Zacks.com featured highlights PlayAGS, TETRA, Perdoceo Education, Erie Indemnity and New Oriental Education
For Immediate Release
Chicago, IL – August 9, 2023 – Stocks in this week’s article are PlayAGS Inc. AGS, TETRA Technologies Inc. TTI, Perdoceo Education Corp. PRDO, Erie Indemnity Co. ERIE and New Oriental Education & Technology Group Inc. EDU.
5 Stocks with Recent Price Strength to Maximize Your Returns
Wall Street closed July on an impressive note. The broad-market benchmark — the S&P 500 Index — recorded its fifth consecutive positive month for the first time since its seven-month streak ending August 2021. The tech-laden Nasdaq Composite posted its fifth straight winning month for the first time since April 2021. The blue-chip Dow also experienced significant growth buoyed by solid second-quarter earnings results of cyclical sector stocks.
The Bureau of Economic Analysis reported that U.S. GDP grew 2.4% in second-quarter 2023 after rising 2% in the first-quarter. In the fourth quarter of 2022, the U.S. GDP increased 2.6%. The second-quarter GDP growth rate eliminates the concerns of a large section of economists and financial researchers that the economy may fall into a recession in the near future.
The inflation rate is dwindling steadily since June 2022. Consequently, the Fed is approaching the end of its ongoing interest rate hike cycle. The central bank is now more confident about the soft landing of the economy.
The Fed raised the benchmark interest rate sharply by 5.25% from March 2022 to July 2023. Despite adopting extreme monetary hardness, the fundamentals of the U.S. economy remain rock solid.
The Fed may hike the interest rate one more time by 25-basis point. The combined effect of the July rate hike and one more (if at all) is likely to bring down inflation sharply, which will be visible through the economic data for the next several months.
Moreover, second-quarter 2023 earnings are stable and resilient so far. The earnings picture is not great, but it is not miserable either. Most of the companies that have reported so far, have given upbeat guidance.
As a result, several stocks have shown price strength. We have selected five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — PlayAGS Inc., TETRA Technologies Inc., Perdoceo Education Corp., Erie Indemnity Co. and New Oriental Education & Technology Group 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..
Let’s discuss five out of these 10 stocks:
PlayAGS is a designer and supplier of electronic gaming machines and other products and services for the gaming industry. AGS’ product line-up includes Class III EGMs for commercial and Native American casinos, video bingo machines for select international markets, table game products and interactive social casino products.
The stock price of PlayAGS has soared 46.7% in the past four weeks. AGS has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last seven days.
TETRA Technologies is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, production well testing, offshore rig cooling, compression services and equipment, and selected offshore services including well plugging and abandonment, decommissioning, and diving. TTI comprises three divisions — Fluids, Well Abandonment/Decommissioning and Testing & Services.
The stock price of TETRA Technologies has jumped 45.9% in the past four weeks. TTI has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 30.4% over the last seven days.
Perdoceo Education provides educational services. PRDO offers bachelor's, associate and non-degree programs in information technologies, visual communication and design technologies, business studies and culinary arts.
The stock price of Perdoceo Education has climbed 36.8% in the past four weeks. PRDO has an expected earnings growth rate of 15.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the last seven days.
Erie Indemnity operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. ERIE provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange.
The stock price of Erie Indemnity has surged 33.9% in the past four weeks. ERIE has an expected earnings growth rate of 32.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 30 days.
New Oriental Education provides private educational services under the New Oriental brand in the People's Republic of China. EDU operates through Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Others segments.
The stock price of New Oriental Education has advanced 32.9% in the past four weeks. EDU has an expected earnings growth rate of 54.3% for the current year (ending May 2024). The Zacks Consensus Estimate for current-year earnings has improved 23.3% over the last 30 days.
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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/2133520/5-stocks-with-recent-price-strength-to-maximize-your-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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Erie Indemnity Company (ERIE) : Free Stock Analysis Report
Tetra Technologies, Inc. (TTI) : Free Stock Analysis Report
New Oriental Education & Technology Group, Inc. (EDU) : Free Stock Analysis Report
PlayAGS, Inc. (AGS) : Free Stock Analysis Report
Perdoceo Education Corporation (PRDO) : Free Stock Analysis Report
