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5 Stocks With Recent Price Strength Amid October Volatility
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October generally remains volatile on Wall Street. This year, volatility has gripped in U.S. stock markets from the beginning of this month. October’s volatility is expected to persist due to a better-than-expected jobs data for September, expectations of a Fed rate cut in a gradual fashion rather than more aggressive way, a jump in the yield of the benchmark 10-Year Treasury Note, intensified geopolitical conflict in the Middle East and the upcoming U.S. Presidential election on Nov. 5.
Consequently, a handful of 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.
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 16.
Let’s discuss five out of these 16 stocks:
Atour Lifestyle Holdings Ltd. develops lifestyle brands around hotel offerings in the People's Republic of China. ATAT provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products.
ATAT also offers retail management service; investment management service; financial information service management; property management services; and software and technology services, as well as operates a travel agency.
The stock price of Atour Lifestyle Holdings has jumped 39% in the past four weeks. The company has expected earnings growth of 32.6% for the current year. The Zacks Consensus Estimate for the current year has improved 10.9% over the last 60 days.
Vertiv Holdings Co. designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
The stock price of Vertiv Holdings has climbed 31.2% in the past four weeks. It has an expected earnings growth rate of 45.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the last 90 days.
Corcept Therapeutics Inc. is engaged in the discovery and development of drugs for the treatment of severe endocrinologic, oncologic, metabolic, and neurologic disorders in the United States. CORT offers Korlym tablets medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous cushing's syndrome, and for those who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery.
CORT is also developing relacorilant, which is in phase III clinical trial for the treatment of cushing's syndrome, treatment for adrenal cancer and cortisol excess, which is in phase 1b clinical trial, treatment for prostate cancer which is in phase II clinical trial and nab-paclitaxel in combination with relacorilant, which is in phase III clinical trial to treat platinum-resistant ovarian tumors.
The stock price of Corcept Therapeutics has surged 29.2% in the past four weeks. It has an expected earnings growth rate of 19.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.8% over the last 30 days.
Qifu Technology Inc. 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 appreciated 25% in the past four weeks. The company has expected earnings growth of 38% for the current year. The Zacks Consensus Estimate for the current year has improved 2.8% over the last 30 days.
ADMA Biologics Inc. is a specialty immune globulin company. ADMA develops, manufactures and intends to market plasma-based biologics for the treatment and prevention of certain infectious diseases.
ADMA’s target patient populations include immune-compromised individuals suffering from an underlying immune deficiency disease or are immune-suppressed for medical reasons. ADMA’s lead product candidate, RI-002, which is in Phase III clinical trial, is intended for the treatment of primary immune deficiency disease.
The stock price of ADMA Biologics has advanced 20.2% in the past four weeks. It has an expected earnings growth rate of 29.6% for next year. The Zacks Consensus Estimate for next-year earnings has improved 8.5% 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 Amid October Volatility
October generally remains volatile on Wall Street. This year, volatility has gripped in U.S. stock markets from the beginning of this month. October’s volatility is expected to persist due to a better-than-expected jobs data for September, expectations of a Fed rate cut in a gradual fashion rather than more aggressive way, a jump in the yield of the benchmark 10-Year Treasury Note, intensified geopolitical conflict in the Middle East and the upcoming U.S. Presidential election on Nov. 5.
Consequently, a handful of 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.
Five such stocks are - Atour Lifestyle Holdings Ltd. (ATAT - Free Report) , Vertiv Holdings Co. (VRT - Free Report) , Corcept Therapeutics Inc. (CORT - Free Report) , Qifu Technology Inc. (QFIN - Free Report) and ADMA Biologics Inc. (ADMA - Free Report) .
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 16.
Let’s discuss five out of these 16 stocks:
Atour Lifestyle Holdings Ltd. develops lifestyle brands around hotel offerings in the People's Republic of China. ATAT provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products.
ATAT also offers retail management service; investment management service; financial information service management; property management services; and software and technology services, as well as operates a travel agency.
The stock price of Atour Lifestyle Holdings has jumped 39% in the past four weeks. The company has expected earnings growth of 32.6% for the current year. The Zacks Consensus Estimate for the current year has improved 10.9% over the last 60 days.
Vertiv Holdings Co. designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
The stock price of Vertiv Holdings has climbed 31.2% in the past four weeks. It has an expected earnings growth rate of 45.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the last 90 days.
Corcept Therapeutics Inc. is engaged in the discovery and development of drugs for the treatment of severe endocrinologic, oncologic, metabolic, and neurologic disorders in the United States. CORT offers Korlym tablets medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous cushing's syndrome, and for those who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery.
CORT is also developing relacorilant, which is in phase III clinical trial for the treatment of cushing's syndrome, treatment for adrenal cancer and cortisol excess, which is in phase 1b clinical trial, treatment for prostate cancer which is in phase II clinical trial and nab-paclitaxel in combination with relacorilant, which is in phase III clinical trial to treat platinum-resistant ovarian tumors.
The stock price of Corcept Therapeutics has surged 29.2% in the past four weeks. It has an expected earnings growth rate of 19.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.8% over the last 30 days.
Qifu Technology Inc. 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 appreciated 25% in the past four weeks. The company has expected earnings growth of 38% for the current year. The Zacks Consensus Estimate for the current year has improved 2.8% over the last 30 days.
ADMA Biologics Inc. is a specialty immune globulin company. ADMA develops, manufactures and intends to market plasma-based biologics for the treatment and prevention of certain infectious diseases.
ADMA’s target patient populations include immune-compromised individuals suffering from an underlying immune deficiency disease or are immune-suppressed for medical reasons. ADMA’s lead product candidate, RI-002, which is in Phase III clinical trial, is intended for the treatment of primary immune deficiency disease.
The stock price of ADMA Biologics has advanced 20.2% in the past four weeks. It has an expected earnings growth rate of 29.6% for next year. The Zacks Consensus Estimate for next-year earnings has improved 8.5% 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.