Private Bancorp of America, Inc. (PBAM) is on the move, here’s why the trend could be lasting
While “the trend is your friend” when it comes to investing or short-term trading, when to enter the trend is a key determinant of success. And increase the chances of success by ensuring that the sustainability of a trend is not easy.
Often times, the direction of a stock’s price movement reverses quickly after taking a position in it, causing investors to experience a short-term capital loss. So it’s important to make sure that there are enough factors – such as strong fundamentals, positive revisions to earnings estimates, etc. – who could keep the momentum going.
Investors looking to profit from stocks that are currently on the move may find our Recent Price Strength screen very useful. This preset screen is handy for spotting stocks that have an uptrend supported by the strength of their fundamentals and trading in the upper end of their 52 week high-low range, which is usually an indicator of bullish.
There are several stocks that have crossed the screen and Private Bancorp of America, Inc. (PBAM) is one of them. Here are the main reasons why this stock is a solid choice for “trend” investing.
A sharp rise in price over a 12-week period reflects the continued willingness of investors to pay more for a stock’s potential rise. PBAM is quite well suited in this regard, gaining 14.8% over this period.
However, it is not enough to look at the price movement for about three months, as this does not reflect any trend reversals that could have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A 3.1% price increase over the past four weeks ensures that the trend is still in place for shares of this company.
Additionally, PBAM is currently trading at 100% of its 52 week high-low range, suggesting that it may be on the verge of a breakout.
Looking at the fundamentals, the stock is currently ranked Zacks # 1 (strong buy), which means it is in the top 5% of over 4,000 stocks that we rank based on trends in estimates revisions. EPS profits and surprises – the key factors that influence short-term price movements of a stock.
Zacks Rank’s stock rating system, which uses four factors related to earnings estimates to rank stocks into five groups, ranging from Zacks Rank # 1 (Strong Buy) to Zacks Rank # 5 (Strong Sell), has an impressive externally audited track. record, with Zacks Rank # 1 stocks generating an average annual return of + 25% since 1988. You can see the full list of current Zacks Rank # 1 (Strong Buy) stocks here >>>>
Another factor that confirms the fundamental strength of the company is its # 1 medium broker recommendation (strong buy). This indicates that the brokerage community is very optimistic about the short-term price performance of the stock.
So the price trend in PBAM might not be reversing anytime soon.
In addition to PBAM, there are several other stocks that are currently going through our “Recent Price Strength” screen. You can consider investing in it and start looking for the most recent stocks that meet these criteria.
This isn’t 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 displays that are strategically created to beat the market.
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Private Bancorp of America, Inc. (PBAM): Free Stock Analysis Report
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