Zacks.com featured highlights Idaho Strategic, MAG Silver and Latham Group
For Immediate Release
Chicago, IL – October 21, 2024 – Stocks in this week’s article are Idaho Strategic Resources IDR, MAG Silver Corp. MAG and Latham Group, Inc. SWIM.
3 Strong-Buy Breakout Stocks for Attractive Returns
Astute investors should pick breakout stocks to get excellent returns. This method involves zeroing in on stocks whose prices vary within a narrow band.
If the stock price falls below this channel, it could be the best time to sell it. However, according to this strategy, the best time to buy a stock is when it is about to break above this trading band. Such stocks offer the prospect of impressive gains.
To that end, Idaho Strategic Resources, MAG Silver Corp. and Latham Group, Inc. have been selected as the breakout stocks for today.
Zeroing in on Breakout Stocks
To select the right breakout stock, one must first calculate its support and resistance levels. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades at 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 they would like to add it 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 established trading channel 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 seven. Here are the top three stocks:
Idaho Strategic Resources
Idaho Strategic Resources is a junior mining company that operates the Golden Chest Mine, producing primarily gold IDR has an expected earnings growth rate of 700% for the current year.
MAG Silver
MAG Silver, a Vancouver company, specializes in high-grade projects across the Americas. MAG has an expected earnings growth rate of 46.8% for the current year.
Latham Group
Latham Group designs, manufactures and markets in-ground residential swimming pools in North America, Australia and New Zealand, with headquarters in Latham, NY. SWIM has an expected earnings growth rate of 750% 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/2352661/3-strong-buy-breakout-stocks-for-attractive-returns
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MAG Silver Corporation (MAG) : Free Stock Analysis Report
Latham Group, Inc. (SWIM) : Free Stock Analysis Report
Idaho Strategic Resources, Inc. (IDR) : Free Stock Analysis Report