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Upstart Crushes Wall Street Expectations, Bucks the Trend
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A helpful metaphor for amateur investors to think of related to the market environment is that the major stock indices are the current, and individual stocks are fish within that current. In other words, most stocks will trend upwards in an up market, and in a down market, most stocks will succumb to the market’s weakness. Historical data tells us that roughly 75% of a stock’s move can be attributed to the underlying market trend in the major indices such as the S&P 500 Index ETF ((SPY - Free Report) ),Dow Jones Industrial ETF ((DIA - Free Report) ), and the Nasdaq 100 ETF ((QQQ - Free Report) ).
Relative Strength is Powerful During Corrective Markets
Unfortunately, most new and inexperienced investors view the market in a psychologically backward manner. When stocks are rising, new investors are likely to be more tuned into the day-to-day action on Wall Street. Conversely, when the market retreats like it has recently, investors get frustrated with losses and look away.
A down market is precisely when investors should pay the most attention. That’s because the strongest stocks will stand out the most during this time. In down markets, investors should search for relative strength, that is, stocks that are bucking the trend and swimming upstream. These are the stocks destined to lead.
Today, I will unveil a stock that exhibits relative strength and is perfectly positioned to thrive in this uncertain market environment and economy.
Upstart Holdings Benefits From Economic Struggles
A recent study conducted by the Federal Reserve Bank of Philadelphia indicated that some 33% of Americans earnings six figure incomes are concerned about meeting their financial obligations as indicated by. Since the average American does not earn six figures, this is cause for concern.
Regardless of what the economy’s performance, there’s always a bull market somewhere. Upstart Holdings ((UPST - Free Report) ) is a leading cloud-based AI lending platform. The company leverages AI and machine learning algorithms to evaluate a prospective client’s credit. UPST is able to gain a leg up on the competition by analyzing a person’s creditworthiness using more than just a FICO score (they use employment, education history, and other metrics).
UPST’s unique offering appears to be paying dividends. Last night, UPST trounced Zacks Consensus Estimates by a healthy 56.41%.
Image Source: Zacks Investment Research
Despite the fall in the swoon in most stocks today, the action in UPST stood out like a sore thumb. Wednesday, UPST shares exploded by nearly 40% on massive turnover as they regained the 200-day moving average.
Image Source: TradingView
Bottom Line
The massive earnings surprise and the current economic environment make UPST a uniquely attractive idea over the next few months. Furthermore, the latest data shows that UPST has over five million shares short. Shorts may be forced to cover in the coming sessions as the upward price momentum sets off a classic short squeeze.
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Upstart Crushes Wall Street Expectations, Bucks the Trend
A helpful metaphor for amateur investors to think of related to the market environment is that the major stock indices are the current, and individual stocks are fish within that current. In other words, most stocks will trend upwards in an up market, and in a down market, most stocks will succumb to the market’s weakness. Historical data tells us that roughly 75% of a stock’s move can be attributed to the underlying market trend in the major indices such as the S&P 500 Index ETF ((SPY - Free Report) ), Dow Jones Industrial ETF ((DIA - Free Report) ), and the Nasdaq 100 ETF ((QQQ - Free Report) ).
Relative Strength is Powerful During Corrective Markets
Unfortunately, most new and inexperienced investors view the market in a psychologically backward manner. When stocks are rising, new investors are likely to be more tuned into the day-to-day action on Wall Street. Conversely, when the market retreats like it has recently, investors get frustrated with losses and look away.
A down market is precisely when investors should pay the most attention. That’s because the strongest stocks will stand out the most during this time. In down markets, investors should search for relative strength, that is, stocks that are bucking the trend and swimming upstream. These are the stocks destined to lead.
Today, I will unveil a stock that exhibits relative strength and is perfectly positioned to thrive in this uncertain market environment and economy.
Upstart Holdings Benefits From Economic Struggles
A recent study conducted by the Federal Reserve Bank of Philadelphia indicated that some 33% of Americans earnings six figure incomes are concerned about meeting their financial obligations as indicated by. Since the average American does not earn six figures, this is cause for concern.
Regardless of what the economy’s performance, there’s always a bull market somewhere. Upstart Holdings ((UPST - Free Report) ) is a leading cloud-based AI lending platform. The company leverages AI and machine learning algorithms to evaluate a prospective client’s credit. UPST is able to gain a leg up on the competition by analyzing a person’s creditworthiness using more than just a FICO score (they use employment, education history, and other metrics).
UPST’s unique offering appears to be paying dividends. Last night, UPST trounced Zacks Consensus Estimates by a healthy 56.41%.
Image Source: Zacks Investment Research
Despite the fall in the swoon in most stocks today, the action in UPST stood out like a sore thumb. Wednesday, UPST shares exploded by nearly 40% on massive turnover as they regained the 200-day moving average.
Image Source: TradingView
Bottom Line
The massive earnings surprise and the current economic environment make UPST a uniquely attractive idea over the next few months. Furthermore, the latest data shows that UPST has over five million shares short. Shorts may be forced to cover in the coming sessions as the upward price momentum sets off a classic short squeeze.