For Immediate Release
Chicago, IL – August 3, 2023 – Stocks in this week’s article are Mr. Cooper Group (
COOP Quick Quote COOP - Free Report) , Masco Corp. ( MAS Quick Quote MAS - Free Report) , Option Care Health ( OPCH Quick Quote OPCH - Free Report) , Solaris Oilfield Infrastructure ( SOI Quick Quote SOI - Free Report) and PulteGroup ( PHM Quick Quote PHM - Free Report) . Time to Add These 5 Relative Price Strength Stocks
Wall Street experienced a strong rebound in the first seven months of 2023, recovering from the disappointments of the previous year. The S&P 500 Index surged nearly 20% during this period. This positive performance can be attributed to the steady decline in inflation rates, a strong labor market and the Federal Reserve's decision to reduce the magnitude of interest rate hikes. The bullish sentiment has even led to U.S. consumer sentiment jumping to the highest level in almost two years.
In particular, the inflation rate is dwindling steadily since June 2022. Consequently, the Fed is approaching the end of its ongoing interest rate hike cycle. The central bank is now more confident about the soft landing of the economy. This could mean a brightening outlook for the stock market.
Investors who want to take advantage of the bullish 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
Investors generally gauge a stock's potential returns by examining earnings growth and valuation multiples. At the same time, it's essential to measure the performance of such a stock relative to its industry or peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns. 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 five of the 22 stocks that made it through the screen:
Mr. Cooper Group: The company operates in the mortgage refinancing market. Over the past 30 days, this Dallas, TX-based firm saw the Zacks Consensus Estimate for 2023 move up 18.6%. COOP has a VGM Score of A.
Mr. Cooper Group beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 17.3%, on average. COOP shares have gained 31% in a year.
Masco Corp.: It manufactures, sells and installs home improvement and building products. Over the past 30 days, this Livonia, MI-based firm saw the Zacks Consensus Estimate for 2023 move up 4.2%. MAS has a VGM Score of A.
Masco beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of roughly 12%, on average. MAS shares have gained 17.7% in a year.
Option Care Health: The company provides home and alternate-site infusion services in the United States. Over the past 30 days, this Bannockburn, IL-based firm saw the Zacks Consensus Estimate for 2023 move up 25.5%. OPCH has a VGM Score of A.
Option Care Health's expected EPS growth rate for three to five years is currently 18.8%, which compares favorably with the industry's growth rate of 10.9%. It has a trailing four-quarter earnings surprise of roughly 57%, on average. OPCH shares have decreased 2.9% in a year.
Solaris Oilfield Infrastructure: The company is a provider of technical products and services to drillers of oil and gas wells. The 2023 Zacks Consensus Estimate for the Houston, TX-based firm indicates 13.2% year-over-year earnings per share growth.
Solaris Oilfield Infrastructure beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.8%, on average. SOI shares have lost 4.8% in a year.
PulteGroup: Based in Atlanta, GA, PulteGroup engages in homebuilding and financial services businesses, primarily in the United States. Over the past 30 days, this firm saw the Zacks Consensus Estimate for 2023 move up 19.8%. PHM has a VGM Score of B.
The 2023 Zacks Consensus Estimate for PulteGroup indicates 3.2% year-over-year earnings per share growth. It has a trailing four-quarter earnings surprise of roughly 19.5%, on average. PHM shares have increased 102.2% in a year.
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 For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2130962/time-to-add-these-5-relative-price-strength-stocks 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 >>.
Follow us on Twitter:
Join us on Facebook:
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
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.
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.