Zacks.com featured highlights BRF, Archrock and Nomura
For Immediate Release
Chicago, IL – February 20, 2024 – Stocks in this week’s article are BRF BRFS, Archrock AROC and Nomura NMR.
3 Top Breakout Stocks to Invest In for Handsome Returns
Active investors must pick breakout stocks for excellent returns. This method involves zeroing in on stocks whose prices vary within a narrow band.
If the stock price falls below this channel, it could be the best time to sell it off. However, the best time to buy a stock per this strategy is when it is about to break above this trading band. Such stocks offer the prospect of impressive gains.
To that end, BRF, Archrock and Nomura have been selected as the breakout stocks for today.
Zeroing in on Breakout Stocks
To select the right breakout stock, one must first calculate its support and resistance level. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price it trades within a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. Most traders are willing to go long on the stock at the resistance level, meaning they would like to add them to their portfolio. The key to identifying breakout stocks is to zero in on the verge of a breakout or those that have just broken above the resistance level.
Has a Genuine Breakout Occurred?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is genuine is another matter altogether.
For a bona fide breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends. The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price that may not seem attractive at first glance.
These criteria narrow down the universe of more than 6,853 stocks to only 19. Here are the top three stocks:
BRF is a Brazil-based food company focused on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products. Currently, BRF carries a Zacks Rank #2. BRF has an expected earnings growth rate of 67.9% for the current year.
Archrock is a provider of natural gas contract compression services. Archrock currently carries a Zacks Rank #2. AROC has an expected earnings growth rate of 139.3% for the current year.
Nomura is a leading financial services group in Japan. Nomura currently carries a Zacks Rank #2. NMR has an expected earnings growth rate of 50% for the current year.
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Nomura Holdings Inc ADR (NMR) : Free Stock Analysis Report
BRF S.A. (BRFS) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
