Although “the trend is your friend” when it comes to short-term investing or trading, timing your entry into the trend is key to success. And increasing the chances of success by making sure that the sustainability of a trend is not easy.
Often, the direction of a stock’s price movement reverses quickly after taking a position in it, causing investors to suffer a short-term capital loss. So it is important to ensure that there are enough factors – like solid fundamentals, positive revisions to the earnings forecast, etc. – which can support the stock’s momentum.
Investors looking to profit from stocks that are currently moving may find our Last Price Strength screen quite useful. This predefined screen is useful for spotting stocks that are in an uptrend, supported by the strength of their fundamentals, and are trading at the top of their 52-week range low, which is usually a bullish indicator.
Lakeland Industries (LAKE) is one of several suitable candidates that passed through the screen. Here are the main reasons why this could be a profitable bet for “trend” investors.
A solid 12-week price increase reflects investors’ continued willingness to pay more for the stock’s potential upside. LAKE is quite relevant in this regard, gaining 20.4% during this period.
However, it is not enough to look at the price change over three months or so, as it does not reflect any trend reversal that may have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A 26.8% price increase over the past four weeks ensures that the trend is still in place for the protective clothing maker’s stock.
Additionally, LAKE is currently trading at 83.3% of its 52-week High-Low Range, hinting that it may be on the verge of a breakout.
Looking at the fundamentals, the stock currently has a Zacks Rank #1 (Strong Buy), meaning it is in the top 5% of more than 4,000 stocks we rank based on trends in earnings estimate revisions and EPS surprises—key factors. which affect short-term stock price movements.
The Zacks Rank stock rating system, which uses four factors related to earnings estimates to classify stocks into five groups ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive external audited track record, the Zacks #1 Rank stock has generated an average annual return of +25% since 1988. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>
Another factor that confirms the company’s fundamental strength is its average #1 Broker Recommendation (Strong Buy). This indicates that the brokerage community is very optimistic about the short-term price performance of the stock.
So the price trend in LAKE may not reverse anytime soon.
In addition to LAKE, there are several other stocks currently passing through our “Recent Price Strength” screen. You might consider investing in them and start looking for the latest stocks that meet these criteria.
This isn’t the only screen that can help you find your next winning stock pick. Based on your personal investing style, you can choose from over 45 Zacks Premium Screens that are strategically designed to beat the market.
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Lakeland Industries, Inc. (LAKE) : Free Stock Analysis Report
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