High PowerRating, Low Price: 5 Stocks for Swing Traders

Stocks finished the day on Wednesday near Tuesday’s closing levels. This leaves us with a market that is very much in neutral mode – neither clearly oversold, nor clearly overbought.

If there are any clues to direction in the near-term, then those clues may lie in the fact that stocks in both the S&P 500 and Nasdaq Composite managed to rally from their intraday lows on Wednesday to close nearer to the highs of the day. Although we will need to see what momentum traders call “follow-through” before we can be convinced that this intraday rally will result in higher prices on Thursday or Friday, the fact that stocks are not overbought makes it that much more possible for the market to move higher in the near term.

As such, many of the opportunities that existed yesterday still exist and are available for swing traders to take advantage of in the short term. The ratio of 8 rated stocks to 9 rated stocks, for example, is little changed from yesterday. And with the broader markets having 2-period RSI values in the 40s and 50s, we have a market still waiting for another big move.

Here are 5 stocks, all with dollar values of less than $15 that may be worth adding to your watchlist for the next time profit-taking strikes in earnest.

Crawford & Company Class B (CRD.B | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 8.37

La-Z-Boy Inc. (LZB | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 2.88

Stewart Enterprises Inc. (STEI | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 2.21

Cryolife Inc. (CRY | Quote | Chart | News | PowerRating) Short Term PowerRating 9. RSI(2): 24.87

Viropharma Inc. (VPHM | Quote | Chart | News | PowerRating) Short Term PowerRating 8. RSI(2): 8.33

Of the five stocks in today’s report, four have Short Term PowerRatings of 9 and one has a Short Term PowerRating of 8. Our research into short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 over the same time period.

Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.

Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.