TThe Nasdaq continued to climb to start the week, up 0.30% on Tuesday after climbing 0.50% on Monday. The strength follows a 1.5% rise last Friday as bullish investors continue to push the tech index above its 50-day moving average apparently every time there is a pullback, and it is back to less than 2% of its records.

The S&P 500 is also near its all-time highs, with Wall Street ignoring inflation concerns. Investors seemed quite happy with the employment data for May which was showing signs of improvement. But the figure again fell short of economists’ expectations, which traders interpreted as a sign that the Fed won’t have to lift its easy money policies.

The recent resurgence in tech stocks has been accompanied by the return of the memes business from AMC to GameStop. The broader positivity, despite real fears about inflation, is supported by the continued improvement in S&P 500 earnings, with second-quarter projections calling for growth from the pre-pandemic period in the second quarter of the FY19. On top of that, interest rates are likely to remain historically low even when the Fed begins to reverse the price (read also: Second Quarter 2021 Results Season Snapshot).

With that in mind, some investors might consider adding to their portfolios as the United States continues its grand reopening. And our Filtered Zacks Rank 5 Stock Screener is a great place to start…

Zacks Rank # 1 (Strong Buy) stocks outperform the market in good times and bad. However, there are over 200 stocks that achieve a Zacks # 1 rank at any given time. Therefore, it helps to understand how to apply filters to the Zacks leaderboard in order to narrow the list down to a more manageable and negotiable set of actions.

Settings

Obviously, there are only three items on this screen. But together, these three filters can generate impressive returns.

• Zacks rank equal to 1

Starting with a Zacks Rank # 1 is often a good place to start as it has shown an average annual return of around 24.4% per year since 1988.

•% change (T1) Est. over 4 weeks greater than 0

Positive revisions to current quarter estimates over the past four weeks.

The Zacks Rank reviews revisions to earnings estimates for the current year (F1) and the following year (F2). The additional component takes into account revisions to the estimates for the current quarter (Q1). the idea is quite simple.

A company that has seen downward revisions for the current quarter may soon see longer-term negative revisions. Meanwhile, if a company got positive earnings revisions for its current quarter, it could indicate that more upward revisions could be ahead, which would make it an attractive buy.

•% change in the broker’s rating over 4 weeks equal to the Top 5

Top 5 stocks with the best average broker rating changes over the past four weeks.

In this screen, we are looking for any positive changes or upgrades in brokerage ratings over the past four weeks. On top of that, we want to reduce the number of stocks that pass. So we have configured the screen to select the top 5 stocks with the best broker rating upgrade.

Investors should note that brokerage ratings are generally on the upside. Therefore, our screen makes sure that brokers turn more bullish, or at least don’t turn less bullish (or even bearish) on the stock.

It should be noted that actual broker ratings don’t matter as much as the upgrade itself, as stocks with broker rating upgrades have been proven to outperform their counterparts who don’t. receive no positive rating changes or downgrades.

This strategy comes with the search wizard and is called bt_sow_filtered zacks rank5. It is located in the SoW (Screen of the Week) folder.

Here are two of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

The Children’s Place, Inc. (PLCE)

Titan Machinery Inc. (TITN)

Check out the rest of the stocks on this list and start trading Filtered Zacks Rank 5 (or one of our other strategies) on your own account. Remember, the key to successful screening is finding displays that have produced profitable results in the past. And that’s exactly what you get with Research Wizard’s stock picking and backtesting program.

Get the rest of the stock from this list and start looking for the newest companies that match those criteria. It is easy to do. And it could help you find your next big winner. Start researching these companies today with a free trial of the Search Assistant. You can do it.

Click here to sign up for a free trial of the Research Assistant today.

Want more articles from this author? Scroll to the top of this article and click the FOLLOW AUTHOR button to receive an email each time a new article is published.

Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance/

Awesome Zacks Screen

It’s hard to believe, even for us at Zacks. But from 2000 to 2020, when the market was gaining + 6.6% per year, our best stock picking strategy was on average + 52.4% per year.

How has this screen been doing lately? From 2016 to 2020, it more than tripled the gain of + 103.9% of the market with a surge + 381.1% return.

Free – See the stocks he has turned for today >>

Click to get this free report

Titan Machinery Inc. (TITN): Free Stock Analysis Report

The Childrens Place, Inc. (PLCE): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

About The Author

Related Posts

Leave a Reply

Your email address will not be published.