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Zacks.com featured highlights include GIII Apparel Group, Stride and Cboe Global
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For Immediate Release
Chicago, IL – November 14, 2023 – Stocks in this week’s article are JGIII Apparel Group (GIII - Free Report) , Stride (LRN - Free Report) and Cboe Global (CBOE - Free Report) .
3 Stocks Trading Near 52-Week Highs with More Upside Potential
Investors generally consider 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as GIII Apparel Group, Stride and Cboe Global are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors' focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our three picks of the six stocks that made it through the screen:
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. G-III Apparel's strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business. G-III Apparel has also been making progress on rightsizing the inventory. Management remains optimistic about the company's diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston.
The Zacks Consensus Estimate for GIII's fiscal 2024 earnings has remained steady at $3.27 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average surprise being 526.64%.
Stride is a premier provider of K-12 education for students, schools and districts, including career learning services through middle and high school curricula. Stride's Career Learning segment is thriving, driven by the various growth initiatives. After the acquisition of three adult learning companies, Galvanize, Tech Elevator and MedCerts, in 2020, the company's product offerings in this segment expanded notably.
The hybrid nature (in-person or online) of the training programs of these brands contributes to the growth of this segment. The company is optimistic about achieving its long-term 2025 goal, given the boost in enrollment demand. For the long term, Stride projects $1.9-$2.2 billion of revenues and $250-$350 million of adjusted operating income. Also, it expects the gross margin to be between 36% and 39%.
The Zacks Consensus Estimate for LRN's fiscal 2024 earnings moved north by 21.7% to $3.98 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 44.31%.
Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. Improved transaction fees, driven by higher volumes traded, market data fees, access and capacity fees and regulatory fees, as well as the contribution from acquisitions, are expected to favor the company's top line in the near term.
Strategic acquisitions are improving its competitive edge by diversifying its portfolio, adding capabilities, generating expense synergies, and through expansion into new geographies. For 2023, Cboe projects organic net revenue growth to be in the range of 7%-9% and continues to expect Data and Access Solutions organic net revenue growth in the range of 7%-10%. CBOE Global remains on track to grow its recurring non-transaction revenues. Trading volume growth should continue to drive transaction fees.
The Zacks Consensus Estimate for CBOE's 2023 earnings has increased by 2.8% to $7.58 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.07%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include GIII Apparel Group, Stride and Cboe Global
For Immediate Release
Chicago, IL – November 14, 2023 – Stocks in this week’s article are JGIII Apparel Group (GIII - Free Report) , Stride (LRN - Free Report) and Cboe Global (CBOE - Free Report) .
3 Stocks Trading Near 52-Week Highs with More Upside Potential
Investors generally consider 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as GIII Apparel Group, Stride and Cboe Global are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on "buy high, sell higher."
52-Week High: A Good Indicator
Many a time, stocks hitting a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
Overvaluation is natural for most of these stocks as investors' focus (or willingness to pay the premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
Here are our three picks of the six stocks that made it through the screen:
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. G-III Apparel's strategic priorities include driving power brands across categories, enhancing its portfolio via ownership of brands and licensing opportunities, expanding its global reach, maximizing omnichannel capabilities and scaling the private label business. G-III Apparel has also been making progress on rightsizing the inventory. Management remains optimistic about the company's diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Nautica and Halston.
The Zacks Consensus Estimate for GIII's fiscal 2024 earnings has remained steady at $3.27 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average surprise being 526.64%.
Stride is a premier provider of K-12 education for students, schools and districts, including career learning services through middle and high school curricula. Stride's Career Learning segment is thriving, driven by the various growth initiatives. After the acquisition of three adult learning companies, Galvanize, Tech Elevator and MedCerts, in 2020, the company's product offerings in this segment expanded notably.
The hybrid nature (in-person or online) of the training programs of these brands contributes to the growth of this segment. The company is optimistic about achieving its long-term 2025 goal, given the boost in enrollment demand. For the long term, Stride projects $1.9-$2.2 billion of revenues and $250-$350 million of adjusted operating income. Also, it expects the gross margin to be between 36% and 39%.
The Zacks Consensus Estimate for LRN's fiscal 2024 earnings moved north by 21.7% to $3.98 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 44.31%.
Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. Improved transaction fees, driven by higher volumes traded, market data fees, access and capacity fees and regulatory fees, as well as the contribution from acquisitions, are expected to favor the company's top line in the near term.
Strategic acquisitions are improving its competitive edge by diversifying its portfolio, adding capabilities, generating expense synergies, and through expansion into new geographies. For 2023, Cboe projects organic net revenue growth to be in the range of 7%-9% and continues to expect Data and Access Solutions organic net revenue growth in the range of 7%-10%. CBOE Global remains on track to grow its recurring non-transaction revenues. Trading volume growth should continue to drive transaction fees.
The Zacks Consensus Estimate for CBOE's 2023 earnings has increased by 2.8% to $7.58 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.07%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2183128/3-stocks-trading-near-52-week-high-with-more-upside-potential
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.