3 of the Best Breakout Stocks to Buy Now

Core Insights - The article discusses an active investing approach focused on identifying breakout stocks within specific price ranges, recommending to sell if prices drop below the lower band and hold for gains if they surpass the upper band [1] Group 1: Breakout Stock Identification - Breakout stocks are identified by calculating support and resistance levels, where support is the lower bound and resistance is the upper bound of stock movements [2] - Demand for a stock is lowest at the support level, while traders are more inclined to buy at the resistance level, indicating potential breakout candidates [3] - A genuine breakout occurs when the previous resistance level becomes the new support level, which can be confirmed through long-term price trend analysis [5] Group 2: Screening Criteria - The screening criteria for identifying breakout stocks include a percentage price change over four weeks between 10% and 20%, current price being at least 90% of the 52-week high, and a Zacks Rank of 1 [6] - Additional criteria include a beta of 2 or less, and a current price of $20 or less, narrowing the stock universe to only six candidates [7] Group 3: Featured Stocks - EMX Royalty Corporation focuses on exploring and generating royalties from metal and mineral properties, with an expected earnings growth rate of 200% for the current year [7] - DNOW Inc. distributes energy and industrial products globally, with an expected earnings growth rate of 18.6% for the next year [8] - EZCORP, Inc. provides pawn services in the U.S. and Latin America, with an expected earnings growth rate of 17.9% for the current year [8]