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Zacks.com featured highlights Northeast Community Bancorp, Cyxtera Technologies and Firstgroup

For Immediate Release

Chicago, IL – June 21, 2022 – Stocks in this week’s article are Northeast Community Bancorp NECB, Cyxtera Technologies CYXT and Firstgroup FGROY.

3 Breakout Stocks to Watch for Superb Returns

Breakout stocks are being chosen by active investors for stellar returns. In other words, the active investing approach involves searching for stocks whose prices are fluctuating within a specific band. It's prudent to offload the stock if it falls below the lower bound of this band. Similarly, once the stock breaks above this channel, it has all the chance of delivering strong gains.

Zeroing-In on Breakout Stocks

In order to select the right breakout stock, one has first to calculate its support and resistance level. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades within a considerable period.

In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, meaning that they would like to add them to their portfolio.

The key to identifying breakout stocks is to zero in on those on the verge of a breakout or those that have just broken above the resistance level.

Has a Genuine Breakout Occurred?

The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.

For a bona fide breakout, the stock's earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance.

These criteria narrow down the universe of more than 6,853 stocks to only three. Here're the stocks:

Northeast Community Bancorp is a federally chartered stock-holding company established to be the holding company for Northeast Community Bank. Currently, Northeast Community Bancorp carries a Zacks Rank #3. NECB has an expected earnings growth rate of 48% for the current year.

Cyxtera Technologies provides data center colocation and interconnection services. Currently, Cyxtera Technologies carries a Zacks Rank #3. CYXT has an expected earnings growth rate of 32.8% for the current year.

Firstgroup provides passenger transport services primarily in the UK and North America. Currently, Firstgroup carries a Zacks Rank #2. FGROY has an expected earnings growth rate of 300% for the current year.

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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/1940949/3-breakout-stocks-to-watch-for-superb-returns

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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Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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