5 Stocks With Recent Price Strength Amid October Volatility
In This Article:
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, Vertiv Holdings Co. VRT, Corcept Therapeutics Inc. CORT, Qifu Technology Inc. QFIN and ADMA Biologics Inc. ADMA.
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.