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How to Find 'Strong Buy' Stocks Heading into April
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Stocks surged Tuesday, driven higher by technology stocks as investors continue to buy beaten-down names amid the ongoing geopolitical crisis. The S&P 500 climbed 1.2% during regular hours today to extend its rally over the past several weeks that’s helped it swing out of correction territory to just 4% below its records.
The tech-heavy Nasdaq is now up 16% since its March 14 lows and on the cusp of its 200-day moving average. Wall Street appears to have accepted the official end of the super easy-money days and is hopeful some type of cease-fire will be reached between Russia and Ukraine.
The higher rates should theoretically be a drag on stocks. But 10-year U.S. Treasury yields are just barely at three-year highs and well within their range during the last decade, all of which are very low compared to pre-financial crisis levels.
Stocks could remain attractive compared to other asset classes even as rates climb, especially when trying to outpace roughly 8% inflation. With this in mind, let’s utilize our Filtered Zacks Rank 5 Stock Screen to help investors find potential winners as we head into April.
Image Source: Zacks Investment Research
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here are two of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Univar Solutions Inc.
Univar Solutions is a leading global commodity and specialty chemical and ingredient distributor. Univar’s revenue climbed 15% in 2021, with its adjusted earnings up 68%. UNVR executives provided strong guidance for 2022 at the end of February, with its FY22 consensus EPS estimate up 34% and its FY23 figure 10% higher.
Zacks estimates call for Univar’s adjusted 2022 earnings to climb another 19% on 6% stronger sales. UNVR stock is up 50% in the last three years to outpace its industry’s 7% decline. This run includes a 55% surge in the last 12 months and a 16% jump in 2022, as Wall Street turns to energy and commodities stocks. And all five of the brokerage recommendations Zacks has for UNVR are “Strong Buys.”
Enova International is a leading financial technology company providing online financial services through its AI and machine learning powered lending platform. Enova focuses on “non-prime consumers and small businesses, who are frequently underserved by traditional banks.” The company has provided more than 7 million customers with over $40 billion in loans and financing.
Enova posted 12% revenue growth in 2021 and it stands to benefit from the rising rate environment. Zacks estimates call for ENVA’s 2022 sales to soar 42% to $1.71 billion, with 2023 projected to climb 21% higher. The company announced a $100 million stock buyback program in early February. And ENVA stock has climbed 166% in the last five years vs. its industry’s 32% climb.
See the rest of the stocks on this list and start trading the Filtered Zacks Rank 5 (or any of our other strategies) in your own account. Remember, the key to successful screening is finding screens that have produced profitable results in the past. And that's exactly what you get with the Research Wizard stock picking and backtesting program.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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
How to Find 'Strong Buy' Stocks Heading into April
Stocks surged Tuesday, driven higher by technology stocks as investors continue to buy beaten-down names amid the ongoing geopolitical crisis. The S&P 500 climbed 1.2% during regular hours today to extend its rally over the past several weeks that’s helped it swing out of correction territory to just 4% below its records.
The tech-heavy Nasdaq is now up 16% since its March 14 lows and on the cusp of its 200-day moving average. Wall Street appears to have accepted the official end of the super easy-money days and is hopeful some type of cease-fire will be reached between Russia and Ukraine.
The higher rates should theoretically be a drag on stocks. But 10-year U.S. Treasury yields are just barely at three-year highs and well within their range during the last decade, all of which are very low compared to pre-financial crisis levels.
Stocks could remain attractive compared to other asset classes even as rates climb, especially when trying to outpace roughly 8% inflation. With this in mind, let’s utilize our Filtered Zacks Rank 5 Stock Screen to help investors find potential winners as we head into April.
Image Source: Zacks Investment Research
Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.
Parameters
Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.
• Zacks Rank equal to 1
Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.
• % Change (Q1) Est. over 4 Weeks greater than 0
Positive current quarter estimate revisions over the last four weeks.
• % Broker Rating Change over 4 Week equal to Top # 5
Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.
Here are two of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…
Univar Solutions Inc.
Univar Solutions is a leading global commodity and specialty chemical and ingredient distributor. Univar’s revenue climbed 15% in 2021, with its adjusted earnings up 68%. UNVR executives provided strong guidance for 2022 at the end of February, with its FY22 consensus EPS estimate up 34% and its FY23 figure 10% higher.
Zacks estimates call for Univar’s adjusted 2022 earnings to climb another 19% on 6% stronger sales. UNVR stock is up 50% in the last three years to outpace its industry’s 7% decline. This run includes a 55% surge in the last 12 months and a 16% jump in 2022, as Wall Street turns to energy and commodities stocks. And all five of the brokerage recommendations Zacks has for UNVR are “Strong Buys.”
Enova International (ENVA - Free Report)
Enova International is a leading financial technology company providing online financial services through its AI and machine learning powered lending platform. Enova focuses on “non-prime consumers and small businesses, who are frequently underserved by traditional banks.” The company has provided more than 7 million customers with over $40 billion in loans and financing.
Enova posted 12% revenue growth in 2021 and it stands to benefit from the rising rate environment. Zacks estimates call for ENVA’s 2022 sales to soar 42% to $1.71 billion, with 2023 projected to climb 21% higher. The company announced a $100 million stock buyback program in early February. And ENVA stock has climbed 166% in the last five years vs. its industry’s 32% climb.
See the rest of the stocks on this list and start trading the Filtered Zacks Rank 5 (or any of our other strategies) in your own account. Remember, the key to successful screening is finding screens that have produced profitable results in the past. And that's exactly what you get with the Research Wizard stock picking and backtesting program.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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/