Current price history in Arcosa (ACA) is your friend, here’s why – August 9, 2022

While “the trend is your friend” when it comes to short-term investing or trading, the timing of entering the trend is a critical success factor. And to increase the odds of success by making sure that sustaining a trend isn’t easy.

Often, the direction of a stock’s price action reverses quickly after taking a position, causing investors to experience a short-term loss of capital. Therefore, it’s important to ensure that there are enough factors — like solid fundamentals, positive earnings estimate revisions, etc. — that could sustain the stock’s momentum.

Our Recent Price Strength screen, based on a unique short-term trading strategy, could be quite useful in this regard. This predefined screen makes it really easy to shortlist stocks that have enough fundamental strength to sustain their recent uptrend. Also, the screen only passes stocks trading in the upper part of their 52-week high-low range, which is usually an indicator of bullishness.

Arcosa (ACA Free Report) is one of several eligible candidates that have passed the screen. Here are the top reasons why it could be a profitable bet for “trending” investors.

Solid price gains over a 12-week period reflect investors’ continued willingness to pay more for a stock’s potential upside potential. ACA fits in pretty well in this regard, gaining 19.2% over the period.

However, it is not enough to look at the price change for about three months as it does not reflect a trend reversal that may have occurred in a shorter time frame. Maintaining the price trend is important for a potential winner. A price increase of 37.2% in the past four weeks ensures that the share of the provider of products and services related to infrastructure remains in trend.

Additionally, ACA is currently trading at 93.1% of its 52-week high-low range, suggesting it could be on the verge of a breakout.

Looking at fundamentals, the stock currently has a Zacks rank of #1 (Strong Buy), meaning it is in the top 5% of more than 4,000 stocks we have covered based on trends in earnings estimate revisions and EPS Surprises classify key factors influencing a stock’s short-term price movements.

The Zacks Rank stock rating system, which uses four factors related to earnings estimates to categorize stocks into five groups ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive, externally verified track record , featuring Zacks Rank #1 stocks generating a compound annual return of +25% since 1988. You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor confirming the company’s fundamental strength is its average broker rating of #1 (strong buy). This suggests that the brokerage community is very bullish on the stock’s near-term price action.

Therefore, the price trend at ACA may not reverse any time soon.

In addition to ACA, there are several other stocks currently looping through our Current Price Strength screen. You can consider investing in them and look for the latest stocks that meet these criteria.

This isn’t the only screen that could help you find your next winning stock pick. Based on your personal investing style, you can choose from over 45 Zacks Premium Screens strategically created to beat the market.

However, remember that the key to a successful stock picking strategy is making sure it has a history of producing profitable results. It’s easy to do with the Zacks Research Wizard. The program not only allows you to test the effectiveness of your strategy, but also contains some of our most successful stock picking strategies.

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