Air Transport Services (ATSG) is on the move, here’s why the trend could be sustainable

MMost of us have heard the saying “the trend is your friend”. And this is undeniably the key to success when it comes to investing or trading in the short term. But it is not easy to ensure the sustainability of a trend and to profit from it.

The trend often reverses before exiting the trade, resulting in a short-term capital loss for investors. Thus, for a profitable trade, one must confirm factors such as strong fundamentals, positive revisions in earnings estimates, etc. which could maintain the momentum of the title.

Our “Recent Price Strength” screen, which is created on a unique short-term trading strategy, could be very helpful in this regard. This predefined screen makes it easy to preselect stocks that have enough fundamental strength to maintain their recent uptrend. Additionally, the screen only passes stocks that are trading at the upper end of their 52-week high-low range, which is usually a bullish trend indicator.

Air transport services (ATSG) is one of many suitable candidates who have come across the screen. Here are the main reasons why it could be a profitable bet for “trendy” investors.

A solid price increase over a 12-week period reflects investors’ continued willingness to pay more for a stock’s potential upside. The ATSG is quite well suited in this regard, gaining 25.1% over this period.

However, just looking at price action for about three months is not enough, as it does not reflect any trend reversals that may have occurred in a shorter time frame. It is important for a potential winner to maintain the price trend. A price increase of 2.9% over the past four weeks ensures that the trend is still in place for the title of this air cargo company.

Additionally, the ATSG is currently trading at 87% of its 52-week high-low range, hinting that it may be on the verge of a breakout.

In terms of fundamentals, the stock currently carries a Zacks Rank #2 (Buy), meaning it’s in the top 20% of over 4,000 stocks we rank based on revision trends. earnings estimates and EPS surprises – the key factors that affect a stock’s short-term price movements.

The Zacks Rank stock rating system, which uses four factors tied 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 track record. externally audited record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the fundamental strength of the company is its average broker recommendation of #1 (Strong Buy). This indicates that the trading community is very optimistic about the short-term price performance of the stock.

Thus, the price trend in ATSG might not reverse any time soon.

In addition to the ATSG, there are several other stocks that are currently passing through our “Recent Price Strength” screen. You can consider investing there and start looking for the newest stocks that meet these criteria.

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Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

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Air Transport Services Group, Inc (ATSG): Free Inventory Analysis Report

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

About Dwight E. McCray

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