Last Week’s Best Performing PowerRatings’ Stock: EZPW
Today’s
PowerRatings article looks at the best performing stock for the past five
days– EZCORP Inc.
(
EZPW |
Quote |
Chart |
News |
PowerRating).Â
The chart below shows that EZPW had consolidated
in a tight range for three sessions between 10/04/06 – 10/06/06. This coincided with a
PowerRating of 7 on 10/09/06, suggesting it was likely to outperform the S&P 500 over
the next five days.
Also we can use a technical indicator to further
investigate a position. The 200-day simple
moving average
can quickly tell us the direction of the trend. In this case, EZPW is
clearly above its 200-day moving average
telling us that it is in a confirmed uptrend. This indicator along with
a PowerRating of 7 made EZPW a strong buy on 10/09/06.
Over the next five sessions EZPW
gained 17.00%.
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From 1995-2005,
stocks with a PowerRating of 8 have outperformed the S&P 500
index on average by an 8.3-to-1 margin, while a PowerRating of 10 doubles that
performance to 16.3.
PowerRatings also help indicate a stock’s
downside as well as timely short-sale entry points; PowerRatings of 1 and 2 have
on average lost money over the next week. A PowerRating of 1 typically
underperformed the S&P 500 by a 5-1 margin. Obviously, you should ideally be
looking to buy high PowerRating stocks and avoid (or short) low PowerRatings
stocks.
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class on how to use
PowerRatings,
presented by Steve Primo, our Director of Education.
Click here to
try
PowerRatings for yourself, risk free.
Darren Wong
Associate Editor
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Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.
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