Zacks.com Featured Highlights Include: ITOCHU, Am??rica M??vil, Donegal, DaVita And The Cardinal Health

For Immediate Release

Chicago, IL – March 20, 2020 – Stocks in this week’s article are ITOCHU Corporation (OTC:ITOCY) , América Móvil (NYSE:AMX) , Donegal Group Inc. (NASDAQ:DGICA) , DaVita Inc. (NYSE:DVA) and The Cardinal Health (NYSE:CAH) .

Use Relative Price Strength to Survive Coronavirus Hysteria

The fast-spreading novel coronavirus outbreak has triggered an unprecedented sell-off in equities and bonds. Stocks are being clobbered, major indices are crashing regularly, while oil has plunged to lowest levels in 18 years. Global efforts to combat the pandemic’s impact and rev up economic activity have largely failed so far.

Amid all the coronavirus-induced lockdown, panic and isolation, there are still certain stocks built to survive the crisis. One of the ways such potential plays could be identified is to look for signs of relative price strength.

Relative Price Strength Strategy

Whether a stock has the potential to offer considerable returns is determined primarily by its earnings and valuation ratios. Simultaneously, it is important to check whether its price performance exceeds its peers or the industry average.

Upon such comparison, if we find that a stock is unable to match up to wider sectoral growth despite having impressive earnings momentum or valuation multiples, it may be better to avoid it.

However, those outperforming their respective industries or benchmarks should be included in your portfolio, since they have a higher chance of securing significant returns. Picking a stock that outperforms its peers ensures that you have a winning option on your hands.

Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.

Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/822893/use-relative-price-strength-to-survive-the-coronavirus-hysteria

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

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