Two Momentum Stocks Poised for a Breakout

Market Beating Stocks looks for stocks that are poised for a breakout, meaning a 30% price gain target within 6 months. How do we find these stocks? We search over 8,000 stocks daily using our proprietary stock screen called "MARP": Momentum At Reasonable Prices. The MARP screen searches for stocks that have shown strong price momentum over the past three- and six- month periods reflecting strong investor demand. From that starting point, we narrow our selections down to only those stocks that remain reasonably priced. We use a number of criteria to evaluate "reasonableness" including PE multiples, price to sales ratios, relative industry comparisons, and growth rates. Finally, we review each stock chart to ensure recent price movements represent good "buying" opportunities.

What stocks does our MARP strategy currently show? Sun Healthcare (SUNH) and Comfort Systems (FIX) are both currently on our buy list. Let's review each one briefly.