5 PowerRatings Stocks for the Next 5 Days: INTC, AMGN, CSCO, AXP, EXPE
Looking for stocks that are likely to outperform the average stock over the next few days? Our 5 PowerRatings Stocks for the Next 5 Days column is a great place to start!
The nascent pullback in stocks affords potential opportunity for short term, mean reversion traders who use PowerRatings to spot edges in oversold and overbought markets.
The ranks of 10-rated stocks have been surprisingly high given the strength of the broader market over the past few days. This suggests that if — and when — the broader markets do sell-off in earnest, the number of high PowerRatings stocks — especially those with PowerRatings of 9 or 10 is likely to grow even further.
Remember that our research into short term stock price behavior indicates that stocks with PowerRatings of 9 have outperformed the average stock by a margin of more than 9 to 1 after five days. Stocks with PowerRatings of 10 have fared even better. Our research indicates that 10-rated stocks have bested the average stock by a more than 14 to 1 margin over the same, short-term time frame.
Looking at some of the more widely traded stocks that are earning PowerRatings upgrades late in trading on Monday, here are some of these stocks that short term traders should keep on their watchlists. This is especially so if we continue to see weakness in these names while they continue to trade above their 200-day moving averages.
Intel Corporation
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PowerRating) remains the highest rated stock in the Dow industrials. The stock had closed lower for three days in a row going into Monday’s trading and had earned a PowerRating of 9.
Down three days in a row above the 200-day moving average and closing in on a fourth was Amgen
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PowerRating) on Monday. Although the stock’s rate of descent has slowed, it remains significantly oversold and had a PowerRating of 8.
Cisco Systems
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PowerRating) earned an intraday PowerRating of 8 as it fell more than 3% late in trading on Monday. The stock has closed lower for two out of the past three days.
Lastly, here are two out of today’s five that have very low PowerRatings of 1 or 2. These are the overbought stocks today that will be the pullbacks of tomorrow as traders and investors respond to overbought conditions by taking profits.
1-rated American Express
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PowerRating) earned an intraday PowerRating upgrade of 2 on Monday. But the severely overbought financial stock remains increasingly vulnerable to a pullback in the near term.
There may not be many more overbought stocks than Expedia
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PowerRating), which has a PowerRating of 1. This stock has not been in oversold territory since an early July bottom catapulted the stock on a run from less than $14 to more than $20. Our research suggests that 1-rated stocks have underperformed the average stock by a margin of more than 5 to 1 after five days. If you have been looking for an opportunity to buy EXPE, then it is possible that cheaper prices may be the reward of the patient.
Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!