EZPW – Last Week’s Best PowerRatings’ Stock
Today’s
PowerRatings article looks at the best performing stock for the past five
days: EZCORP
(
EZPW |
Quote |
Chart |
News |
PowerRating)
The chart below shows that EZPW had been sliding
for several sessions from 1/12/07 to 1/19/07 . This coincided with a
PowerRating of
8 on 1/19/07 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 positions. The 200-day simple
moving average
can quickly tell us the direction of the trend. On 1/19/07, EZPW was held up by
its 200-day moving average (red line), but prior to that EZPW had not traded
below its 200-day moving average since November of 2005, which shows how long
lasting and powerful the uptrend has been. This indicator along with
a strong PowerRating made EZPW a strong buy on 1/19/06.
Over the next five sessions EZPW
gained 20.35%.
PowerRatings performance shows the returns versus
the S&P 500 for the equivalent 5-day hold. The stocks which have had a PowerRating of 8 have outperformed the S&P 500 index on average over the next 5
days by an 5.8-1 margin. Stocks with a PowerRating of 9 have outperformed by a
10.1-1 margin. Stocks with a PowerRating of 10 have outperformed the S&P by
nearly 14.7-1 margin. This potential edge opens up a number of possibilities for
your trading and investing.
One more interesting fact about the
PowerRatings; PowerRatings of 1 and 2 have on average lost money over the next
week. A PowerRating of 1 has underperformed the S&P 500 by a 5-1 margin.
Obviously, you should ideally be looking to be buying high PowerRating stocks
and avoid (or short) low PowerRatings stocks.
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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.