US Stocks to buy today(10/09/2020) and hold for a week for a swing trading - Stockxpo - Grow more with Investors, Traders, Analyst and Research

US Stocks to buy today(10/09/2020) and hold for a week for a swing trading

Hey All Swing Traders out there!!! Happy Friday!

At StockXpo, we are starting the new article series from today to post our recommendation on swing trading. If you follow us along in this weekly series, we will keep posting our stock picks – which we select following the same strategy based on our own proprietary criteria. We have tested it well with more than two decades of data backed backtesting and it’s giving really surprising results. As it’s always recommended, the rules are the same. Either in bull market or in bear market, you want to make sure you stay consistent and keep trading every week following this strategy. We will post the backtesting results soon in few weeks so stay tuned and subscribe to our newsletter to get notified first about the same.

As mentioned earlier, we are going to recommend this to swing traders as our picks change on every Friday and we strictly recommend to rebalance your portfolio every Friday in order to get as close results as our back testing results. We will also provide more ways to systematically trade using the following strategy.

Day trading might sound like a fun way to make a living, but it’s a hard game for new traders to break into. Not only do day traders need high-tech stock scanners to locate stocks with potential, but the Financial Industry Regulatory Authority (FINRA) has strict rules in place limiting who can day trade. For people, who can’t do day-trading, swing trading would be a good option.

Unless you have an account balance of $25,000, you’ll be limited to 3 day trades in a rolling 5-day period. That means if you complete 3 day trades on Monday and open a new position on Tuesday, you’ll need to hold that position overnight to avoid getting flagged with a pattern day trader (PDT) violation. But most brokers won’t even let a 4th day trade execute — and you could be stuck holding the bag.

To avoid these FINRA restrictions, many investors use swing trading. Swing trading is still a short-term trading strategy but stocks are held overnight to avoid the PDT rules. Swing traders hold stocks for 24 hours to 2 days hoping to profit off high volume swings like short squeezes or earnings beats (misses).

Features to Look for in Swing Trade Stocks

When searching for swing trading stocks, don’t look at debt levels or price-earnings ratios. Those stats might matter for a company’s long-term prospects, but swing traders care about where a stock will be a couple of days, not a couple of years or decades.

Here’s what to look for if you want to get into swing trading.

  1. Catalyst: Most swing trades begin by locating a catalyst that could trigger a powerful move in a stock. This could be a clinical trial in a pharmaceutical company, an unexpected earnings miss or beat, or even the removal of an executive or CEO.
  2. Volume: Big moves in short time frames are impossible without significant   volume in the stock. Sure, lightly-traded stocks can be coerced into big moves    without much volume. But in the majority of your swing trades look for stocks with more volume than usual.
  3. Volatility: With great volume comes great volatility. Volatile stocks are good swing trading stocks because swing traders profit from large, short-term moves. A stock trading in a tight weekly range likely won’t produce a ton of opportunities for profit. But if 5% moves are occurring daily, you’ll find plenty of chances for swing trades.

StockXpo’s SkyRocket Strategy – VSTO, OMI, LMB 

Here we try to find the stocks which have a strong fundamental track record and have strong buy or buy ratings from other analyst firms. For this week, here are our picks. 

Vista Outdoor Inc ($VSTO) – Vista Outdoor is the manufacturer of ammunition and outdoor sporting goods. The company carries a fiscal 2021 earnings suggesting year-over-year growth of 750%.

Owens & Minor Inc ($OMI) – The company saw its shares rise more than 8% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company—as the stock is now up 46.5% in the past one-month time frame.

Limbach Holdings Inc ($LMB) – which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It’s also important to note that Style Scores work as a complement to our stock rating system.

StockXpo’s – ValueGrowth Strategy – BIG, BZH, AIR

We use some similar criteria or strategy here as a well known Warren Buffet’s Value strategy. Although, we do have some customization added on top of it and we focus on fundamentally strong companies and with Strong buy or buy ratings by other financial firms and analysts. Here is our pick for this week – BIG, BZH and AIR. 

Big Lots Inc ($BIG) BIG has a PEG ratio of 1.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. BIG’s industry has an average PEG of 2.75 right now. Within the past year, BIG’s PEG has been as high as 3.78 and as low as 0.50, with a median of 1.02.

Beazer Homes USA Inc ($BZH) – It is a homebuilder company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

AAR Corp ($AIR) – The company carried by Ranking Presently, by multiple finance analysis provides various products. The consensus measure of EPS estimates from the sell-side analysts covering the stock — for the current and following years.

StockXpo’s TechFund Strategy – LMB, ACM, CASH, VSTO, SPNE, AAWW, PEIX

The name could be little confusing or misleading here, but when we say TechFund, we don’t mean we just focus on Technology companies or related to any particular Investment or Mutual fund here. We meant Technical and Fundamentally strong companies here. That’s what we focus on to pick companies here to trade for weekly based swing trade recommendations. 

Here are our stock picks for this week for that – LMB, ACM, CASH, VSTO, SPNE, AAWW, PEIX.

Limbach Holdings Inc ($LMB) – The main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It’s also important to note that Style Scores work as a complement to our stock rating system that has an impressive track record of outperformance. 

Meta Financial Group Inc ($CASH) – It’s an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

The sole determinant of a company’s changing earnings picture. the consensus of EPS estimates from the sell-side analysts covering the stock — for the current and following years is tracked by the system.

Vista Outdoor Inc ($VSTO) – It is a big mover last session, as the company saw its shares rise nearly 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This stock, which remained volatile and traded within the range of $18.05–$21.85 in the past one-month time frame, witnessed a sharp increase yesterday.

SeaSpine Holdings Corp ($SPNE) – It came out with a quarterly loss of $0.50 per share versus the Zacks Consensus Estimate of a loss of $0.70. This compares to a loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items.

Atlas Air Worldwide Holdings Inc ($AAWW) – It is a stock many investors are watching right now. . The stock is trading with a P/E ratio of 8.64 right now. For comparison, its industry sports an average P/E of 16.08.

Pacific Ethanol Inc ($PEIX) – It delivered a year-over-year decline in earnings on lower revenues when it reported results for the quarter ended June 2020. This widely-known consensus outlook is important in assessing the company’s earnings picture.

Leave a Reply

Your email address will not be published.

scroll to top