We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Stocks With Recent Price Strength in a Volatile December
Read MoreHide Full Article
U.S. stock markets are in the grip of volatility once again in December. Wall Street has suffered a bloody blow this year. The impressive rally that started in mid-October has evaporated owing to hotter-than-expected job data for November and a hawkish statement from Fed Chairman Jerome Powell after the conclusion of the December FOMC meeting.
Just five days of trading are left this year. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 9.1%, 19.8% and 33%, respectively. Major indexes are set to terminate a three-year winning streak and record the worst yearly performance since 2008. The Dow, the S&P 500 and the Nasdaq Composite – have corrected significantly in December plummeting 4.5%, 6.3% and 8.7%, respectively.
Market participants are highly concerned about a recession in 2023. On Dec 14, the Fed increased interest rates by another 50 basis points. The central bank indicated a continued increase in interest rates at regular intervals through 2023. The latest interest rate hike took the benchmark range to 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.
Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central Bank slowed down their pace of rate hikes but increased interest rates by 50 basis points. Investors were once again alarmed by this as they believe that the ongoing rate increases could push the economy into a recession.
On Dec 20, the global financial markets were taken by surprise as the Bank of Japan suddenly widened its target range for the 10-year Japanese government bond yields. The Bank of Japan raised the yield curve control range to 0.5% from the current level of 0.25%, around its target level of 0% yield.
This has sparked widespread selling of bonds and stocks across the global financial markets as the Japanese central bank’s move was perceived by market participants as potentially hawkish. BOJ has so far maintained a 0% benchmark interest rate.
However, defying recent volatility, a handful of stocks have shown price strength. These stocks are likely to gain in the near term and are backed by a favorable Zacks Rank. Five of them are — Asure Software Inc. (ASUR - Free Report) , Bowman Consulting Group Ltd. (BWMN - Free Report) , Tecnoglass Inc. (TGLS - Free Report) , H&E Equipment Services Inc. (HEES - Free Report) and Northeast Community Bancorp Inc. (NECB - Free Report) .
Here’s How We Arrived at the Picks
We have primarily targeted stocks that have freshly been on a bull run. 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 it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed 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 narrowed down the search from over 7,700 stocks to six.
Let’s discuss five out of these six stocks:
Asure Software provides cloud-based human capital management and workspace management solutions worldwide. ASUR offers Web-based workforce management solutions that enable organizations to manage their office environment, as well as their human resource and payroll processes.
The stock price of Asure Software has surged 31.4% in the past four weeks. ASUR has an expected earnings growth rate of more than 100% for next year. The Zacks Consensus Estimate for next-year earnings has improved 27.3% over the last 60 days.
Bowman Consulting Group provides planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets.
The stock price of Bowman Consulting Group has advanced 6.7% in the past four weeks. BWMN has an expected earnings growth rate of 54% for next year. The Zacks Consensus Estimate for next-year earnings has improved 24.2% over the last 60 days.
Tecnoglass is engaged in manufacturing and selling architectural glass and windows and aluminum products for the residential and commercial construction industries. TGLS operates primarily in North, Central and South America.
The stock price of TGLS has gained 6.6% in the past four weeks. Tecnoglass has an expected earnings growth rate of 9% for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.2% over the last 30 days.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. HEES is focused on heavy construction & industrial equipment and rents, sells and provides parts and service support to four core categories of specialized equipment namely, hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
The stock price H&E Equipment Services has risen 5.6% in the past four weeks. HEES has an expected earnings growth rate of 19% for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.7% over the last 30 days.
Northeast Community Bancorp operates as the holding company for NorthEast Community Bank, which provides financial services for individuals and businesses. NECB accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. NECB also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans.
The stock price of Northeast Community Bancorp has increased 5.6% in the past four weeks. NECB has an expected earnings growth rate of 9.8% for next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% 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.
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
5 Stocks With Recent Price Strength in a Volatile December
U.S. stock markets are in the grip of volatility once again in December. Wall Street has suffered a bloody blow this year. The impressive rally that started in mid-October has evaporated owing to hotter-than-expected job data for November and a hawkish statement from Fed Chairman Jerome Powell after the conclusion of the December FOMC meeting.
Just five days of trading are left this year. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have tumbled 9.1%, 19.8% and 33%, respectively. Major indexes are set to terminate a three-year winning streak and record the worst yearly performance since 2008. The Dow, the S&P 500 and the Nasdaq Composite – have corrected significantly in December plummeting 4.5%, 6.3% and 8.7%, respectively.
Market participants are highly concerned about a recession in 2023. On Dec 14, the Fed increased interest rates by another 50 basis points. The central bank indicated a continued increase in interest rates at regular intervals through 2023. The latest interest rate hike took the benchmark range to 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.
Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central Bank slowed down their pace of rate hikes but increased interest rates by 50 basis points. Investors were once again alarmed by this as they believe that the ongoing rate increases could push the economy into a recession.
On Dec 20, the global financial markets were taken by surprise as the Bank of Japan suddenly widened its target range for the 10-year Japanese government bond yields. The Bank of Japan raised the yield curve control range to 0.5% from the current level of 0.25%, around its target level of 0% yield.
This has sparked widespread selling of bonds and stocks across the global financial markets as the Japanese central bank’s move was perceived by market participants as potentially hawkish. BOJ has so far maintained a 0% benchmark interest rate.
However, defying recent volatility, a handful of stocks have shown price strength. These stocks are likely to gain in the near term and are backed by a favorable Zacks Rank. Five of them are — Asure Software Inc. (ASUR - Free Report) , Bowman Consulting Group Ltd. (BWMN - Free Report) , Tecnoglass Inc. (TGLS - Free Report) , H&E Equipment Services Inc. (HEES - Free Report) and Northeast Community Bancorp Inc. (NECB - Free Report) .
Here’s How We Arrived at the Picks
We have primarily targeted stocks that have freshly been on a bull run. 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 it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.
However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed 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 narrowed down the search from over 7,700 stocks to six.
Let’s discuss five out of these six stocks:
Asure Software provides cloud-based human capital management and workspace management solutions worldwide. ASUR offers Web-based workforce management solutions that enable organizations to manage their office environment, as well as their human resource and payroll processes.
The stock price of Asure Software has surged 31.4% in the past four weeks. ASUR has an expected earnings growth rate of more than 100% for next year. The Zacks Consensus Estimate for next-year earnings has improved 27.3% over the last 60 days.
Bowman Consulting Group provides planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets.
The stock price of Bowman Consulting Group has advanced 6.7% in the past four weeks. BWMN has an expected earnings growth rate of 54% for next year. The Zacks Consensus Estimate for next-year earnings has improved 24.2% over the last 60 days.
Tecnoglass is engaged in manufacturing and selling architectural glass and windows and aluminum products for the residential and commercial construction industries. TGLS operates primarily in North, Central and South America.
The stock price of TGLS has gained 6.6% in the past four weeks. Tecnoglass has an expected earnings growth rate of 9% for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.2% over the last 30 days.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. HEES is focused on heavy construction & industrial equipment and rents, sells and provides parts and service support to four core categories of specialized equipment namely, hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
The stock price H&E Equipment Services has risen 5.6% in the past four weeks. HEES has an expected earnings growth rate of 19% for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.7% over the last 30 days.
Northeast Community Bancorp operates as the holding company for NorthEast Community Bank, which provides financial services for individuals and businesses. NECB accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. NECB also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans.
The stock price of Northeast Community Bancorp has increased 5.6% in the past four weeks. NECB has an expected earnings growth rate of 9.8% for next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% 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.