What makes Astria Therapeutics, Inc. (ATXS), a good fit for Trend Investing?
The trend is your friend when it comes short-term trading or investing. But timing entries into a trend can be crucial to your success. It’s not easy to increase your chances of success by ensuring the sustainability of a trends.
Investors can lose short-term capital because the trend will often reverse before they exit the trade. For a profitable trade to be profitable, it is important to confirm factors like sound fundamentals and positive earnings estimate revisions. That could maintain the stock’s momentum.
The “Recent Price Strength” screen is based on a short-term trading strategy and could prove to be very useful. It is easy to identify stocks with enough fundamental strength to sustain their current uptrend using this pre-defined screen. Screening only those stocks trading in the upper part of their 52 week high-low range is a good indicator of bullishness.
There were many stocks that made it through the screening. Astria Therapeutics, Inc. ATXS is one of these stocks. These are the top reasons this stock is a good choice for trend investing.
An impressive price rise over a 12-week period reflects investors’ willingness to pay more in order to unlock the potential upside from a stock. ATXS, which has gained 55.6% in the past 12 weeks, is a great fit.
But it isn’t enough to just look at the price changes for three months. It doesn’t reflect any trend reverse that may have occurred in a shorter time period. A potential winner must maintain the price trend. The trend for this stock is maintained by a price increase of 61% in the past four weeks.
ATXS currently trades at 95% its 52-week high-low range, suggesting that it may be on the cusp of a breakout.
The stock currently has a Zacks Rank 2 (Buy) which is based on the fundamentals. We rank stocks based upon trends in earnings estimates revisions and EPS surprise — key factors that affect stock prices in the near term.
The Zacks Rank stock ranking system uses four factors related earnings estimates to group stocks into five categories. Zacks Rank #1 stocks generate an average annual return +25% since 1988. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Another indicator that the company is a strong buy is its average broker recommendation of #1. This means that the brokerage community is very optimistic about the stock’s near term price performance.
The ATXS price trend may not change anytime soon.
There are many stocks that have passed our “Recent Price Strength Screen” in addition to ATXS. These stocks may be worth considering and you can start searching for newer stocks that meet these criteria.
You may not find the right stock to invest in, but this screen could be a good starting point. You can choose from 45 Zacks Premium Screens, which are designed to beat the market based on your investment style.
Keep in mind, however, that the key to a stock-picking strategy that is successful is to make sure it has produced profitable results in past. With the Zacks Research Wizard, you can do that easily. The program allows you to backtest your strategy and also includes some of our most popular stock-picking strategies.
Click here to register for a free trial at the Research Wizard.
Get the most recent Zacks Investment Research recommendations. You can now download 7 Best Stocks to Watch in the Next 30 days. Click to get this free report
Astria Therapeutics, Inc. (ATXS) : Free Stock Analysis Report