Possible Profitable Swing Trading With These 5 Stocks Under $20
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Swing trading requires thorough technical and fundamental analysis to identify and select swing trade stocks. The five stocks highlighted in this article not only meet the technical requirements but also have sound fundamentals. Let's discuss these swing trade-worthy stocks and how to spot them.
What Makes a Good Swing Trade Stock?
Swing trading involves capturing short- to medium-term price movements in stocks or other financial instruments. Successful swing trading requires selecting stocks with specific characteristics conducive to this trading style. Here are some qualities that make a good swing trade stock:
Volatility
Swing traders seek stocks with significant price volatility, which presents opportunities to profit from short-term price fluctuations. Higher volatility often leads to more significant price swings, creating potential entry and exit points for swing trades.
Liquidity
Liquidity is essential for executing trades efficiently without significantly impacting the stock's price. Swing traders prefer stocks with high average trading volumes, ensuring they can enter and exit positions with minimal slippage and delays.
Technical Patterns
Swing traders analyze technical charts and patterns to identify potential trade setups. Stocks exhibiting clear technical patterns, such as trend reversals, breakouts, or pullbacks, are often preferred for swing trading strategies.
Catalysts
Swing traders often look for stocks with upcoming catalysts or events that could trigger price movements. This research could include earnings reports, product launches, regulatory approvals, or industry news. Catalysts can create short-term volatility and trading opportunities for swing traders.
Short-Term Trends
Swing traders strive to capitalize on short-term price trends from a few days to several weeks. Stocks exhibiting clear short-term trends, whether bullish or bearish, are suitable candidates for swing trading strategies.
Risk Management
Effective risk management is crucial for swing trading success. Good swing trade stocks should offer favorable risk-to-reward ratios, allowing traders to set reasonable stop-loss and profit targets. Stocks with well-defined support and resistance levels can also help manage risk.
Five Solid Swing Trade Stocks
Antero Midstream Corp
Antero Midstream Corp.(NYSE: AM) is a leading midstream energy company primarily providing infrastructure services to Antero Resources Corporation, a prominent producer of natural gas and natural gas liquids (NGLs) in the Appalachian Basin. Established in 2014, Antero Midstream operates a comprehensive network of gathering pipelines, compression stations, processing plants, and water-handling assets in the prolific Marcellus and Utica shale region.
SWING SPECS
Positive EPS growth for the past five years and the next five years. (Affirmative)
Overall EPS (Affirmative)
Performance for the month (Up)
Sales growth over the last five years (Affirmative)
Above SMA 20, 50, and 200 days (Affirmative)
RSI 14 ( Overbought 70.87)
Analysts' Recommendation? (3.0)
LegalZoom
LegalZoom (NasdaqGS: LZ) is a leading provider of online legal solutions and services, catering to individuals, small businesses, and legal professionals. Established in 2001, the company has revolutionized the legal industry by offering accessible and affordable legal assistance through its digital platform. LegalZoom provides various services, including business formation, estate planning, intellectual property protection, and legal document prep.
Investing in LegalZoom presents an opportunity to profit from the growing demand for convenient and cost-effective legal services. As digitalization continues transforming various industries, LegalZoom is at the forefront of disrupting the traditional legal sector by leveraging technology to streamline processes and lower barriers to accessing legal assistance. With its established brand recognition, extensive service offerings, and scalable platform, LegalZoom is well-positioned to capitalize on market trends and expand its customer base.
SWING SPECS
Positive EPS growth for the past five years and the next five years. (Affirmative)
Overall EPS (Affirmative)
Performance for the month (Up)
Sales growth over the last five years (Affirmative)
Above SMA 20, 50, and 200 days (Affirmative)
RSI 14 ( Overbought 62.29)
Analyst Recommendation? (2.29)
领英推荐
Banco Santander S.A. ADR
Banco Santander S.A. (NYSE: SAN) is one of the world's largest banks, headquartered in Spain. It operates a diversified portfolio of financial services, including retail banking, commercial banking, asset management, insurance, and investment banking. The bank serves millions of customers globally across Europe, Latin America, North America, and other regions. Banco Santander's American Depositary Receipts (ADRs) trade on the New York Stock Exchange under "SAN."
Investing in Banco Santander S.A. ADR offers exposure to a globally diversified banking institution with a prominent presence in both mature and emerging markets. The bank's broad geographic footprint, diversified revenue streams, and focus on digital transformation position it well to navigate through various economic cycles and capitalize on growth opportunities. Additionally, Banco Santander's commitment to operational efficiency, risk management, and shareholder value creation enhances its attractiveness as an investment opportunity.
SWING SPEC
Positive EPS growth for the past five years and the next five years. (Affirmative)
Overall EPS (Affirmative)
Performance for the month (Up)
Sales growth over the last five years (Affirmative)
Above SMA 20, 50, and 200 days (Affirmative)
RSI 14 ( Overbought 79.52)
Analyst Recommendation? (1.92)
Bausch Health Companies Inc
Bausch Health Companies Inc. (NYSE: BHC), formerly known as Valeant Pharmaceuticals International, is a multinational pharmaceutical and medical device company headquartered in Canada. Bausch Health operates through various segments, including Bausch + Lomb/International, Salix Pharmaceuticals, Ortho Dermatologics, and Diversified Products. The company concentrates on developing, manufacturing, and marketing a broad range of pharmaceuticals, over-the-counter products, and medical devices, with a presence in both branded and generic pharmaceutical markets.
Investing in Bausch Health Companies Inc. offers exposure to a diversified healthcare company that offers pharmaceuticals, medical devices, and consumer healthcare products. Despite past challenges, the company has undergone strategic transformations to strengthen its balance sheet, divest non-core assets, and focus on core therapeutic areas. Bausch Health's efforts to drive organic growth, expand its product portfolio, and enhance operational efficiency position it for potential value creation for investors.
SWING SPECS
Positive EPS growth for the past five years and the next five years. (Affirmative)
Overall EPS (Affirmative)
Performance for the month (Up)
Sales growth over the last five years (Affirmative)
Above SMA 20, 50, and 200 days (Affirmative)
RSI 14 ( Overbought 69.87)
Analyst Recommendation? (2.83)
WisdomTree, Inc
WisdomTree Investments, Inc.(NYSE: WT) is a global asset management company located in New York City. It specializes in exchange-traded funds (ETFs) and exchange-traded products (ETPs), offering investors innovative and differentiated investment strategies worldwide. WisdomTree's product lineup includes a wide range of equity, fixed income, currency, and alternative investment strategies designed to satisfy the evolving needs of investors across various market segments.
Investing in WisdomTree, Inc. offers exposure to the rapidly growing ETF industry and provides access to innovative investment strategies designed to enhance portfolio diversification and generate attractive risk-adjusted returns. WisdomTree is well-positioned to capitalize on the increasing demand for passive and factor-based investment solutions globally with a focus on research-driven investment approaches, thematic investing, and smart beta strategies.
SWING SPECS
Positive EPS growth for the past five years and the next five years. (Affirmative)
Overall EPS (Affirmative)
Performance for the month (Up)
Sales growth over the last five years (Affirmative)
Above SMA 20, 50, and 200 days (Affirmative)
RSI 14 ( Overbought 71.65)
Analyst Recommendation? (2.40)
Final note
When making swing trade stock buying decisions, reviewing the stock's technical and fundamental profiles is essential. To ensure you are comfortable with your decision before you buy, pinpoint the breakout point on the candlestick charts and read about the event that triggered it. Although many swing trade options have long-term potential, you should also choose your target price for cashing out.
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