Zacks.com featured highlights Universal Stainless & Alloy, Lakeland, NGL Energy and Iovance
For Immediate Release
Chicago, IL – January 15, 2024 – Stocks in this week’s article are Universal Stainless & Alloy Products USAP, Lakeland Industries LAKE, NGL Energy Partners NGL and Iovance Biotherapeutics IOVA.
4 Best Breakout Stocks to Buy for Stellar Returns
Active investors should pick breakout stocks to get superlative 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 perfect 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, Universal Stainless & Alloy Products, Lakeland Industries, NGL Energy Partners and Iovance Biotherapeutics have been selected as the breakout stocks for today.
Zeroing in on Breakout Stocks
To select the right breakout stock, one has first to 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. At the resistance level, most traders are willing to go long on the stock, meaning they would like to add it 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 the universe of more than 6,853 stocks to only 11. Here are the top four stocks:
Universal Stainless & Alloy Products is a mini-mill that manufactures and markets semi-finished specialty steels. Universal Stainless & Alloy Products currently carries a Zacks Rank #1. USAP has an expected earnings growth rate of 170.3% for the current year.
Lakeland Industries manufactures and sells industrial protective clothing and accessories. Lakeland Industries currently carries a Zacks Rank #1. LAKE has an expected earnings growth rate of 128% for the current year.
NGL Energy Partners is a limited partnership, operating a vertically integrated propane business. NGL Energy Partners currently carries a Zacks Rank #1. NGL has an expected earnings growth rate of 155.7% for the current year.
Iovance Biotherapeutics is a commercial-stage pharmaceutical company. Iovance Biotherapeutics currently carries a Zacks Rank #2. IOVA has an expected earnings growth rate of 24.5% for the current year.
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NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Universal Stainless & Alloy Products, Inc. (USAP) : Free Stock Analysis Report
Lakeland Industries, Inc. (LAKE) : Free Stock Analysis Report
Iovance Biotherapeutics, Inc. (IOVA) : Free Stock Analysis Report
