5 Well-Positioned Relative Price Strength Stocks to Buy Now

Market Performance - U.S. stock markets have shown exceptional performance over the past 18 months, with the S&P 500 increasing by approximately 17% year to date and 24% in 2023, achieving 36 all-time highs [1] Economic Outlook - Recent economic data releases have underperformed estimates, leading some economists to suggest that the Federal Reserve should consider lowering the benchmark lending rate starting in September [2] Investment Strategy - The Relative Price Strength Strategy emphasizes evaluating a stock's performance relative to its industry or peers, alongside earnings growth and valuation multiples [3] - Stocks that outperform their sectors in terms of price are more likely to provide significant returns, while underperforming stocks should be avoided [4] - Stocks that have outperformed the S&P 500 over the last 1 to 3 months and possess solid fundamentals are considered to have growth potential [5] Analyst Sentiment - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to additional price gains [6] Screening Parameters - Key screening parameters include relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7] - Stocks with a VGM Score of A or B, combined with a Zacks Rank of 1 or 2, are identified as having the best upside potential [8] Company Highlights - NextEra Energy Partners (NEP) has a market capitalization of $2.5 billion and is projected to have a 455.9% year-over-year growth in earnings per share for 2024, despite a 54% decline in share price over the past year [10] - Haemonetics Corporation (HAE) is expected to see a 15.4% year-over-year growth in earnings per share for fiscal 2025 and has a VGM Score of A [11] - Coterra Energy (CTRA) has an expected EPS growth rate of 10.8% over the next three to five years, slightly above the industry average of 10.5%, and holds a VGM Score of B [12] - LendingTree, Inc. (TREE) has a market capitalization of $550.3 million, with a projected 18% growth in earnings for 2024 and a trailing four-quarter earnings surprise of approximately 119.1% [17][18] - Williams-Sonoma, Inc. (WSM) has a market capitalization of $18.3 billion, with an expected 8.3% year-over-year growth in earnings per share for fiscal 2025 and a significant share price increase of 135.2% over the past year [21]