The big run higher in stocks since early February has hit a speed bump, and over the past fortnight, we’ve seen the major averages trim off some of those gains.
Perhaps more importantly, we’ve seen key indices such as the Nasdaq Composite, Nasdaq 100 and Russell 2000 all fail to hold support at their respective 200-day moving averages.
So, does this mean we’re headed for further declines in the weeks ahead?
Not necessarily, but the breakdown in leading segments such as large-cap tech and small-caps isn’t an encouraging development for the bulls.
During times when the broad market is showing signs of a stall, the best way to find stocks capable of a continued run higher is to look at earnings growth and relative share price performance.
In fact, these two criteria are at the heart of my Next Week’s Winners advisory service, and in the days to come I plan on adding two new stocks to the portfolio that are poised to break free of this stalled market.
Here’s a sneak peek…
Preview Trade #1
This down-home restaurant chain just served up a huge plate of better-than-expected first-quarter earnings.
That earnings showing, along with growth over the past several years, has vaulted this company into the top 8% of all other publicly traded firms in terms of earnings performance.
Price wise, the shares are equally impressive, having bested more than 91% of all other publicly traded firms over the past 52 weeks.
Now I don’t know about you, but when I get really hungry I like to enjoy a man-sized steak or over-sized plate of southwest-style BBQ. Apparently I’m not alone, as that’s what this company specializes in—and that’s why customers are flocking to its doors, and investors are flocking to its stock.
Preview Trade #2
When it comes to providing tools that analyze financial markets and crunch the data that investment pros like me require, this company is at the top of the food chain.
In fact, if you own an exchange-traded fund (ETF), you might already be familiar with this company’s services.
Those services have helped this all-star firm outpace 90% of all other stocks in terms of earnings growth. That’s helped fuel a share price performance over the past year that’s in the top 14% of all other stocks.
Technically speaking, the shares are showing a very attractive “cup-with-handle” pattern that looks to be at just the right buy point.
If you’d like to find out about these stocks, as well as the other market-beating stocks in my Next Week’s Winners advisory service, I invite you to give it a try right now.