3 Top Breakout Stocks Worth a Buy for Solid Returns

Core Viewpoint - Investors are encouraged to focus on breakout stocks, which are stocks poised to rise above their established trading bands for potential significant returns [1]. Group 1: Breakout Stock Selection - Breakout stocks are identified by calculating their support and resistance levels, where support is the lower price limit and resistance is the upper price limit [3][4]. - A genuine breakout occurs when a stock surpasses its resistance level, which then becomes its new support level, indicating a potential for continued upward movement [6]. Group 2: Screening Criteria - The selection criteria for breakout stocks include: - A percentage price change over four weeks between 10% and 20% [7]. - A current price that is at least 90% of the 52-week high [7]. - A Zacks Rank of 2 or better, indicating strong buy potential [7]. - A beta of 2 or less, suggesting reasonable volatility compared to the broader market [8]. - A current price of $20 or less, ensuring affordability [8]. Group 3: Featured Breakout Stocks - BrightView (BV) is a commercial landscaping service provider in the U.S. with an expected earnings growth rate of 78.6% for the current year and a Zacks Rank of 2 [8]. - Kronos Worldwide (KRO) is a leading producer of TiO2 with an expected earnings growth rate of 297.7% for the current year and a Zacks Rank of 2 [9]. - Seanergy Maritime Holdings (SHIP) is a pure-play Capesize ship owner in the U.S. with an expected earnings growth rate of 306.3% for the current year and a Zacks Rank of 2 [10].