5 Strong Stock Buys to Make Today
When a tornado hits, we’re told to seek shelter and hide under the desk. If there’s a blizzard, you stay in side and keep warm. The same principle of a flight to safety or a search for strength occurs in the stock market when things get rocky. While the S&P 500 continues to carve out a range we continually get a taste of volatility. Days like today when the market looks like it’s going to give up 2%, feel like there’s nowhere to go.
There’s always a bull market somewhere. Even during the worst times in the market there are investment opportunities if you know just where to look. Weekly I’ve been giving you some of the best breakout stock ideas. Sometimes you have to dig much further to find these ideas. Markets don’t always cooperate.
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As we continue to side wind through the trading range we’ve been stuck in, there are still stocks that are butting up against 52-week highs. I try to find which of these stocks also are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks, but I don’t stop there. I’m also looking for Momentum Style Scores of “A” or “B.” By sticking to the same formula that’s been finding us winners week in and week out it gives us the best chance of success in the future.
Below are five great stocks that are breaking out to new highs even as the market stalls.
Alaska Air (ALK)
Alaska Airlines, Inc., an Alaska corporation founded in 1932, is noted for its award-winning customer service. Alaska through its mainline jet service provides scheduled air service for over 16 million passengers annually. In addition to its service to destinations in Alaska and the West Coast, the airline flies to several cities in the Midwest, Texas and the East Coast, as well as the four major Hawaiian Islands. Alaska also provides service to British Columbia in Canada, and to nine destinations in Mexico. Its hubs are Anchorage, Seattle, Portland, and Los Angeles.
Shares of ALK rebounded nicely off the lows of August but have been butting up against resistance here at $82. Good news is there’s been a firm layer of support corresponding with the July high near $77.50. The real volume sits at $75 though. Either gives you a good risk/reward scenario here.
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Avolon Holidngs (AVOL)
Avolon is a leading, global aircraft leasing firm. Established in 2010, Avolon provides aircraft leasing and lease management services to airlines and aircraft investors worldwide. Avolon is led by an experienced and respected team with a proven track record in their industry through a number of industry cycles. Their objective is to build the leading aircraft leasing platform in the industry providing superior service to customers. Their growth and global platform is underpinned by a clear set of corporate values, which are the basis for how we run our business.
Avolon shares are parked just north of strong support at $30. More volume has gone out at $30 than every other price level combined over the last year. The spike up in early August to a fresh 52-week high at $32 is the obvious short term price target. Volume has jumped a few times over the last two months and on average it looks like it’s becoming much healthier.
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Beneficial Bancorp (BNCL)
Beneficial Bank is a Pennsylvania chartered savings bank that operates from 58 locations in the greater Philadelphia Region, including South Jersey. Beneficial Bank offers a variety of deposit and loan products to individuals and small businesses, most of which are located in their primary market, which consists of Chester, Delaware, Montgomery, Philadelphia and Bucks Counties, Pennsylvania and Burlington, Camden and Gloucester Counties, New Jersey.
The big move for BNCL came in the jump from February to mid-June. Since then it’s been very choppy, but recent price action is very encouraging. We’re above the 21-day and 50-day moving averages here, which are both positively sloped. The faster moving 21-day appears to be setting up for a bullish crossover here in the near term. Staunch support sits down at $12.
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Foot Locker (FL)
Foot Locker, Inc. operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and SIX:02, as well as Runners Point, and Sidestep. As of January 31, 2015, it operated 3,423 primarily mall-based stores in the United States, Canada, Europe, Australia, and New Zealand.
As with many stocks I’ve been following, FL shares are butting up against some fierce resistance here just above $74. Volume has been steady throughout the year with a few spikes around obvious events of interest such as earnings. The 21-day sits two bucks off the current share price and remains positively sloped. Looks like a lot of volume provides support down at $70. The commodity channel index is a little overbought but that shouldn’t be too much of a concern.
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Flower Foods (FLO)
Flowers Foods, headquartered in Thomasville, Ga., since its first bakery was opened by the Flowers family in 1919, is today one of the largest producers of packaged bakery foods in the United States. The company operates more than 40 highly efficient bakeries that produce a wide range of bakery food for retail and foodservice customers in the U.S.
Probably the strongest chart of the five stocks we have here. Flower Foods has actually leapfrogged its August highs, something that’s becoming increasingly rare in this market. A bullish moving average cross ahead of the August selloff provided the technical catalyst for this move higher. As the market probes higher to a new fair value range this stock is very attractive right here with support below the breakout at $24.
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Bottom Line
Even in choppy markets there’s an opportunity to buy into strength. Sometimes, that’s the only way to make money in a market like this. Hopefully the same strategy we’ve been using to find breakout stocks to make a few bucks on woks this week as well.
Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at Zacks.com. David Bartosiak is the Momentum Stock Strategist with Zacks and editor of the Momentum Trader
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FLOWERS FOODS (FLO): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis Report
BENEFICIAL BCP (BNCL): Free Stock Analysis Report
AVOLON HOLDINGS (AVOL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
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