For immediate release
Chicago, IL – March 30, 2023 – Stocks in this week’s article are Playa Hotels & Resorts NV PLYA, Reliance Steel & Aluminum Co. RS, Tecnoglass TGLS, Par Pacific Holdings, Inc. PARR and Betterware of Mexico SAPI of CV BWMX.
5 Best Trading Opportunities Using Relative Price Strength
As we close out the first quarter of 2023, US stock markets are desperately trying to outrun the banking sector amid global turmoil and the threat of a recession. Moreover, with growth appearing to be more stubborn than previously expected, the Federal Reserve stuck to its tactics and raised interest rates by another 25 basis points in the last week. This brings the H funds rate range to 4.75-5.00% – the highest level since 2007.
With the latest CPI and PPI reports both showing inflation on a downward trajectory, and slightly down from its summer last year, the central bank has signaled an increase in consumer spending. However, continued concerns about the regional banking system and the failure of the forced UBS-Credit Suisse bond means that volatile trading in US stocks is expected to remain for some time.
In the current jittery market environment, investors who would like to remain exposed to equity should invest in investment opportunities. One way to find such potential games is to look for signs of relative strength.
Relative Price Strength Strategy
Earnings growth and valuation multiples are important for investors to determine a stock’s ability to offer high returns. But these are also necessary to determine whether a stock’s price is better than peers or the industry average.
If the implementation of the stock lacks that of the larger groups, even though the growth or evaluations are multiple times the number is missing, then something must be wrong.
It is always advisable to stay away from these stocks and bet on those who can provide their own energy or proof. This is because betting on the winner always proves to be profitable.
Next, you need to determine whether the investment has upside potential when considering a stock with significant relative price strength. Stocks delivering better than the S&P 500 for at least 1 to 3 months and solid fundamentals indicate a place for growth and are the best reasons to go for this strategy.
Finally, it is crucial to find out if the analysts are optimistic about the future earnings of these companies. To do this, we have added positive estimates for the current quarter (Q1) earnings to the table. When the stock undergoes an upward revision, it leads to additional gains.
Here are the five nerves that made it through the screen;
Beach Hotels & Resorts NVThis is a hotel operator in Mexico and the Caribbean. The 2023 Zacks Consensus Estimate for Fairfax, VA-based PLYA indicates 12% annual earnings per share growth. Playa Hotels & Resorts has a VGM Score of B.
Over the past 30 days, Playa Hotels & Resorts has seen the Zacks Consensus Estimate for 2023 rise 16.7%. The Zacks Consensus Estimate has beaten earnings in each of the last four quarters. PLYA shares have a margin of 1.5% per year.
Reliance Steel & Aluminum Co.: Fusu Steel is a primary metals service center company engaged in value-added materials management and metals processing services. Over the past 60 days, this Los Angeles, CA-based firm has seen the Zacks Consensus Estimate for 2023 rise 17.3%. The RS has a VGM Score of B.
Reliance Steel has beaten the Zacks Consensus Estimate for earnings in each of the last quarters. Trailing four-quarter gains were a surprising 13.4%, on average. RS shares rose 38.7% on the year.
technoglass: The firm manufactures, sells and installs architectural glass and aluminum related products for the residential construction markets. The 2023 Zacks Consensus Estimate based on Columbia Tecnoglass indicates 15.4% annual earnings per share growth. TGLS has a VGM Score of B.
Tecnoglass has beaten the Zacks Consensus Estimate for earnings in each of the last four quarters. Trailing four-quarter earnings were a surprising 21.5%, on average. TGLS stock gained 49.8%.
Par Pacific Holdings, Inc.: Par Pacific is a leading goldsmith and oil marketer. Over the past 30 days, this Houston, TX-based firm has seen the Zacks Consensus Estimate for 2023 up 5%. PARR has a VGM score of A.
Par Pacific has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters. Trailing four-quarter earnings were a surprising 16.1%, on average. PARR shares moved around 128.5% on the year.
Betterware from Mexico SAPI de CV: The Mexico-based company operates in the family direct-to-consumer space. The 2023 Zacks Consensus Estimate for this firm indicates 52% annual earnings per share growth. BWMX has a VGM score of A.
Meliorware de Mexico saw the Zacks Consensus Estimate for 2023 rise 6.4% over the 60-day period. Trailing four-quarter gains averaged an astonishing 39.7%. BWMX shares have lost 38.5% on the year.
Research Wizard is a great place to start. Easy to use. Everything is flat in the conversation. And it’s very intuitive. Start your Research Wizard trial today. The next time you read a financial report, open the Research Wizard, plug in your findings and see what gems come out.
For the rest of this week’s screenshot article, please visit Zacks.com at: https://www.zacks.com/stock/news/2071747/5-best-investment-opportunities-using-relative-price-strength
Disclosure: Officers, directors and/or employees of Zacks Investments may have or have sold securities short and/or hold long and/or short positions in the options listed in this material. Federal investment advisory firms may own or sell securities short and/or hold long and/or short positions in the options listed in this material.
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