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5 Stocks With Recent Price Strength in a Volatile Market
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U.S. stock markets have retreated in January after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated primarily owing to the uncertainty regarding the time when the Fed would initiate the first cut in the benchmark interest rate.
Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.
Hotter-than-expected nonfarm payrolls and consumer price index data for December triggered an alarm among market participants and resulted in volatile trading at the beginning of 2024.
As a result, a few stocks have shown price strength. We have selected five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — VirTra Inc. (VTSI - Free Report) , Universal Stainless & Alloy Products Inc. (USAP - Free Report) , Carrols Restaurant Group Inc. (TAST - Free Report) , BrainsWay Ltd. (BWAY - Free Report) and Virco Mfg. Corp. (VIRC - 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 11.
Let’s discuss five out of these 11 stocks:
VirTra provides force and firearms training, and driving simulators for law enforcement, military, educational, and commercial markets worldwide. VTSI’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations.
VTSI offers V-300 simulator, a 300-degree wrap-around screen for simulation training, V-180 simulator, a 180-degree screen for smaller spaces or budgets; V-100, a single-screen firearms training simulator system, V-100 MIL, a single-screen small arms training simulator, and V-ST PRO, a realistic single screen firearms shooting and skills training simulator.
The stock price of VirTra has jumped 39.2% in the past four weeks. It has an expected earnings growth rate of 10.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 32.1% over the last 60 days.
Universal Stainless & Alloy Products manufactures and markets semi-finished and finished specialty steel products in the United States and internationally. USAP’s products include stainless steel, nickel alloys, tool steel, and various other alloyed steels. USAP offers semi-finished and finished long products in the form of ingots, billets, and bars, flat rolled products, such as slabs and plates, and customized shapes primarily for original equipment manufacturers, which are cold rolled from purchased coiled strip, flat bar, or extruded bar.
USAP also offers conversion services on materials supplied by its customers. The company's products are used in aerospace, power generation, oil and gas, heavy equipment, general, and industrial markets. USAP sells its products to service centers, forgers, rerollers, and original equipment manufacturers.
The stock price of Universal Stainless & Alloy Products has climbed 15.7% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20% over the last 60 days.
Carrols Restaurant Group is the largest BURGER KING franchisee in the United States with over 800 restaurants and has operated BURGER KING restaurants since 1976. TAST operates as a Burger King and Popeyes franchisee.
The stock price of Carrols Restaurant Group has surged 15.7% in the past four weeks. It has an expected earnings growth rate of 14.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the last seven days.
BrainsWay is a commercial-stage medical device company. BWAY is focused on the development and sale of non-invasive neuromodulation products using its proprietary Deep Transcranial Magnetic Stimulation technology for the treatment of major depressive disorder and obsessive-compulsive disorder.
The stock price of BrainsWay has rallied 15.2% in the past four weeks. It has an expected earnings growth rate of 43.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days.
Virco Mfg. designs, produces, and distributes quality furniture for the contract and education markets worldwide. Examples of facilities served by VIRC include public and private schools, colleges and universities, convention centers, federal and state institutions, churches and other businesses.
VIRC also sell to wholesalers, distributors, retailers and catalog retailers. In order to divide the workload into manageable amounts, VIRC has divided the sales force into two groups: Education and Commercial.
The stock price of Virco Mfg. has advanced 12.7% in the past four weeks. It has an expected earnings growth rate of 27.4% for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 17% over the last 60 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 in a Volatile Market
U.S. stock markets have retreated in January after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated primarily owing to the uncertainty regarding the time when the Fed would initiate the first cut in the benchmark interest rate.
Recently, a few key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.
Hotter-than-expected nonfarm payrolls and consumer price index data for December triggered an alarm among market participants and resulted in volatile trading at the beginning of 2024.
As a result, a few stocks have shown price strength. We have selected five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — VirTra Inc. (VTSI - Free Report) , Universal Stainless & Alloy Products Inc. (USAP - Free Report) , Carrols Restaurant Group Inc. (TAST - Free Report) , BrainsWay Ltd. (BWAY - Free Report) and Virco Mfg. Corp. (VIRC - 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 11.
Let’s discuss five out of these 11 stocks:
VirTra provides force and firearms training, and driving simulators for law enforcement, military, educational, and commercial markets worldwide. VTSI’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations.
VTSI offers V-300 simulator, a 300-degree wrap-around screen for simulation training, V-180 simulator, a 180-degree screen for smaller spaces or budgets; V-100, a single-screen firearms training simulator system, V-100 MIL, a single-screen small arms training simulator, and V-ST PRO, a realistic single screen firearms shooting and skills training simulator.
The stock price of VirTra has jumped 39.2% in the past four weeks. It has an expected earnings growth rate of 10.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 32.1% over the last 60 days.
Universal Stainless & Alloy Products manufactures and markets semi-finished and finished specialty steel products in the United States and internationally. USAP’s products include stainless steel, nickel alloys, tool steel, and various other alloyed steels. USAP offers semi-finished and finished long products in the form of ingots, billets, and bars, flat rolled products, such as slabs and plates, and customized shapes primarily for original equipment manufacturers, which are cold rolled from purchased coiled strip, flat bar, or extruded bar.
USAP also offers conversion services on materials supplied by its customers. The company's products are used in aerospace, power generation, oil and gas, heavy equipment, general, and industrial markets. USAP sells its products to service centers, forgers, rerollers, and original equipment manufacturers.
The stock price of Universal Stainless & Alloy Products has climbed 15.7% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20% over the last 60 days.
Carrols Restaurant Group is the largest BURGER KING franchisee in the United States with over 800 restaurants and has operated BURGER KING restaurants since 1976. TAST operates as a Burger King and Popeyes franchisee.
The stock price of Carrols Restaurant Group has surged 15.7% in the past four weeks. It has an expected earnings growth rate of 14.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the last seven days.
BrainsWay is a commercial-stage medical device company. BWAY is focused on the development and sale of non-invasive neuromodulation products using its proprietary Deep Transcranial Magnetic Stimulation technology for the treatment of major depressive disorder and obsessive-compulsive disorder.
The stock price of BrainsWay has rallied 15.2% in the past four weeks. It has an expected earnings growth rate of 43.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 60 days.
Virco Mfg. designs, produces, and distributes quality furniture for the contract and education markets worldwide. Examples of facilities served by VIRC include public and private schools, colleges and universities, convention centers, federal and state institutions, churches and other businesses.
VIRC also sell to wholesalers, distributors, retailers and catalog retailers. In order to divide the workload into manageable amounts, VIRC has divided the sales force into two groups: Education and Commercial.
The stock price of Virco Mfg. has advanced 12.7% in the past four weeks. It has an expected earnings growth rate of 27.4% for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 17% over the last 60 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.