Markets

Zacks Investment Ideas feature highlights: Applied Industrial Technologies, Check Point Software, CSX, LyondellBassell and Skyworks Solutions

A generic image of a line graph
Credit: Shutterstock photo

For Immediate Release

Chicago, IL - January 23, 2017 - Today, Zacks Investment Ideas feature highlights Features: Applied Industrial Technologies ( NYSE: AIT - Free Report) , Check Point Software ( NASDAQ: CHKP - Free Report), CSX Corp ( NASDAQ: CSX - Free Report),LyondellBassell ( NYSE: LYB - Free Report) and Skyworks Solutions ( NASDAQ: SWKS - Free Report)

Price and Earnings Momentum Winners

When the stock market surged to new all-time highs in November, it created a fantastic parade of opportunities with hundreds of stocks displaying their own strong momentum.

But with so many "price strength" ideas to chose from, how do you narrow them down into the good, the bad, and the must-have?

The answer is simple: match that price momentum with the number-one driver of stocks, earnings momentum.

Today I ran a Zacks Premium screen called Price & Earnings Estimate Momentum . This screen focuses on top Zacks Ranked momentum stocks in uptrends at or near their 52-week highs.

These momentum stocks are currently exhibiting both price momentum and earnings estimate revision momentum. And forces of entropy aside, you know what Newton said about a body in motion.

Only 14 names made the list. I'm going to share 5 of them with you.

First, let's go over the screen parameters...

  • Zacks Rank of #1 (Strong Buy) or #2 (Buy)
  • Zacks Momentum Style Score of A or B
  • Price as a % of 52-week High-Low Range >= 90
  • Last Close (price) >= 5
  • Avg. 20-Day Volume >= 100,000

5 Momentum Winners

Here they are with a brief description and recent catalysts...

Applied Industrial Technologies ( NYSE: AIT - Free Report)

AIT is one of North America's leading distributors of bearings, linear technologies, power transmission components, rubber products, specialty maintenance items and electrical/mechanical and fluid power products and systems to the MRO (maintenance and repair operations) and OEM (original equipment manufacturer) markets.

This $2.4 billion company reports earnings on January 26 and became a Zacks #2 Rank after analysts moved up their EPS estimates in the past week. After a 14.75% earnings beat last quarter that launched shares from $50 to $62, maybe they know something we don't.

Check Point Software ( NASDAQ: CHKP - Free Report)

CHKP is a leading provider of policy-based enterprise security and traffic management solutions. Through its patented Stateful Inspection technology, the company delivers Secure Enterprise Connectivity solutions that protect information assets and enhance the performance of enterprise networks.

CheckPoint delivered a 15.6% earnings beat on January 19 and shares surged 7.5% to highs not seen since the DotCom Bubble. The stock is a Zacks #2 Rank now but I expect as the analysts update their EPS models that it will rise into the top tier very soon.

CSX Corp ( NASDAQ: CSX - Free Report)

The $42 billion rail freight giant was a big mover on Jan 19 as the stock vaulted over 23% on the day on 98.5 million shares, 10X the normal volume. The move came following reports that the former Canadian Pacific CEO Hunter Harrison is teaming up with activists to shake up the railroad company.

But the outlook had already brightened considerably before this news as the company witnessed eight positive estimate revisions in the past 30 days, pushing the stock to a Zacks #2 Rank. I would keep this one on your buy list for a pullback in the $38-40 zone.

LyondellBassell ( NYSE: LYB - Free Report)

LyondellBassell Industries is a $36.5 billion manufacturer of chemicals and derivatives for multiple industries including packaging, electronics, automotive components, home furnishings, construction materials and biofuels. It also operates as a refiner of heavy high-sulfur crude oil produce and is engaged in the marketing and selling of polyolefins, polypropylene and polyethylene resins.

The stock became a Zacks #2 Rank after 2017 EPS estimates rose from $9.51 to $9.71. The next quarterly earnings report is February 3 and Wells Fargo recently reiterated their Outperform rating with a valuation range of $98 to $102.

Skyworks Solutions ( NASDAQ: SWKS - Free Report)

Skyworks Solutions is a $14.5 billion wireless semiconductor company focused on radio frequency (RF) and complete system solutions for mobile communications applications. Their name is virtually synonymous with the Internet of Things for which they will supply a large portion of the RF chips as the IoT grows to 50 billion connected devices by 2020.

SWKS just reported another strong quarter and outlook on January 19, igniting shares to a $10 or 12.75% gain on Friday Jan 20. As with Check Point, I expect this Zacks #2 Rank to see solid upward EPS revisions that push its Rank higher next week.

I hope this "double the momentum" list gives you at least one, or three, ideas to keep on your radar.

Where Do Zacks' Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

Get the full Report on AIT - FREE

Get the full Report on CHKP - FREE

Get the full Report on CSX - FREE

Get the full Report on LYB - FREE

Get the full Report on SWKS - FREE

Follow us on Twitter: https://twitter.com/ZacksResearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Applied Industrial Technologies Inc. (AIT): Free Stock Analysis Report

Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report

CSX Corp. (CSX): Free Stock Analysis Report

LyondellBasell Industries (LYB): Free Stock Analysis Report

Skyworks Solutions Inc. (SWKS): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

CHKP LYB CSX AIT SWKS

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More