Wall Street is witnessing a V-shaped recovery this year. Reopening of the economy and a series of recently released better-than-expected economic data significantly strengthened investors' confidence in U.S. stocks.
Last month's job additions recorded a historic high of 2.5 million and unemployment rate dropped to 13.3% from 14.7% in April, per the Bureau of Labor Statistics. In addition to job data, growing consumer confidence and higher expectations for the next six months, better than-expected ISM manufacturing and services index, and a solid increase in housing and vehicle sales clearly showed strong pent-up demand. Moreover, business activities will increase steadily as more people are visiting restaurants, bars and shopping malls, and companies are opening their stores. Additionally, freight trucking activities are gathering pace and airlines are adding to their fleet. At this stage, wouldn’t it be a safer strategy to look for stocks that are winners and have the potential to gain further? Sounds Good? Here’s How to Execute It: One should primarily target stocks that have recently been on a bull run. Actually, 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 else it would have probably crashed. So, looking at stocks that are capable of beating the benchmark that they have set for themselves seems rational. However, recent price strength alone cannot create magic. Therefore, you need to set other relevant parameters 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 have narrowed down the search from over 7,700 stocks to just 10. Here we present five out of those 10 stocks: SunOpta Inc. ( STKL Quick Quote STKL - Free Report) is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty markets. It operates through three segments: Global Ingredients, Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages. The stock has jumped 33.1% in the past four weeks. The company has expected earnings growth of 59.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 11.8% over the last 60 days. eXp World Holdings Inc. ( EXPI Quick Quote EXPI - Free Report) provides cloud-based real estate brokerage services for residential homeowners and homebuyers in the United States, Canada, the United Kingdom, and Australia. The stock price has climbed 31.5% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved by more than 100% over the last 60 days. Calix Inc. ( CALX Quick Quote CALX - Free Report) provides cloud and software platforms, and systems and services required to deliver the unified access network in the United States, the Middle East, Canada, Europe, the Caribbean and internationally. The stock price has surged 19% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved by 22.2% over the last 60 days. Kiniksa Pharmaceuticals Ltd. ( KNSA Quick Quote KNSA - Free Report) is a clinical-stage biopharmaceutical company, focused on discovering, acquiring, developing and commercializing therapeutic medicines for patients suffering from debilitating diseases worldwide. The stock price has advanced 14.7% in the past four weeks. The company has expected earnings growth of 22.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 9.1% over the last 60 days. iClick Interactive Asia Group Ltd. provides an online marketing technology platform. It offers digital marketing, data analysis, display solutions, software development and other services. The stock price has gained 13.7% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved by more than 100% 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