Send me real-time posts from this site at my email
Zacks

5 Stocks With Recent Price Strength Amid Strong Recovery

Wall Street witnessed a record-breaking rally during the first 100 days of Joe Biden's Presidency. The FDA has approved three COVID-19 vaccines so far. The U.S. government has ramped up COVID-19 vaccination on a priority basis. The speeding up of the process implies chances of a faster-than-expected reopening of the domestic economy.

A series of recently released economic data like job market data, manufacturing and services index, vehicle sales and consumer satisfaction optimization indexes have clearly indicated that the U.S. economy is witnessing a strong recovery since the beginning of 2021. Furthermore, an estimated $1.5 - $1.8 trillion savings by Americans at the end of 2020 due to pandemic-related restrictions, will support strong pent-up demand.

Moreover, on Mar 31, President Joe Biden unveiled his $2.3 trillion infrastructure development plan that includes transport, drinking-water, broadband, manufacturing and construction infrastructure developments. Segments like basic materials, industrials and utilities will benefit immensely with more job creation.

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 freshly 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 28.

Here we present five out of those 28 stocks:

Genco Shipping & Trading Ltd. GNK is engaged in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport iron ore, coal, grains, steel products, and other dry-bulk cargoes.

The stock price has soared 45.9% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the last 7 days.

Euroseas Ltd. ESEA provides ocean-going transportation services worldwide. It owns and operates containerships that transport dry and refrigerated containerized cargoes primarily, including manufactured products and perishables.

The stock price has jumped 44.5% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 15.4% over the last 30 days.

Navios Maritime Partners L.P. NMM owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. It offers seaborne transportation services for a range of dry cargo commodities, including iron ore, coal, grain, and fertilizers, as well as charters its vessels under medium to long-term charters.

The stock price has climbed 40.9% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 10.8% over the last 60 days.

Bassett Furniture Industries Inc. BSET is engaged in the manufacture, marketing, and retail of home furnishings in the United States and internationally. It operates in three segments: Wholesale, Retail  company-owned Stores, and Logistical Services.

The stock price has surged 39.1% in the past four weeks. The company has an expected earnings growth rate of more than 100% for next  year (ending November 2021). The Zacks Consensus Estimate for next year has improved 16.8% over the last 30 days.

Citi Trends Inc. CTRN is a value-priced retailer of urban fashion apparel and accessories for the entire family. The company currently operates stores located in the South, Southeast and Mid-Atlantic region.

The stock price has advanced 26.4% in the past four weeks. The company has an expected earnings growth rate of more than 100% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 73.7% over the last 30 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Genco Shipping & Trading Limited (GNK): Free Stock Analysis Report
 
Citi Trends, Inc. (CTRN): Free Stock Analysis Report
 
Euroseas Ltd. (ESEA): Free Stock Analysis Report
 
Navios Maritime Partners LP (NMM): Free Stock Analysis Report
 
Bassett Furniture Industries, Incorporated (BSET): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue