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5 Stocks With Recent Price Strength to Enhance Your Portfolio
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Wall Street ended January in a zigzag fashion after an astonishing rally in 2023. The first half of last month was marred by volatility as market participants remained uncertain about when the Fed would start interest rate cuts.
However, the situation changed in the second half following the release of several strong economic data and steadily falling inflation data. However, U.S. stock markets tumbled on the last day of January after the Fed denied the possibility of the first rate cut in March.
Meanwhile, Wall Street managed to maintain its northward journey in January. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 1.2%, 1.6% and 1%, respectively.
This momentum is likely to continue as robust nonfarm payrolls of January, solid consumer spending in December, and an improving manufacturing index in January eliminated market participants’ concerns of a near-term recession.
On the other hand, in December, core PCE inflation — Fed’s most favorite inflation gauge — increased 0.2% month over month and 2.9% annually. The annual rate of increase in December was the slowest since March 2021.
As a result, several 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 — Cimpress plc (CMPR - Free Report) , GigaCloud Technology Inc. (GCT - Free Report) , AZZ Inc. (AZZ - Free Report) , Pangaea Logistics Solutions Ltd. (PANL - Free Report) and Photronics Inc. (PLAB - Free Report) .r
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:
Cimpress has benefitted from the strength across the Vista, National Pen and Upload & Print segments. CMPR’s Vista unit is being aided by an increase in the customer count along with the continued increase of revenue per customer. Significant growth in the e-commerce channel is driving the National Pen segment. Increasing order rate is aiding the National Pen segment.
CMPR’s investments in product innovation augur well for long-term growth. The company’s focus on cost-control measures is supporting its margin performance. Cimpress’ bullish guidance for fiscal 2024 holds promise. Also, CMPR’s business restructuring action is likely to improve customer value and operational efficiency over the long term.
The stock price of Cimpress has jumped 24.1% 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 0.3% over the last 60 days.
GigaCloud Technology is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. GCT’s marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the United States, Asia and Europe, to execute cross-border transactions.
The stock price of GigaCloud Technology has climbed 22.1% in the past four weeks. It has an expected earnings growth rate of 26.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.8% over the last 30 days.
AZZ is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure.
AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.
The stock price of AZZ has surged 13.9% in the past four weeks. It has an expected earnings growth rate of 9.1% for the current year (ending February 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.
Pangaea Logistics provides seaborne drybulk transportation services. PANL provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot-briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. Pangaea Logistics provides dry bulk cargo transportation services for steel, aluminum, energy, agricultural, and other sectors.
The stock price of Pangaea Logistics has rallied 12.2% in the past four weeks. It has an expected earnings growth rate of 25.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.6% over the last 30 days.
Photronics is engaged in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. PLAB offers photomasks that are used in the manufacture of integrated circuits and flat panel displays and to transfer circuit patterns onto semiconductor wafers, FDP substrates, and other types of electrical and optical components.
The stock price of Photronics has advanced 5.5% in the past four weeks. PLAB has an expected earnings growth rate of 27.5% for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 15.6% 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 to Enhance Your Portfolio
Wall Street ended January in a zigzag fashion after an astonishing rally in 2023. The first half of last month was marred by volatility as market participants remained uncertain about when the Fed would start interest rate cuts.
However, the situation changed in the second half following the release of several strong economic data and steadily falling inflation data. However, U.S. stock markets tumbled on the last day of January after the Fed denied the possibility of the first rate cut in March.
Meanwhile, Wall Street managed to maintain its northward journey in January. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 1.2%, 1.6% and 1%, respectively.
This momentum is likely to continue as robust nonfarm payrolls of January, solid consumer spending in December, and an improving manufacturing index in January eliminated market participants’ concerns of a near-term recession.
On the other hand, in December, core PCE inflation — Fed’s most favorite inflation gauge — increased 0.2% month over month and 2.9% annually. The annual rate of increase in December was the slowest since March 2021.
As a result, several 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 — Cimpress plc (CMPR - Free Report) , GigaCloud Technology Inc. (GCT - Free Report) , AZZ Inc. (AZZ - Free Report) , Pangaea Logistics Solutions Ltd. (PANL - Free Report) and Photronics Inc. (PLAB - Free Report) .r
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:
Cimpress has benefitted from the strength across the Vista, National Pen and Upload & Print segments. CMPR’s Vista unit is being aided by an increase in the customer count along with the continued increase of revenue per customer. Significant growth in the e-commerce channel is driving the National Pen segment. Increasing order rate is aiding the National Pen segment.
CMPR’s investments in product innovation augur well for long-term growth. The company’s focus on cost-control measures is supporting its margin performance. Cimpress’ bullish guidance for fiscal 2024 holds promise. Also, CMPR’s business restructuring action is likely to improve customer value and operational efficiency over the long term.
The stock price of Cimpress has jumped 24.1% 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 0.3% over the last 60 days.
GigaCloud Technology is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. GCT’s marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the United States, Asia and Europe, to execute cross-border transactions.
The stock price of GigaCloud Technology has climbed 22.1% in the past four weeks. It has an expected earnings growth rate of 26.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.8% over the last 30 days.
AZZ is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure.
AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.
The stock price of AZZ has surged 13.9% in the past four weeks. It has an expected earnings growth rate of 9.1% for the current year (ending February 2025). The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.
Pangaea Logistics provides seaborne drybulk transportation services. PANL provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot-briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. Pangaea Logistics provides dry bulk cargo transportation services for steel, aluminum, energy, agricultural, and other sectors.
The stock price of Pangaea Logistics has rallied 12.2% in the past four weeks. It has an expected earnings growth rate of 25.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.6% over the last 30 days.
Photronics is engaged in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. PLAB offers photomasks that are used in the manufacture of integrated circuits and flat panel displays and to transfer circuit patterns onto semiconductor wafers, FDP substrates, and other types of electrical and optical components.
The stock price of Photronics has advanced 5.5% in the past four weeks. PLAB has an expected earnings growth rate of 27.5% for the current year (ending October 2024). The Zacks Consensus Estimate for current-year earnings has improved 15.6% 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.