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

Most 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.

Often, the direction of a stock’s price movement reverses quickly after entering a position, causing investors to suffer a short-term capital loss. It is therefore important to ensure that there are enough factors – such as strong fundamentals, positive revisions to 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 10.4% over this period.

However, just looking at the price action for about three months is not enough, as it does not reflect any trend reversals that might have happened in a shorter time frame. It is important for a potential winner to maintain the price trend. A price increase of 10.9% 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 81.3% 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.

It’s not the only screen that could help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock picking strategy is to ensure that it has produced profitable results in the past. You can easily do this with the help of Zacks search assistant. As well as allowing you to test the effectiveness of your strategy, the program comes with some of our most successful stock picking strategies.

Click here to sign up for a free trial of Research Assistant today.

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

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

To read this article on Zacks.com, click here.

Zacks Investment Research

Comments are closed.