Zacks.com featured highlights Vista Energy, Ardmore Shipping, International Seaways, Digi International and Dycom
For Immediate Release
Chicago, IL – October 21, 2022 – Stocks in this week’s article are Vista Energy S.A.B. de C.V. VIST, Ardmore Shipping Corp. ASC, International Seaways Inc. INSW, Digi International Inc. DGII and Dycom Industries Inc. DY.
5 Stocks with Recent Price Strength in a Volatile Market
Volatility is lingering on Wall Street after a highly disappointing September. Extreme fluctuations in stock price almost regularly have been the scenario so far this year. The S&P 500 Index posted the third straight quarter of losses, for the first time since 2009.
The consumer price index (CPI) for the month of September came in hotter than expected. Year over year, the headline CPI increased 8.2% in September compared with 8.3% in August. Year over year, core CPI (excluding volatile food and energy items) increased 6.6% in September compared with 6.5% in August.
Moreover, the labor market remained very tight as nonfarm payrolls came in better-than-expected in September. The unemployment rate dropped to 3.5% in September compared with 3.7% in the previous month.
The Fed has raised the benchmark lending rate by 3% year to date. Since the central bank has given a clear indication of the continuation of a rigorous interest rate hike and tighter monetary control, a global financial crisis looms larger.
On Oct 19, the yield on the benchmark 10-Year US Treasury Note jumped to 4.151%, its highest since Jul 23, 2008. Market participants are pricing the cost of an imminent recession in stock valuation.
Despite headwinds, a handful of 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 — Vista Energy S.A.B. de C.V., Ardmore Shipping Corp., International Seaways Inc., Digi International Inc. and Dycom Industries 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 six stocks:
Vista Energy is engaged in the exploration and production of oil and gas in Latin America. VIST focuses on the identification, acquisition and development of oil and gas fields primarily in Mexico, Argentina, Brazil and Colombia.
The stock price of Vista Energy has jumped 22.5% in the past four weeks. VIST has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 30.8% over the last 30 days.
Ardmore Shipping is engaged in the ownership and operation of product and chemical tankers. ASC provides shipping services to customers through voyage charters, commercial pools, and time charters.
Ardmore Shipping provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
The stock price of ASC has climbed 15.9% in the past four weeks. Ardmore Shipping has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the last 30 days.
International Seaways is a tanker company. INSW provides energy transportation services for crude oil and petroleum products. International Seaways owns and operates a fleet including ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers.
The stock price of International Seaways has surged 11% in the past four weeks. INSW has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 5% over the last 7 days.
Digi International is a leading global provider of business and mission-critical Internet of Things products and services. DGII helps its customers to create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance.
The stock price of DGII has advanced 6.8% in the past four weeks. Digi International has an expected earnings growth rate of 16.8% for the current year (ending September 2023). The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the last 60 days.
Dycom Industries provides specialty contracting services in the United States. DY offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.
The stock price of DY has risen 3.7% in the past four weeks. Dycom Industries has an expected earnings growth rate of more than 100% for the current year (ending January 2023). The Zacks Consensus Estimate for current-year earnings improved 12.2% over the last 60 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/1994657/5-stocks-with-recent-price-strength-in-a-volatile-market
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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Digi International Inc. (DGII) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
International Seaways Inc. (INSW) : Free Stock Analysis Report
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) : Free Stock Analysis Report
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