Yahoo Finance 5 Stocks With Recent Price Strength to Maximize Your Returns
Wall Street has been suffering from volatility again since the beginning of this month. In its recently concluded May FOMC meeting, the Fed raised the benchmark interest rate by 25 basis points to the range of 5-5.25%, marking the highest Fed Fund rate since August 2007.
Fed Chairman Jerome Powell indicated that the ongoing rate hike cycle is perhaps reaching its end, although it will depend on the outcome of economic data. However, Powell has categorically denied any rate cut this year as inflation seems to be declining at a slow rate.
As a result, the U.S. economy is suffering its biggest challenge in the regional banking segment. Three major regional banks have already collapsed and a large section of economists and financial experts remain highly concerned about more casualties. In first-quarter 2023, the U.S. GDP growth rate came in at a moderate 1.1% compared with the consensus estimate of 2% and the fourth-quarter 2022 growth rate of 2.6%.
Recently, several stocks have shown price strength despite the headwinds. We have selected five stocks that are likely to gain in the near term backed by a favorable Zacks Rank. These companies are — Carrols Restaurant Group Inc. (TAST), Celsius Holdings Inc. CELH, VirTra Inc. VTSI, Interdigital Inc. IDCC and Lantheus Holdings Inc. LNTH.
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 13.
Let’s discuss five out of these 13 stocks:
Carrols Restaurant Group operates as a restaurant company in the United States. It operates as a Burger King and Popeyes franchisee. TAST is the largest BURGER KING franchisee in the United States, with over 800 restaurants. TAST has operated BURGER KING restaurants since 1976.
The stock price of Carrols Restaurant Group has jumped 59% in the past four weeks. It has an expected earnings growth rate of 78.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 40% over the past seven days.
Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. CELH markets Celsius, the calorie burner, through its wholly-owned operating subsidiary, Celsius Inc. CELH sells its products through grocery, drug, convenience, club and mass, and health and fitness channels.
The stock price of Celsius Holdings has climbed 48.8% 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 has improved 2.2% over the past seven days.
VirTra provides force and firearms training, and driving simulators for law enforcement, military, educational, and commercial markets worldwide. VTSI’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations.
VTSI offers V-300 simulator, a 300-degree wrap-around screen for simulation training, V-180 simulator, a 180-degree screen for smaller spaces or budgets; V-100, a single-screen firearms training simulator system, V-100 MIL, a single-screen small arms training simulator, and V-ST PRO, a realistic single screen firearms shooting and skills training simulator.
The stock price of VirTra has surged 33% in the past four weeks. It has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 53.3% over the past 60 days.
Interdigital is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. IDCC is engaged in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Furthermore, IDCC’s team of skilled engineers has an expertise in major mobile connectivity as well as in technologies related to content delivery. Notably, InterDigital’s secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage Internet of Things applications.
The stock price of Interdigital has appreciated 18.4% in the past four weeks. It has an expected earnings growth rate of 96.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.1% over the past seven days.
Lantheus Holdings is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases. LNTH serves to hospitals, clinics, group practices, integrated delivery networks, group purchasing organizations, radiopharmacies and wholesalers.
The stock price of Lantheus Holdings has advanced 8.2% in the past four weeks. It has an expected earnings growth rate of 32.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 13.1% over the past 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.
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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.
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InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
VirTra, Inc. (VTSI) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
