Zacks.com featured highlights include Pearson, A10 Networks, Carlyle Secured Lending and Shore Bancshares
For Immediate Release
Chicago, IL – November 21, 2022 – Stocks in this week’s article are Pearson PSO, A10 Networks ATEN, Carlyle Secured Lending CGBD and Shore Bancshares SHBI.
Top Breakout Stocks to Buy for Attractive Returns
Active investors search for stocks whose prices are fluctuating within a specific band, or in other words they pick breakout stocks. It's prudent to offload the stock if it falls below the lower bound of this band. Similarly, once the stock breaks above this channel, it has all the chance of delivering strong gains.
Zeroing-In on Breakout Stocks
In order to select the right breakout stock, one has to 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, which it trades within, over 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. At the resistance level, most traders are willing to go long on the stock, meaning they would like to add them to their portfolio. The key to identifying breakout stocks is to zero in on those on the verge of a breakout or those that have just broken above the resistance level.
Has a Breakout Really 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.
Here are the top four stocks:
Pearson is a global media conglomerate. Pearson currently carries a Zacks Rank #2. PSO has an expected earnings growth rate of 18.8% for the current year.
A10 Networks provides software-based application networking solutions. A10 Networks currently carries a Zacks Rank #2. ATEN has an expected earnings growth rate of 9.5% for the current year.
Carlyle Secured Lending is a business development company. Carlyle Secured Lending currently sports a Zacks Rank #1. CGBD has an expected earnings growth rate of 22.9% for the current year.
Shore Bancshares is a bank holding company. Shore Bancshares currently carries a Zacks Rank #1. SHBI has an expected earnings growth rate of 40.2% for the current year.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2019727/4-top-breakout-stocks-to-buy-for-attractive-returns
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.
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Pearson, PLC (PSO) : Free Stock Analysis Report
Shore Bancshares Inc (SHBI) : Free Stock Analysis Report
A10 Networks, Inc. (ATEN) : Free Stock Analysis Report
Carlyle Secured Lending, Inc. (CGBD) : Free Stock Analysis Report
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