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Zacks.com featured highlights include MYR Group, ICF International, Universal Insurance Holdings and Sterling Infrastructure
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For Immediate Release
Chicago, IL – March 20, 2023 – Stocks in this week’s article are MYR Group (MYRG - Free Report) , ICF International (ICFI - Free Report) , Universal Insurance Holdings (UVE - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
4 Stocks Near 52-Week Highs That Can Scale Higher
Investors generally consider a 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs 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 MYR Group, ICF International, Universal Insurance Holdings and Sterling Infrastructure, Inc. 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 technique borrows from the basics of momentum investing and 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.
Overvaluation is natural for most of these stocks as investors' focus (or willingness to pay the 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 our four picks of the eight stocks that made it through the screen:
MYR Group is implementing targeted strategies to capture new market opportunities in the evolving clean energy landscape while continuing organic and acquisitive expansion. These make it a solid investment option in the utility sector. Last month, its unit, MYR Group Construction Canada, Ltd. acquired all issued and outstanding shares of capital stock of Powerline Plus Ltd. and its affiliate ("Powerline Plus Companies"). This acquisition will strengthen MYR Group's transmission and distribution business as well as expand its geographical reach.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for MYRG's 2023 earnings has increased 4.8% to $5.43 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 13.17%.
ICF International is a provider of professional services and technology-based solutions to government and commercial clients. ICF has a broad global presence with 53 regional offices across the United States and 24 offices outside the country. Its global presence and diversity of markets ensure consistent revenue growth. Buyouts help enhance subject matter knowledge, expand offerings and provide scale in particular geographies. The acquisition of Creative Systems and Consulting is expected to expand ICF International's federal IT modernization/digital transformation capabilities with leading Salesforce and Microsoft implementation teams.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for ICF's 2023 earnings has increased 7.3% to $6.30 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.21%.
Universal Insurance operates as an integrated insurance holding company in the United States. The company is currently engaged in insurance underwriting, distribution and claims. UVE generates revenues from the collection and investment of premiums. UVE's agency operations generate income from policy fees, commissions, premium financing referral fees and the marketing of ancillary services. Prudent underwriting, rate increase, opportunistic growth in Florida and other states, and accelerated use of digital technology bode well for growth. A strong reinsurance program supports a resilient balance sheet.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for UVE's 2023 earnings has increased 10% to $1.65 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 101.69%.
Sterling Infrastructure specializes in E-Infrastructure, Building and Transportation Solutions principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain states, California and Hawaii. It mainly banks on a business expansion strategy, solid project execution and the E-Infrastructure Solutions business prospect. The company has been navigating the ongoing supply chain and inflation challenges with growth in its E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. Focus on the execution of strategic objectives also bodes well.
The company currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for STRL's 2023 earnings has increased 1.4% to $3.50 per share in the past 30 days. The company beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 19.29%.
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 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 MYR Group, ICF International, Universal Insurance Holdings and Sterling Infrastructure
For Immediate Release
Chicago, IL – March 20, 2023 – Stocks in this week’s article are MYR Group (MYRG - Free Report) , ICF International (ICFI - Free Report) , Universal Insurance Holdings (UVE - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
4 Stocks Near 52-Week Highs That Can Scale Higher
Investors generally consider a 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs 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 MYR Group, ICF International, Universal Insurance Holdings and Sterling Infrastructure, Inc. 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 technique borrows from the basics of momentum investing and 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.
Overvaluation is natural for most of these stocks as investors' focus (or willingness to pay the 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 our four picks of the eight stocks that made it through the screen:
MYR Group is implementing targeted strategies to capture new market opportunities in the evolving clean energy landscape while continuing organic and acquisitive expansion. These make it a solid investment option in the utility sector. Last month, its unit, MYR Group Construction Canada, Ltd. acquired all issued and outstanding shares of capital stock of Powerline Plus Ltd. and its affiliate ("Powerline Plus Companies"). This acquisition will strengthen MYR Group's transmission and distribution business as well as expand its geographical reach.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for MYRG's 2023 earnings has increased 4.8% to $5.43 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 13.17%.
ICF International is a provider of professional services and technology-based solutions to government and commercial clients. ICF has a broad global presence with 53 regional offices across the United States and 24 offices outside the country. Its global presence and diversity of markets ensure consistent revenue growth. Buyouts help enhance subject matter knowledge, expand offerings and provide scale in particular geographies. The acquisition of Creative Systems and Consulting is expected to expand ICF International's federal IT modernization/digital transformation capabilities with leading Salesforce and Microsoft implementation teams.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for ICF's 2023 earnings has increased 7.3% to $6.30 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.21%.
Universal Insurance operates as an integrated insurance holding company in the United States. The company is currently engaged in insurance underwriting, distribution and claims. UVE generates revenues from the collection and investment of premiums. UVE's agency operations generate income from policy fees, commissions, premium financing referral fees and the marketing of ancillary services. Prudent underwriting, rate increase, opportunistic growth in Florida and other states, and accelerated use of digital technology bode well for growth. A strong reinsurance program supports a resilient balance sheet.
The company currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for UVE's 2023 earnings has increased 10% to $1.65 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 101.69%.
Sterling Infrastructure specializes in E-Infrastructure, Building and Transportation Solutions principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain states, California and Hawaii. It mainly banks on a business expansion strategy, solid project execution and the E-Infrastructure Solutions business prospect. The company has been navigating the ongoing supply chain and inflation challenges with growth in its E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. Focus on the execution of strategic objectives also bodes well.
The company currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for STRL's 2023 earnings has increased 1.4% to $3.50 per share in the past 30 days. The company beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same once, the average surprise being 19.29%.
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 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/2067205/4-stocks-trading-near-52-week-high-that-can-scale-higher
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.
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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.