Utility companies are thriving
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European Software Companies Are Set to Make a Comeback
European stock markets are currently outperforming their U.S. counterparts, and thanks to the gains of the past few days, our screenings have identified a number of interesting stocks. Among these, we have highlighted stocks that have recently shown signs of a structural turnaround, while strengthening buying pressure is also supporting the positive technical picture. One such company is Germany’s Nemetschek, a leading provider of construction and architectural design software. The other is the Dutch firm Wolters Kluwer, which offers professional information, software, and specialized database solutions. For both stocks, the search for long entry opportunities may have begun.
This week, only the utilities sector was able to defy the downward market trends. It outperformed other sectors in a way not seen in a long time. This factor may also point to risk aversion on the US stock markets. This week, we highlighted Xcel Energy and PEG stocks among the winners.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Xcel Energy (daily): The stock has been on an upward trend for some time now. The 75 level was an important support, as it did not fall below it but managed to bounce off it in recent days, so it could move permanently from the 50-75 range to the 75-100 range. The target price can therefore be set at around 100. A break in the rising green trend line would be problematic from a long perspective.
Public Service Enterprise Group (daily): After a long period of correction and accumulation, we are seeing strong buying signals. The price rose above 81.25, giving a long signal. Based on the previous pattern, a new peak is definitely possible. If we take the upward trend pattern that started in early 2024 as a basis, the target price could be around 106.25.
List of stocks with a chance of a turnaround in the coming weeks
Not a single paper met the screening criteria this week.
Most popular US stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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