Zacks

Zacks.com featured highlights include Limbach, Grand Canyon Education, Thermon Group, Barrett Business Services and HNI

Zacks Equity Research
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In This Article:

For Immediate Release

Chicago, IL – November 15, 2023 – Stocks in this week’s article are Limbach Holdings Inc. LMB, Grand Canyon Education Inc. LOPE, Thermon Group Holdings Inc. THR, Barrett Business Services Inc. BBSI and HNI Corp. HNI.

5 Stocks with Recent Price Strength to Tap the Wall Street Rally

Wall Street regained momentum in November after three consecutive months of negative closing. The three major stock indexes — the Dow, the S&P 500 500 and the Nasdaq Composite — witnessed two successive weeks of positive closing.

The Fed kept the benchmark lending rate unchanged at the existing 5.25-5.5% range in its last two FOMC meetings. Fed Chair Jerome Powell said that the central bank still has a long way to go before reaching the 2% target inflation rate. Yet, he acknowledged that the higher interest rate regime is getting the desired results.

Moreover, as several key economic data are gradually cooling, a large section of market researchers and economists expect the Fed to be already through with this round of the interest rate hike cycle. CME FedWatch has currently assigned a just 14% chance of another round of rate hike.

Consequently, yields on U.S. government bonds stabilize. The yield on the benchmark 10-Year U.S. Treasury Note dropped to 4.646% after spiking to more than 5.1% in the last week of October. The yield on the long-term 30-Year U.S. Treasury Note also dropped during this period.

Despite the recent rally, a handful of stocks have shown price strength. We have selected five stocks likely to gain in the near term on the back of a favorable Zacks Rank. These companies are — Limbach Holdings Inc., Grand Canyon Education Inc., Thermon Group Holdings Inc., Barrett Business Services Inc. and HNI Corp..

Here's How We Arrived at the Picks

We have primarily targeted stocks that have freshly been on a bull run. Stocks seeing price strength recently have a high chance of carrying the momentum forward.

If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.

However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.

Here's how you should create the screen to shortlist the current as well as the potential winners.

Let's discuss five out of those six stocks:

Limbach Holdings provides building systems solutions in the United States. LMB engineers, constructs and services the mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems. LMB operates in two segments, namely, General Contractor Relationships and Owner Direct Relationships.

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