7 Stocks With Recent Price Strength To Buy Right Now

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

One could take resort to the commonly used techniques to find beaten down stocks that have the potential to recover faster than others. But this bears the risk of disappointment as one could fall into value trap if the selected stock’s hidden weakness is not identified.

In the stock game, winning means reaching a higher price. So, how about looking for the current winners that have the potential to gain further?

Here is how to execute it:

One should primarily look for stocks that have recently witnessed a price increase. Actually, stocks backed by recent price strength 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 or remained stable. So, looking at stocks that have already won the game and are capable of beating the benchmark that they have set themselves is a rational approach.

However, recent price strength alone cannot create magic, so you need to set other relevant parameters for a successful investment strategy.

Here’s how you should create the screen to shortlist current as well as potential winners.

Screening Parameters:

Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock moved higher in the last four weeks.

Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock saw 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 the market conditions are good or bad, stocks with a Zacks Rank #1 (Strong 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 or higher.

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.

Here are seven of the 12 stocks that made it through this screen:

MeetMe Inc. (NASDAQ:MEET) owns and operates a social network. It enables users to meet new people through social games and apps, monetized by both advertising and virtual currency. The company beat the Zacks Consensus Estimate thrice in the preceding four quarters, with an average positive surprise of 125%.

Post Holdings Inc. (NYSE:POST) is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. The company surpassed the Zacks Consensus Estimate thrice in the preceding four quarters, with an average positive surprise of 345.1%.

Belden Inc. (NYSE:BDC) is engaged in the design, manufacture and retail of cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. The company surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average positive surprise of 4.8%.

McClatchy Company (NYSE:MNI) is a newspaper and Internet publisher. The company surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average positive surprise of 120.6%.

BioTelemetry, Inc. (NASDAQ:BEAT) provides ambulatory outpatient management solutions for monitoring clinical information regarding an individual's health. The company surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average positive surprise of 61.1%.

Gibraltar Industries, Inc. (NASDAQ:ROCK) is a leading manufacturer, processor, and distributor of metals and other engineered materials for the building products, vehicular, and other industrial markets. The company surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average positive surprise of 73.5%.

Nanometrics Inc. (NASDAQ:NANO) is a leader in the design, manufacture, marketing, and support of process monitoring systems for the semiconductor, data storage, and flat panel display industries. The company surpassed the Zacks Consensus Estimate thrice in the preceding four quarters, with an average positive surprise of 104.2%.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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Written By: Zacks Investment Research