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5 Stocks With Recent Price Strength to Tap Market Rally
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U.S. stock markets ended in positive territory in a volatile August. All three major stock indexes finished in green. The broad-market index – the S&P 500 – recorded four consecutive months of positive closing.
Consequently, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. Such stocks 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 21.
Let’s discuss five out of these 21 stocks:
Sezzle Inc. (SEZL - Free Report) operates as a technology-enabled payments company primarily in the United States and Canada. SEZL provides payment solution in-store and at online retail stores through proprietary payments solution that connects consumers with merchants.
SEZL also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time.
The stock price of Sezzle has soared 76.7% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 37.1% over the last 30 days.
Climb Global Solutions Inc. (CLMB - Free Report) operates as a value-added information technology distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. CLMB operates in two segments, Distribution and Solutions. CLMB markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials.
CLMB distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions, and provides cloud solutions and resells software, hardware, and services under the name Grey Matter.
The stock price of Climb Global Solutions has jumped 42.9% in the past four weeks. The company has expected earnings growth of 20.6% for the current year. The Zacks Consensus Estimate for the current year has improved 12.3% over the last 30 days.
Qifu Technology Inc. (QFIN - Free Report) operates as a credit-tech platform under the 360 Jietiao brand in the People's Republic of China. QFIN provides credit-driven services that match borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services and platform services. QFIN also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. QFIN serves financial institutions, consumers, and small- and micro-enterprises.
The stock price of Qifu Technology has climbed 38.2% in the past four weeks. It has an expected earnings growth rate of 14.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.5% over the last 30 days.
Ponce Financial Group Inc. (PDLB - Free Report) is a Minority Depository Institution, a Community Development Financial Institution and a certified Small Business Administration lender. PDLB’s business primarily takes deposits from the general public and to a lesser extent, from alternative funding sources and invests those deposits, together with funds generated from operations and borrowings, in mortgage loans.
PDLB also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations and Federal Home Loan Bank stock.
The stock price of Ponce Financial Group has surged 21% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved more than 100% over the last 60 days.
Northwest Pipe Co. (NWPX - Free Report) manufactures welded steel pipes in two business segments. In Water Transmission business, NWPX is a supplier of large-diameter, high-pressure steel pipe used primarily for water transmission. In Tubular Products business, NWPX manufacture smaller diameter, electric resistance welded steel pipe for use in a wide range of construction, agricultural, energy and industrial applications.
The stock price of Northwest Pipe has appreciated 18.6% in the past four weeks. It has an expected earnings growth rate of 41.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.3% 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.
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.
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5 Stocks With Recent Price Strength to Tap Market Rally
U.S. stock markets ended in positive territory in a volatile August. All three major stock indexes finished in green. The broad-market index – the S&P 500 – recorded four consecutive months of positive closing.
Consequently, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. Such stocks 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 21.
Let’s discuss five out of these 21 stocks:
Sezzle Inc. (SEZL - Free Report) operates as a technology-enabled payments company primarily in the United States and Canada. SEZL provides payment solution in-store and at online retail stores through proprietary payments solution that connects consumers with merchants.
SEZL also offers Sezzle Platform that provides a payments solution for consumers that extends credit at the point-of-sale allowing consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time.
The stock price of Sezzle has soared 76.7% in the past four weeks. The company has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 37.1% over the last 30 days.
Climb Global Solutions Inc. (CLMB - Free Report) operates as a value-added information technology distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. CLMB operates in two segments, Distribution and Solutions. CLMB markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials.
CLMB distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions, and provides cloud solutions and resells software, hardware, and services under the name Grey Matter.
The stock price of Climb Global Solutions has jumped 42.9% in the past four weeks. The company has expected earnings growth of 20.6% for the current year. The Zacks Consensus Estimate for the current year has improved 12.3% over the last 30 days.
Qifu Technology Inc. (QFIN - Free Report) operates as a credit-tech platform under the 360 Jietiao brand in the People's Republic of China. QFIN provides credit-driven services that match borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services and platform services. QFIN also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. QFIN serves financial institutions, consumers, and small- and micro-enterprises.
The stock price of Qifu Technology has climbed 38.2% in the past four weeks. It has an expected earnings growth rate of 14.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.5% over the last 30 days.
Ponce Financial Group Inc. (PDLB - Free Report) is a Minority Depository Institution, a Community Development Financial Institution and a certified Small Business Administration lender. PDLB’s business primarily takes deposits from the general public and to a lesser extent, from alternative funding sources and invests those deposits, together with funds generated from operations and borrowings, in mortgage loans.
PDLB also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations and Federal Home Loan Bank stock.
The stock price of Ponce Financial Group has surged 21% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved more than 100% over the last 60 days.
Northwest Pipe Co. (NWPX - Free Report) manufactures welded steel pipes in two business segments. In Water Transmission business, NWPX is a supplier of large-diameter, high-pressure steel pipe used primarily for water transmission. In Tubular Products business, NWPX manufacture smaller diameter, electric resistance welded steel pipe for use in a wide range of construction, agricultural, energy and industrial applications.
The stock price of Northwest Pipe has appreciated 18.6% in the past four weeks. It has an expected earnings growth rate of 41.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.3% 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.