Looking for stocks that are likely to outperform their peers in the short term? There may be no better place to start than with our Short Term PowerRatings.
One of the biggest benefits of our Short Term PowerRatings is that, with a single number, our PowerRatings give traders precisely what they need to know most about the stocks they study and trade: will this stock beat the market in the near term?
That was what the research that produced our Short Term PowerRatings was designed to discover. We looked at millions and millions of short term stock trades between 1995 and 2007, examining various characteristics of volume, momentum, trend and volatility. We wanted to first, determine which factors mattered most to short term price movement. And second, we wanted to be able to not only quantify those factors, but to be able to present them in such a way that the data would be easy to read and act upon by traders.
Consider this: our research enabled us to rate stocks on a scale of 1 to 10. Stocks rated 1, at the very lowest end of our scale, were stocks that underperformed the average stock by a margin of nearly 5 to 1 after five days. The performance in these stocks was so poor, in fact, that we encourage traders to look for stocks with Short Term PowerRatings of 1 when looking for stocks to sell short.
At the other end of the scale, we have stocks that received Short Term PowerRatings of 10. These stocks were the best of the best in terms of the kind of stocks that short term stock traders should be targeting. We found that stocks with Short Term PowerRatings of 10 outperformed the average stock by a margin of 16.9 to 1 after five days.
This kind of information can provide short term stock traders with a significant edge. Imagine being able to pick out of a litter of already qualified stock trade candidates those stocks that have historically bested the average stock by nearly 17 to 1 in the short term, "sweet spot" of 5 – 8 days.
All five stocks in today’s report have Short Term PowerRatings of 9. Our research indicates that stocks that have Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days.
Note also the 2-period Relative Strength Index values accompanying each stock. We consider stocks with 2-period RSIs of less than 10 to be oversold, with stocks that have 2-period RSIs of less than 2 being extremely oversold and warranting immediate attention by traders looking to buy weakness in otherwise strong stocks.
Perrigo Company (PRGO | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 8.13
Inter Parfums Inc. (IPAR | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 13.90
Hawaiian Holdings Inc. (HA | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 2.59
Beazer Homes USA (BZH | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 3.57
Anthracite Capital Inc. (AHR | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 7.32
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.
