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Zacks Investment Ideas feature highlights: Aflac, Johnson & Johnson, LKQ, Prestige Brands and Stryker

For Immediate Release

Chicago, IL- April 22, 2016 – Today, Zacks Investment Ideas feature highlights Features: Aflac (AFL), Johnson & Johnson (JNJ), LKQ Corp (LKQ), Prestige Brands (PBH) and Stryker (SYK).

5 Skyrocketing Momentum Stocks

A busy day for breakouts as the major market averages have been pressing against significant resistance over the last few sessions. You can put the S&P 500 at 2,100 and the Dow at 18,000 in the same camp. You can also lump together the NASDAQ and the Russell 2000 leapfrogging their 200-day moving averages. While the bears and range-bound traders alike are looking for the topping process right now, we need to keep in mind the possibility of a further breakout here.

As I do each and every week, I went ahead and put together my list of stocks that are breaking out to 52-week highs. In recent weeks, I’ve had to widen my screen a little bit to include stocks within 5-10% of their highs. I’ve also loosened my rating standards from time to time, just to find the stocks with the most relative strength and the best chance of continuing to move higher.

This week I didn’t have to do any tweaking at all. I found nine different equities aggressively moving higher that were Zacks Rank #2 (Buy) and Zacks Rank #1 (Strong Buy) stocks. These stocks aren’t within a few points of their 52-week highs, they are at their 52-week highs. Here I’ve put together a list of the five strongest charts of the five that in my opinion should continue to rocket higher during this breakout.

Aflac (AFL)

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance products. The Aflac U.S. segment provides products designed to protect individuals from depletion of assets, which comprise accident, cancer, critical illness/critical care, hospital intensive care, hospital indemnity, fixed-benefit dental, and vision care plans; and loss-of-income products, such as life and short-term disability plans in the United States.

That duck may be on to something here. A very cyclical, range bound trade has broken out here as shares pushed above $66. We are in the early stages on this breakout even though we are in the later stages of the broader move upwards. You shouldn’t use the January lows as your reference point here but rather the top end of the previous trading range at $66. I’d put a stop just below the top end of that range, comfortably at $62 so as not get picked off by any stop hunting in the short term.

Johnson & Johnson (JNJ)

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates through three segments: Consumer, Pharmaceutical, and Medical Devices.

Here’s a good old fashioned breakout that’s not looking back and is in fact picking up steam. Given the size of this company, it’s hard not to be bullish on the rest of the market after looking at it. Initial resistance near $105 gave way in March but the last several days is where the stock has really accelerated. The 21-day moving average lies at $109.17 providing trend line support on the way up. I’d have a stop below that level near $108.

LKQ Corp (LKQ)

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles in the United States, the United Kingdom, and internationally.

Interestingly enough, LKQ broke a downward trend which plagued the stock for much of late 2015 and early 2016. It looks like the March move was the death knell for the downtrend and the buyers have since rushed in for the rally. Support at the 21-day is also present in shares of LKQ. The previous resistance near $31 should lie just north of any stops I place.

Prestige Brands (PBH)

Prestige Brands Holdings, Inc., through its subsidiaries, markets, sells, and distributes over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally.

Prestige Brands has recently broke out above the 52-week high. The stock stalled just shy of this high in mid-March and retraced to the 21-day, with the CCI dipping to -200. From there it caught a bid, the CCI crossed over the zero line and it’s been moving with that strength ever since. I’d be fine with entering here with a stop below the November highs. $53 should be safe.

Stryker (SYK)

Stryker Corporation, together with its subsidiaries, operates as a medical technology company. It operates through three segments: Orthopedics; MedSurg; and Neurotechnology and Spine. The company markets its products to doctors, hospitals, and other healthcare facilities in the United States; and sells its products through company-owned sales subsidiaries and branches, as well as third-party dealers and distributors in approximately 100 countries.

Stryker bounced off lows in mid-January just above $86. Since pushing above the 21-day moving average later that month, the stock has been on a one-way rampage to new highs. The CCI has consistently bounced between the zero line and very overbought levels of 200. Each push above 200 is met with a quick retrace while shares continually move along the bullish trend line. Support sits below the 21-day near $107.80.

Bottom Line

This is the type of market where you shouldn’t shy away from buying high and selling higher. The breakouts are happening all around you. While the broad indexes may not follow suit, a bifurcated market with present you with all sorts of trading opportunities. This truly is a stock picker’s market.

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AFLAC INC (AFL): Free Stock Analysis Report
 
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
 
LKQ CORP (LKQ): Free Stock Analysis Report
 
PRESTIGE BRANDS (PBH): Free Stock Analysis Report
 
STRYKER CORP (SYK): Free Stock Analysis Report
 
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