For Immediate Release
Chicago, IL – April 23, 2020 – Stocks in this week’s article are Nautilus, Inc. NLS, SpartanNash Company SPTN, The Hain Celestial Group, Inc. HAIN, DHT Holdings, Inc. DHT, Sportsman's Warehouse Holdings, Inc. SPWH and Sprouts Farmers Market, Inc. SFM.
Tide Over Coronavirus Mayhem with Relative Price Strength
The fast-spreading novel coronavirus has triggered an unprecedented sell-off in equities and bonds. Stocks are being clobbered, major indices are crashing regularly, while in a bizarre turn of events U.S. oil futures recently hit negative territory. Global efforts to combat the pandemic and policy initiatives to rev up economic activity have only had limited impact so far.
Amid all the coronavirus-induced lockdown, panic and isolation, there are still certain stocks built to survive the crisis. One of the ways such potential plays could be identified is to look for signs of relative price strength.
The Relative Price Strength Strategy
Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential in determining whether a stock’s price performance is better than its peers or the industry average.
If a stock’s performance is lacking that of the broader groups despite impressive earnings growth or valuation multiples, then something must be wrong.
It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industries or benchmarks. This is because betting on a winner always proves to be lucrative.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.
Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/883388/tide-over-the-coronavirus-mayhem-with-relative-price-strength
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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
DHT Holdings, Inc. (DHT) : Free Stock Analysis Report
Nautilus Group, Inc. (The) (NLS) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
SpartanNash Company (SPTN) : Free Stock Analysis Report
Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report
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