Buy 3 Top Stocks on the Verge of a Breakout: GHLD, DDI, TZOO

Market Overview - Major bourses on Wall Street rebounded after early August declines due to encouraging retail sales and initial claims reports that alleviated recession fears [1] - Federal Reserve Chair Jerome Powell indicated that the time has come for interest rate cuts, contributing to the rise in stock prices [1] - Current tensions in the Middle East may dampen the upward trajectory of the market [1] Breakout Stocks Strategy - Investors are advised to focus on breakout stocks that can capitalize on the broader uptrend in the stock market [2] - Breakout stocks are identified by their price movements within a narrow band, with optimal buying opportunities occurring just before a breakout above this trading band [2] Selected Breakout Stocks - American Guild Holdings Company (GHLD), DoubleDown Interactive Co., Ltd. (DDI), and Travelzoo (TZOO) have been identified as breakout stocks for the day [3] Breakout Stock Selection Criteria - To select breakout stocks, it is essential to calculate support and resistance levels, where support is the lower bound and resistance is the upper bound of stock movements [4][5] - A genuine breakout occurs when the previous resistance level becomes the new support level, validated by long-term price trends [7] Screening Criteria - Stocks must show a percentage price change over four weeks between 10% and 20% [8] - Current price must be at least 90% of the 52-week high [8] - Zacks Rank must be less than or equal to 2, indicating strong buy ratings [8] - Beta for 60 months must be less than or equal to 2, and current price must be $20 or less [8] - These criteria narrow the stock universe from over 6,853 to only 23 candidates [8] Company Profiles - American Guild Holdings Company (GHLD): Provides financial services, primarily residential mortgage loans in the U.S., with an expected earnings growth rate of 96.2% for the current year [9] - DoubleDown Interactive Co., Ltd. (DDI): Develops and publishes digital social casino games, with an expected earnings growth rate of 15.8% for the current year [10] - Travelzoo (TZOO): An Internet media company with an expected earnings growth rate of 18.8% for the current year [11]