We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks with Recent Price Strength to Tap the Wall Street Rally
Wall Street ended an impressive February, marking the fourth consecutive positive month for all three major stock indexes. Last month, the Dow, the S&P 500 and the Nasdaq Composite – rallied 6.1%, 5.2% and 2.2%, respectively. In fact, the Dow posted its first four-month winning streak since May 2021.
U.S. stock markets have maintained their northward journey in 2024 after witnessing an astonishing 2023. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 2.3%, 7.1% and 8%, respectively.
Last week, all three major stock indexes saw the fourth consecutive month of positive ending. These three indexes posted several all-time highs on both an intraday and a closing basis in the first two months of this year.
The Wall Street rally is likely to continue. The Department of Commerce reported that the U.S. economy grew at a clip of 3.2% in fourth-quarter 2023, well above the initial consensus estimate of 2%.
U.S. GDP rose 2.5% in 2023 compared with a 1.9% rise in 2022. At the beginning of 2023, the consensus estimate for full-year GDP was 2%. On Mar 1, the Atlanta Fed GDPNow tracker forecast a 2.1% growth rate for first-quarter 2024, indicating no chance of a near-term recession.
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 — Arm Holdings plc, EMCOR Group Inc., Golden Ocean Group Ltd., Interface Inc. and Acuity Brands Inc.
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.
Let’s discuss five out of these eight stocks:
Arm Holdings architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. ARM offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.
ARM’s products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. ARM operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally.
The stock price of Arm Holdings has soared 88.4% in the past four weeks. It has an expected earnings growth rate of 26.3% for next year (ending March 2025). The Zacks Consensus Estimate for current-year earnings has improved 8% over the last 30 days.
EMCOR Group’s U.S. businesses remained solid backed by strong end-market demand and top-tier execution initiatives. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
EME’s remaining performance obligations, as of Dec 31, 2023, were $8.85 billion, up 18.6% year over year. Owing to these tailwinds, EME raised its revenues and earnings outlook for 2024.
The stock price of EMCOR Group has jumped 38.7% in the past four weeks. It has an expected earnings growth rate of 4.5% for next year. The Zacks Consensus Estimate for next-year earnings has improved 15.2% over the last seven days.
Golden Ocean Group is a shipping company, which owns and operates a fleet of dry bulk vessels worldwide. GOGL operates dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax in the spot and time charter markets. GOGL’s vessels transport a range of bulk commodities, such as ores, coal, grains, and fertilizers.
The stock price of Golden Ocean Group has climbed 22.1% 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 53.5% over the last seven days.
Interface designs, produces, and sells modular carpet products primarily worldwide. TILE operates in two segments, Americas, and Europe, Africa, Asia and Australia. TILE offers modular carpets under the Interface and FLOR brand names, luxury vinyl tiles, and carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors. TILE also offers modular resilient flooring products.
The stock price of Interface has surged 21.3% in the past four weeks. It has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 32.5% over the last seven days.
Acuity Brands has been banking on product vitality and increasing service in its lighting and space businesses along with implementing cost-saving initiatives. AYI’s focus on product innovation, and strategic acquisitions and divestitures bodes well. Owing to the tailwinds, for fiscal 2024, AYI expects adjusted earnings per share in the range of $13-$14.50, above the year-ago levels at midpoint.
The stock price of Acuity Brands has advanced 8.6% in the past four weeks. It has an expected earnings growth rate of 5.3% for the current year (ending August 2024). The Zacks Consensus Estimate for current-year earnings has improved 10.5% 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.
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/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights Arm Holdings, EMCOR Group, Golden Ocean Group, Interface and Acuity Brands
For Immediate Release
Chicago, IL – March 7, 2024 – Stocks in this week’s article are Arm Holdings plc (ARM - Free Report) , EMCOR Group Inc. (EME - Free Report) , Golden Ocean Group Ltd. (GOGL - Free Report) , Interface Inc. (TILE - Free Report) and Acuity Brands Inc. (AYI - Free Report) .
5 Stocks with Recent Price Strength to Tap the Wall Street Rally
Wall Street ended an impressive February, marking the fourth consecutive positive month for all three major stock indexes. Last month, the Dow, the S&P 500 and the Nasdaq Composite – rallied 6.1%, 5.2% and 2.2%, respectively. In fact, the Dow posted its first four-month winning streak since May 2021.
U.S. stock markets have maintained their northward journey in 2024 after witnessing an astonishing 2023. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 2.3%, 7.1% and 8%, respectively.
Last week, all three major stock indexes saw the fourth consecutive month of positive ending. These three indexes posted several all-time highs on both an intraday and a closing basis in the first two months of this year.
The Wall Street rally is likely to continue. The Department of Commerce reported that the U.S. economy grew at a clip of 3.2% in fourth-quarter 2023, well above the initial consensus estimate of 2%.
U.S. GDP rose 2.5% in 2023 compared with a 1.9% rise in 2022. At the beginning of 2023, the consensus estimate for full-year GDP was 2%. On Mar 1, the Atlanta Fed GDPNow tracker forecast a 2.1% growth rate for first-quarter 2024, indicating no chance of a near-term recession.
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 — Arm Holdings plc, EMCOR Group Inc., Golden Ocean Group Ltd., Interface Inc. and Acuity Brands Inc.
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.
Let’s discuss five out of these eight stocks:
Arm Holdings architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. ARM offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.
ARM’s products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. ARM operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally.
The stock price of Arm Holdings has soared 88.4% in the past four weeks. It has an expected earnings growth rate of 26.3% for next year (ending March 2025). The Zacks Consensus Estimate for current-year earnings has improved 8% over the last 30 days.
EMCOR Group’s U.S. businesses remained solid backed by strong end-market demand and top-tier execution initiatives. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
EME’s remaining performance obligations, as of Dec 31, 2023, were $8.85 billion, up 18.6% year over year. Owing to these tailwinds, EME raised its revenues and earnings outlook for 2024.
The stock price of EMCOR Group has jumped 38.7% in the past four weeks. It has an expected earnings growth rate of 4.5% for next year. The Zacks Consensus Estimate for next-year earnings has improved 15.2% over the last seven days.
Golden Ocean Group is a shipping company, which owns and operates a fleet of dry bulk vessels worldwide. GOGL operates dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax in the spot and time charter markets. GOGL’s vessels transport a range of bulk commodities, such as ores, coal, grains, and fertilizers.
The stock price of Golden Ocean Group has climbed 22.1% 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 53.5% over the last seven days.
Interface designs, produces, and sells modular carpet products primarily worldwide. TILE operates in two segments, Americas, and Europe, Africa, Asia and Australia. TILE offers modular carpets under the Interface and FLOR brand names, luxury vinyl tiles, and carpet tiles under the CQuestGB name for use in commercial interiors, include offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors. TILE also offers modular resilient flooring products.
The stock price of Interface has surged 21.3% in the past four weeks. It has an expected earnings growth rate of 2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 32.5% over the last seven days.
Acuity Brands has been banking on product vitality and increasing service in its lighting and space businesses along with implementing cost-saving initiatives. AYI’s focus on product innovation, and strategic acquisitions and divestitures bodes well. Owing to the tailwinds, for fiscal 2024, AYI expects adjusted earnings per share in the range of $13-$14.50, above the year-ago levels at midpoint.
The stock price of Acuity Brands has advanced 8.6% in the past four weeks. It has an expected earnings growth rate of 5.3% for the current year (ending August 2024). The Zacks Consensus Estimate for current-year earnings has improved 10.5% 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2236457/5-stocks-with-recent-price-strength-to-tap-wall-street-rally
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performance for information about the performance numbers displayed in this press release.