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Zacks.com featured highlights: Adaptimmune Therapeutics, Barnes Group, Mobile TeleSystems, JA Solar Holdings and Newtek Business Services
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For Immediate Release
Chicago, IL – September 13, 2017 - Stocks in this week’s article include Adaptimmune Therapeutics (Nasdaq: – Free Report), Barnes Group (NYSE:(B - Free Report) – Free Report), Mobile TeleSystems (NYSE: – Free Report), JA Solar Holdings (Nasdaq: – Free Report) and Newtek Business Services (Nasdaq:(NEWT - Free Report) – Free Report).
Screen of the Week of Zacks Investment Research by Kevin Matras:
How to Uncover Institutional Buying
One of the best ways to find stocks on the move that are grabbing the attention of investors is to screen for stocks with increasing volume.
This is because increased volume shows investor interest. As more investors buy the stock, the stock's price should go higher.
But the individual investor, while important to the market, doesn't really have the firepower to affect volume the way that big institutional investors do.
And very few things can move a stock more than institutional buying.
Why is that?
For one, institutions have the ability of buying tens of millions of dollars worth of a stock and even hundreds of millions of dollars. And because their purchases are often so large, it typically takes weeks, if not months, for an institutional investor to build a position.
Given this commitment, considering it will also take several weeks or months to get out, you can be sure that these institutional investors have done plenty of homework to feel good about the fundamental prospects of the company.
This does not mean you can ignore your own analysis or the stock market as a whole. But screening for stocks with rising volume (along with prices of course) can put some fantastic stocks on your radar screen.
What Kind of Volume Increase to Look For
I prefer to search for at least two weeks of increasing volume along with rising prices. And in my testing I have found that 3 weeks performs even better.
One week volume spikes, however, will not get thru, as oftentimes those can be driven by one day events. Instead, it's the successive volume increase that shows true buying demand, giving this set-up its value.
The volume increase also doesn't have to be huge. We're not talking about a several hundred percent increase. In fact, often those massive increases prove to be turning points.
What we're looking for are noticeable increases, like 10%, 20% or 50% increases, etc. But nothing outrageous, like a 10 fold increase. Remember, the last thing an institutional investor wants to do is call too much attention while he or she is in the midst of building a position. But if you know what to look for, you can see all of this happening in plain sight. And get in for the ride as they flesh out the rest of their position.
Screen Parameters
• Current Price greater than Price from 1 Week Ago • Price from 1 Week Ago greater than Price from 2 Weeks Ago • Price from 2 Week Ago greater than Price from 3 Weeks Ago
• Weekly Volume greater than Weekly Volume from 1 Week Ago • Weekly Volume from 1 Wk Ago greater than Weekly Volume from 2 Wks Ago • Weekly Volume from 2 Wks Ago greater than Weekly Volume from 3 Wks Ago
• Zacks Rank less than or equal to 3 • Price greater than or equal to $5 • Average 20-day Volume greater than or equal to 100,000 shares
The most important elements to this screen are the price and volume items (especially the volume). The Zacks Rank also helps to make sure that their earnings estimates are on the rise. The price item, however, is a personal preference as I generally don't buy stocks under $5. But it should also be noted that many institutions won't either. But if you're looking for lower priced stocks, you can of course remove this item. And lastly, the average volume item ensures there's enough trade activity on a daily basis to get in and out of the market easily.
All of these stocks look good fundamentally. But their successive increases in weekly volume suggest institutional buying, and warrant an even closer look.
Get the rest of the stocks on this list and start screening for weekly volume increases to uncover institutional buying on your own. It's easy to do.
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.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
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: Adaptimmune Therapeutics, Barnes Group, Mobile TeleSystems, JA Solar Holdings and Newtek Business Services
For Immediate Release
Chicago, IL – September 13, 2017 - Stocks in this week’s article include Adaptimmune Therapeutics (Nasdaq: – Free Report), Barnes Group (NYSE:(B - Free Report) – Free Report), Mobile TeleSystems (NYSE: – Free Report), JA Solar Holdings (Nasdaq: – Free Report) and Newtek Business Services (Nasdaq:(NEWT - Free Report) – Free Report).
Screen of the Week of Zacks Investment Research by Kevin Matras:
How to Uncover Institutional Buying
One of the best ways to find stocks on the move that are grabbing the attention of investors is to screen for stocks with increasing volume.
This is because increased volume shows investor interest. As more investors buy the stock, the stock's price should go higher.
But the individual investor, while important to the market, doesn't really have the firepower to affect volume the way that big institutional investors do.
And very few things can move a stock more than institutional buying.
Why is that?
For one, institutions have the ability of buying tens of millions of dollars worth of a stock and even hundreds of millions of dollars. And because their purchases are often so large, it typically takes weeks, if not months, for an institutional investor to build a position.
Given this commitment, considering it will also take several weeks or months to get out, you can be sure that these institutional investors have done plenty of homework to feel good about the fundamental prospects of the company.
This does not mean you can ignore your own analysis or the stock market as a whole. But screening for stocks with rising volume (along with prices of course) can put some fantastic stocks on your radar screen.
What Kind of Volume Increase to Look For
I prefer to search for at least two weeks of increasing volume along with rising prices. And in my testing I have found that 3 weeks performs even better.
One week volume spikes, however, will not get thru, as oftentimes those can be driven by one day events. Instead, it's the successive volume increase that shows true buying demand, giving this set-up its value.
The volume increase also doesn't have to be huge. We're not talking about a several hundred percent increase. In fact, often those massive increases prove to be turning points.
What we're looking for are noticeable increases, like 10%, 20% or 50% increases, etc. But nothing outrageous, like a 10 fold increase. Remember, the last thing an institutional investor wants to do is call too much attention while he or she is in the midst of building a position. But if you know what to look for, you can see all of this happening in plain sight. And get in for the ride as they flesh out the rest of their position.
Screen Parameters
• Current Price greater than Price from 1 Week Ago
• Price from 1 Week Ago greater than Price from 2 Weeks Ago
• Price from 2 Week Ago greater than Price from 3 Weeks Ago
• Weekly Volume greater than Weekly Volume from 1 Week Ago
• Weekly Volume from 1 Wk Ago greater than Weekly Volume from 2 Wks Ago
• Weekly Volume from 2 Wks Ago greater than Weekly Volume from 3 Wks Ago
• Zacks Rank less than or equal to 3
• Price greater than or equal to $5
• Average 20-day Volume greater than or equal to 100,000 shares
The most important elements to this screen are the price and volume items (especially the volume). The Zacks Rank also helps to make sure that their earnings estimates are on the rise. The price item, however, is a personal preference as I generally don't buy stocks under $5. But it should also be noted that many institutions won't either. But if you're looking for lower priced stocks, you can of course remove this item. And lastly, the average volume item ensures there's enough trade activity on a daily basis to get in and out of the market easily.
Stocks
Here are 5 stocks that passed this week's screen:
(Nasdaq: – Free Report) Adaptimmune Therapeutics
(NYSE:(B - Free Report) – Free Report) Barnes Group
(NYSE: – Free Report) Mobile TeleSystems
(Nasdaq: – Free Report) JA Solar Holdings
(Nasdaq:(NEWT - Free Report) – Free Report) Newtek Business Services
All of these stocks look good fundamentally. But their successive increases in weekly volume suggest institutional buying, and warrant an even closer look.
Get the rest of the stocks on this list and start screening for weekly volume increases to uncover institutional buying on your own. It's easy to do.
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.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
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Phone: 312-265-9268
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Visit: https://www.zacks.com/performance
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.