3 Strong Buy Breakout Stocks for Attractive Returns

Core Viewpoint - The article emphasizes the strategy of selecting breakout stocks that are poised for significant price increases, focusing on stocks that are about to break above their trading bands for potential high returns [1]. Group 1: Breakout Stock Selection - To identify breakout stocks, investors must calculate support and resistance levels, where support is the lower price limit and resistance is the upper price limit for stock movements [2]. - A genuine breakout occurs when a stock surpasses its resistance level, which then becomes the new support level, indicating a strong buying opportunity [3]. Group 2: Screening Criteria - The screening criteria for breakout stocks include: - A percentage price change over four weeks between 10% and 20% [4]. - A current price that is at least 90% of the 52-week high [4]. - A Zacks Rank of 1, indicating a strong buy rating [4]. - A beta of 2 or less, showing reasonable volatility compared to the broader market [4]. - A current price of $20 or less, ensuring affordability [4]. Group 3: Featured Stocks - Idaho Strategic Resources (IDR) is a junior mining company with a focus on gold production and an expected earnings growth rate of 700% for the current year [4][6]. - MAG Silver Corp. (MAG) specializes in high-grade mining projects across the Americas, with an expected earnings growth rate of 46.8% for the current year [5]. - Latham Group, Inc. (SWIM) designs and manufactures residential swimming pools, with an expected earnings growth rate of 750% for the current year [6].