One of the stock screens I typically run is designed to identify stocks that appear to be breaking out of consolidation patterns. In a bull market, buying these types of stocks is often a good strategy. With that in mind, I want to share some ideas that are currently being generated. Here are the parameters I employed:
- Member of the Russell 3000 index
- Market Cap > $200mm •Within 10% of its 52-week high
- Within 100% of its 52-week low •1-month price >5% (it's moving!)
- 3 month price up 3-15% (it's moving but not too much)
- 1-year price < 20% •2011 earnings estimate stable to rising over past 3 months
- PE vs 10yr median < 1.6X
- 2011 PEG Ratio < 1.4
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