As the stock market experiences a wave of selling, some buyers have finally stepped up on Monday. Wall Street is currently waiting for the official rate decision from the Fed on Wednesday, which will be accompanied by comments from Jay Powell, the Fed chairman. However, it is widely believed that the Fed will pause and adopt a “wait-and-see mode.” The market will closely watch Powell’s remarks for any signs of a doveish stance.
While many investors have been selling stocks and parking their money in higher interest rates, it is important for long-term investors to stay exposed to the stock market. Timing the bottom or top of the market is extremely difficult, and the S&P 500 is still up over 9% year-to-date. There are also several stocks outperforming the market and showing solid fundamentals, including improving earnings outlooks.
Filtered Zacks Rank 5 Stock Screen
The Filtered Zacks Rank 5 Stock Screen is a valuable tool for investors looking to find potential winning stocks for November. Zacks Rank #1 (Strong Buy) stocks consistently outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time, so applying filters is important to narrow down the list to a more manageable and tradable set of stocks.
Parameters for the Filtered Zacks Rank 5 Stock Screen
- Zacks Rank equal to 1: Starting with a Zacks Rank #1 is a strong starting point, as it has historically delivered an average annual return of around 24.4% since 1988.
- % Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.
- % Broker Rating Change over 4 Week equal to Top #5: Top 5 stocks with the best average broker rating changes over the last four weeks.
This strategy, called bt_sow_filtered zacks rank 5, is available in the Research Wizard.
Mr. Cooper Group (COOP)
One of the stocks that qualified for the Filtered Zacks Rank 5 strategy is Mr. Cooper Group. Mr. Cooper Group is one of the largest home loan servicers and mortgage providers in the U.S. The company operates under two brands, Mr. Cooper and Xome. Mr. Cooper focuses on home loan servicing, while Xome provides solutions for homebuyers, home sellers, real estate agents, and mortgage companies.
Despite rising mortgage rates, Mr. Cooper Group’s revenue has soared during the Covid housing boom. The company crushed Q3 earnings estimates and expects strong growth going forward. Its Zacks Rank #1 (Strong Buy) is supported by improved EPS estimates, and it is projected to post significant earnings growth this year and the next. The stock has outperformed the market, even though it currently trades at a discount compared to the Finance sector.
Investors looking for top-ranked stocks to buy for November and beyond can utilize the Filtered Zacks Rank 5 Stock Screen. This screen helps narrow down the list of Zacks Rank #1 stocks to those with positive current quarter estimate revisions and the best average broker rating changes. Mr. Cooper Group is one of the stocks that meet these criteria and has performed well, despite the challenges posed by rising mortgage rates.
To find out more about the Filtered Zacks Rank 5 Stock Screen and discover other potential winning stocks, sign up for a free trial to the Research Wizard. Start screening for these companies today and stay on top of the market.