3 Strong Buy Breakout Stocks to Add to Your Portfolio

Core Viewpoint - The article discusses the strategy of selecting breakout stocks, emphasizing the importance of identifying support and resistance levels to make informed investment decisions [1][2][3]. Group 1: Breakout Stock Selection - Breakout stocks are identified by calculating their support (lower bound) and resistance (upper bound) levels, with a recommendation to sell if prices dip below the support level and hold if they surpass the resistance level [1][2]. - The demand for a stock is lowest at its support level, while traders are more inclined to buy at the resistance level, indicating potential breakout opportunities [3]. Group 2: Genuine Breakout Criteria - A genuine breakout occurs when the previous resistance level becomes the new support level, which can be confirmed through long-term price trend analysis [4][5]. - The strength of support and resistance levels is crucial for determining the validity of a breakout, and misidentification can lead to investment risks [5]. Group 3: Screening Criteria for Breakout Stocks - The screening criteria for identifying breakout stocks include a percentage price change over four weeks between 10% and 20%, a current price at least 90% of the 52-week high, a Zacks Rank of 1, a beta of 2 or less, and a current price of $20 or less [6][7]. - These criteria narrow down the stock universe to a select few, highlighting three top stocks: Mission Produce, BGC Group, and Nu Holdings, each with significant expected earnings growth rates of 136.8%, 20.7%, and 70.8% respectively for the current year [7][8][9].