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Zacks.com featured highlights include ATI, Super Micro Computer, CONSOL Energy, Alliance Resource Partners and Digi International

For Immediate Release

Chicago, IL – August 31, 2022 – Stocks in this week’s article are ATI Inc. ATI, Super Micro Computer Inc. SMCI, CONSOL Energy Inc. CEIX, Alliance Resource Partners, L.P. ARLP and Digi International Inc. DGII.

5 Stocks with Recent Price Strength Amid a Volatile Market

The second half of August has seen volatility reappearing, following a stern message from Fed Chairman Jerome Powell at the annual Jackson Hole Symposium. U.S. stock markets saw an impressive bull run from mid-June to mid-August after the highly disappointing five months from mid-January to mid-June.

Powell reiterated that the central bank would pursue aggressive interest rate hikes and tighter monetary control policies until inflation comes down to at least near its 2% target level. Market participants are expecting more softness in consumer spending and a decline in business spending due to margin squeeze that would result in a recession in the U.S. economy. The Fed Chairman has also warned of some toughness going forward.

We are just two trading sessions away from entering September, which is historically the worst-performing month on Wall Street. Therefore, U.S. stock markets may remain volatile in the near term.

Despite headwinds, a handful of stocks have shown price strength.  These stocks are likely to gain in the near term buoyed by a favorable Zacks Rank. Five of them are — ATI Inc., Super Micro Computer Inc., CONSOL Energy Inc., Alliance Resource Partners, L.P. and Digi International Inc..

Here's How We Arrived at the Picks

We have primarily targeted stocks that have freshly been on a bull run. Stocks seeing price strength recently have a high chance of carrying the momentum forward.

If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.

However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.

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

Just these few criteria narrowed down the search from over 7,700 stocks to 13.

Let's discuss five out of these 13 stocks:
ATI is a diversified specialty materials producer. ATI is likely to benefit from strength in the high-performance Materials & Components segment and demand growth in the Forgings business.  Higher selling prices and increased market demand are also driving results in the Advanced Alloys & Solutions unit.

ATI is also focused on improving the cost structure.  The company has efficiently managed capital expenditure, by adjusting its capital spending to meet the new demand levels.  ATI is in the process of finishing several self-funded capital projects.

The stock price of ATI has jumped 28.1% in the past four weeks. ATI has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 22.3% over the last 30 days.

Super Micro Computer designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. SMCI's solutions include a range of rack mount and blade server systems, as well as components. Super Micro Computer emphasizes superior product design and uncompromising quality control to produce industry-leading server-boards, chassis and server systems.

The stock price of SMCI has climbed 25.4% in the past four weeks. Super Micro Computer has an expected earnings growth rate of 32.7% for the current year (ending June 2023). The Zacks Consensus Estimate for current-year earnings has improved 30.4% over the last 30 days.

CONSOL Energy produces and exports bituminous coal in the United States. CEIX operates through the PAMC, CONSOL Marine Terminal, and Other segments. CONSOL Energy engages in the mining, preparation, and marketing of bituminous coal to power generators, industrial end-users, and metallurgical end-users, provision of coal export terminal services, and development of the Itmann Mine and the Greenfield reserves.

The stock price of CONSOL Energy has rallied 24.4% in the past four weeks. CEIX has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 71.8% over the last 30 days.

Alliance Resource is a diversified producer and marketer of coal to major U.S. utilities and industrial users. ARLP currently operate mining complexes in Illinois, Indiana, Kentucky and Maryland. Some of its mining complexes are underground and one has both surface and underground mines.

Alliance Resource produces a diverse range of steam coals with varying sulfur and heat contents, which enable them to satisfy the broad range of specifications demanded by their customers.  
The stock price of ARLP has appreciated 14.7% in the past four weeks.

Alliance Resource has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 29.1% over the last 30 days.

Digi International is a leading global provider of business and mission-critical Internet of Things products and services. DGII help their customers to create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance.

The stock price of DGII has advanced 12.9% in the past four weeks. Digi International has an expected earnings growth rate of more than 100% for the current year (ending September 2022). The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 30 days.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

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.

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

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1973854/5-stocks-with-recent-price-strength-amid-a-volatile-market

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

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ATI Inc. (ATI) : Free Stock Analysis Report
Digi International Inc. (DGII) : Free Stock Analysis Report
Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Consol Energy Inc. (CEIX) : Free Stock Analysis Report
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