacks Consensus Estimate for 2022 move up 4.8%.
Olympic Steel beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 25.4%. Valued at around $359.3 million, ZEUS has increased 45.3% in a year.
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.
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. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Tecnoglass, Scorpio Tankers, DCP Midstream Partners, Titan Machinery and Olympic Steel
For Immediate Release
Chicago, IL – December 20, 2022 – Stocks in this week’s article are Tecnoglass (TGLS - Free Report) , Scorpio Tankers (STNG - Free Report) , DCP Midstream Partners , Titan Machinery (TITN - Free Report) and Olympic Steel (ZEUS - Free Report) .
Ride Relative Price Strength with These 5 Quality Plays
The year 2022 has been full of choppy back-and-forth action in the stock market, with inflation and recession concerns at the fore. Even now, the picture is quite mixed.
While Fed's scaled-back rate hike of 50 basis points, following four back-to-back increases of 75 basis points each, provided a much-needed respite to the economy, worries over a tight labor market and the lowering of next year's GDP to 0.5% from the previous estimate of 1.2%, played spoilsport.
In the current jittery market environment, investors who might want to stay exposed to the equity setup should focus on good investment opportunities. One of the ways such potential plays could be identified is to look for signs of relative price strength.
Relative Price Strength Strategy
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential for determining whether a stock's price performance is better than its peers or the industry average.
If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.
It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months at least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Here are the five stocks that made it through the screen:
Tecnoglass: The firm produces, sells and installs architectural glass and related aluminum products for residential construction markets. The 2022 Zacks Consensus Estimate for Colombia-based Tecnoglass indicates 82.2% year-over-year earnings per share growth. TGLS has a VGM Score of B.
Tecnoglass beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 26.9%, on average. TGLS stock has gained 31% in a year.
Scorpio Tankers: Based in Monaco, the company is a leading owner and operator in the tanker industry with a focus on the product carriers segment. Scorpio Tankers' expected EPS growth rate for three to five years is currently 42.5%, which compares favorably with the industry's growth rate of 19.2%. STNG has a VGM Score of B.
Notably, Scorpio Tankers beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 19.4%, on average. STNG shares have gone up 354.2% in a year.
DCP Midstream Partners: This leading energy infrastructure firm has a diversified portfolio of gathering, logistics, marketing, and processing assets. DCP Midstream has a VGM Score of A. Over the past 60 days, Denver, CO-based DCP saw the Zacks Consensus Estimate for 2022 move up 23.1%.
DCP Midstream beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 25.5%. Valued at around $8.1 billion, DCP has gained 58.9% in a year.
Titan Machinery: The company is an agricultural and construction equipment retailer in the United States and Europe. The fiscal 2023 Zacks Consensus Estimate for this West Fargo, ND-based firm indicates 61.7% year-over-year earnings per share growth. TITN has a VGM Score of B.
Titan Machinery beat the Zacks Consensus Estimate for earnings in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 59.9%, on average. TITN shares have gained 25.3% in a year.
Olympic Steel: It is engaged in metal processing and distribution across the USA.. Olympic Steel has a VGM Score of A. Over the past 60 days, Cleveland, OH-based ZEUS saw the Zacks Consensus Estimate for 2022 move up 4.8%.
Olympic Steel beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 25.4%. Valued at around $359.3 million, ZEUS has increased 45.3% in a year.
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
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2029911/ride-on-relative-price-strength-with-these-5-quality-plays
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. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.