HomeMost PopularInvestingDiscovering High-Ranked Momentum Stocks for September

Discovering High-Ranked Momentum Stocks for September

Actionable Trade Ideas

always free

Stocks on Wall Street experienced some calm trading last week and carried that trend into the beginning of this week. The market is evaluating recent economic data from the U.S. and the potential impact of China’s economic slowdown.

Many experts anticipate a soft landing for the U.S. economy, with Goldman Sachs reducing the chances of a recession to 15%. Investors believe that the Federal Reserve’s tightening cycle is nearing its end, which supports the bullish case for U.S. markets. The outlook for S&P 500 earnings growth in 2024 and 2025 further strengthens this case.

The recent pullback in August presented buying opportunities for long-term investors, as demonstrated by the rebound of the S&P 500 and Nasdaq above their 50-day moving averages within two weeks.

Zacks Investment Research
Image Source: Zacks Investment Research

Trying to time the market is not recommended, as the past three and a half years have shown.

The following strategy identifies Zacks Rank #1 (Strong Buy) stocks with strong upward price momentum, making them potentially attractive options for investment in September and beyond.

Screen Basics

This screen, powered by the Research Wizard tool, sifts through Zacks Rank #1 stocks to find those with upward price momentum trading within 20% of their 52-week highs. It also considers the PEG ratio and Price to Sales ratio to ensure value. This screening process narrows down the stock picks to only seven.

Screen Basics:

  • Zacks Rank = #1 (Strong Buy)
  • Current Price/52-week High >= 0.8
  • PEG Ratio: P/E F(1)/EPS Growth <= 1
  • Price/Sales <= 3
  • Percentage Change Price -12 Weeks = Top #7

This strategy is called bt_sow_momentum_method1 and can be found in the SoW (Screen of the Week) folder in the Research Wizard.

One of the seven stocks that passed this week’s screen is Constellation Energy Corporation (CEG).

Constellation is a nuclear energy powerhouse that separated from Exelon in 2022. It is a major producer of clean and renewable energy in the U.S. and plays a crucial role in achieving emissions goals. Constellation exceeded Q2 earnings estimates and raised its guidance, with impressive earnings growth outlook.

Zacks Investment Research
Image Source: Zacks Investment Research

Constellation’s stock has shown significant growth, trading above its moving averages. It is priced at a median forward 12-month earnings and enjoys high ratings from Wall Street analysts.

Sign up for a free trial to the Research Wizard today for more investment opportunities.

For more articles from this author, click the FOLLOW AUTHOR button at the top of this page to receive email notifications.

Disclosure: Officers, directors, and employees of Zacks Investment Research may own or have sold securities mentioned in this material. An affiliated investment advisory firm may also own or have traded options related to these securities.

Disclosure: Performance information for Zacks’ portfolios and strategies is available at: https://www.zacks.com/performance/.

Today’s Stocks from Zacks’ Best Screens

Starting today, get immediate access to the latest stock picks from our top-performing screens. Our screens have consistently outperformed the market since 2000, with impressive results such as Small-Cap Growth +46.4%, Filtered Zacks Rank5 +49.5%, and Big Money Zacks +55.2%. Try Zacks’ Research Wizard stock-picking program for two weeks free. No credit card required.

Try it for 2 weeks free >>

Download 7 Best Stocks for the Next 30 Days for the latest recommendations from Zacks Investment Research.

Constellation Energy Corporation (CEG) Free Stock Analysis Report

Read this article on Zacks.com

Zacks Investment Research

Note: The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.