5 stocks with recent price force defying market volatility
Volatility returned to Wall Street after an impressive rally in the first eight months of this year. Investors are concerned about slowing U.S. economic growth, following the rapid spread of the Delta variant of COVID-19. Market participants are also worried that rising inflationary pressures will force the Fed to abandon its ultra-dovish monetary policies.
It’s mid-September and the three major stock indexes – the Dow, S&P 500 and Nasdaq Campsite – are down 2.2%, 2% and 1.4%, respectively, since the start of the month.
The past week has been disappointing. The Dow Jones fell 0.1%, marking its third consecutive weekly decline. This is the blue chip index’s longest streak of weekly losses since the end of four weeks of losses on September 25, 2020. The market’s benchmark S&P 500 fell 0.6%, reflecting its second consecutive weekly decline. The Nasdaq Composite fell 0.5%, recording its second consecutive weekly loss.
On August 27, Fed Chairman Jerome Powell at his annual Jackson Hole Symposium reported the central bank’s $ 120 billion-per-month bond buying program to be scaled back. Right now, the Fed is buying $ 80 billion in Treasury bonds and $ 40 billion in mortgage-backed bonds per month as the pandemic-induced monetary stimulus. The central bank will hold its next FOMC meeting on September 21-22.
Wall Street is expected to remain volatile for the foreseeable future, despite the fact that the fundamentals of the US economy remain strong and the overall market trend remains encouraging.
At this point, wouldn’t it be safer to look for winning stocks that are likely to earn more?
It looks good? Here’s how to run it:
We must mainly target stocks that have just been bullish. In fact, stocks that have seen their prices rise recently are likely to continue their momentum.
If a stock is continually trending upward, there must be a solid reason, otherwise it would likely have collapsed. So looking at stocks that can beat the benchmark they’ve set for themselves seems rational.
However, recent strong prices alone cannot create magic. Therefore, you need to set other relevant parameters to create a successful investment strategy.
Here’s how you should create the screen to shortlist current and potential winners.
Percentage of price change (4 weeks) greater than zero: This criterion shows that the title has increased over the past four weeks.
Percentage change price (12 weeks) greater than 10: This indicates that the title has seen momentum over the past three months. This reduces the risk of choosing stocks that may have attracted attention due to the overwhelming performance of the overall market in a very short period of time.
Zacks Rank 1: Whether market conditions are good or bad, stocks with a Zacks # 1 (strong buy) ranking have a proven history of outperforming. You can see The full list of today’s Zacks # 1 Rank stocks here.
Average broker rating 1: This indicates that brokers are also very optimistic about the future performance of the stock.
Current price above 5: The stocks should all trade at a minimum of $ 5.
Current price / 52-week high-low range greater than 85%: This criterion filters stocks that are trading near their respective 52-week highs. This indicates that these are sufficiently solid in terms of price.
These few criteria reduced the search from over 7,700 stocks to just 14.
Here we present five of these 14 actions:
Euroseas Ltd. ESEA provides shipping services worldwide. It owns and operates container ships that transport dry and refrigerated containerized cargoes, including manufactured goods and perishables.
The company’s stock price has climbed 70.5% in the past four weeks. It has an expected profit growth rate of over 100% for the current year. Zacks’ consensus estimate for current year earnings has improved 17.5% in the past 30 days.
Grindrod Shipping Holdings Ltd. GRIN operates a diverse fleet of owned, long-term charter and joint venture dry and liquid bulk transport vessels. It operates mainly in London, Durban, Cape Town, Tokyo and Rotterdam.
The share price has jumped 55% in the past four weeks. The company has an expected profit growth rate of over 100% for the current year. Zacks’ consensus estimate for current year earnings has improved 31% in the past 30 days.
Global Ship Lease Inc. GSL is a rapidly growing container ship charter owner with the business of owning and chartering container ships on long term fixed rate charters to world class container shipping companies.
The share price has climbed 31.6% in the past four weeks. The company has an expected earnings growth rate of 80.2% for the current year. Zacks’ consensus estimate for current year earnings has improved 5.3% in the past 60 days.
Bluegreen Vacations Holding Corp. BVH operates as a condominium company. She markets and sells vacation property interests and manages resorts in leisure and urban destinations including Orlando, Las Vegas, Myrtle Beach, Charleston and New Orleans, and others.
The share price has jumped 31.4% in the past four weeks. The company has an expected profit growth rate of over 100% for the current year. Zacks’ consensus estimate for current year earnings has improved 91.5% in the past 60 days.
Belden inc. BDC is a signaling solutions company in the Americas, Europe, the Middle East, Africa and Asia-Pacific. It operates in two segments: enterprise solutions and industrial solutions.
The share price has risen 9.7% in the past four weeks. The company has an expected earnings growth rate of 63.6% for the current year. Zacks’ consensus estimate for current year earnings has improved 20.6% in the past 60 days.
You can get the rest of the stocks on this list by signing up now for your 2 week free trial of the Research Assistant and start using this screen in your own trading. Plus, you can also create your own strategies and test them out before you get into investing.
The Research Assistant is a great place to start. 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 the research assistant, plug in your findings, and see what gems come out of it.
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Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.
Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance.
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Belden Inc (BDC): Free Stock Analysis Report
Euroseas Ltd. (ESEA): Free Stock Analysis Report
Global Ship Lease, Inc. (GSL): Free Inventory Analysis Report
Grindrod Shipping Holdings Ltd. (GRIN): Free Stock Analysis Report
Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.