3 Stocks Under $5 on Winning Streaks

3 Stocks Under $5 on Winning Streaks

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Are you on the lookout for low-priced stocks with strong price movement? We ran a screen with this in mind.

Finding quality stocks in a low-price range can be difficult, so we started with a universe of names with market caps above $300 million and trading between $1 and $5. Markets trading at these values tend to be less observed than their higher-priced peers, and less scouted by penny stock investors. We feel stocks in this range offer an opportunity to explore a relatively unobserved universe of stocks. High market caps suggest greater stability.

Next, we looked for stocks showing signs of outperforming the market – which can mean big percentage gains for stocks in the low price range. To do this we screened for stocks on winning streaks, measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research

Do you think these stocks will continue to win? Use this list as a starting point for your own analysis.

 

1. Office Depot, Inc. (ODP, Earnings, Analysts, Financials): Together with its subsidiaries, supplies office products and services. Market cap at $1.24B, most recent closing price at $4.33. The stock's average daily alpha vs. the S&P500 index stands at 1.13% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 3 days (i.e. a win streak / losing streak ratio of 2.33). The stock's average daily alpha vs. the S&P500 index stands at 1.13% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 3 days (i.e. a win streak / losing streak ratio of 2.33).
 

 

2. Sonus Networks, Inc. (SONS, Earnings, Analysts, Financials): Provides voice and data infrastructure solutions for wireline and wireless telephone service providers. Market cap at $637.3M, most recent closing price at $2.27. The stock's average daily alpha vs. the S&P500 index stands at 1.12% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5). The stock's average daily alpha vs. the S&P500 index stands at 1.12% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).
 

 

3. SUPERVALU Inc. (SVU, Earnings, Analysts, Financials): Operates retail food stores in the United States. Market cap at $834.63M, most recent closing price at $3.91. The stock's average daily alpha vs. the S&P500 index stands at 1.46% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5). The stock's average daily alpha vs. the S&P500 index stands at 1.46% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).
 

 

 

(List compiled by SABINA BHATIA. Price data sourced from Yahoo! Finance, all other data sourced from Finviz.)

 

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