Yahoo Finance Zacks.com featured highlights MercadoLibre, Axcelis Technologies, Shinhan Financial, Pinduoduo and Collegium Pharmaceutical
For Immediate Release
Chicago, IL – January 31, 2023 – Stocks in this week’s article are MercadoLibre Inc. MELI, Axcelis Technologies Inc. ACLS, Shinhan Financial Group Co. Ltd. SHG, Pinduoduo Inc. PDD and Collegium Pharmaceutical Inc. COLL.
5 Stocks with Recent Price Strength Amid January Rally
Wall Street wrapped up 2022 as the worst year since 2008, terminating a three-year winning streak. However, U.S. stock markets have revived in January 2023. Month to date, the three major indexes — the Dow, the S&P 500 and the Nasdaq Composite — have rallied 2.5%, 6% and 11%, respectively.
Peak inflation seems behind us. Less-than-expected inflation rates in October, November and December with respect to several measures have clearly indicated this. The University of Michigan Surveys of Consumers released on Jan 27 showed that the one-year inflation outlook slipped to a final reading of 3.9% this month from 4.4% in December, the lowest reading since April 2021.
The Fed raised the benchmark interest rate by 4.25% in 2022 to the range of 4.25- 4.5%. The market is currently expecting the central bank to increase the interest rate by a maximum 75 basis points in 2023. Some financial analysts are expecting the first rate cut to come in the last quarter of 2023 or in early 2024.
Headwinds of the pandemic are also behind us. China has been gradually reopening since the beginning of this year after strict lockdowns last year. This will help revive the completely devastated global-supply chain system. Global trade will also gain momentum.
The U.S. labor market remains resilient. The initial results of fourth-quarter 2022 earnings were not as disappointing as expected. Therefore, the Fed may reach its goal of a soft landing of the economy.
Several stocks have shown price strength buoyed by market rally. These stocks are likely to gain in the near term and are backed by a favorable Zacks Rank. Five of them are — MercadoLibre Inc., Axcelis Technologies Inc., Shinhan Financial Group Co. Ltd., Pinduoduo Inc. and Collegium Pharmaceutical Inc.
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.
Let’s discuss five out of these 39 stocks:
MercadoLibre is benefiting from strength in the commerce and fintech businesses. Robust product offerings and credit portfolio expansion are respectively driving MELI’s commerce and fintech revenues. Further, robust mobile-point-of-sale business and growing adoption of MercadoPago are driving the total payment volume growth of MELI. Also, the rapid adoption of Mobile Wallet remains positive.
The stock price of MELI has jumped 44.3% in the past four weeks. MercadoLibre has an expected earnings growth rate of 46.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last seven days.
Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. ACLS also produces dry strip, photostabilization and rapid thermal processing equipment, which is used in semiconductor manufacturing primarily before and after the ion implantation process. In addition, ACLS provides extensive aftermarket service and support, including spare parts, equipment upgrades, maintenance services and customer training.
The stock price of Axcelis Technologies has climbed 39.2% in the past four weeks. ACLS has an expected earnings growth rate of 0.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the last 30 days.
Shinhan Financial Group provides financial products and services in South Korea and internationally. SHG operates through six segments: Banking, Credit Card, Securities, Life Insurance, Credit, and Others. SHG offers retail banking services, including demand, savings, and fixed deposit-taking, checking accounts, mortgage and home equity, and retail lending, electronic banking and automatic teller machines, and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services.
The stock price of Shinhan Financial Group has surged 29.7% in the past four weeks. SHG has an expected earnings growth rate of 6.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.6% over the last 30 days.
Pinduoduo operates an e-commerce platform in the People's Republic of China. PDD operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverages, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.
The stock price of Pinduoduo has advanced 28.4% in the past four weeks. PDD has an expected earnings growth rate of 13% for the current year. The Zacks Consensus Estimate for next-year earnings has improved 11.3% over the last 30 days.
Collegium Pharmaceutical is a specialty pharmaceutical company. COLL develops and commercializes prescription and over-the-counter pharmaceuticals for the treatment of central nervous system, respiratory and skin-related disorders. COLL’s product candidate consists of COL-195, COL-196, COL-171, COL-003 and COL-172 which are in different clinical trial. COLL developed a formulation platform technology, DETERx, for the treatment of chronic pain.
The stock price of Collegium Pharmaceutical has rallied 21.9% in the past four weeks. COLL has an expected earnings growth rate of 46.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last seven days.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2046058/5-stocks-with-recent-price-strength-amid-january-rally
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Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
Shinhan Financial Group Co Ltd (SHG) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
Collegium Pharmaceutical, Inc. (COLL) : Free Stock Analysis Report
Pinduoduo Inc. Sponsored ADR (PDD) : Free Stock Analysis Report
