Profitable Trend Investing with SK Telecom (SKM)

When it comes to short-term investing or trading, the dictum “the trend is your friend” holds true. However, sustaining a trend and profiting from it can be challenging. Stock prices often reverse direction quickly after taking a position, resulting in short-term capital losses. To mitigate this risk, it is crucial to identify stocks with strong fundamentals and positive earnings estimate revisions that can maintain momentum.

Investors seeking stocks that are currently on the move can find our “Recent Price Strength” screen useful. This screen helps identify stocks on an uptrend, supported by strong fundamentals and trading in the upper range of their 52-week high-low range, indicative of bullishness.

SK Telecom (SKM) is one such candidate that passed through this screen. Here are the reasons why it could be a profitable bet for trend investors:

– SKM has experienced a solid 5% price increase over the past 12 weeks, indicating investors’ willingness to pay more for its potential upside.
– The stock has also seen a 9.5% price increase over the past four weeks, confirming that the trend is still intact.
– SKM is currently trading at 86.2% of its 52-week high-low range, suggesting it may be on the verge of a breakout.

In terms of fundamentals, SKM holds a Zacks Rank #2 (Buy), placing it in the top 20% of stocks based on trends in earnings estimate revisions and EPS surprises. The company also boasts an impressive Average Broker Recommendation of #1 (Strong Buy), indicating optimism from the brokerage community regarding its near-term performance.

Furthermore, SKM is not the only stock passing through the “Recent Price Strength” screen. Investors can explore other stocks that meet these criteria for potential investment opportunities.

Though this screen is helpful, it is also important for investors to evaluate past performance to ensure a successful stock-picking strategy. With the Zacks Research Wizard, investors can backtest the effectiveness of their strategy and access a wide range of successful stock-picking strategies.

Investors interested in exploring SK Telecom and other potential winning stock picks can sign up for a free trial to the Zacks Research Wizard.