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Zacks.com featured highlights include Universal Insurance Holdings, Asure Software, MYR Group, AAON and Arista Networks

For Immediate Release

Chicago, IL – March 17, 2023 – Stocks in this week’s article are Universal Insurance Holdings Inc. UVE, Asure Software Inc. ASUR, MYR Group Inc. MYRG, AAON Inc. AAON and Arista Networks Inc. ANET.

5 Stocks with Recent Price Strength Amid Extreme Volatility

Volatility has been showing its ugly face again on Wall Street for the past month. The welcome rally from the beginning of this year to mid-February evaporated last month after a sudden spike in January's inflation rate. Market participants were nervous that the Fed will continue rigorous interest rate hikes for a longer period.

In March, the already-high interest rate started taking its toll on the banking sector. Last week, two major regional banks in the United States, namely, Silicon Valley Bank and Signature Bank collapsed, forcing the government to rescue depositors.

On Mar 15, the global financial markets were rattled by Credit Suisse Group AG (CS). Earlier this week, the bank reported that it had found "certain material weaknesses" in its internal control over financial reporting for 2021 and 2022. The bank also stated that depositors had withdrawn more than $120 billion in fourth-quarter 2022.

As a result, Credit Suisse Group also needs immediate financing. However, the Swiss lender's largest investor, the Saudi National Bank declined to invest more as the bank already holds 10% of Credit Suisse, the maximum limit its regulator can permit. Consequently, shares of Credit Suisse plunged.

Market participants are concerned that the lending business of the banking system will suffer due to a lack of demand owing to the higher interest rate. At the same time, aggregate demand will remain subdued also due to the higher interest rate and sticky inflation. This could dry up liquidity in the economy and lead to a recession.

Despite the headwinds, a few stocks have shown price strength. These stocks are likely to gain in the near term and are backed by a favorable Zacks Rank. Five of them are — Universal Insurance Holdings Inc., Asure Software Inc., MYR Group Inc., AAON Inc. and Arista Networks 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:

Universal Insurance is currently engaged in insurance underwriting, distribution and claims. UVE generates revenue from the collection and investment of premiums. UVE's agency operations generate income from policy fees, commissions, premium financing referral fees and the marketing of ancillary services.

The stock price of Universal Insurance has soared 49.8% in the past four weeks. It has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 10% over the last 30 days.

Asure Software is a provider of Web-based workforce management solutions. ASUR offers Web-based workforce management solutions that enable organizations to manage their office environment, as well as their human resource and payroll processes. ASUR offers its workforce management solutions under two product lines: NetSimplicity and iEmployee.

The stock price of Asure Software has jumped 27.2% in the past four weeks. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 25% over the last 30 days.

MYR Group is a holding company of leading specialty contractors serving the electrical infrastructure market throughout the United States and Canada. MYRGoperates in two segments, Transmission and Distribution, and Commercial and Industrial.

MYRG's comprehensive services on electric transmission and distribution networks and substation facilities include design, engineering, procurement, construction, upgrade, maintenance and repair services.

The stock price of MYR Group has climbed 18.8% in the past four weeks. It has an expected earnings growth rate 10.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the last 30 days.

AAON is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. AAON's products serve the new construction and replacement markets. AAON has gained market share through its semi-custom product lines, which offer customer value, quality, function, serviceability and efficiency.

The stock price of AAON has surged 11.8% in the past four weeks. It has an expected earnings growth rate of 44.1% for the current year. The Zacks Consensus Estimate for next-year earnings has improved 5.1% over the last 30 days.

Arista Networks develops markets and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. ANET benefits from an expanding cloud networking market, driven by strong demand for scalable infrastructure. The company recently joined the Microsoft Intelligent Security Association.

Arista Networks continues to gain from solid momentum and diversification across its top verticals and product lines. It is well-poised for growth in the data-driven cloud networking business, with proactive platforms and predictive operations. ANET introduced an enterprise-grade Software-as-a-Service offering for its flagship CloudVision platform.

The stock price of Arista Networks has advanced 8.7% in the past four weeks. It has an expected earnings growth rate of 26.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the last 30 days.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2066564/5-stocks-with-recent-price-strength-amid-extreme-volatility

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MYR Group, Inc. (MYRG) : Free Stock Analysis Report

Asure Software Inc (ASUR) : Free Stock Analysis Report

AAON, Inc. (AAON) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

UNIVERSAL INSURANCE HOLDINGS INC (UVE) : Free Stock Analysis Report

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