5 Stocks With Recent Price Strength To Boost Your Portfolio

In the game of stocks, winning means reaching a higher price.

However, finding a win-win strategy is easier said than done. When the markets are choppy marked by widespread global growth concerns, it is difficult for even an insightful investor to come up with a foolproof approach.

One could resort to commonly used techniques to find beaten down stocks that have the potential to recover faster than others. However, even such investment choices bear the risk of disappointment. Particularly, one could be stuck in a value trap if the inherent weakness in a selected stock is not identified.

So, wouldn’t it be a safer strategy to look for stocks that are winners currently and have the potential to gain further?

Here’s how to execute it:

One should primarily look for stocks that have witnessed price increases lately. Actually, such stocks have a high chance of carrying the momentum forward.

If a stock is continuously moving higher, there must be a good reason for the rise or else it probably would have fallen like the losers. So, looking at stocks, which have already won the game and are capable of beating the benchmark that they have already set sounds rational.

However, recent price strength alone cannot create magic. Therefore, you need to set other relevant parameters 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 & 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) and #2 (Buy) have a proven history of outperformance.

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.

BayCom Corporation (BCML - Free Report) provides commercial banking products and services to businesses and individuals. The Zacks Rank #2 stock delivered a positive earnings surprise of 42.4% last quarter.

Enova International, Inc. (ENVA - Free Report) is a provider of online financial services. Last quarter, the company delivered a positive earnings surprise of 23.8%. The stock carries a Zacks Rank #2.

QuinStreet Inc. (QNST - Free Report) is a provider of online direct marketing and media services. The Zacks Rank #2 stock delivered a positive earnings surprise of 600% last quarter.

CommerceWest Bank N.A. (CWBK - Free Report) provides a wide range of specialized commercial banking and financial services to entrepreneurs and small- to mid-sized businesses in southern California. The Zacks Rank #2 stock delivered a positive earnings surprise of 14.3% last quarter.

AMN Healthcare Services, Inc. (AMN - Free Report) is a travel healthcare staffing company. It recruits and places nurses, physicians, and other healthcare professionals in travel or permanent assignments in acute-care facilities, physician practice groups, and other healthcare facilities. The stock carries a Zacks Rank #2.

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

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